Are you being paid what you're worth?
Most of us go to work to get paid, to pay the bills and afford the life we choose to live. If we’re lucky we also have a job that we enjoy, one that provides professional development and growth, flexibility and work-life balance amongst other things. Given that getting paid, is in most cases the driving factor for us being at work, it is surprising that pay is still such a taboo subject.
Why pay matters?
First off, the rate of inflation in the UK and US went up very quickly in 2021, in the UK inflation is 5.4% and expected to reach 6% by spring this year. Inflation is a massive concern because it means a loss of purchasing power over time, hence if you are not getting paid fairly, now is as good a time as ever to try and fix it.
Over the past decades, the gender pay gap has been narrowing but women remain underpaid with respect to their male peers, in the UK men earned on average 15.4% more than women per hour in 2021. Additionally, women are less likely to have a steady income stream over the course of their lifetimes, in part due to child rearing and care responsibilities. I for one don’t want to be underpaid relative to my male peers and will do all I can to ensure that this doesn’t happen.
It pays to negotiate
If you don’t ask… well, most managers are not psychic so don’t know your expectations until you communicate them. There are also numerous studies that have found that women are less likely to ask for a pay rise or negotiate pay when taking a new role. It is not easy asking for more money, in fact I personally find it extremely awkward, however, when done authentically and armed with information, it truly pays off. Know that many employers will have more budget to spend on your salary than what they’ve initially offered and asking for more today can impact your life-long earnings.
You don’t know what you don’t know
If pay is a taboo subject, how do you find out how much you get compared to your peers and how do you know if you’re getting paid fairly?
I believe information is a powerful tool, especially when negotiating pay. Here are 3 ways to find out if you are being paid competitively.
1. Your peers
Don’t be afraid to speak to your colleagues and friends or others in your network. Although it may feel awkward, you are likely to find others like yourself who are comfortable sharing an indicative salary range.
2. Recruiters
Market rates can only be accessed from the market. Speaking to recruiters is a great was to understand what others with your skills and experiences are being paid.
This may seem obvious, but it took a mentor to point this out to me. Don’t be afraid to apply for jobs to source information about pay even if it only goes to prove that you really love your job and don’t want to leave, at least you have sourced more information for negotiating future pay rises.
3. Your manager
I know… Awkward! Presented in the right way this could be powerful as your manager will most likely have a view of what you earn compared to your peers. I definitely think this conversation should be approached carefully, for example, you could ask if it is possible to earn £X in your current seat and what you would have to do to get there. You could also ask if you could get a X% pay rise if you met certain performance criteria. Having conversation can help manage expectations for both of you. From experience, I know that there are managers who appreciate the transparency given when having these conversations..
4. Online salary tools
My go to for finding out indicative ranges for pay and benefits was always online, glassdoor.com being a favourite. It is truly amazing to have this wealth of information at our fingertips, although on some occasions I found it difficult to gain an accurate estimate that factored in the location and specialism I was searching for. With so much information available online this is definitely a great start, but note that market rates change over time and there is no guarantee the salaries submitted online are up to date.
It’s important to note that money is not everything! There are other benefits that may be more important and this may change over time, for example flexible working could be more important than pay to a new mother trying to balance work and home life in a way she has never had to before.
I listened to a great podcast from the FT Money Clinic with Clear Barrett on the topic of asking for a pay rise (link below). Have you got any articles or podcast recommendations you can share?
I would love to know your opinions and experiences negotiating pay and benefits so please comment below.
References
https://podcasts.apple.com/gb/podcast/money-clinic-with-claer-barrett/id287031335?i=1000547511685
