It’s true that you cannot put a price tag on everything. However, the adage is so inappropriate when it comes to your professional hard skills. Every hardworking individual dreams of exponential growth and success, and unless your professional skills aren’t priced right, you cannot quantify growth.
Every job interview corners you with the one most important question: what are your salary expectations? Unfortunately, this question puts you in a tight spot as you can price yourself out of the post. Or, you may quote less than standard expectations, leaving an impression of being underconfident about your capabilities.
Why is it Essential to get the Salary you Deserve?
It’s essential to put the right price on your package as an employee for a few main reasons:
- You are working to earn more money and live a life of abundance
- Success in the professional world can be measured in terms of a suitable salary package
- Being paid what you deserve is directly related to a sense of self-worth
- Being underpaid demotivates the employee
- Salary growth is an encouragement to become better as a professional
Factors to Consider Before Deciding the Correct Salary
Whether starting a new position or negotiating for an upcoming promotion, you must make an informed decision about the salary package you deserve. Besides the actual role itself, you must take into consideration several such factors as:
- Your skillset
- Relevant industry experience
- Cost of living of the job location
- Hidden costs in case of relocation for the new job/ promotion
- The size of the company
- Company culture (startup or corporate)
- Workload and flexibility (if you are willing to relocate to a difficult posting, ready to take graveyard shifts or work on the weekends)
Ways to Decide the Correct Salary for a Position
To negotiate like a pro, you need to do your research right. Here are a few factors that help you make an informed decision:
1. Research Online
Value in the hiring market depends on a combination of factors like experience, skillset and market demand. To get the salary you deserve you need to factor in all these points. In addition, knowing the industry yardstick for payment is crucial to decide the salary you deserve. Here are a few free salary calculator tools:
PayScale gives a free salary report based on the information about you. First, it asks basic questions about job title, education, skills, industry experience, and location. Then, it provides a report comparing your salary (with perks and incentives) with that of other people in similar roles and locations of similar cost of living as yours. PayScale has a vast database with data from visitors who add their salaries and job roles and also from employers from nearly 40 industries.
- Glassdoor’s Know Your Worth
The Know Your Worth tool of Glassdoor gives you a better perspective on your potential earnings. Its personalised salary calculator gives you a ‘custom salary estimate’ factoring in your location, skills, experience and other crucial factors. Enter your employer name, job title, years of experience and current salary and the algorithm of Know your Worth will give you a report on what you should be earning as per the current market trends.
- LinkedIn Salary
Leveraging LinkedIn’s vast database of 460 million users, LinkedIn Salary provides the best-researched compensation insights. Enter your salary data, skills and level of experience to their database, and you’ll get an aggregate salary report specific to your position.
2. Ask the Right Questions
Ask the necessary questions to make up your mind about the correct salary. The questions involve
- What is the job role/ company expectations/ working hours
- What is the growth trajectory of this role in terms of responsibilities and salary hikes
- What does the salary break up look like – is it a base only figure, are there any added benefits or not
- How does the appraisal work
- If you are in talks with a startup, make sure to inquire about the equity offerings
Lastly, there’s a set of questions you need to ask yourself:
- Does the salary/ equity ratio work forme
- How long do I plan to stick with this job if I accept it
- What are the company’s prospects
3. Negotiate Well
A disproportionate negotiation inevitably leads to a dissatisfactory CTC and an unhappy job experience. If there are multiple offers at hand, leverage one against the other. Let your first preference know that the second preference is offering a better package. If there’s just one offer in hand, but it covers your other needs and has a growth prospect, explore other benefits. Explore if they will let you work from home, put in an extra paid vacation, or enhance the benefits package before walking out on the offer.
It’s obvious that one goes for a job change to earn more money. So there’s nothing wrong with being upfront in quoting a figure. If the salary limitations of the company are not workable for you, you can always look into the next better offer. Hiring is a time-consuming process; keep it short and crisp by keeping your salary goals clear.