Let’s be honest—we live in a money-driven society where the quest to “get rich” can lead to the most absurd and unexpected ventures. For some, it’s been selling virtual real estate in the metaverse, launching bizarre “hype” products like caffeinated toothpaste, or even creating AI-powered pet influencers where making enough money came effortlessly.
But what about those who are still grinding away just trying to make ends meet? Or, more specifically, what about those in loss prevention working shifts that don’t always follow the traditional 9-to-5, often sacrificing nights, weekends, and holidays to keep businesses safe? Those showing up day in and day out but find themselves asking, Am I earning enough? Should I be pushing for a raise—or maybe an even bigger one? Or, in the worst case, Do I need to start looking for a new job?
How to Know If You’re Underpaid: Signs and Red Flags
According to a 2023 survey by Glassdoor, 53 percent of employees in the United States feel they are underpaid for the work they do, with many citing a disconnect between their responsibilities and compensation. This perception of being underpaid spans across various industries, including the vital field of loss prevention, where professionals often find themselves working hard without adequate recognition or financial reward.
Lance Incitti, CCIP, part of the executive search group at RPS of NJ, said, “When I talk to candidates, they often tell me that they know they are not paid up to industry standards.”
This awareness has become increasingly accessible, thanks to the rise of salary transparency and resources available to employees. Incitti notes that employees are now more informed about how their pay compares to others in the industry, which can help clarify whether or not they are underpaid. But while employees may sense they’re being undervalued, it’s important to verify this with concrete data.
“Do your due diligence on the company and its competitors,” said Tracy Nini, president of West Coast Recruiting, the nation’s leading search firm for LP, security, and risk, and CEO of LPJobs, an e-recruiting site exclusively for LP and security professionals. “It’s now easier than ever to find out how much a company is budgeting for a role. Thanks to legislation in many states requiring employers to post salary ranges in their job listings, you can uncover this information with a bit of investigation. Other sources include Glassdoor, Salary.com, SalaryExpert, Monster.com, Payscale, and several others.”
To make sure you’re being paid fairly, it’s essential to keep track of both your salary and the wider market trends.
If you haven’t received a raise in years, that is likely a red flag. Regular salary reviews are key to keeping your pay aligned with your growing skills and market trends. If your pay hasn’t budged with inflation or the cost of living, your real income might actually be shrinking, even if the number on your paycheck stays the same.
Another sign to watch out for is if you take on more responsibilities but your salary remains the same. As your role evolves and your workload increases, your pay should reflect those changes. If it doesn’t, it may be time to have a conversation with your employer about adjusting your compensation.
The Hidden Costs of Underestimating Your Worth
Recognizing that you may be underpaid can put you in the uncomfortable position of needing to ask for what you truly deserve. But here’s the catch: By selling yourself short, you’re not just leaving money on the table—you could also be hindering your long-term career growth. The hidden costs of underestimating your worth go beyond a smaller paycheck; they can erode your confidence and job satisfaction and limit the opportunities that come your way. Understanding your value is crucial, and doing so can have a significant impact on both your financial and professional future.
“There are the obvious financial consequences of not only being underpaid currently, but your company using your salary as a base for future increases—therefore being underpaid in the future,” said Mike Reddington, CFI, president of InQuasive, a company focused on professional coaching and training. “For me, the real consequences are psychological and perceptive. If an employee undervalues themself, they run the risk of thinking less of themself, their capabilities, and their worth. Therefore, their confidence and self-image may be lower, which in turn can be detrimental to their performance and career growth. This can also be detrimental to how they are perceived by others. If an employee doesn’t recognize their worth and lowers their self-image, standards, performance, expectations, etc. as a result, both peers and supervisors may lower their expectations for the employee as well.”
Incitti echoed Reddington’s point, emphasizing that underestimating your value can lead to a lack of growth: “The cost of underestimating your worth as an employee can’t be measured in dollars and cents. Instead, it’s seen in the opportunities lost—both for the employee and the company. For the employee, it may mean missed chances for growth, learning, and new challenges.”
For a supervisor, underestimating an employee’s worth could mean missing the opportunity for an employee to truly benefit the company. Incitti continues, “If a company or supervisor fails to recognize that an employee is undervaluing themselves, they risk losing the opportunity to develop and mentor that individual, which could ultimately result in losing a valuable employee altogether.”
Underestimating your worth in the workplace can be just as detrimental as overestimating what you deserve. Both extremes can lead to missed opportunities and unrealized potential. While underestimating yourself may result in stagnant growth and a lack of recognition, overestimating your value can set you up for disappointment and failed negotiations.
Balancing Ambition and Reality
There is a term in psychology called “illusory superiority” or the “above-average effect.” This refers to the tendency of individuals to overestimate their abilities relative to others, often inflating their own knowledge and competence.
When it comes to requesting a salary increase, it’s essential to be mindful of this human tendency to avoid falling into the trap of unrealistic expectations, which can set you up for disappointment. While recognizing your achievements is important, managing your expectations is equally crucial to ensuring you’re more satisfied with the outcome of salary negotiations.
“Being realistic is crucial for several reasons. If we set expectations too high and come across as demanding, we risk losing credibility and creating long-term
issues,” said Reddington. “We also want to avoid emotional disappointment or becoming disillusioned with the organization. If that happens, it’s not the organization’s fault—it’s because we had unrealistic expectations to begin with.”
You can view salary negotiations as walking a tightrope between recognizing your worth and being in tune with what the company is able to offer. It’s not just about thinking you deserve a raise; it’s about what’s reasonable given the market, the company’s budget, and the value you bring to the table.
Reddington’s advice rings true when we look at the reality of salary negotiations, where both candidates and hiring managers need to stay grounded. Overestimating your value can lead to disappointment or, worse, strain the relationship with your employer. On the flip side, underselling yourself could mean settling for less than what you truly deserve.
“Candidates and hiring managers have to be realistic. You don’t go from a $50,000 to $80,000 salary overnight. Even with the most excellent review, you should expect to get maybe a 3 to 5 percent salary increase.”
It is crucial to know what is feasible for your role and industry. While aiming for a large salary jump might be tempting, it’s often more practical to expect gradual, steady increases over time.
Managing your expectations is crucial, but gathering information on typical salaries is also important to ensure you’re aiming for a reasonable range. This research helps you establish a baseline for what you should expect based on your role, experience, and location. Knowing the salary landscape in your industry and region ensures you enter the conversation prepared with a realistic number.
“You want to be as informed as possible about typical salaries,” said Reddington. One way to do this is by looking at similar posted positions. Keep in mind, though, working in a big box store isn’t the same as working in a specialty store, and salaries in metro markets differ from those in suburban or rural areas. However, by comparing open positions and finding salary ranges, you can start to estimate what your range might be.
Doing your research helps you avoid falling into the “illusory superiority” trap when it comes to your salary, giving you a more informed view of where you stand compared to others in your field. Understanding the variations between locations, industries, and company sizes can help you decide what is a fair salary increase request to bring to the table. This approach ensures you confidently enter salary negotiations, knowing you’re both informed and realistic.
The Power of Salary Transparency
Have you ever experienced a situation where your expectations let you down because you assumed things would go in your favor or that everyone involved was aligned with your perspective? Recovering from these disappointments is often more challenging than simply having an honest conversation upfront. Addressing expectations early on can help prevent future disputes, unexpected setbacks, and damage to trust.
“I have always told my clients and candidates that transparency is the best way to start a relationship,” said Incitti. “When there is transparency, there should be no surprises. All sides want to get the best deal possible, and that is understandable. After all, it is business.”
And when it comes to business, the conversation around expectations naturally extends to compensation. If you’re meeting the demands of the role and adding value, it’s only fair that the organization compensates you accordingly.
Reddington said, “If a candidate or someone I’m coaching is asked about salary expectations, I’d recommend responding with, ‘My salary expectations are that the compensation reflects the value this position brings to the organization.’”
Expectations should be mutual; hiring managers must also be transparent about the company’s compensation expectations from the start. Asking targeted questions to clarify these expectations can help streamline the process for both parties.
“When qualifying candidates, it’s important to align expectations on both sides,” said Nini. “A good approach is to ask, ‘What is the salary range for this role?’ or ‘What salary are you hoping to offer?’ It’s also essential to consider the salaries of others in similar roles, including supervisors, to ensure the new hire’s salary doesn’t exceed theirs—especially if there’s a significant increase.”
As you ask these questions, it’s important to note that, depending on your state, you may not be required to disclose your salary history. Over the past few years, there has been a growing movement across the United States to eliminate salary history inquiries as a part of the hiring process.
“With salary history bans in place in twenty states, we now ask candidates what they’re looking for in their next role, rather than inquiring about their current compensation,” said Nini. “In many states, even third-party recruiters can’t ask for salary history. As a part of our process, we define the total compensation package with the client and hiring manager, ensuring it aligns with both sides’ expectations as we qualify candidates.”
The idea behind these bans is that when employers base salary offers on a candidate’s past pay, it can reinforce existing wage gaps—especially for women and minority groups. If someone was underpaid previously, that lower salary can carry over into new roles, continuing the cycle of inequality. By eliminating salary history questions, employers are encouraged to offer compensation based on the job’s responsibilities and market value rather than a candidate’s past pay.
“New legislation banning salary history inquiries is leveling the playing field by promoting pay transparency,” Nini explains. “This shift changes the negotiating process, as employers can no longer base decisions on an applicant’s past salary. The logic is that past pay discrimination, whether intentional or not, is perpetuated when employers consider previous salaries in their decisions.”
Negotiating Like a Pro
Asking for a raise can feel like walking a fine line. It goes beyond what you feel you deserve—it’s understanding the bigger picture and knowing how to sell your value in a way that speaks to your company’s goals. Think of negotiations as a game where strategy wins the day. With the right mindset and approach, you can make sure you’re not just asking for more—but positioning yourself for success.
“Whenever we focus on what we ‘deserve’ or what we’ve ‘achieved,’ it makes it easier for others to say no or justify not granting the raise or increase we’re seeking,” said Reddington. “Instead, it’s crucial to understand that the organization’s financial decisions are driven by the outcomes it values, which are tied to the budget at each level. We should frame our discussions in a way that aligns with these financial realities.”
According to Reddington, here are some effective ways to frame the discussion:
- Shift the conversation with your manager from immediate dissatisfaction regarding pay to a more productive discussion about positioning yourself for a raise.
- Start with a polite acknowledgment: “Thank you, I appreciate your feedback.” Then, say, “I understand there’s a typical process for salary increases. What I’d like to do now is discuss what I need to demonstrate and achieve over a specific period to be considered for an increase.”
- Use a phrase like, “Please correct me where I’m wrong,” then outline how you’re evaluated—key metrics, relationships, and beyond.
- Frame it from a development perspective: “I’d like to review where I’m excelling and where I can improve.”
If you’ve done your homework, you’ll be clear on your strengths. The feedback should emphasize these strengths as well as areas for improvement. By steering the conversation this way, you ensure that your manager recognizes the key factors used for evaluations and compensation. This puts you in a strong position to professionally ask for a raise based on what they value.
However, sometimes a salary increase isn’t the most beneficial option for everyone—other forms of compensation might be more valuable.
“When negotiating a raise, it’s important to consider the total compensation package, not just salary,” said Reddington. “If the raise is declined, think about other forms of compensation—extra paid time off, flex time, work-from-home options, or even benefits like mileage reimbursement or a company car. Instead of just focusing on salary, approach the conversation with a broader view: ‘Please correct me if I’m wrong, but based on our performance and compensation expectations, could we discuss other ways to adjust my package?’ This allows for more flexibility and might result in more valuable benefits than just a salary increase.”
But if you don’t receive the raise or compensation you’re looking for, Reddington emphasizes an important point to keep in mind. “Never give an ultimatum unless you’re prepared to act on it,” he advises. Telling someone, ‘If I don’t get X, I’m leaving,’ should only be said if you’re ready to walk away. Approach the negotiation with a long-term plan in mind. When you make your case, focus on the value your role brings to the organization—based on measurable outcomes and the factors they care about. Guide the conversation so that offering you a raise becomes the most logical next step, making it hard for them to deny your request without a solid justification.”
If you find that a raise is not on the horizon, it may be worth stepping back and considering asking yourself a more fundamental question.
Beyond the Paycheck: Is Your Job Providing Enough Value?
At the end of the day, most of us want to find value in our work. For some, work-life balance is more important than pay, while others prioritize financial compensation. It’s vital to regularly reflect on whether your job is contributing positively to your life beyond the paycheck. This reflection is key for job satisfaction and overall well-being.
“Understand your needs and what’s important to you,” said Incitti. “Once you identify that, everything else will fall into place. Before you go to the table, you must understand those needs. If you’re happy in your job, and you love it, and you have everything you want in the job, then whether you get 2 percent or 10 percent shouldn’t be a big concern.”
As Reddington previously noted, there are times when additional financial compensation may not be the most pressing need. Instead, what might be more valuable could be benefits such as increased time off, greater flexibility, or other non-monetary perks that contribute to a better work-life balance and overall well-being. “When it comes down to whether you are being paid enough, that’s more of a personal question where you must think through where you are in your life, where are you in your career, where are you in your quality of life, your personal commitments, all these things that go into that,” said Reddington. “So, for me, I feel like getting paid enough goes beyond roles and responsibilities.”
The ideal arrangement should benefit not only you but also your superiors and the company as a whole, creating a mutually advantageous situation.
“Remember, your skills can solve the employer’s problems,” said Nini. “Instead of trying to ‘sell yourself,’ focus on having a mutual conversation that addresses their priorities and challenges while showcasing how your past successes can provide solutions. The job, its responsibilities, and the compensation package should be a good fit for you, just as you are for them.”
Wrapping It All Up
In a world where financial success often takes center stage, it’s easy to focus solely on the paycheck, the raise, or the next promotion. However, compensation is about more than just money. While salary is undeniably important, understanding your true worth and how your job fits into your broader life goals is equally crucial. Salary transparency, recognizing the hidden costs of undervaluing yourself, and knowing how to navigate negotiations are all vital aspects of achieving fair compensation.
Striking a balance between immediate financial needs and long-term career growth is easier said than done, but it’s worth working toward with tenacity. Sometimes, the value of a role isn’t measured just in dollars, but in the experience, career development, and work-life balance it offers. Asking yourself, ‘Am I making enough?’ can mean different things to different people.
Whether you’re negotiating a raise or assessing your current job, the right balance of salary, benefits, and job satisfaction can lead to a more fulfilling career and a more rewarding life.