We all would like to make as much money as possible in the job we are working. A person is somewhat limited, however, in their current role as we are usually relegated (outside of a major promotion) to an annual merit increase. An optimal time then to maximize your compensation is when you are in a job search and seeking a new position.
Why can this be an optimal time? Well, rarely does a worker have the ability to have equal or even greater footing when in a salary negotiation. As an employee, the annual merit or cost-of-living-increase is generally non-negotiable and determined entirely by the company. However, when it comes time to finalize your job offer, you will often find yourself in a position where there is negotiation that will occur. The more that the prospective employer desires your services, the more room you have to ask for a greater salary. It is important, then, that you know the range of what you are worth in the marketplace. This is the case both in terms of the general labor market for your position in this geographic area and your specific skill set, and how it settles to this range.
So, how does someone go about determining what their compensation worth is in the open labor market? Let’s take an in-depth look at both the internal and external factors that come into play. We are, of course, assuming that you are qualified for the position and, therefore, fall within the natural range of the role. The question is, where in the range should you target?
A natural first step is to determine what the external job market compensation range is for the position. There are a number of websites that cater do this niche, so do a quick Google search and check out a few of them. One that I use is www.payscale.com as that is a leader in the compensation field for both employers and individuals. When you are on these websites, align their data with the geography and requirements of the position you are seeking.
If you wish to get even more sophisticated, you can factor in the # of similar jobs being posted and what the overall labor supply is for the role you are seeking. The more positions being posted of a similar nature and the tighter the labor supply, the odds increase that a company will stretch their budget to hire the person they are seeking. This potentially gives you some leverage in determining your worth.
It is important to take an honest review of yourself in comparison to the role that you are seeking. There are several variables to consider that will either place you lower or higher on the range that you have created. Something to keep in mind is that anything you have that is preferred should provide you with a compensation advantage. For example, if a college degree (or an advanced one) is preferred and you have it, then a company will probably pay more to obtain someone with this qualification. There is also another side to this equation. If you have an education level or other qualification that is not needed in the role, then this will probably drive additional compensation for you. For example, if you have a master’s degree and the position only requires a GED, then it is unlikely your additional education will bring in more money.
So, compare the job posting with your resume. Consider your experience level, education, skills, and accomplishments compared to what is being asked for. If you are qualified, but on the lighter side, then you should place yourself on the lower end of the range. Likewise, if you are hitting and exceeding the key requirements, then you move yourself up on the range all the way to the upper levels.
The most difficult question from a Hiring Manager may be when they ask what your salary requirements are for the position. It is important that you have an intelligent answer grounded in both your knowledge of the overall external market and how you are personally aligned within. This expertise will give you instant credibility with your prospective employer, and also provide you with the best opportunity to maximize the offer given. You can accomplish this by doing your homework online and taking an honest review of your qualifications compared to the position.
As always, best of luck in your job search.
The following has been prepared for the general information of WNYJobs readers. It is not meant to provide advice with respect to any specific legal or policy matter and should not be acted upon without verification by the reader.
Joe Stein
WNY Human Resources Professional
Feel free to contact Joe Stein regarding questions or comments at:
Joe Stein
