Despite working in one of the most commercially critical functions in any organisation, a large proportion of finance professionals feel they’re not being compensated fairly.
It’s a surprising contradiction. Finance teams are responsible for managing performance, guiding strategic decisions, and safeguarding the financial health of businesses. Yet many of the people doing that work feel undervalued.
Recent data from the Finance Alliance Salary Report highlights just how widespread this issue is: 40% of respondents said they are not very happy with their salary, and nearly half reported that their pay does not reflect the value they bring to their organisation.
So why does this gap exist? And more importantly, what can finance professionals do about it?
The disconnect between responsibility and reward
One of the clearest themes in the data is the growing gap between what finance professionals are expected to do and how they are compensated.
Many respondents reported taking on additional responsibilities without seeing meaningful increases in pay. In some cases, professionals are effectively operating at a higher level than their job title suggests, but without the salary to match.
This is not uncommon in finance. As businesses evolve, finance teams are often asked to step beyond traditional reporting roles and take on more strategic responsibilities, such as:
- Supporting business planning and forecasting
- Partnering with non-finance teams
- Providing insights to senior leadership
- Contributing to decision-making processes
However, compensation structures don’t always keep pace with these changes. Pay bands, internal budgets, and rigid promotion cycles can delay or limit salary increases, even when responsibilities expand significantly.
The result is a growing sense of imbalance: more is expected, but not always rewarded.
Teresa Garanhel
Why salary progression often lags behind performance
Another key factor behind salary dissatisfaction is how pay progression is structured within organisations.
The survey shows that pay increases are often inconsistent:
- Some professionals receive modest raises when promoted
- Others take on more work without formal recognition
- A portion of respondents report unclear or inconsistent criteria for salary increases
Even in companies with defined processes, increases may be tied to annual review cycles, budget constraints, or company performance, rather than individual contribution alone.
This creates a situation where:
- High performers don’t always see immediate financial rewards
- Salary growth becomes slow and incremental
- Market value and internal pay diverge over time
In contrast, the external job market often moves faster, which is why many professionals experience larger salary jumps when changing roles rather than staying put.
The role of perception: value vs compensation
Salary dissatisfaction isn’t just about the numbers, it’s also about perception.
When finance professionals were asked whether their salary reflects the value they bring to the business, responses were almost evenly split.
This highlights a deeper issue: many professionals feel that their contribution is not fully recognised.
Finance roles today are increasingly tied to business outcomes. Teams are expected to:
- Drive profitability
- Improve efficiency
- Enable strategic growth
- Support leadership decisions
When compensation doesn’t align with this level of impact, it can lead to frustration, disengagement, and ultimately, higher turnover.
What actually increases earning potential in finance
If the problem is clear, the next question is: what actually moves the needle on salary?
The same report provides a strong indication. The biggest increases in earning potential are linked to a few key factors:
1. Skill mastery
The difference between developing and mastering skills is significant. Professionals who report mastering relevant skills earn, on average, nearly $147,549, compared to just $40,081 for those still developing.
This suggests that salary growth is not just about experience, but about capability.
2. Broader experience
Exposure to different companies and environments also plays a major role.
Professionals who have worked across multiple organisations earn significantly more than those who have stayed in one place for their entire career.
This kind of experience builds adaptability, commercial awareness, and stronger negotiating power.
3. Leadership responsibility
Managing people is another key driver of higher compensation.
The data shows a clear relationship between team size and salary, with those in leadership roles earning more than individual contributors.
As finance professionals move into management positions, their value to the organisation increases, and so does their earning potential.
What finance professionals can do to close the gap
Understanding the problem is one thing. Taking action is another.
For those who feel underpaid, there are several practical steps that can help realign compensation with value:
1. Build in-demand, demonstrable skills
Focus on developing skills that directly impact business performance, such as:
- Forecasting and financial modeling
- Business partnering and communication
- Data analysis and storytelling
The more measurable your impact, the stronger your position when negotiating salary.
And the data is clear: salary growth is increasingly tied to capability, not just experience.
Professionals who can demonstrate business impact are the ones most likely to command higher pay, especially as organisations prioritise performance over tenure.
2. Make your value visible
Many finance professionals deliver significant value, but don’t always communicate it effectively.
Link your work to outcomes:
- Revenue growth
- Cost savings
- Strategic decisions influenced
This helps shift conversations from “what you do” to “what you deliver.”
3. Negotiate, because most people don’t (and it pays)
A surprising number of professionals still don’t negotiate their pay, even when they should.
More than 50% of candidates don’t negotiate their salary, despite it being one of the biggest drivers of long-term earnings.
Yet the upside is significant:
- People who negotiate earn on average ~18.8% more than those who don’t
- Around 66% of those who negotiate successfully increase their offer
Even small changes compound over time. Negotiation experts suggest even a simple ask can lead to 5–20% increases in compensation.
The takeaway: negotiation isn’t aggressive, it’s expected and effective.
4. Don’t rely on tenure alone
Time in a role does not guarantee higher pay.
Without increased responsibility, new skills, or expanded scope, salaries can plateau. Progression needs to be intentional, not passive.
Teresa Garanhel
5. Be strategic about career moves
If internal progression is limited, it may be worth exploring external opportunities.
Changing roles can:
- Reset your salary to market rate
- Increase responsibility more quickly
- Expand your experience and skill set
There’s strong evidence behind this: job switchers consistently see higher pay increases than those who stay, as external moves allow salaries to catch up with market demand.
6. Look beyond salary (total compensation matters more than you think)
If base salary is fixed, there are still ways to increase overall compensation.
Negotiate for:
- Bonuses or equity
- Flexible working
- Learning and development budgets
- Additional leave
In fact, negotiation experts emphasise that compensation isn’t just about salary; it’s also about securing a package that reflects your full value, including benefits and long-term incentives.
7. Don’t ignore external factors (the market matters too)
Sometimes, feeling underpaid it’s about the broader environment.
For example, other reports also show finance salaries have declined in some markets, while job dissatisfaction is rising and nearly half of professionals are considering leaving their roles.
At the same time, wider workforce data shows extreme dissatisfaction, with up to 89% of workers saying their pay doesn’t meet their needs.
This context matters. It explains why even strong performers can feel underpaid; the market itself is shifting.
The bigger picture: a profession in transition
The underlying reason many finance professionals feel underpaid is that the role of finance itself is changing.
As automation handles more routine tasks, the value of finance is shifting toward:
- Insight and interpretation
- Strategic thinking
- Communication and influence
However, compensation structures have not fully caught up with this shift.
This creates a temporary disconnect, where expectations rise faster than pay.
Final thoughts: feeling underpaid is a signal, not a dead end
If you feel underpaid in your current role, you’re not alone. The data shows that this is a widespread experience across the profession.
But it’s also a signal.
It often indicates that:
- Your responsibilities have outgrown your role
- Your skills are more valuable than your current salary reflects
- Or your environment is limiting your earning potential
The key is recognising that gap and taking deliberate steps to close it.
Your voice matters. Help us reveal the real story of finance in 2026 by sharing your experience anonymously.
Join your finance peers who already filled out our survey and don’t miss your chance to compare and contribute.
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