How to Determine What Salary to Ask for

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parts

1Researching the Market Rate

2Adjusting the Salary Based on Your Circumstances

3Negotiating Your Salary

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Everyone should be paid what they are worth, but coming up with a number can be difficult. To begin, you need to research the market rate for your job. Look in a variety of places, such as online salary calculators and industry surveys collected by a professional trade association. After you find the market rate, you need to adjust it based on your individual circumstances, such as experience and education.

Steps

Part 1

Part 1 of 3:

Researching the Market Rate

1. 
   1
   Research online. There are many websites that contain salary information. Look at the following places, depending on your job:

   • Online job boards such as Indeed.com and Craigslist often contain salary information. Find equivalent jobs in your area.
   • You can use a salary calculator, such as PayScale, Monster.com, or Salary.com. Enter the job title and its location.
   • Non-profit job seekers should visit guidestar.com to find nonprofit tax reports. These reports often contain salary information for key employees.
2. 
   2
   Ask people in your field. Other people working in your industry will have more accurate information than a website. Ask around. Also check whether they know the compensation policy of the company you are negotiating with. For example, some businesses might traditionally offer above-market salaries. You’ll want to know this ahead of time.

   • You can meet people at trade shows, seminars, and professional association meetings. Do some research ahead of time to see that they do an equivalent job or work with someone who does.
   • You might feel uncomfortable asking outright how much someone gets paid. However, you can talk about your situation and ask, “Does this range sound about right for the company?”
3. 
   3
   Contact professional organizations in your industry. They might have performed a recent salary survey of businesses in the field. Ask if you can see this information. Even if they don’t share it with you, you can ask them whether your expected salary range is reasonable.

   • Some surveys are online. For example, the HigherEdJobs website has multiple salary surveys for university employees, including administrators, professionals, and faculty.
4. 
   4
   Talk to recruiters. Recruiters handle salary negotiations regularly, so they should have a good read on what is a realistic salary. Call one up and schedule a lunch.

   • Explain the position you are negotiating for and check whether your salary expectations are reasonable. You can say something like, “I have an interview for a marketing director position at ABC Corp. I want to ask for $80,000 but don’t know what the market rate is here in Chicago. Does that sound in the ballpark?”
5. 
   5
   Find equivalent government salaries. Government agencies make their salaries public, so you can usually find this information with the click of a mouse. Find equivalent positions at public universities or in the government.

   • You might not be able to find a government job that is an exact match. However, it will give you a rough guide. For example, you might be applying for a job as a project manager at a company. In this situation, you can find the salary for a project coordinator at a local university.
   • Some government salaries might be higher than the market rate, so use this information along with information from salary calculators.
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Part 2

Part 2 of 3:

Adjusting the Salary Based on Your Circumstances

1. 
   1
   Adjust the salary based on your accomplishments. The market rate is appropriate for an average employee in the position. However, you might have been a star performer at your old job. In this situation, you should expect to command a higher salary than someone who is merely competent. Assess your past accomplishments, such as the following:

   • Did you increase revenue? Identify how much money you made for the company. When you negotiate, you need facts and figures to back up your requested salary. For example: “I increased Melissa’s Cupcakes sales by 270% in my first six months, so I think an above-market salary is appropriate.”
   • Did you save your company money? For example, you might have retained all the key staff in your department, or you might have installed a new record-keeping system that reduced the use of paper.
   • Did you increase client satisfaction? As the head of your company’s customer service department, you might have spearheaded a campaign to increase customer satisfaction. If your company gathered survey data, then find it. During your salary negotiations, you can say something like, “I know $45,000 is a little above the market rate, but I did increase Everywhere Cellular’s customer satisfaction score from 55% to 94%.”
2. 
   2
   Factor in your experience. If you have 10 years of experience in an equivalent position, then you can ask more than someone who is just starting out in the business. Make sure your experience is in the same type of job. You might have 15 years of experience working in human resources, but that’s not relevant for a job as an elementary school teacher.

   • Of course, experience can only boost your pay up to a point. If you’ve worked 35 years in a job, you won’t get paid more than the company CEO simply because of your experience.
3. 
   3
   Analyze the quality of your education. Education matters, so compare your education to the requested education for the job. If you exceed the required amount, then you can usually ask for more money. It also matters where you went to school. A degree from a top program is worth more than a degree from a mediocre school.

   • Also look at your certifications. For example, an accounting job might prefer someone who is a CPA. If you don’t have that designation, you may have to accept a salary on the lower end of the pay scale.
   • On the other hand, you may have a certification when one isn’t required, which means you can request a salary on the high end of the pay scale.
4. 
   4
   Account for any shift differential. Employees who work all night usually make more than someone who works a day shift. Adjust the market rate if you work a night shift to account for this difference.

   • An employer is not required to give you more for working the night shift. However, some employers offer about 10-15% more.
5. 
   5
   Decide what you want. Chances are you have a good idea of the salary you need to change jobs. Gather all available data, but then spend some time thinking about what you want. Data is useful, but it doesn’t fully address your circumstances.

   • For example, you might not be in a place right now where you want to change jobs. However, you might consider switching if the salary is high enough. Regardless of what the data is telling you, you need to ask for an amount that will induce you to join the company.
   • Alternately, you might have interviewed with your dream employer, a company you’d love to work for. In that situation, you might be perfectly happy accepting a salary below the market rate. Use the market data to get a sense of what the employer thinks is reasonable, even if you are willing to settle for less.
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Part 3

Part 3 of 3:

Negotiating Your Salary

1. 
   1
   Come up with a salary range. The bottom of the range should be the absolute minimum you are willing to work for, and the top number will be your target, which should be about 10-25% higher. The midpoint should be what you think you are worth.

   • For example, your range might be $36,000-44,000. In this situation, you won’t take the job unless you get at least $36,000. You’d love to get $44,000 and think you are worth $40,000.
   • You can also state your range as a percentage—"I was hoping to see a 10%-12% increase from the $75,000 I was making in my previous role"—so you're talking in practical terms but avoiding stating an exact number.
   • Ranges feel less aggressive because you're not pinpointing one specific number.
   • Research indicates that women tend to undervalue their worth. You can avoid this by trusting the data you have gathered on market salaries. There’s no reason to undervalue yourself.
2. 
   2
   Consider trade-offs. Salary is only one part of a comprehensive compensation package. The employer you negotiate with might not be able to meet your salary demands, but they might offer fringe benefits, such as a company car or more vacation time.

   • An employer might also be able to provide better health insurance benefits or match more of your contributions to a retirement plan. These benefits can make a big difference in your standard of living.
   • Don’t get locked into a certain amount of salary and forget that fringe benefits can increase your overall compensation.
3. 
   3
   Identify why you are entitled to the salary you want. In a negotiation, you need to do more than throw around numbers. Instead, you need to justify your demands. Think about the reasons why you are worth more than the market rate: experience, demonstrated results, education, etc.
4. 
   4
   Practice negotiating. Most of us are not natural negotiators, so it’s okay to be nervous. You can prepare for negotiation by doing a practice run. Ask a friend to play the role of the employer. Meet at a neutral location, such as the library, so that you will take the practice seriously.

   • You should practice different negotiation styles. For example, some negotiators have a hard-style and tend to say “no” quite easily. The key is to avoid getting rattled. Instead, work on maintaining a positive attitude and explaining why you want the salary you have requested.
   • Also prepare for the soft-style negotiator. They are easy to negotiate with—too easy, in fact. You might find that you want the soft-style negotiator to like you so much that you are willing to settle for a lower salary.
5. 
   5
   Delay discussion of the salary. At the interview, the interviewer might try to get you to spit out a number right off the bat. Try to delay discussion. Instead, you want to sell yourself as a candidate. Once they see how skilled you are, they may be willing to offer a higher salary.

   • Deflect salary discussions by saying something like, “Before we talk about salary, I’d like to hear more about your expansion plans.”
6. 
   6
   Ask the employer to propose a salary first. There’s a benefit to going second: they might offer a number higher than your range or close to the top end. If you went first and gave a lower number, then you might end up with a lower salary. However, if the first number is too low, you should counteroffer based on your research.

   • There’s also a benefit to going first. In particular, you can “anchor” the negotiation around the numbers you propose. It becomes harder to negotiate away from the anchor, so you are more likely to get a salary close to what you want. If you go first, propose the high-end of your salary range.
7. 
   7
   Negotiate. Negotiation involves back and forth. Don’t accept the first offer put on the table simply because you are afraid of negotiating. Instead, prepare your counteroffer and the reasoning behind it.

   • For example, your salary range might have been $36,000-44,000. The employer offers the low end. Avoid immediately accepting. Instead, say something like, “I think based on the results I’ve achieved in my current job, I am looking for something closer to $44,000.” In this example, you have provided a reason why you are entitled to the higher salary.
   • Don’t forget fringe benefits as you negotiate. You might reach an impasse—you want more money but the employer doesn’t have any more to give. At this point, you can talk about fringe benefits such as extra vacation days or a flexible work schedule that lets you work from home.
   • Never take negotiations personally. This is about business. Remember that an employer who can’t match your salary expectations isn’t insulting you. They might just not have the money.
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Expert Q&A

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• Question

  How do I figure out what salary to ask for?

  

  Jonathan Soormaghen
  Career Coach

  Jonathan Soormaghen is a Career Coach and Founder of Resume Advisor, a career counseling firm that specializes in creating personalized products such as resumes, CVs, cover letters, and online branding tools to propel clients toward their next career milestone. Jonathan holds a BA in Political Economy from the University of California, Berkeley, where he was honored to serve as the Valedictory speaker of general commencement. Prior to founding Resume Advisor, he worked in management consulting and finance at companies including Accenture, Target, and Ernst & Young. Jonathan's clients have landed job offers from leading firms including Netflix, Google, Microsoft, Amazon, Facebook, Apple, Uber, Deloitte, KMPG, Accenture, and Merrill Lynch.

  

  Jonathan Soormaghen

  Career Coach

  Expert Answer

  If you'll be working at a similar position to the one you held before, you can ask for a range. It makes sense that nobody wants a job that pays less. For instance, you could say "In my previous role, I was making $90,000 a year. I was hoping to see a 12-14% increase for my next role." This is great because you're talking in practical terms about what you really want, but you're beating around the bush by not coming off as too aggressive with a specific number.

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• Question

  What is a reasonable salary to ask for in a new job?

  

  Jonathan Soormaghen
  Career Coach

  Jonathan Soormaghen is a Career Coach and Founder of Resume Advisor, a career counseling firm that specializes in creating personalized products such as resumes, CVs, cover letters, and online branding tools to propel clients toward their next career milestone. Jonathan holds a BA in Political Economy from the University of California, Berkeley, where he was honored to serve as the Valedictory speaker of general commencement. Prior to founding Resume Advisor, he worked in management consulting and finance at companies including Accenture, Target, and Ernst & Young. Jonathan's clients have landed job offers from leading firms including Netflix, Google, Microsoft, Amazon, Facebook, Apple, Uber, Deloitte, KMPG, Accenture, and Merrill Lynch.

  

  Jonathan Soormaghen

  Career Coach

  Expert Answer

  If you're switching careers, be prepared to ask for a bit less than you were making before. You can ask about the opportunities for growth within the company five years down the line though, to demonstrate you're looking for upwards mobility in your salary.

  Thanks! We're glad this was helpful.
  Thank you for your feedback.
  If How.com.vn has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission.Support How.com.vn

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