Talking about Salaries: Because You’re Worth It

Monday, May 03, 2010 - 07:30 PM

When jobs are scarce and talking about salary is taboo, how do you know you're getting paid enough? With unemployment still around 10 percent, most employed people are happy just to have a job, and haven’t thought to ask for more money. But now that salaries are being unfrozen, there are things you can do. Here’s how to find out what you’re worth — and what to do about it.

  1. DO THE RESEARCH. Find out what others in your industry are getting paid. Websites including Glassdoor.com, Salary.com, and Payscale.com offer customized estimates. Industry-specific trade publications often conduct detailed salary research. Talking to headhunters can be helpful. And the Occupational Outlook Handbook, available online from the Bureau of Labor Statistics, publishes median annual wages of a wide variety of jobs.
  2. TALK AMONGST YOURSELVES. The National Labor Relations Act says companies cannot ban employees from discussing their wages. Many companies discourage it, and you should proceed with caution. Do you really want to know that your cubicle buddy is making $5,000 more than you? That could be based on any number of factors, including education, performance, or job tenure — and the knowledge might serve only to drive you crazy. But if you have reason to believe your pay is drastically below the normal range, know you have a right to discuss these issues with your coworkers. “In the U.S. workplace, there’s this unspoken culture that people’s money situations are private,” Risa Lieberwitz, professor of labor and employment law at Cornell’s School of Industrial and Labor Relations, says. “Many employees don’t know they have these rights.” Talking with friends in your industry, and ex-employees of your current employer can also be helpful. If you think you’re being actively discriminated against, contact the Equal Employment Opportunity Commission (eeoc.gov), which is in charge of enforcing federal discrimination laws.
  3. NEGOTIATE. A 2003 study found that people who increased their goals heading into a negotiation by 30 percent received a 10 percent increase in the amount they walked away with. So set that bar high! And as the economy improves, so will your chances of increasing your salary, either before you accept a job or once you’ve already started. According to a survey of 765 companies conducted earlier this year, the pay climate is improving: 14 percent are planning to freeze salaries this year, compared to 37% in 2009.
  4. DON’T NEGLECT NON-MONETARY COMPENSATION. If your employer — or potential employer — says there’s no more money in the budget for a higher salary, you don’t have to slink away with nothing in hand. Bonuses, vacation time, and flexibility to telecommute are among the factors that you can often negotiate.
  5. DON’T GO OVERBOARD. Psychologists call it the “Lake Wobegon Effect”: We all think we’re “above average.” Remember, the goal is to be paid fairly, not to double your salary. As Athar Siddiqee, senior compensation executive at Salary.com, put it: “No one thinks they’re overpaid.” And amid all the research and negotiation, don’t neglect to continue doing excellent work — in the end, that’s the surest path to a good salary.

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