2018 Update: I’m now over at SalaryMatters–my new project. Thanks to the popularity of this post, it’s evident that an entire project needs to focused to this topic. So please visit and leave a comment on this the SalaryMatters version of this post. Thank you! – Steele
Is your company robbing you of the salary you deserve? Possibly.
The one thing I painfully figured out early in my young career is — the method in which companies are able to cheat many of their employees out of the salary they rightfully deserve.
Are you wondering if you’re one of the many victims? Keep on reading because you probably are.
Aside from the most popular method of salary thievery, which is, the initial salary the worker receives upon being hired, the next method of thievery is executed through a series of internal promotions.
So how do they rob me of the salary I deserve?
Companies use the internal promotion, or the practice of hiring an internal candidate for an open role, to secretly whittle away at their employees’ salaries. I painfully uncovered this discreet practice from a personal experience with one of my first employers. And to ensure that I wasn’t being picked-on, I validated my suspicion of this practice by conducting interviews of over 50 professional colleagues from varying years of experience, organizational rank, industries and corporations (and about 50% of them were HR executives).
It works like this; with each internal promotion a worker receives, the company will strategically pay the worker below the market rate, which allows them to save money (an external candidate will more than likely get the market rate). Add up a few of those salary haircuts with each promotion and before you know it, your poor salary could be significantly lower than the going rate for that role (well in the double digits from a percentage stand-point).