Get paid what you’re worth
Ellie is the author of Money Talks: A Lifestyle Guide for Financial Wellbeing and founder of This Girl Talks Money.
With an online community of over 50,000 people, Ellie provides knowledge, insights & a safe space to help people gain confidence and ownership of their finances.
How do you know if you’re being paid what you deserve? If you’re an employee right now, there’s a fair chance that whether or not you’re happy with your own pay, you don’t actually know whether you’re paid fairly in comparison to your colleagues. Historically, it’s been considered rude or awkward to talk about pay - especially in the UK - and plenty of companies have been known to discourage their staff from openly talking about pay and compensation. The secrecy around salaries is so ingrained that we rarely step back to wonder why we don’t talk about money at work. After all, many of us barely even talk about money with our friends and family, so is it any surprise that we don’t open up with our work colleagues either?
The truth is that financial secrecy may well be getting in the way of you being paid what you deserve or what is fair. One major reason why employees are still too frequently encouraged not to discuss salaries is because in many organisations, there are pay disparities that simply don't stack up. And you probably won’t be surprised to discover that the negative impact of financial secrecy disproportionately affects certain groups too, resulting in intersecting gender, ethnicity, and socioeconomic pay gaps.
So how do you go about asking for money if you feel like you’re being underpaid? It’s tried and tested that the best shot at getting a salary increase is by switching jobs, as although you might be able to get steady pay increases over time in a role, moving company is likely to give you a better chance at a significant jump. Still, getting comfortable negotiating your pay is a skill to work on and there’s no better time to start than now. Here’s what you need to know to get started.
Research equivalent roles
Do your research and don’t be afraid to ask your work friends what they earn. If you currently have a job and are looking for a salary increase, don’t be afraid to apply for other roles in your sector, as this will help you gather information on compensation at other workplaces. A bit of healthy competition from other employment offers is a great bit of evidence to your employer that you’re an indispensable part of their team. If you’re struggling to determine what salary you need, work out how much money you need to take home each month in order to cover your expenses and what you’ll need to work toward any longer term goals you have, then work backwards. You can also check out websites like LinkedIn and Glassdoor to find salary data.
Prepare to negotiate
Keep in mind that when you secure a new role or head into a salary review internally, it’s likely that the employer is expecting you to negotiate your compensation. So how can you prepare for a successful negotiation? Have a salary in mind that you’ll stick to when asked for a figure, and be ready to walk away if an employer won’t meet your expectations. Don’t forget to prepare your sales pitch too; have a clear list of examples to demonstrate how you’ve reached targets and goals in your current role, and back this up with performance metrics where you can. Prove to the company that you’re totally indispensable.
Spend some time thinking about all the skills and experiences that really differentiate you from other candidates too. Do you speak another language, or have a hidden talent that may come in handy in the workplace? Whatever it may be, you never know what can end up being the deciding factor in you landing the salary you want.
It’s not all about the money
Depending on the sector you work in, there are other forms of compensation that you may be able to negotiate as part of your package. Particularly if you work in the tech sector or a startup, find out whether your employer offers company shares or equity as part of compensation. Shares and options can be incredibly valuable over the long term, especially if you join a company early on and think that there’s a high chance of growth for the business. Private healthcare is another important benefit to consider, and don’t forget to think about your pension too. Make sure you do some research on what benefits are on offer and include these things in your negotiation.
Please note this information is for educational purposes only. For financial advice, please speak to an independent investment advisor.