I think we can all agree that your income is your biggest wealth building tool you have. Secondly, what you do with that income is equally important. You can make six-figures and still be in debt, we were in that boat, or make far less but, properly plan and remain debt free.
There is no one size fits all plan to personal finance. We all have different personal situation that will vary, including different interests, priories, family size, goals, etc. Now image you found out that you were being paid less for the same work the guy/gal in the cubicle next to you or as your college roommate doing the same job in a different city. How would that make you feel?
Typically swapping salaries with co-workers is a taboo subject. Frowned upon by management and can be a real morale killer in the office if salaries were common knowledge. It would be difficult to obtain this type of information legally. Luckily Paysa new report does just that. Breaking down the top companies most likely to underpay their tech talent.
Most Underpaid U.S. Cities
Overall the personal finance community has a large population of IT and engineers, tech talent if you would. In fact, I have work in the IT field for twenty plus years. Per the Bureau of Labor Statistics our numbers are growing.
Here are the top 10 cities where employees are most likely to be underpaid:
1. Seattle, WA at 77%
2. Boston, MA at 39.22%
3. Pittsburgh, PA at 31.82%
4. Washington D.C. at 28.57%
5. Austin, TX at 28.24%
6. Los Angeles, CA at 26.92%
7. San Francisco, CA at 24/17%
8. San Jose, CA at 24.15%
9. San Diego, CA at 21.82%
10. New York City, NY at 20.56%
Now I live in New York state, but do not work in NYC. Now look at the cost of living of these cities and it gets worse.
Cost of Living Index Rank
3. New York, NY 100.00
5. San Francisco, CA 99.14
7. Washington, DC 95.34
12. Seattle, WA 90.54
13. Arlington, VA 89.52
14. Boston, MA 89.40
27. Pittsburgh, PA 82.96
30. San Jose, CA 82.75
38. Los Angeles, CA 80.67
80. Austin, TX 74.07
High cost of living couple with a lower than average salary is not the sweet spot you are looking for in building wealth.
Companies Most Likely to Underpay You
Location is not the only data capture in Paysa’s recent report, the also complied the top 20 companies that underpay their tech talent.
1. Accenture at 90%
2. Glassdoor at 83%
3. Pinterest at 80%
4. Microsoft at 75%
5. Dropbox at 65%
6. Airbnb at 63%
7. Lockheed Martin at 62%
8. Facebook at 59%
9. Uber at 56%
10. IBM at 55%
11. Nividia at 54.55%
12. Cisco Systems at 52.50%
13. Intel Corporation at 48.65%
14. Sift Science at 47.62%
15. SalesForce at 46.88%
16. Google at 42.08%
17. Adobe at 40.00%
18. Oracle at 40.00%
19. Workday at 30.50%
20. Hewlett Packard at 36.36%
What’s interesting here is company number two, Glassdoor. Glassdoor is job search and companies review website. A little ironic, isn’t it?
Companies Most Likely to Pay You What You’re Worth
Now let’s look at the flip side, the ten best companies least likely to underpay their tech and engineering employees:
5. Capital One
9. Bloomberg LP
Netfilx’s anyone? I know they are a big hit for saving money over traditional cable, but if you work in tech at Netflixs you have zero percent chance of being underpaid.
The report found and I’m sure not surprising too many, that women in tech are 45 percent likely to be under-compensated while their male counterpart are only 38 percent likely. From my own personal experience in tech I have worked for and alongside many women I can’t speak to their compensation, but they have certainly been capable.
This data point did not surprise me. Over the report found that younger workers those with 0-2 years of experience were most likely to be underpaid. Those workers with 20 years or more experience were the least. It’s important to now from my own experience that time served just doesn’t automatically mean you make more money while working in tech. You need to stay on top of changes in technology and continue to learn over the years.
I found this report to be interesting and full of great data points. When I thought about it as it applies to my twenty-year career in tech/ IT I would not immediately walk into my manager’s office and demand a raise.
I believe you need to understand several factors first, what overall value to you bring to your position, and company. What are your responsibilities compare to someone else in a similar roles. Are you required to travel, be on call on nights, and weekend, expect to work extra hours, etc.
The old interview question of what are your salary expectations, is a trap questions in my opinion. It’s tough to answer until you fully understand the position and its responsibilities. I have taken a pay cut in my career, given the fact that my responsibilities would be less and I’d have a better work life balance.
So, use the data wisely and make sure you are not being underpaid for the work and value you provide.
Have you ever felt like you were being underpaid? Have you ever asked for a raise? Ever worked in a city or for a company in this report?