Feb 01 2009
Tools To Know Your Worth
So you have secured a phone screen with the company, and in the spirit of transparency you are willing to discuss your compensation expectations in broad terms. But how do you determine your worth in the current economy?
Your annual salary often is the basis for annual bonuses/increases. New hire salaries will be higher than someone that has been doing the same job for several years. Asking questions about how annual bonuses/raises are calculated is a key point in your discussion with the recruiter.
Just as the economy has affected home prices, you can expect that your own worth may have gone down. Therefore it is vital to know your worth and what the industry is paying.
-Give a range for base compensation rather than a hard and fast number. Try going a bit higher than your actual “bottom line” number to leave room for negotiation.
-Temporary Contractors generally make an hourly rate which often translates to a higher calculated salary. The formula is the hourly rate times 2000 (hours) ; this takes out the standard two weeks vacation and helps even out the difference.
-1099 contractors charge anywhere from 35%-55% more than they would make as a temporary agency (ie Volt, Robert Half, Kelly Services, etc.) This is to offset overhead costs. If you are transitioning from a 1099 role to an employment role, make sure to factor your overhead charges into your salary, keeping in mind factors such as taxes and health insurance.
-Expect to take a 20-30% cut in base salary transitioning from any sort of a contract role to a FT job, remembering the intangibles you will be gaining in benefits.
-Sign on bonus is often used to offset the difference between your old compensation and new.
-If you find that you have been under/overpaid, the range is your best bet.
There are some good free tools online to help you get a broad idea of your current worth. Remember that the title you last held may not be the most accurate for your industry, so look at different grades and levels within the titles listed to make sure you are targeting the right one.
Create a free personal salary report. It has a great breakdown of job titles, grades, and descriptions
Options for evaluating new job offers, raises, and has excellent aggregated information; international capabilities as well.
If your new opportunity involves a relocation, it is important to know the cost of living differentials.
This is a great tool for relocation cost of living comparisons.
