How to escape from a vicious cycle of low earnings?

September 11, 2014 1:24 PM

How to escape from a vicious cycle of low earnings?

So I've been working at the same place for 13+ years. My duties have totally changed a few times. But my pay grade has not. I rolled with it for a long time, and said to myself: steady job, haven’t gotten laid off while lots and lots of people at my company have, so it’s okay. Last week, I received my annual performance review: I got 'developing', rather than 'effective/achieves’. I got a 0.0% merit increase and a 2.17% salary adjustment based on marketplace comparison. This upset me deeply because I have done everything asked of me and my supervisor approved in writing all of the documents that I have produced over the past year. My immediate supervisor, who appears to like me and value me, indicated that his manager is unhappy with my work.

I have the responsibilities of an IT professional, but I get paid 58k (that’s after my increase). I interview developers. I manage the UAT process for all of the data warehouse reports in the corporation, a Fortune 1000 company. I lead meetings. I gather requirements from clients and write documents. And my review said that I wasn't doing these things good enough. I'm looking at internal job postings, and there are people two and three job grades above me who do easier, less qualification intensive jobs.

So I started preparing my resume. I have interviewed for jobs in the past, but haven’t gotten any.

I recognize that this is my fault. I didn't make a stink, I haven’t been a high-performer, I haven’t switched jobs every six months in order to maximize my earnings. But I am in a vicious cycle of low earnings. I’m afraid that companies won’t hire me because my salary indicates that my current employer doesn't value me highly/at all, and I guess it’s true, they don’t.

I've set up a meeting to talk to my supervisor about the inconsistencies between my responsibilities and my pay grade, but let's just say that I'm not terribly optimistic that it will result in any positive change at all.

My only idea to escape from the vicious cycle is to job-hop every six months from now on, trying to increase my salary every time. Any other advice? Thanks!

posted by anonymous_account to Work & Money (16 answers total)

Every two to five years, not every six months. But yeah, that's pretty much how it's done in my experience.
posted by restless_nomad at 1:27 PM on September 11, 2014 [8 favorites]

Almost the only way to get a great raise is a job change. It's how I doubled my salary in 3 years (with several job changes). One of the things to know is that your salary is absolutely none of the business of people interviewing you. Don't lie, but don't answer the question. Be willing to answer with what range you're looking for, and be willing to negotiate, but if you're severely underpaid now there's no reason one job hop can't get you up to where you should be.
posted by brainmouse at 1:28 PM on September 11, 2014 [11 favorites]

- what is your degree? often they pay more for that piece of paper
- where do you live? sometimes its location dependent
- LEAVE. Your future employer doesn't have to know you were making peanuts. When they ask your past salary... fudge it. "I was in the pay grade of..." and this is true.
- it's not that they don't value you, they will just pay you as little as you're willing to accept, because businesses are run by Scrooge McDuck.
posted by St. Peepsburg at 1:28 PM on September 11, 2014 [2 favorites]

But I am in a vicious cycle of low earnings... My only idea to escape from the vicious cycle is to job-hop every six months from now on, trying to increase my salary every time.

From what you have written, you are not in a vicious cycle of low earnings, you're just poorly paid for your duties and experience. Those are very different situation. You do not need to job-hop to increase your salary, you just need to find a new job. When asked, you tell potential employers that your current employer is unable to meet your salary requirements, and that's actually a pretty great reason to be looking for a new job.
posted by DarlingBri at 1:29 PM on September 11, 2014 [17 favorites]

Yup, you're stuck where you are because you've stayed too long. I suspect the low review ratings are because they want to start shuffling you out. So let's get going!

Find something the next step up from what you're doing now. Or two steps. Start aggressively going for positions in that grade, and work your ass off once you get into that next step, with an eye on the step beyond, whether with the company you land at or not.

In this economy, the only way to move up seems to be to move around.
posted by xingcat at 1:31 PM on September 11, 2014

Response by poster: what is your degree? often they pay more for that piece of paper

I have a BA in the area of my position, and a BA in one of the liberal arts.
posted by anonymous_account at 1:33 PM on September 11, 2014

I’m afraid that companies won’t hire me because my salary indicates that my current employer doesn't value me highly/at all, and I guess it’s true, they don’t

They'll pay you as little as they can get away with.

Don't give anyone salary history, if you can avoid it. When asked for a salary range, give them the range appropriate for the position you're applying for, in that market. If you don't know what you should be paid, research it.

Heck, it's worth looking at a salary survey now: what should you be making right now?

I can't recommend highly enough that you read Ask A Manager for tips to job-searching. She gives great advice on how to get through the hiring process, and explains what the hiring managers are thinking. She will also let you know when something in the process is bullshit, which I find refreshing.
posted by suelac at 1:53 PM on September 11, 2014 [5 favorites]

I've tripled my salary in about ten years of job hopping. I don't know of any other way to do it. To be honest, employers look askance at people who have been doing the same thing for ten years.
posted by empath at 1:55 PM on September 11, 2014

Get on LinkedIn, and fill it to the max.

You don't need to spring for the premium account but fill that profile with everything you've got. List accomplishments, list projects you've worked on, get recommendations from people that can write nice things about you (and don't work for your company). Put a nice headshot on there that wasn't shot in a nightclub or a bathroom selfie. Get your connection count up.

Every recruiter I know in the CS/IT fields is combing LinkedIn like crazy. That's tool #1 they're using now to locate people.

Ignore the poo-poohers that say it's just Facebook You Can Use At Work(tm). Skip all the social media nonsense and don't spend any time in the forums or in-page chat where people congratulate each other over new haircuts or silly quotes. But groom that profile religiously. Refine, revise, look at what others have written and use it as a model.
posted by JoeZydeco at 1:55 PM on September 11, 2014 [6 favorites]

There are no longer any companies in the tech industry that provide a path for non-managerial employees to receive salary raises consistent with their value in the market. Hence, moving jobs every 2-5 years is the way to go. It's an accepted part of career development. Like others mentioned here, I look critically at those who don't move between jobs. It suggests the employee at worst isn't competent or at best isn't developing a wide background that comes from working at multiple companies.

I do not provide prior salary when job-searching. I simply state, "my salary expectations are based on my qualifications, and I expect potential employers to compensate me based on my value to the company rather than average salaries. I am an above-average employee and I expect to be compensated correspondingly". I then follow that with a target salary I'm looking for and a salary below which I won't consider. Although every recruiter I say this to dithers a bit, it has never been a problem, and the salary offers I've received are exactly in line with the salary growth I'm looking for. Most importantly, I am able to very quickly determine if my expectations are in line with what employers are willing to pay - I target my numbers such that I occasionally get rejections (so I'm not too low), but also occasionally get in-person interviews (so I'm not too high).
posted by saeculorum at 2:03 PM on September 11, 2014 [4 favorites]

Also you should note that if you're worried about a new job finding out what you made at an old one, they'll only find out if you tell them. When asked, 99% of companies will only confirm what your job title was and how long you worked there, since disclosing just about anything else (including salary) could open them up to a lawsuit.
posted by Itaxpica at 2:19 PM on September 11, 2014

Also you should note that if you're worried about a new job finding out what you made at an old one, they'll only find out if you tell them.

But, be careful. Recruiters these days will be eager to get you on the phone, then they hit you with that question:

"So, what salary are you looking for?"

It's an innocent question, somewhat designed to save everyone's time if you're looking for, say, $90K and the position only has $75K budgeted. It may decide if you get the on-site interview or not.

Others here can debate about what to say, if anything at all.
posted by JoeZydeco at 2:26 PM on September 11, 2014 [1 favorite]

Don't get down on yourself ("it's my fault ..."). Acknowledge that you could have done things differently then start doing them differently. It's a lot more productive than thinking "stupid, stupid, stupid." Hiring managers don't always respect colleagues who have been around for several years. Can you make your resume look like you have had different positions at your organization to reflect your growing responsibilities?

I had a similar experience like you where I got a mediocre review and thought, this is BS. At the same time, you aren't in any kind of cycle. You have had one employer who treats you like crap. So focus on getting a new gig.

I think you might be setting yourself up for failure by declaring your intent to attempt to get a new job every six months in pursuit of a higher salary. First of all, six months is not enough time to become good or learn a skill at a job. It's not enough time to build a relationship with someone who will be a good reference down the road. Also, job hunting is hard. If you plan to get a new gig every six months, you are basically setting yourself up to be constantly applying and interviewing for new jobs. And while it sounds like you're underpaid, is that the most important thing that you're looking for in a job? It's okay if yes. Put another way, if you were making more money at your current job, would you be looking?

My advice is to try to find a job where you will make more money but also like going to work. Try to get a gig at an organization whose mission you support or where they do something that interests you or where you can learn something new and cool. See how you like it and after a year, if you want to see what else is out there, look around.
posted by kat518 at 2:33 PM on September 11, 2014 [2 favorites]

I just popped in to ask what did your mgr note was the problem w your work? Did they give specific examples of problems? And also I wanted to say DO NOT LIE about salary. The job I just accepted and start on Monday verified my salary W2 total from last year w IRS as part of background chdck. You do not want to be caught in a lie. Either refuse to answer (and risk they don't hire you) or tell the truth.
posted by TestamentToGrace at 2:56 PM on September 11, 2014

working at the same place for 13+ years

This sets you up great for working someplace new. Pay and responsibilities don't align well in a company you've been at for a long time. I worked at my first company for five years, and when I moved locations for the same salary, in my new city I was practically shamed by friends for how pitiful my salary was. Not that they didn't want to give me a higher salary, that's just what happens when you stay somewhere for a long time. I switched companies and made a 28% raise, aligning myself closer to what's par for my skill level.

But the key is knowing what salary you should be able to expect. If you don't have an idea of where to look for industry standards of pay, Linkedin can help with that a bit, if you take one of those free jobseeker-for-a-month offers, they show approximately what the average salary would be for the job posting.

And as a person whose father is in IT, I do recommend you try to shoot for the stars, especially if you have the experience to support your ability to handle the next level. It's been made clear that you should be trying to aim for management between 30 and 40 if that's where you want to go, otherwise you get shuffled over into a corner, with a ceiling.
posted by lizbunny at 3:04 PM on September 11, 2014

Last week, I received my annual performance review: I got 'developing', rather than 'effective/achieves’. I got a 0.0% merit increase and a 2.17% salary adjustment based on marketplace comparison. This upset me deeply because I have done everything asked of me and my supervisor approved in writing all of the documents that I have produced over the past year. My immediate supervisor, who appears to like me and value me, indicated that his manager is unhappy with my work.

I just wanted to comment on this because it really bugs me when companies do this to good workers. If your reviews have been good to excellent up until now (which I assume is the case if you have been there 13+ years), you were reviewed on the same duties you had previously received good reviews for (not new duties), and you did not receive specific feedback in your review, the disappointing performance review likely has nothing to do with your work. Maybe the company does stack ranking and this year your review drew the short straw. Maybe your company is instituting an "up or out" policy and this is the way they are choosing to "manage you out". Maybe the boss's boss has a nephew or a golf buddy who needs a job. Or one or more of many other reasons.

I've set up a meeting to talk to my supervisor about the inconsistencies between my responsibilities and my pay grade, but let's just say that I'm not terribly optimistic that it will result in any positive change at all.

Did you express these concerns before the review? If so, that also could be a factor. It could be a way to justify not giving you more of an increase, not because you don't deserve it, but because they simply don't want to pay you more than they have to.
posted by jazzbaby at 5:02 PM on September 11, 2014