Underpaid and Underpromoted? Here's How to Leave the Nightmare and Ask for What You Deserve

If you don't ask, you don't get

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Most people believe asking for more money is sleazy. They have a 5-year career plan in their head but don't do anything to make it happen because of the ick factor.

They wait to be noticed, and this is a massive mistake.

No one will notice you unless you make yourself noticeable.

A friend's daughter complained that a less experienced girl had been promoted to a supervisor position at her work. She couldn't understand why. I asked her if she'd told her boss she was interested in the role. She said no.

At her age, I was like that too. I thought if I worked hard enough, my manager would notice, and I'd be rewarded.

Regrettably, the world doesn't operate on the 'hard work speaks for itself 'principle. This misconception leads to a multitude of underpaid, underpromoted, and discontented individuals. Even if your boss is aware of your undervaluation and potential, they will only take action if you voice your concerns. They will be preoccupied with those who did ask, leaving you in the shadows.

Coincidentally, this morning, we received a printed flyer in our online grocery shopping stating that the workers who usually pack the groceries are on strike because they are underpaid, undervalued, and understaffed. In this instance, striking is the answer, but it indicates how some employees are treated.

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But what about other workers? According to Gallup, 51% of US employees are actively looking for a new role, and 42% of employees who left their jobs last year said their manager did nothing to prevent them from leaving.

To help leaders re-engage valuable employees before they leave, Gallup conducted a nationally representative study of 717 individuals who voluntarily left an employer in the past 12 months and asked them to share details about their exit experience.

Image from article on Gallup cited above in the link

And being underpaid is worse for women. The gender pay gap in NZ in 2023 was 8.6% and has been declining slowly from a whopping 16.3% in 1998 - stats.govt.nz

Regardless of gender, your manager is unlikely to approach you about your salary or career unless you ask, but waiting to be noticed is merely the first problem.

"You get in life what you have the courage to ask for." — Oprah Winfrey

The second problem is that people ask for a pay rise or promotion incorrectly, usually based on how long they've been in the role or what other people are getting paid. This approach will annoy your manager. They need a compelling reason to pay you more or promote you, or risk looking incompetent to their manager.

To recap:

• You're underpaid and underpromoted,

• Ask for what you want, or you won't get anything

• Ask in a way that will get results

I have successfully negotiated a pay increase to match my responsibilities on at least three occasions. When I worked within HR teams, I saw some disastrous and ineffective attempts to get more money, so I know what will irritate your boss and what is more likely to get you what you want.

If the ick factor is creeping in, remember that you are only asking for what you are worth, and the money could pay off a mortgage, buy a safer car, or secure your financial future. Money gives you more choices.

A title change will still help your career, even without a resulting pay increase. A more senior title can confer status and open doors to training programs, secondments, and senior-level meetings.

You don't have to wait for the year-end, performance reviews, or a vacancy to pop up before you take action. It's your career, and managing it is up to you. And after all, you are just asking for what you are worth, not ending civilization as we know it!

The best way to succeed when asking for a pay rise or title change is:

• Gather data

• Prepare your case

• Meet with your manager and ask for what you want

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Ready or not?

Before you take action, consider whether you have a good case. If not, you should create a development plan to prepare for your next role.

You are more likely to be successful if you have increased my responsibility around:

• Number of direct reports

• Budgetary responsibility

• Areas of responsibility

• Impact on KPIs

If you think you have a good chance of success, it will take some work, but you only have to do it once. And if the payoff is getting more money, a promotion, or a senior job title, it's worth it!

When I was in my early twenties, I was asked to run the training in my area for the installation of the (then) new EFTPOS cash registers. The project was due to last 18 months and I was very excited to be part of it. Once I met the other trainers, I learned that I was the most junior team member, with some of the trainers being three levels above me.

It was easy to make a case, as I was doing the same thing as the other trainers. Despite being terrified, I met with my manager and negotiated a pay rise and promotion. Subsequent negotiations haven't been as simple, but using data to make a case has usually been successful.

Now that you're all fired up, let's have a look at how to take action and ask for more money and promotion in a way that will give you the best chances of success:

Step One: It's information gathering time!

Initially, you will have to gather quite a bit of data. No leader is going to sign off on anything without a substantial reason.

If you are underpaid or underpromoted, data is your ally.

These are the things you need to collate:

• Your current position description

• A list of the extra tasks you are responsible for in addition to your position description

• Increase in direct reports

• Increase in budgetary responsibilities

• Growth in the impact of your work on KPIs

• Copies of job adverts for jobs similar to yours (what you do, not your current job title) with salaries

• Pay scales for jobs similar to yours from as many sources as possible, such as recruiters like Hays, Robert Walters, Hudson, and government or industry organizations

If your job title needs to change, you also need the position description for the new role.

For example, suppose you are a Health & Safety Advisor, and you believe your title should be Senior Health & Safety Advisor. Ask for the position description for the Senior Health & Safety Advisor role and tick off all the task you do.

On the occasions I've gone through this exercise, it's taken quite a bit of time, and I've had to gather the information bit by bit. This isn't something I'm able to do in an evening.

When you are collating your task list, use your diary, outlook calendar, any one-to-one notes, meeting agendas and your soft and hard files. I've always been surprised at how much my role has expanded and the extra tasks I've taken responsibility for.

Now, you've got to decide whether you deserve a pay rise and a job title change. Be realistic. You will have to make a compelling case to your manager. You must also convince the Finance and HR managers and your boss.

Step Two: Making a case

You've got all the information; now, you need to make a compelling case by comparing your current salary and job title to the salary and job title that matches what you do.

The case of the changing role title..

Now that you have some data, it's time to prepare your case.

First, list all the extras you do on top of your job description.

Your list might look like this:

• Direct reports increased from three to five

• Budgetary responsibility increased by 37%

• Now responsible for all organizational recruitment in addition to the tasks in my position description

• Reduced average time from placing first job advertisements to employee start time by 21 days

• Cover manager's duties when they're absent, on holidays, and am 2IC for the team

• Have a seat on XYZ committee and contribute to strategy meetings with stakeholders

• Responsible for onboarding all new team members

• Reducing employee onboarding expenses by 10% with no change in content or quality

• Now have new skills since recent training or certification occurred

Use numbers and percentages to showcase your contribution.

Now compare the tasks you do in your role to:

• Your position description

• The position description of the next level up, e.g., Senior Health & Safety Advisor

• Job adverts for roles that match what you do

This way, you can ascertain whether you are still performing the role as described in your position description or are carrying out the tasks of a more senior role. Again, be realistic. You need facts, not a gut feeling that you should have a more senior title.

If your organization does not have position descriptions, search online for examples. Aim for at least five examples of position descriptions and five measures of job advertisements for the role that you are carrying out.

You should now decide whether you will ask for a more senior job title.

The case of the missing salary increase…

Now that you know which job title best reflects your work, it is time to see what the market pays.

For this, you can use annual salary scales from leading recruiters such as Hudson, Robert Walters, Hays, Kelly Services, or any recruiter in your profession that publishes salary guidelines. Also, check out any industry pay scales you can use.

Collect the data from all the sources and tabulate it to show all the low, medium, and high salaries in a chart. Then, work out the average median wage.

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Finally, collect the salaries from job advertisements that match your current job and include those numbers in your median average salary calculation.

Use current data to understand your role's worth in the marketplace accurately.

If the ick factor is kicking in again, and you're beginning to feel all this money-grubbing is a bit dirty, look in the mirror and repeat, "I deserve to be paid what I'm worth," until it goes away.

Putting it all in writing

Now, it's time to turn the data into a written request for a pay increase and, if applicable, a title change.

Here are some tips:

Do say what you do in addition to your position description and how that adds value.

For example:

"My responsibilities have increased over the last two years, and I now have three more direct reports.

My budgetary responsibilities have increased by 37% (from X to Y), I have reduced the average time from the first advertisement to the employee starting by 21 days, and I've reduced onboarding expenses by 10% with no change in content or quality.

I'm also responsible for organizational recruitment, acting as the team's manager when necessary, and onboarding all new staff.

I contribute to ABC meetings and regularly liaise with stakeholders regarding input to XYZ projects.

My work is now more in line with the Senior Health and Safety Advisor role. I would like to request that you review my job title and remuneration.”

Do point out the market rate for what you do using your findings.

For example:

'My annual salary is currently 50K per year however I believe that a salary of 67K is more aligned with my responsibilities. Please see the table below showing the median wage from recruitment agencies, industry organizations and job advertisements relevant to the role.'

Do maintain a positive and polite tone throughout the letter, and point out that you enjoy your role and look forward to adding value and contributing in the future.

Do talk about what you can do for your organization.

Do get someone to check your letter to ensure it is professional and positive rather than whiny. It is easy to get carried away with emotion and give a poor impression in the letter.

A team member once approached me asking for a pay rise, so I asked her to gather the data and write me a letter. What she wrote was really whiny and all about what she wanted, so I asked her to rewrite it.

Don't complain. Don't say your salary is too low.

For example:

'I've been here three years, and I've never had a pay rise, and I deserve more for all I do.'

Don't talk about what you want from the organization negatively.

For example:

'For all the work I do here, I deserve more money. I always do extra. The company owes me.'

Don't mention what other people get paid. Even if you do know, you are not meant to.

Now that you have prepared your case, it's time to request a meeting with your manager.

Step Three: High Noon (The scary bit)

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Asking for a pay increase or promotion is nerve-wracking for most people, so here is how to make it go smoothly:

• Do a common-sense check and make sure you have a real case. Ask your partner or a friend to check whether you deserve what you are asking for. If you are being unrealistic, you will annoy your manager.

• Prepare thoroughly and include as much data as possible in your written request. If your manager agrees that what you are asking for is realistic, this will make it easier for them to make a case for you.

• Invite your manager to a formal meeting and include the discussion topic.

• Give your manager a week or so to prepare. Don’t send a request for tomorrow morning.

• Send your manager a copy of the letter in advance.

• Practice what you are going to say with a friend or partner. Preparing a well-thought-out letter and then spoiling it with an emotional outburst during the meeting would be a shame.

• Consider all the possible objections your manager may come up with and know what you will say in response.

• Be prepared to accept a refusal. There may be no budget. Your manager may want to give you an increase, but the people higher up the chain of command won’t sign off on it.

I’ve gone through this process multiple times and helped others do so. If you believe you are worth it, what’s the harm in asking?

Bonus section: If you don’t ask, you don’t get, and if you ask and you still don’t get, it’s not your fault

If your manager turns down your request, ask for some more information, such as:

• Feedback on your performance.

• Any available training that will increase your value to the organization

• What would you need to do to receive a pay increase, title change, or promotion

You now clearly understand why your manager turned down your request. Is it you, or is it company policy? Is it a temporary refusal, or will you never receive an increase again? Is the organization short of cash because of the economy?

Be aware that some organizations happily pay the market rate for new staff but won’t consider paying the market rate for existing staff. If this is the case, you will know where you stand.

Takeaways

This process will help you clarify your current position in the organization and whether you are paid appropriately.

What you do with that information is up to you. In a poor economy with layoffs and organizations going bankrupt or into receivership, you may be better to sit tight and say nothing.

If you decide to act, remember that HR and Finance managers will only approve pay increases and role changes if they have solid data to back up a request. Make sure you provide it.

Remember that most people:

• Are unhappy with their salary and position but never do anything about it

• Ask in the wrong way, for example, by talking about how long they’ve been in a role

A better way to get what you want is:

• Research salaries and job descriptions to discover if you are being underpaid or underpromoted

• Put together a document showing median wages and responsibilities for the role you are doing now

• Meet with your manager and ask for what you think you are worth

“Somebody said to me, ‘But The Beatles were anti-materialistic.’ That’s a huge myth. John and I literally used to sit down and say, ‘Now, let’s write a swimming pool.’” PAUL MCCARTNEY”

If wanting to earn more money is OK for John & Paul, it’s good enough for us too!

Any questions, pop them in the comments :-)

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