Let’s face it, your paycheck has a direct impact on your quality of life. Yes, having a good boss, challenging work, and clients who pay on time are critical factors in your overall job satisfaction, but your salary, health benefits, 401k plan, and bonuses can tip your overall job satisfaction scale from being “very satisfied” in your current work situation to “I really got to get a new job RIGHT NOW!!”
So how can you know if you’re getting paid what you are worth, and how can you negotiate a better salary?
Your salary is determined by three factors.
First, the company you work for. There are some companies who are known for paying their employees a beefy salary and benefits package. Fortune Magazine recently compiled a list of top paying companies.
If the company you work for is not on the list, don’t worry. You might still be making a healthy salary based on your peers within the company, and even the industry. I recently spoke with Fred Cooper, compensation expert for a Fortune 100 company who gave some great strategies for determining your value in today’s marketplace. So the question is —
How do you know if you’re on the high end or low end of the market’s going rate?
Cooper said that there are two key factors that determine your salary. One is what the market is currently paying for your skills, experience and areas of expertise. The other is the company’s internal salary policies and practices.
“Research is key,” says Cooper. “You must determine the value of the job that you currently have or want. There are a number of salary surveys where jobs are priced that can give you a salary range for the work as identified in the job summary or job description. Make sure that when you start your salary survey that you have a good job description and understanding of the job you are comparing. Do not use job titles for comparisons but get in to the duties and responsibilities of the work being performed.”
“For example,” Cooper explained, “an ‘accountant’ for one company may be a true accountant while for another, the title may be applied to accounting clerks, financial assistants or others performing ‘accounting support’ work. Combining salary ranges in this instance would not provide a true sense of the market value.”
Before you go in to negotiate your salary with your new employer, be sure to schedule a career coaching session with me to help ensure you receive the best salary & benefits package possible! It’s a small investment to make compared to what you could be losing out on if you aren’t properly prepared.
In my next blog post I will share some of the best tools and web sites to help you with your research.