Do you ever wonder if you’re getting paid what you’re worth? Many professionals feel uncertain about their salary, especially early in their careers. Without a clear point of reference, it’s easy to accept a paycheck without questioning whether it reflects your skills, experience, and industry standards.
Salary benchmarking helps you understand where you stand. It’s the process of comparing your salary to industry averages, job market trends, and internal company pay scales. If you find that you’re underpaid, you can take steps to address it.
Here’s how to figure out if you’re being paid fairly—and what to do if you’re not.
Step 1: Research Salary Data
The first step in salary benchmarking is gathering data. There are several sources you can use to compare your salary to market rates:
- Online Salary Tools: Websites like Glassdoor, LinkedIn Salary, PayScale, and Levels.fyi provide salary ranges based on job title, location, industry, and experience level.
- Company Reports & Industry Surveys: Some professional associations and industry groups publish salary surveys that can give you a sense of typical compensation in your field.
- Job Listings: Some job postings include salary ranges, giving you a sense of what companies are offering for roles similar to yours.
- Networking & Informational Interviews: Conversations with peers in similar roles can give you insights into what others are earning in your industry.
When reviewing salary data, compare numbers from multiple sources to get a realistic range. Be sure to factor in your level of experience, location, and company size since these all affect pay.
Step 2: Compare Your Salary and Benefits
Salary isn’t the only factor in compensation. Benefits like bonuses, stock options, retirement contributions, and healthcare coverage also matter. A lower base salary with strong benefits may be competitive, while a high salary with no perks may be less appealing.
Consider the following variables:
- Bonuses and commissions. Are they consistent and fair?
- Retirement contributions. Does your employer match your savings?
- Healthcare benefits. How much do you pay for coverage?
- Time off and flexibility. Do you get enough vacation, sick days, or remote work options?
If your overall package is below industry norms, it may be a sign that you’re underpaid.
Step 3: Assess Your Skills and Experience
Your salary should reflect your skills, experience, and contributions. Ask yourself:
- Have you gained new responsibilities without a pay increase?
- Are you exceeding expectations in your role?
- Have you developed specialized skills that add value to your company?
If your role has expanded but your pay hasn’t, or if your skills are in high demand, you may have a strong case for a salary adjustment.
Salary benchmarking is the process of comparing your salary to industry averages, job market trends, and internal company pay scales.
Step 4: Talk to Your Manager
If your research suggests you’re underpaid, it may be time for a conversation with your manager. Before requesting a raise, prepare by:
- Gathering salary data to support your request.
- Listing your achievements and contributions to the company.
- Timing your request strategically, such as before performance reviews or after a big success.
Approach the conversation professionally and focus on the value you bring to the company rather than personal financial needs.
Step 5: Consider Your Options
If your company isn’t willing or able to adjust your pay, explore other opportunities. You may find higher-paying roles elsewhere or negotiate a better offer when switching jobs.
Salary benchmarking isn’t just about numbers; it’s about making informed career decisions. By knowing your worth and taking action when needed, you can ensure that your compensation aligns with your skills and contributions.