Money Expert Ramit Sethi: 4 Steps To Take If You’re Underpaid by $10K
Not making the money you think you deserve? Being underpaid isn’t as uncommon as you might think. In fact, more than half of Americans feel like their salaries aren’t keeping up with inflation.
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If you believe you’re underpaid for the value you bring to your employer, you don’t have to accept it. Thanks to Ramit Sethi, here are four key steps to take to get the pay you deserve.
How To Find Out If You’re Underpaid
It’s one thing to feel like you’re underpaid, but when you’re getting ready to negotiate your salary, you’ll want hard data to bring to your boss. Glassdoor, Payscale and Salary.com are all great resources to compare your salary to similar jobs in your area. You could also Google the average salary for your position in your region, though this might not be as accurate.
Other signs that you’re underpaid include:
Your responsibilities have changed, but you weren’t given a pay raise.
Your colleagues have more benefits than you.
You haven’t negotiated a higher salary in more than a year.
Similar positions at your employer earn more.
Your skillset is in high demand.
Your salary hasn’t accounted for inflation.
Collect as much evidence as possible to prove that you are underpaid. These points will support your negotiation and give you the confidence you need to get your raise.
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Negotiating a Fair Salary in 4 Steps
Once you’ve determined that you’re underpaid by at least $10,000, it’s time to plan for your salary negotiation. That doesn’t mean you should go to your boss right away — according to Sethi, you’ll maximize your raise by carefully preparing and waiting for your annual review.
Here are four steps to help you get your raise and boost your financial well-being.
1. Meet With Your Boss
Set up a meeting with your boss at least six months before your annual review. That might seem like overkill, but the sooner you check in with your boss, the more time you’ll have to prepare and demonstrate that you deserve a raise.
The purpose of this meeting is to put yourself on your boss’ radar in the months leading up to your review. You want them to know that you’re bringing your all to your role.
A few questions you can ask during this meeting include:
Do you think I’m meeting or exceeding expectations for my position?
What can I do to go above and beyond in my role?
What are some changes you’d like to see in the organization in the next year?
How can I support the organization beyond what I’m currently doing?
I’ve noticed a current roadblock or problem in your department. Are there any changes I can make to better address that problem?
Remember, this is not the time to ask for your raise. This meeting is for you to learn how you can demonstrate your value and to show your boss that you’re dedicated to your position in the organization.
2. Demonstrate Your Value
Next, it’s time to put that information you got from your boss into action. The next few months are an opportunity to prove your worth to your employer. You’re planning on telling your boss that you’re underpaid — now, you need to collect evidence to support that claim.
This isn’t just about having a great work ethic. You should also track your progress in notable areas so you have clear data to bring to your negotiation. Progress looks different for every position. Here are some examples of indicators you might keep track of:
Monthly sales
Product output
Project completion
Client satisfaction
Workflow efficiency
Set out to track as many relevant progress indicators as you can. If after a month or two into this phase, you find that your progress in a certain area isn’t as dramatic as you had hoped, don’t panic. Just focus on the most positive indicators that prove you’re a valuable asset to the organization.
3. Prepare For Your Negotiation
It’s never too early to start preparing for your salary negotiation. As you demonstrate your value and record your contributions to the organization, continue researching fair salaries in your industry. Prepare the most important points you want to bring to your boss.
Fear of negotiation prevents many people from asking for a better salary. Although around 80% of Americans believe they deserve a raise, only 60% plan on asking for one. However, negotiations don’t have to be scary. You know your value — all you have to do is present that value to your employer.
Once you’ve collected your main talking points, try rehearsing your negotiation with a friend or coworker. This doesn’t have to be anything serious. Just practice saying your points out loud, so you feel more confident when the time comes.
4. Get Your Raise
If you’re well prepared, negotiating a fair salary during your annual review should be no big deal. A performance review is a common and expected time to ask for a raise, so your employer shouldn’t be surprised when you bring up your salary.
Transitioning into a conversation about pay might feel awkward, but that shouldn’t stop you from bringing up the points you rehearsed. Here are a few ways to bring up your potential raise:
I have a couple of points about my salary I’d love to talk about. Is now a good time?
I’m really satisfied with my position, but I’ve done some research, and I believe I’m slightly underpaid. Here’s why.
Can we take a moment to discuss my salary? I have a few points I’d like to talk about.
The person conducting your performance review might not be authorized to give you a raise right away. They may bring your request to someone else or set up a separate meeting with other organization leaders. Either way, you’ve done the hard work. Continue demonstrating your value to the employer and check in with your boss if you haven’t heard back about your raise within a month.
You Deserve Fair Pay
If you feel like you’re underpaid, you’re not alone. Many Americans are underpaid, although not everyone feels confident enough to ask for a raise. With enough research, time and preparation, you can confidently negotiate the salary you deserve.
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This article originally appeared on GOBankingRates.com: Money Expert Ramit Sethi: 4 Steps To Take If You’re Underpaid by $10K
