If you think your salary is too low, do these things before you ask for a raise

Many people think that their salary is too low and feel left behind when they hear about someone else who makes more. While negotiating for a higher salary or changing jobs can help, it is important to figure out where you really stand and prepare well if you want more.

COMPARING YOUR SALARY

To find out whether your salary is too low, you can start by doing some research.

Basic data is fairly easy to find, using salary guides that many recruitment firms prepare every year.

Recruitment firm Kelly Services, for example, has a Singapore Salary Guide which provides insights into the trends for positions across industries in Singapore.

The salary for a lead design engineer with three to five years of experience ranges from S$4,000 to S$6,300, for example, while a retail specialist with one to seven years of experiences earns between S$1,400 and S$1,650.

Recruitment firm Robert Half’s 2019 Salary Guide shows salaries from the 25th percentile to the 95th percentile, explaining that people at the 25th percentile have less experience and are at the lower end of the salary range, while people at the 95th percentile have extensive experience and are close to the top end of the range.

A payroll manager averages S$100,000 at the 25th percentile and S$130,000 at the 95th percentile, for example, while a software developer’s salary ranges from S$90,000 at the 25th percentile to S$180,000 at the 95th percentile. 

While the information is helpful, it is also important to understand its limitations.

The guides are often based on simple factors such as job title or years of experience, so they may not fully factor in the skills and experience for particular roles.

What a customer service manager or finance director does, for example, varies greatly depending on factors such as whether they work for a small company or a multinational one, the industry they are in and the number of employees they supervise.

To get a better estimate, you can talk with people at industry or association events.

While people inside your company may not disclose their salary, counterparts at other companies may be more open about what they see in the industry. 

You can also check job listings for your company or competitors on their websites or on job boards such as JobsCentral and LinkedIn.

You can look for positions similar to yours to see what the firms are offering new hires and figure out whether you are at the right level.

Salary review and job sites such as Salary.sg and Glassdoor enable you to input more information to get a somewhat better assessment of where you stand.

HOW TO NEGOTIATE

Your research may well show that your salary is at about the right level. In many cases, though, salaries are too low.

While data here is limited, research in the United States by Glassdoor shows that most Americans are underpaid by an average of nearly US$5,000 (S$6,730) a year.

Here in Singapore, the Talent in Asia Survey by recruitment firm RGF found that 83 per cent of Singaporeans expect a salary increase if they change jobs and expect 17 per cent more.

If you believe your salary is too low and want to stay at your current company, you can ask for a raise.

To start, use your research to decide how much you should really earn. Then put together details about the value you add, the revenue you generate for the company, how much you saved, and other factors that demonstrate why your request is justified.

Researchers found that negotiators who include a reason why they deserve something are more than 20 per cent more effective than those who do not, Mr Lewis Lin, chief executive officer of interview preparation website Impact Interview, told Glassdoor.

It can also help to be specific about what you ask.

Research led by Columbia University Business School’s professors Malia Mason and Daniel Ames found that asking for a precise dollar amount rather than a rounded–off figure can give you the upper hand during negotiations. 

The professors concluded that the person asking for a specific amount is successfully giving the illusion that they have done their homework, which leads the person on the opposite end to believe there is less room to negotiate.

If you are changing companies, realise that a majority of employers expect that job applicants will negotiate their starting salary.

In the US, for example, Robert Half found that 70 per cent of senior managers expect some back-and-forth on salary. Realise, too, that human resources staff members often start salary negotiations at the low end of the range they can offer because they expect applicants to negotiate.

You should similarly use your research on the industry to determine an appropriate salary level and demonstrate why that amount is justified for you. 

Knowing the state of your industry can also help you to negotiate better.

Whereas there is continued high demand for tech and digital professionals, as noted by recruitment firm Robert Walters, there has been a decline in hiring in financial services and manufacturing, especially in more traditional roles such as accounting and operations.

You may have more room to negotiate if you are a tech expert than if you are in financial services operations.

Regardless of whether you are staying at your company or trying to move, there can be potential for a raise if your salary is low.

The key to getting more is finding out how much you should truly earn, showing the value you provide, and being willing to negotiate rather than just accepting what you are offered.