Keeping your salary competitive in today’s dynamic job environment
Ken Pelczarski, Contributing Editor | TLT Career Coach September 2022
Learn 10 common reasons for falling behind average industry compensation and sources to utilize when pursuing compensation adjustments.
It is one thing to ask for a raise in a standard job environment. It is another thing to maintain competitive compensation with your current employer in a dynamic job environment with a serious talent shortage.
There is a tremendous demand for quality candidates but a short supply of talent available in today’s job environment. Monthly job openings nationwide have hovered around 11.5 million since the summer of 2021. Actual monthly hires, however, have averaged about 6.5 million over the past year, and there were a record 4.5 million job resignations in March 2022.
The shortage of talent has resulted in employers taking extraordinary measures to attract quality candidates. This includes sometimes making job offers of 20%, 30% and 40% increases or more. These premium salary offers to job candidates make it common for current employees to fall behind average industry compensation.
There are many instances in which company compensation structures are out of kilter. Internal salary inequities are now common with employers who are not focusing on satisfaction of existing employees. Some employers have made good faith attempts to adjust salaries of current employees, but it is a big challenge to recruit and retain effectively while maintaining compensation equity.
Given the current job market with an extreme talent shortage, it would appear to be the ideal time to take care of yourself financially. Start by setting a fair and realistic compensation goal, and then make a presentation for a salary adjustment to your employer. For those of you who believe that a recession is looming, the timing for an upward salary adjustment could be even more urgent.
If you love your current job, it should not be necessary to change companies to have your salary raised to average market value. While discussing salary, you also may want to request new bonus incentives, increased benefits or extra job perks.
Below are 10 common reasons for falling behind average industry compensation, including ways to approach your employer for a salary adjustment.
1.
You have been with the same employer for a long time. According to Business Insider, job switchers earn 7% more on average than job stayers. You may have some catching up to do if you have been receiving 2%, 3% or 4% annual raises for many years. Be sure to point this out to your employer and present your research on average salaries for your years of experience and type of position.
2.
There are low company pay grades. You may have a tough time attaining a large salary increase if your employer consistently pays below industry average. If you love your job, are a valued employee and plan to stay with this employer, you may want to influence general change in companywide compensation structure by presenting information on how other industry employers compensate. Otherwise you may be more successful negotiating in the areas of bonuses, benefits and perks.
3.
Company profitability is down. Most employees are likely falling behind average industry compensation in this scenario. Your best chance to negotiate a salary increase is if you are a top performer and you can explain how your future performance will increase profitability for the company.
4.
Individual performance and/or motivation is suffering. If your performance has been suffering, it is more likely that you can negotiate a salary increase for a specified time down the road, ideally three to 12 months, and have it based upon performance criteria. You will have a better chance of success in negotiations if you have had an excellent performance history until recently. It will help if you can explain the drop in performance and why it is temporary.
5.
You are a top performer. Top-performing talent is particularly sought-after in today’s job environment. You should be in an excellent negotiating position for an upward salary adjustment with your employer, especially if you can give examples of your success and of how you are earning less than recently hired, less-proven professionals.
6.
You have not been blowing your own horn. If you have had strong success with your current employer, it is the best time in quite a while to present documentation of your accomplishments in order to adjust your compensation upward to match or exceed what is being paid to recent hires. This is especially true if you have not been receiving more than standard annual salary increases.
7.
You started at a low salary after recently obtaining a college degree. You have likely fallen significantly behind many of your peers in compensation if you have not changed jobs since graduating from college. Express to your employer that you have been a loyal employee and that you knowingly accepted a below average salary out of college to obtain the kind of job you wanted. Promote that you have proven yourself to be a motivated and successful employee and display your research on average industry compensation for your type of experience.
8.
You are perceived to be disloyal because of talking with other prospective employers. If you value your current job, express to your employer the reasons for your job satisfaction and that you do not want to leave the company. Explain that you have been attempting to learn how other companies are compensating individuals with your experience, and present concrete evidence showing that you are paid below industry average.
9.
There is a change in company salary structure or commission plan. It certainly does not seem fair when the compensation level you have earned with your employer is lowered through no fault of your own. If your income has been greatly affected, impress upon your employer that you are happy with your job, but it is important for you to restore your previous compensation level in some form. If your employer does not attempt to satisfy you, changing employers may be your best option to recover lost income.
10.
There is new company ownership and/or management. If your company has recently gone through such a change, you may be working under a new salary structure. In this scenario, it is important to provide as much documentation as possible to new management about your recent accomplishments, high performance level and how your salary has lagged behind in this dynamic job environment.
Below are sources of salary information you may want to utilize when pursuing compensation adjustments with your employer.
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Salary.com (salary surveys and information)
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SalaryExpert.com (salary surveys and information)
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PayScale.com (salary surveys and Information)
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TLT (advertisements and articles)
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STLE Career Center
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Lubes’n’Greases (annual salary surveys)
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C&E News/American Chemical Society (salary surveys)
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Monster (compensation articles and surveys)
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CareerBuilder (compensation articles and surveys)
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LinkedIn (compensation articles and surveys)
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ZipRecruiter (advertisements and articles)
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Indeed.com (advertisements and articles)
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Glassdoor.com (compensation articles and surveys)
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TheLadders.com (jobs over $100,000 salary)
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BestPlaces.net (salary comparisons between cities)
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Staffing Industry Analysts (
http://staffingindustry.com)
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U.S. Bureau of Labor Statistics,
www.bls.gov/bls/blswage.htm (wage and salary data)
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Google (e.g., type “average salaries” or “salary surveys”)
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Job boards (advertisements with salaries posted)
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Prospective employers (make direct contact with hiring companies)
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Colleagues, competitors and coworkers (have open discussions about salary)
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Networking (have open discussions about salary)
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Job searchers (talk to individuals who have learned about industry compensation)
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Industry specialized recruiters (talk to experienced, knowledgeable recruiters).
In today’s economy, it is critical for many lubricant industry professionals to maintain a competitive salary in order to keep up with record-high inflation, not just to keep up with peers or average industry compensation.
As always, when discussing and negotiating salary adjustments, raises and job offers, be professional, reasonable and non-demanding. Be ready to substantiate requests for salary increases through your knowledge, research and documentation of industry compensation standards. By approaching compensation matters in this manner, you will most importantly maintain valued industry relationships.
Ken Pelczarski is owner and founder of Pelichem Associates, a Chicago-based search firm established in 1985 and specializing in the lubricants industry. You can reach Ken at (630) 960-1940 or at pelichem@aol.com.