Salary plays an important role in a person's career, but starting with a low salary can sometimes affect future earnings too. An Entrepreneur has explained how employees may remain underpaid even after changing jobs several times if each new salary is based on their previous pay.
In a video shared on Instagram, Vanya Goel said professionals who begin their careers with lower salaries can get stuck in a cycle where every new job offer is calculated using their previous salary. She said that even regular salary hikes may not be enough to bring their earnings in line with the market.
Goel explained that the problem with a low salary is not only that an employee earns less or has less money to spend. She said the same low salary can become the benchmark for the employee's next company.
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Giving an example, Goel said that if an employee earns Rs 6 lakh per annum, a 20 per cent hike could take the salary to Rs 7.2 lakh. A further hike could take it to Rs 8.6 lakh, followed by Rs 10.3 lakh, which she described as the standard 30 per cent market rate. She said that after five years, the employee may realise that they have fallen far behind the market.
Goel therefore advised professionals not to blindly chase percentage-based hikes. She said that sometimes an employee needs a salary correction instead of another hike.
She also stressed that career growth is not only about performing well at work. According to her, professionals also need to understand their market value and communicate it.
In her caption, Goel said being good at a job is only one part of career growth. She explained that if employees do not communicate their impact, negotiate their value, understand their market worth or make their contributions visible, they can remain underpaid despite being capable.
She added that hard work matters, but knowing how to position that hard work is also important. Goel advised professionals to track their achievements, measure their impact, build visibility, learn to negotiate and understand their market value. She said that while an employee's work creates value, their positioning helps others recognise it.
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