September 23, 2008

How Do You Know If You're Being Underpaid?

A recent survey by Salary.com found that 4 out of 5 people who think they're underpaid actually are not. But how can you tell whether your sense that you're underpaid is on the mark or not?

This is another one of life's problems that has become much easier to solve with the help of the Internet. Here are some resources to try:

• Salary.com is itself a good resource. It includes data on prevailing salaries, benefit packages, and the cost of living.
• The jobs section of many major newspapers will provide links to information about average salary and benefit packages in the local area.
• Many professional and industry associations conduct regular salary surveys of their members. Their websites often post links to their latest reports.
• The U.S. Department of Labor's Bureau of Labor Statistics includes salary data in its annual Occupational Outlook Handbook, which can be accessed online at http://www.bls.gov/oco/ocos055.htm. The Handbook also gives broad but useful information about working conditions and hiring outlooks for various occupational specialties and industries.

You shouldn't automatically assume that the salaries you find listed in resources like these represent what you should be earning. Keep the following points in mind:

• You're paid for your work, not for your qualifications. Some organizations will automatically pay you more for holding certain degrees and certifications; some won't. If you feel that you're not being paid what someone with your education and training deserves, think about whether you're underemployed.
• Job titles don't determine salaries – work does. Be honest about the kind of work you're doing, how well you do it, and how productive you are. You should base any argument you make for a raise on the grounds that you're adding more value to the organization than your present compensation reflects – not on the grounds that people with your same job title are making more money elsewhere.
• Location matters. There's a reason why salaries are higher in New York City than they are in Indianapolis. When you compare salaries, try to estimate the quality of life a given salary would provide in the market it's being offered in. $60,000 a year is a comfortable salary in much of the U.S., but in Manhattan it doesn't amount to much.

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