- If you know what your coworkers are making, you can use that information to negotiate a higher salary for yourself.
- Before you start negotiating, make sure you have a good idea of why your coworkers make what they do. There may be a reason they are paid more than you.
- Know your worth and focus on building up your skills and experience so you can negotiate from a position of strength in the future.
Here's a way you could make more money.
The last few years have seen a growing movement toward salary transparency, with more and more companies sharing pay information with their employees. The thinking behind this is that if everyone knows what everyone else is making, it will help close the gender and racial wage gaps. But there's another potential benefit of salary transparency: it could help you make more money. Here's how!
Knowing what your coworkers make
If you know what your coworkers are making, you can use that information to negotiate a higher salary for yourself. After all, if your company is paying someone else with your same job title and experience level $10,000 more than they're paying you, it's likely that they would be willing to pay you more as well.
Of course, salary negotiation can be a tricky business. You don't want to come across as greedy or ungrateful, and you don't want to start a fight with your boss. But if you approach the conversation in the right way, you may be able to increase your earnings and gain more money in your bank account.
Do your research
Before you start negotiating, make sure you have a good idea of why your coworkers make what they do. It's possible that your company has a good reason for paying you less than the median salary. A co-worker may have an industry certification, an MBA, or other higher-level education that you may not have. If it is a sales position, it could be a commission or bonus.
Maybe the company is located in a cheaper area of the country, or maybe they have a smaller budget than other companies in your industry. You want to be able to compare apples to apples. In these cases, you may still be able to negotiate a higher salary, but you may need to adjust your expectations accordingly.
Once you know what others in your position are being paid, you can use that information to negotiate a higher salary for yourself. For example, if you find out that the median salary for your position is $50,000 but you're only making $45,000, you can use that to argue that you deserve a raise to at least the median salary.
Know your worth
In addition to knowing what others in your position are being paid, it's also important to know your own worth. This means being aware of your skills, experience, and accomplishments, and being able to articulate how they add value to your company.
If you can show your boss that you're worth more than you're currently being paid, you'll be in a much better position to negotiate a raise. For example, if you've recently taken on additional responsibilities or received positive feedback from customers, those are good things to bring up when asking for a raise.
On the other hand, if you're not sure what your worth is, or if you don't think you have anything to offer beyond what you're already doing, you may want to reconsider asking for a raise. In these cases, it's often better to focus on building up your education and experience so that you can negotiate from a position of strength in the future.
Be prepared to walk away
Finally, it's important to be prepared to walk away from the negotiation if necessary. If your boss refuses to give you the raise you want or deserve, don't be afraid to look for other opportunities. Sometimes, the best way to get a raise is to leave your current job and find another one that pays more. This may not be what you want to do, but it's important to remember that you have options. And if salary transparency has taught us anything, it's that there's always room for negotiation.
Salary transparency has the potential to close the gender and racial wage gaps. But it can also help you make more money by giving you the information you need to negotiate a higher salary for yourself. Just be sure to do your research, know your worth, and be prepared to walk away if necessary. With a little effort, you may be able to get the raise you deserve.
Our picks for 2024's best credit cards
Our experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like generous sign-up bonuses, long 0% intro APR periods, and robust rewards.
Click here to learn more about our recommended credit cards
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2024 The Ascent. All rights reserved.