The Art of Negotiating your Salary: How to Avoid Being Underpaid

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Early in her career, Kelly Harry found herself in a situation where she felt severely underpaid. Working as an account executive in ad sales in New York City, Harry was making $40,000 a year when she discovered that her co-worker was earning almost triple her salary at $102,000. It was in that moment that Harry realized the importance of understanding her true worth and negotiating her salary in alignment with market standards.

Market Forces and Negotiation Strategies

Negotiating your salary is a critical aspect of ensuring that you are being adequately compensated for your skills and contributions. According to Maddie Machado, founder of Career Finesse, the difference between two individuals’ salaries can often be attributed to the simple act of one person asking for more. It’s not necessarily about being better at your job or having more experience; it’s about advocating for yourself and knowing your value in the market.

When faced with the realization that you might be underpaid, it’s essential to conduct thorough research on the market rates for your position and skill set. Going back to the drawing board, as Harry did, allows you to understand what the industry demands and where you may stand in terms of compensation. Sho Dewan, career expert and founder of Workhap, emphasizes the importance of comparing your compensation not only to your colleagues but also to the broader market trends.

Compensation is not a one-size-fits-all equation. It involves a myriad of factors, including years of experience, education, and location, among others. According to Machado, when assessing your salary range, it’s essential to consider the various components that contribute to your overall compensation. Your geographic location plays a significant role in the cost of living, which should be factored into your salary expectations.

If you suspect that you are being underpaid, it may be necessary to approach your employer for a salary adjustment. However, the conversation requires preparation and a strategic approach. Dewan advises against comparing your salary to that of a colleague and instead focuses on highlighting your individual contributions and the impact you’ve made within the company. Providing concrete data points and performance metrics can strengthen your case for a salary adjustment.

Considering Your Options

If your employer is unresponsive to your salary adjustment request, it may be time to reassess your options. Cappelli warns against using threats as a negotiation tactic, as it could potentially backfire. In such cases, contemplating alternatives, including exploring external opportunities, becomes crucial. Dewan suggests evaluating the disparity between your current compensation and the market value to determine whether it’s time to seek other avenues that align better with your worth.

In some instances, the most viable option may be to explore external offers and leverage them to negotiate a higher salary with your current employer. While some employers may respond positively to counteroffers from competitors, it is essential to approach such negotiations tactfully. Dewan emphasizes that if the wage gap between your current compensation and market value is substantial, seeking alternative opportunities might be the best course of action. Kelly Harry’s decision to leave her previous role led her to a more fulfilling opportunity, demonstrating the power of advocating for your worth in the professional realm. Ultimately, understanding your value, conducting thorough market research, and negotiating strategically are key components of ensuring that you are not undervalued in the workplace.

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