Understanding Your Job Market Value

When looking for a new job we generally want, amongst other things, more money. Along-side this we are of course looking for job satisfaction, a sense of purpose and status – however unfortunately none of these things pay the bills! To successfully work out how much you are worth there are several things you need to understand about the job market.

The Industry Relationship

All industries are different, and the job market depends heavily on supply and demand within it. For example journalists get paid very little in entry level positions because there are many applying for a very limited number of positions.  They are expected to work for love, not money. Other industries are far more balanced and those who excel in their field will often be paid more. Understanding the industry you are in or moving into is the first step! Work out the supply and demand of work and positions available to give you some context.

Find the Going Rate

Try and find out what those who work at the same level or position you intend to apply for currently earn as a basic marker of what your should be earning. Using internet tools like online salary calculators can be a good way of judging this – these tools will not be completely accurate because they only have a limited amount of data to use and every person’s situation will be slightly different. Looking through job descriptions will give you some clue as to what you should be earning. It is wise to avoid asking people how much they earn however – it is not often taken well! Asking about the sort of money someone in their position might earn is much more acceptable.
Also it is worth working out if there are any extra payments on top of the salary, there could be bonuses and benefits which belong to a particular industry.

What to do with your Findings

If this research was intended to be used as a way of negotiating a pay increase with your boss you best be prepared to back up your findings – hard examples are best with fair comparisons between your job and others. It is also a good idea not to exaggerate your importance or your qualifications – it might put you in a bad light for future pay increases and positions.

Attempting to work with your manager to go over your role is a good way to get some others in the company on your side – it is also a good way to highlight work you are doing which your boss in unaware of such as working overtime or taking on extra duties.

If you are discussing a salary for a new job it is likely there is to be a set salary range to work within. Once you are offered an amount consider it carefully, there is no point attempting to double your salary here so stay realistic in negotiations. Remember that however strong your case an employer might not be financially able to pay you the figure you desire.

Choosing the right company to work for is an important decision – remember that just because you’re not valuable to one company doesn't mean you wont be to another.