While I was watching my daughter at gymnastics camp today, I struck up a conversation with another mom. Soon (inevitably!), we were talking about my work as a Family and Career Strategist.  

She was intrigued by it all and she asked about the most pressing issues for my clients.  

I told her that career moms need to have a sense of meaning and purpose in their work, and they have to be fully and fairly compensated for the work they do.  

She said that as a teacher she can’t imagine earning a $300,000 yearly salary but she has an attorney friend who does make that.  She wondered out loud how she could ever bring herself to ask for more money if she was making over six figures.  

I echoed her thoughts because many of my clients do make a great salary. Sometimes it’s more than they ever imagined they’d earn.  This does give them pause when asking for more.  They have to resist the little voice in their heads that says they should just be satisfied and grateful for what they have.

Then I explained that one’s salary isn’t just about the money you make. Your salary positions you relative to other people in your profession and organization whose work has the same value as yours.

The more money you make the more valuable your contributions appear.  When your contributions are highly valued, you have much more ability to control your career.  

Your salary encompasses more than pay parity, benefits and retirement.  When your employer pays you less than your colleagues, it results in a series of less obvious consequences.  

Consequence #1

When you’re paid less than someone else who does the same work, it makes you appear less competent.  The result is that you aren’t offered as much responsibility.  You don’t get the same opportunities to work on meaty and challenging projects.  People want to give work to people who they believe can get it done most effectively.  If Joe keeps getting promotions and pay raises before you, colleagues will assume he’s the go-to person for more important, and likely interesting, work.

Consequence #2

Compensation scales are tied to seniority and rank in most organizations.  What happens is that once you make a certain salary, the only way to make more money is to take on more responsibility.  This translates into management opportunities.  

This is why many people who aren’t necessarily management material get promoted.  It is just the next “logical” step in the organization.  If their salary reflects that they’re at the top of the pay range for their position, it must mean that they are ready for the next step up.  

It happens all the time in organizations. If you aren’t making the money at the top of your salary range, then you aren’t considered as “ready” for a promotion or management responsibilities.

It might not seem like a big deal that the next step is to manage a team or project.  However, if you want to be part of the senior management team in your firm or organization, it won’t happen until you meet a particular salary threshold. It isn’t written anywhere, it’s just the perception that if you’ve garnered a large salary, you must have the savvy and know-how to manage the intricacies of senior management.

Consequence #3

Women that make more money and have more management responsibility tend to have more autonomy and resources to create flexibility in their careers.  In many organizations, senior leaders aren’t required to report directly to a boss.  They report to a team or their boss has multiple executives that run their own groups, divisions and departments.  The effectiveness of the senior executive is evaluated by the bottom line contribution of the group they manage or book of business they build.  

In an article published by the Stanford Graduate School of Business, researcher Mandy O’Neill found that women who become bosses and earns a high salary is in a better position to set her own schedule, find good child care, and keep the career she wanted. 

The Bottom Line

When it comes to salary and competence, perception is the reality.  If part of what motivates you is the challenge, autonomy, and more responsibility, then asking for the money you’re worth is a key step of your career path.  Not sure how to do it and how much to ask for?  Sign up here for my free three-part video series, How to Make the Money You’re Worth.  OR leave a comment and share your insights.  I would love to hear from you.