Salary negotiation 101
What to do when you're underpaid: A guide to salary reviews
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Friends,
I was having a conversation with a friend recently, and they said something that stuck with me—“I love my job, but I know I’m being underpaid. I just don’t know how to bring it up.” Honestly, I know that feeling, I’ve experienced something similar & know many people who are dealing with it.
So many professionals feel undervalued when they look at their paychecks. You work diligently, consistently exceeding expectations, yet when payday arrives, your paycheck doesn't reflect your true worth. In fact, a Robert Half survey found that 46% of workers believe they’re not earning what they deserve, and a Payscale report shows that employees who feel underpaid are nearly 50% more likely to start job hunting.
Clearly, salary dissatisfaction isn’t just a personal frustration—it’s a widespread issue.
But here’s the thing: negotiating your salary isn’t just about asking for more money. It’s about understanding your market value, recognizing when you’re being shortchanged, and strategically making your case.
In this newsletter, I’ll walk you through the key steps:
To identify if you’re underpaid
How to gather the right data
How to time your salary review request
How to confidently advocate for what you’re worth
When to consider a job change
Because if you’re delivering results, you deserve to be compensated fairly.
So let’s dive in 👇🏻
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Recognizing the signs of being underpaid
A few months ago, a friend of mine found out that a new hire in her company—someone with less experience—was earning significantly more than her. She had been with the company for two years, taking on extra responsibilities, even mentoring junior employees. Yet, her paycheck barely reflected her contributions. When she addressed this to her manager, he brushed it off, saying, “We’ll revisit it during your next review.”
The truth is, being underpaid isn’t always obvious—until you start noticing the signs.
For example, here are the salaries of product designers & tax they pay around the world:
1. Comparing your salary to industry standards
If you haven’t checked your market value recently, you could be unknowingly working for less than what you're worth. Websites like Glassdoor, LinkedIn Salary, and Payscale offer salary insights based on your role, industry, and location. But don’t just rely on online tools—networking with industry peers or recruiters can give you a clearer picture of where you stand.
2. Understanding pay gaps based on experience, skills & location
Not all salaries are created equal, even within the same company. Factors like years of experience, specialized skills, and location significantly impact earnings. For instance, a UI/UX designer in California earns, on average, 22.7% more than someone in a similar role in South Carolina. Similarly, someone with expertise in data analytics or AI-driven marketing may command a higher salary than a generalist. If you feel like you're not being paid fairly despite having relevant experience, it might be time to question it.
3. Spotting the red flags: more work, no raise
Ever had your workload increase without a salary adjustment? Maybe you’ve taken on extra projects, started managing a team, or your company has grown—but your paycheck hasn’t. If promotions and added responsibilities aren’t coming with financial recognition, it’s a clear sign you’re undervalued. Another red flag? New hires earning more than existing employees. A report by the Federal Reserve Bank of Atlanta found that wage growth for job switchers was 7.7% in 2023, compared to 5.5% for those who stayed in their roles, highlighting how companies often pay more to attract new talent while neglecting internal adjustments.
If any of these signs sound familiar, don’t ignore them. The next step? Figuring out exactly how much you should be earning—and I’ll walk you through that in the next section. Stay with me.
***
Researching market salaries
Now when you understand that you’re being underpaid, the real question is - I have no idea what I should even be asking for. We don’t know our market value until we start digging.
Here’s the thing: Companies have a budget for every role, and they’re not going to tell you the maximum they’re willing to pay. It’s up to you to find out.
1. Using salary comparison tools
The easiest way to start is by checking salary comparison websites. Tools like Glassdoor, LinkedIn Salary, Payscale, and Levels.fyi (for tech roles) give a general idea of what professionals in your industry and location are earning. The key is to look at salaries based on experience level, company size, and job title. Don’t just search for “Marketing Manager”—search for “Marketing Manager with 3-5 years of experience in luxury brands in Paris.” The more specific, the better.
📌 Some companies hide salary ranges in job descriptions, but states like California, New York, and Colorado now require salary transparency. Look at job listings from these locations to get a better idea.
2. Industry benchmarks & location-based pay differences
A digital marketing manager in San Francisco earns significantly more than one in Bangalore, Paris, or Berlin—even if they have the same skills. This is due to the cost of living, demand for talent, and company budgets. Research salary reports from industry-specific sources like Robert Half, Hays, or the Mercer Salary Report to get a more accurate benchmark.
📌 Look up three job postings in different cities for the same role and compare salaries. It’ll give you a clear understanding of how location impacts pay.
3. Networking for real salary insights
Here’s something that salary websites won’t tell you: The actual salaries people are getting paid. The best way to find this out? Networking.
Reach out to ex-colleagues, alumni, or LinkedIn connections in similar roles and casually ask about salary expectations.
Attend industry events or join Slack groups, Reddit communities, or professional forums where people openly discuss compensation.
If you’re in the interview process, ask recruiters about salary expectations for similar roles in the company (even if you’re not applying there).
I once had a conversation with someone who revealed they were earning €15K more than another person in the same role—simply because they negotiated better. That’s why research is so crucial. A 2024 Glassdoor report found that job seekers who discuss salary early in the hiring process are 27% more likely to receive offers in their target pay range.
Don’t rely on your company to tell you what you’re worth. Do your research, compare salaries, and use this data as leverage. Because when you walk into a salary negotiation armed with facts, you shift the conversation from “I want a raise” to “Here’s what the market pays for my skills—let’s talk.”
***
Evaluating your own value
A while back, a friend of mine was preparing for a salary review. She felt like she had outgrown her role, but when I asked, “What exactly have you accomplished in the past year?” she froze. She knew she had worked hard, taken on more responsibilities, and delivered results—but she hadn’t tracked them.
And that’s the problem. You can’t negotiate a raise based on “I’ve been working hard.” You need proof.
But how?