How to Tell if You’re Underpaid: 4 Key Signs

How to Tell if You’re Underpaid: 4 Key Signs

March 26, 2025

1 in 5 workers who asked for a raise last year didn’t get one, and with a cooling job market, making that ask feels even more intimidating right now. Google searches for “how to know I need a raise” are up 125% this month, and “when should I ask for a raise” has surged 86% this quarter, highlighting the growing concern.

Does asking for a raise feel riskier in 2025? As an HR expert, I discuss what to consider before walking into a negotiation and how to boost your chances of hearing “yes” when you ask for more.

4 signs you’re ready for a raise:

Your role has outgrown your title

One of the clearest signs you’re overdue for a raise is when your responsibilities have expanded beyond your original job description. Start by reviewing your agreement: are you handling duties that aren’t officially part of your role? Have you gradually taken on more tasks? Are you stepping into leadership responsibilities, like managing teams, mentoring colleagues, or decision-making? If so, it’s time for a promotion, which should also come with a raise.

You’re bringing serious money to the table

If your recent contributions directly impacted the company’s success, you’ve earned the right to a larger slice of the pie. This may include landing big clients, improving operational efficiency, launching profit-generating initiatives, or increasing revenue through your other efforts. The goal is to quantify your value with real numbers, making your worth visible.

Your performance is critical

This means a combination of two factors. First, you’re crushing it in your role. No failed KPIs, missing deadlines, or frequent mistakes — just flawless work and productivity. Second, your absence would cost the company far more than your raise. Whether you’re overseeing critical processes or bringing specialized expertise, this is your leverage. Just don’t get it twisted: this isn’t a “threat to quit” situation. It’s a sign to own your value and confidently ask for what you deserve.

The timing is right

Sometimes, it’s simply a matter of time. If you’ve been consistently performing for over a year without a salary adjustment, you’re already losing money to inflation. Even if you haven’t stepped into a bigger role, steady performance means you’ve likely leveled up your skills and grown your value. That makes it the perfect time to check the market: are others with your experience earning more? Also, don’t forget to choose the ideal moment for the conversation, like when the company is reporting strong quarterly results, your team has hit its targets, and budget planning is underway.

Written by Avery Morgan, Chief HR Officer at EduBirdie