Found out you're paid less than your colleagues? Here's what you can do about ‘wage compression’

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Wage compression can occur when long-term employees and their wages fail to keep pace with the market — while newer employees are paid the market rate.

That's why resignation rates are higher among employees whose salaries remained the same for a long time after the new highly paid team members entered the team, Derler said.

"[New employees] still lack the internal experience in-role, as well as the overall institutional knowledge the others have. Their entry at a higher level or salary … still brings in a potentially threatening and competitive element."When you discover the difference in salary between you and your peers, you may be "disappointed," which is understandable, said Derler.

"But try not to assume malice on the side of your employers. It may be a simple oversight or lack of information your organization has about you and your peers' salary differences."1. Benchmark your salary externally Inform yourself about how much the work in your role is worth both at your company and at other similar organizations. Gather external market value information about your role and the experience needed through platforms like Glassdoor and LinkedIn.Make a list of how your work in the past year added value to the success of your organization, your team and your manager. Instead of listing what you did, show how what you did made a positive difference.

 

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