HOW TO DETERMINE AND NEGOTIATE FAIR MARKET VALUE
Every job has a salary range. You will find many employers list the expected salary range on job postings. Job seekers should also have an understanding of their expected salary range, and should be able to articulate it when negotiating a job offer.
Your compensation expectations should be anchored in your experience, and your business case for the position. Career trajectories are usually measured in five year increments. Look at your portfolio and you can gage where you are by counting your years of experience in a particular area of the industry:
1-5 years = entry level
5-10 years = mid career or manager level
10-15 years = seasoned expert in your craft or senior management level
15-20 years = leader in your craft, mentor, or executive level
So if you’re at the entry level, you can’t command the top end of the range. You can negotiate around the bottom end of the range, or try to shoot for the middle if you can make a strong business case for the extra value add’s you bring to the position.
This also works both ways. If a senior manager applies for a low paying job, employers are not likely to consider their candidacy because fair market value on their expertise far exceeds the offer. Unless a strong business case has been made to support the job seekers long term commitment to the position, the perception is that the candidate will likely jump ship for something better over the short term.
Much of the employment in our industry is contract work. Employees are paid marginally more on contract because you are only guaranteed work for a specific (weekly or monthly) period of time. Consider that full time staff employees who make less on paper are also receiving benefits, sick days, and sometimes bonuses which may even out the salary range.
The time to start discussing salary is after the job offer is made. Avoid raising the issue of money and benefits in the first interview. It implies that you are more interested in yourself than in the job or the company.
If an offer comes in below your compensation expectations, then point out that you want to work for the company, give them your positioning statement with your accomplishments, skills and qualifications, and explain why you cannot accept an amount below your minimum salary requirement. If a company is firm on not being able to meet your salary requirements, then consider the value of other parts of a potential compensation package. In lieu of salary you may be able to negotiate perks, which cost the company very little but would be of value to you. This might include a shorter work week, or working from home, workshop or conference participation, or memberships with professional affiliations. You could also consider proposing a salary review after a probationary period in your new position.
How you address and negotiate compensation on a job offer can influence the amount of that offer, so it’s in you best interest to determine the fair market value for your experience. As always, the friendly experts at mediaintelligence are here to help you.
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