What Salary Should I Ask For?

How to Estimate Compensation Requirements for a New Job

Question:

“How do I know I’m asking for the right salary or compensation package?”

Answer:

“It Depends”

For anyone who has made it to the final stages of an interview process the common question that surfaces is one surrounding how to determine what to ask for as a new salary. There is always second-guessing and Monday-night quarterbacking when it seems as if you got what you wanted too easily.

The fact is there is no one single answer as this changes for junior level positions and becomes more complex for senior roles involving specialty skills (lawyers, actuaries, executives, etc.)

First there are many components to an offer ranging from salary alone, salary + vacation, and up through salary plus stock options, multi-tiered performance bonus, relocation plans and more.

The usual components are:

• Salary
• Paid Vacation
• 401k/retirement/defined benefit

For mid level management jobs this list can stretch to include :

• Auto allowance
• Relocation
• Stock options
• Performance Bonus

Senior level positions can have all of the above plus:

• Hiring bonus
• Stock options
• Additional Cash contributions
• Multi-tiered bonuses

On average most new offers arrive within a range percentage-wise. That percentage can fall within a ten to twenty-five percent or more  increase over your current base salary.  That’s just comparing salary to salary. All other components must be evaluated linearly as well.

Some positions can command, in unique situations and for skills and knowledge/experience that is in very short supply … offer increases that exceed 25 percent and go up to 40% or more. But it all depends.

If you click on this salary bar chart you will notice in 2013 most offers were presented with values ranging from 15 to 35% above a professional job applicant’s current salary.

You will also notice the range has been creeping higher in recent years with the trend continuing 2014 (not included on this chart) and through 1st quarter of 2015.

Many variables effect your new salary expectations including:

• The increased role, responsibility and toll of the new job you might be in consideration for
• Relocation and other logistics such as changes in travel
• Years of experience
• Level and quality of education
• The niche of the industry and how competitive it is
• Specialized degrees or certifications (CPCU, Fellow of SOA, CPA, MBA, CRIS, CISR, CRM, etc.)
• Current cycle of economic growth (are we in a plateau, recession, boom, etc.)

To read the full LinkedIn article CLICK HERE

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