Compensation is a fair indicator of performance. In order to stay competitive, companies need to ensure their employees are compensated fairly and in accordance with their level of responsibility and impact on the company’s success. So what does this mean for you? It means that the more responsibilities you have or things you do that have a positive impact on the company, the higher your level of compensation will likely be. If you’re not sure where your rank is within your organization, ask your supervisor!
1. What is fair compensation?
First, it’s important to note that what you believe to be fair may not always line up with your organization’s definition of “fair.” In all cases, there are a few factors at play: cost of living in the area where the company is located, industry standard for similar part-time workers, the nature of your work, the experience you have in this field, etc.
2. How to know what you are worth?
You should always be sure that you’re familiar with industry standards within your particular field and that you’re being paid fairly compared to others in your same position or rank. You can find out industry standards for similar part-time workers in your region by conducting an internet search or talking to others in the same industry. Use these standards to help you understand if you’re being paid fairly and then negotiate from there (more on that below).
3. When to ask for a raise or promotion?
If you’re striving for more responsibility, it’s generally a good idea to ask for a promotion or raise – however, the key word here is “striving.” If you’re not doing anything to prove yourself as a valuable part of your organization and an asset that will take on those additional responsibilities, there’s no reason for your company to offer you more money. In many cases, part-time workers have to prove themselves before companies are willing to take the next step in their relationship. So, for example, if you’re a part-time worker who has consistently been hitting sales goals over the past six months but is still working at minimum wage level pay you should talk with your employer about how your performance warrants an increase in salary.
4. Ways to increase your value as an employee
There are several ways to increase your worth in the eyes of your employer. First, get familiar with what your organization needs and wants from you (in the short term) and then do exactly that. You should also be proactive when it comes to learning new skills, volunteering for new projects, taking on additional responsibilities and pitching in when you can. Your organization should know that your work is valued and that you’re willing to do whatever it takes to get the job done.
5. The importance of understanding the company’s financial situation and how it impacts your salary
One important aspect of compensation planning is knowing what’s going on with your organization financially, which includes understanding their projected earnings, any debt they might have and the financial risks they may face.
6. Your responsibility in making sure that you’re valued by the organization and compensated accordingly
Last but not least, it’s your responsibility to make your company want to treat you well – which means putting in good work consistently, being a team player and furthering your organization’s goals. If you do this, it will become easier for your manager to want to work with you and offer you better compensation because the company knows that they’re getting good value for their investment in you. If you do all of these things even when times get tough, then it’s likely that the company will find ways to compensate you accordingly.
7. Is it normal to be turned down when asking for a raise or promotion?
If you’re turned down when asking for more compensation, ask your supervisor why and take notes about what they say. If the reason(s) make sense to you, consider taking them seriously in order to increase your worth in that particular area. For example, you might ask your supervisor if there’s any way that they think you could improve in order to increase your chances of getting a raise or promotion in the future. If they understand and accept what you say as an improvement plan, it will make it easier for them to give you more responsibilities next time around – which likely means more money for your performance.
8. Ways to increase your personal worth in the eyes of your employer
If you want to be taken more seriously, present yourself as a professional by dressing appropriately, using proper etiquette and having thorough knowledge about what’s going on in the organization. When you’re constantly looking out for ways that you can help the company meet its goals, it makes you more valuable to the organization and will enable your supervisor to justify giving you a pay raise. Additionally, if you can make connections within the company and bring others in to help out where they might be needed (i.e. volunteer for specific projects or events) this can also make you stand out from other employees and mean more money in your pocket.
9. What you should know when negotiating compensation
When asking for a raise or promotion, bring up your contributions to the organization and why they are valuable to the company’s success. Also ask if there is any financial flexibility within the company that you can use to come to an agreement about your pay or title. For example, if your organization’s salary for this position is $10,000 and you deserve more than that but the company doesn’t have any money in their budget to increase it at your time of asking, consider options like taking a different title or having less responsibilities.
10. How your compensation impacts company performance
If you feel undervalued and that your compensation isn’t justified, then it’s likely that there are others like you who feel the same way. This can create a negative environment and impact company performance as employees become less engaged and start looking for other opportunities. If employees see that they’re being compensated fairly compared to their level of responsibility, impact on the organization’s success and overall performance, they are more likely to be happy with their organization and stay longer rather than seek other job opportunities elsewhere.
When it comes down to it, being compensated fairly is what everyone wants – but you do have to work for it! Whether that means putting in more hours or taking on additional responsibilities, make sure your contributions are well-known and recognized. When you’re making a significant impact on the company’s success, it becomes easier for your supervisor to want to invest in you and give you more money for your performance!