Starting a career with a lower salary may seem like a temporary setback, especially when employees expect their income to grow with experience. But according to entrepreneur Vanya Goel, the problem can become more complicated when future salary negotiations continue to be based on that initial pay. In a video shared on Instagram, Goel explained how professionals can remain behind the market even after switching companies and receiving regular salary hikes. Her argument is that percentage-based increments do not always correct a salary that was low to begin with.
How a low salary can become a career benchmark
Goel explained that one of the biggest problems with starting on a low salary is that the figure can become the reference point for future job offers. For example, she considered an employee earning Rs 6 lakh per annum. If that person receives a 20 per cent increase, their salary would rise to Rs 7.2 lakh. A further 20 per cent increase would take it to around Rs 8.64 lakh. Even though the employee’s salary is increasing, the percentage is being applied to a figure that may already be below the market rate for their role and experience.This can create a situation where an employee continues to receive higher salaries than before but remains underpaid compared with professionals doing similar work. Goel suggested that employees should therefore look beyond the size of an increment when evaluating their career growth. A 20 or 30 per cent hike may sound impressive, but the more important question is whether the resulting salary reflects the employee’s skills, responsibilities, experience and current market value.
Why changing jobs may not always fix the problem
Job switching is often seen as one of the fastest ways to increase income. However, changing companies does not automatically solve salary disparities if the new offer is calculated primarily from the employee’s previous compensation. For instance, if a company offers a percentage increase over an existing salary, someone who started significantly below the market can continue to carry that disadvantage into every subsequent role. Goel’s advice is that professionals sometimes need a salary correction, rather than simply another percentage-based hike.A salary correction means reassessing compensation based on the actual value of the role and the employee’s contribution instead of treating the previous salary as the only benchmark. However, salary negotiations can depend on several factors, including industry, location, experience, company size, skills, demand for a particular role and the employee’s responsibilities. Therefore, there is no single percentage that can be considered a fair increase for everyone.
Knowing your market value matters
Goel also emphasised that career growth involves more than simply working hard. In her caption, she pointed out that employees need to communicate the value they create. Someone may consistently perform well, take on additional responsibilities and contribute significantly to a company, but those contributions may not automatically translate into better compensation. She encouraged professionals to keep track of their achievements and measure the impact of their work. This could include projects completed, revenue generated, costs reduced, processes improved, clients retained, targets achieved or additional responsibilities taken on, depending on the nature of the job.Building professional visibility can also help employees communicate their contribution more effectively during performance reviews and salary discussions. Goel advised professionals to focus on several areas: tracking achievements, understanding their market worth, building visibility and learning to negotiate. Her broader point is that hard work and compensation are not always automatically connected. An employee can be capable and hard-working while still being paid below the market if they do not understand or communicate their value.At the same time, salary should not be the only measure of career success. Learning opportunities, work culture, growth prospects, flexibility and long-term career development can also influence whether a job is worth staying in. Still, Goel’s message highlights an important career lesson: a salary increase is not necessarily the same as salary growth. If every future raise is calculated from a figure that was already too low, professionals may need to step back, assess their market value and negotiate for compensation that better reflects where their career stands today.
