Feel Like You’re Being Underpaid? Here’s What to Do About It
Do you suspect you’re being paid lower than others in the same role as you? Being underpaid, meaning that you’re receiving lower compensation than others for the exact same job in the same industry and location is frustrating, and unfortunately all too common.
The wage gap is still very real, especially if you’re a woman or belong to a minority. Based on a Pay Equity data, Black workers only earn 70% of the average white man’s salary, and women see only about 87%. These are also the groups that are less likely to get the raise, or even to ask for one.
Gender, race, and ethnicity are not the only factors that make this phenomenon so widespread. Another big issue is that the federal minimum wage has not changed for a long time. Therefore, unless your province or city has a different ruling, there’s not a modern legal framework in place to protect the most vulnerable workers.
In fact, being paid less than what you deserved happens across all the workers’ groups, at all levels. But that’s about to change for you. In this article you’ll learn how to verify if you’re being underpaid and what actions to take to change that.
The Effects of Being Low-Paid
Realizing you’re being paid less than someone else for the exact same job can understandably unchain a series of negative emotions. If you’re part of those 51% Canadian workers that think they aren’t paid fairly you’re likely facing a drop in overall job satisfaction and happiness in the workplace. These things pave the path for burnout to happen.
There is evidence that getting an unfair wage can induce or contribute to stress, anxiety and even depression. Therefore, the problem is not only a matter of how much ends up in your pocket at the end of the month but also the consequences that your mental health could suffer.
Why Do Companies Underpay Their Employees?
The number of reasons why companies might end up paying employees differently for the same positions is countless. It’s not always simply about greed, gender, or race bias. Between the time your higher-paid colleague’s salary and yours were established, there might have been different:
- company financial standings
- general economy climates
- funds allocated to attract new talent
- requests from your colleagues for a raise
That’s why asking yourself “Am I being paid fairly?” should first result in performing a bit of an audit on your salary situation to understand the bigger picture.
Are You Underpaid at Work? Learn How to Find Out
Before jumping into the practical steps to take to understand if your salary matches your contribution, ask yourself the following questions:
- Have your responsibilities increased since the last time your salary was reviewed?
Maybe you’ve been involved in additional projects beyond your original tasks, maybe you’ve been assigned the training of the new hires, or something else. Whichever it is, if you didn’t receive an appropriate pay bump, chances are you’re overworked and underpaid.
- Is your salary reviewed every year to match at least inflation?
In stable economic scenarios, inflation rises at 2.67% a year. This means that if you don’t get a raise of at least 2.67% a year, which is technically known as “cost of living adjustment” (COLA), you’re making less each year.
- Do you have performance reviews regularly?
Performance reviews are the perfect occasions to stand up for yourself, including presenting the case for a raise. When did you have your last one?
Use a Salary Calculator
To check that your salary is fair, you should also use tools like Monster's Salary Calculator, which allows you to look up the range and average salary for a specific job title in any geographical area. Since their data is based on a large pool of roles, salary tools can’t tell you exactly how much you’d be paid for your particular experience, education, or company size. Nevertheless, they are still useful to understand where your wage is currently standing.
Research the Salary for Your Role, Location and Experience
Another hack you can try to assess your wage is to head over to the job boards and look for offers for your role that require similar experience to yours. If you’re lucky or live in one of the provinces that have pay transparency laws, you’ll find the range the company is willing to pay for that job.
Talk to Recruiters
Recruiters’ jobs are to find candidates based on employers’ needs and budgets, so they certainly know how much your position can be paid in the current market. Unless you’ve already established a relationship with a recruiter in the past, this step might be a bit difficult to perform without actually jumping back into the job market. However, asking can’t hurt and can help you find out if you’re being underpaid.
Network with Industry Peers
This next step requires a little bit more commitment but trust us when we say it’s going to be one of the best tools in your arsenal. Whenever you have the chance, whether it’s in person or online, establish relationships with peers or mentors in your industry.
You’ll soon find out that accessing information is much easier when you know the right people. It’s also a good idea to be in contact with professional associations in your field, as they routinely collect certain data, such as average wages.
Speak with Your Colleagues
Contrary to what many believe, it’s not illegal to discuss wages at work. So, if you’re able to build a trusting relationship with your coworkers and the right situation presents itself, don’t be afraid to ask how much they make. Remember that all employees benefit from pay transparency but be respectful if someone doesn’t want to share.
How to Ask for a Raise When You’re Underpaid
So, after your investigation, your suspects are confirmed. Your company is paying you less than you deserve. What now? Control the urge to storm into your boss’ office threatening to quit. Instead, make a plan of action.
Knowing how to tell your boss you’re underpaid and that you deserve a raise in the most productive way is key to building a bulletproof case. To do so you must collect and present your information in the most objective way by using:
- precise salary data for your job title and experience
- your key accomplishments and contributions to the team with clear KPIs
- positive feedback from colleagues or customers
- additional tasks you took on, on top of your normal responsibilities
All of the above constitute undeniable proof of your worth and can only support your request to receive a fair market price for your skills.
What to Negotiate Besides Money
If your company doesn’t currently have the budget to accommodate a raise but is willing to keep you happy, there are other things besides cash that you could ask for. Here are just a few that, depending on your priorities, might be just as good as a heavier paycheck, at least for the time being:
- more PTO
- flexible hours
- remote working
- parental leave
- a new job title
- new work equipment
- transportation reimbursement
- tickets restaurant
- company equity
- training and education opportunities
What to Do if Your Employer Won’t Meet You Halfway
If your employer refuses all your requests, there are actions you can take to protect or improve your mental health from the disappointment. Here are some of them:
Set Boundaries
How you manage your time and energy is crucial to fighting that feeling of discontent that rises when you know you’re underpaid. Reclaim it by introducing a few simple rules such as:
- Learn to Say No. It’s as simple as that. When your plate is full, it’s OK to say no. If you really can’t do that, ask that they reprioritize your responsibilities.
- Take Your Breaks. It might sound counterintuitive, but taking breaks is actually good for both improving your focus and alleviating stress. So, next time your colleague asks if you want to take a coffee break, don’t refuse.
- Unplug and Socialize During Lunch Break. It is estimated that about 40% of employees either eat at their desks or don’t take lunch breaks at all. If that’s you, let’s change that. Have lunch in the common areas, talk to colleagues and maybe take a quick stroll after lunch. You’ll feel much better afterward.
- Don’t check emails after work. Disconnecting is fundamental to gaining our energy back. No matter how tempted you are, don’t engage in work activities when your work hours are over for the day.
Focus on Your Professional Development
If you’re underpaid, one of the best things you can do to increase your value and employability is to upskill or reskill. There’s an infinite number of online courses in every sector and subject, and many are also free. No more excuses then, getting out there and increasing your potential has never been easier.
Get a New Job
It can be tough to decide to move to a new job. Especially if you love your current one and get along well with all the people you work with. Nevertheless, remember that been underpaid is a perfectly good reason to quit.
It could even be a blessing in disguise and give you the push you need to aim for something better in your career. Plus, did you know that those that switch jobs every two to three years earn on average 10 to 20% more with every jump against a mere 3% if they stayed in the same company?
Underpaid and Ready for a Change? Sign Up to Monster
If being paid less than what you deserve was your sign to jump back into the job market, do it with Monster’s support. Create a free candidate account and upload your resume today. You’ll get all the job ads matching your profile directly to your inbox. That’s not all though, recruiters and companies will have access to your profile to offer you more interesting opportunities before they’re listed.