Promoted but underpaid

[User06489]

Hello,

I work in the private sector and my industry is not doing great over the last year or so (redundancies, less work) but profits are still massive from what I can tell across the industry.

My company has advised there won't be many promotions or salary increases this year due to the economic climate and my company's situation. However, I have just been promoted. When they told me my new salary I was surprised since it just seemed like a higher salary for the job I was already doing. The salary is below the market value.

I spoke with someone else who was promoted to the same role a year ago and she is earning £6000 more. This is such a huge gap, I can't possibly catch up with "annual salary reviews", to get to that salary I would need another promotion!

Wondering if there is anything I can do about this? I feel like if I complain they will just say I am lucky I got an increase/promotion at all!

I always stick my head in the sand and never lasted anywhere so I never knew work politics.
I got not payrise in 5 years and never expected it till around year 4 when I was performing exceptionally well and doing way more outside my role
I stuck around for stability and training.
When my request for pay were not considered seriously and when they hired from outside for better paying jobs that I could have done and been trained for I just chose to leave
I was underpaid too.
At one point the director who I really got on with and worked close with told me I got a 3% rise due to my great performance but not everyone did. I later found out everyone did
Then I got a call a year before I left from a recruiter begging me to take a job paying 60% more.
It was a nail in the coffin. I was wasting my time staying for stability when my low salary undermined the stability of being unsackable

Stick around if it benefits you in development. Challenge it if you can or have nothing to lose or would leave otherwise. Don't underestimate your worth

Have you already accepted the promotion salary? ie signed your new contract or whatever. If not, then absolutely now is the time to go back and ask for more. Cite the market salary and what your friend/colleague is getting. Keep it polite and say how you are keen to stay with them but you would like to discuss a larger increase. If they push back, ask to discuss what your options are to get to your target salary over the next year (that might be bonuses, another promotion, pay rise etc…). Consider if there are other things you would accept in lieu such as training or coaching .

If you’ve already accepted you are in a much weaker position. I would probably still go back now and see if there is any negotiating room. You could alternatively try again once you know the outcome of the annual pay review, but don’t keep going back if it’s a “no”

If this doesn’t get the outcome you want then you need to start job hunting. Even if you’d prefer to stay. If you secure a new role on more money, then you can ask them to match it to retain you.