Feeling undercompensated - Deepstash
Diverse And Inclusive Workplaces

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Feeling undercompensated

Feeling undercompensated

When someone on your team asks for a raise (assuming they're deserving), but you don't have the budget to increase their pay, can you give someone a promotion to keep up their morale?

Just saying "no" to a pay raise or lying to them and saying it could happen in a few months will likely not end well. Instead, redirect the conversation toward the real cause. If you can fix that, you will have a greater impact.

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Get to the root cause

The best way to find out why someone wants a raise is to ask them.

Questions that can help to uncover the issue.

  • What's your least favourite part about your job?
  • What's one thing we could do to improve how our team works?
  • How do you ...

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Give them new projects to work on

Give them new projects to work on

You may be unable to increase their financial compensation, but you can instead focus on providing them with career growth. Studies show that growth is a significant perk people want at work, even more than money.

  • Introduce them to a mentor further along in a simil...

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Be more transparent

If you are transparent about your company's financial situation, when raises are considered, and your limitations, your employee looking for a raise will be more willing to wait.

Transparency creates a deeper level of trust between employers and employees. However, a lack o...

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luioj

What we measure we improve.

How to deal with one of your team members feeling undercompensated but giving them a pay increase is not an option.

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Keeping The Salaries Secret

When people don't know how their pay compares to their peers, they're more likely to feel underpaid and maybe even discriminated against.

For companies, pay secrecy is actually a way to save a lot of money. Keeping salaries secret leads to what economists call "information asymmetr...

Prepare your response

  • If you get turned down, ask what you need to do to improve. "Get as much specific feedback as possible so you can figure out what steps you need to take to get to the next level,"
  • Put something on the calendar for a few months out. Ask to revisit t...

Follow up after smaller group meetings

Each time you have a comment or question that you didn’t get a chance to raise in a meeting is a new opportunity for you to approach and spark a conversation with someone later, one-on-one. Whether it’s congratulating someone or asking a brief question, you will have a few conversation t...

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