November 22
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How Do I Figure Out What I'm Worth?
by Michael Chaffers

The best source of information about what's going on in the workplace comes from you, our members. To better serve you, our experts are now combing the boards for the most frequently asked questions. Here are answers to your most frequently asked questions.

Question: How do I figure out what I am worth?

Negotiation Coach's Answer: You have to figure this out before you begin your negotiation. You should conduct some research and establish what seems to be a reasonable range for others with similar experiences and credentials at similar jobs in similar industries, then ask for the highest figure in that range that you can justify given your distinctive capabilities.

For more advice, check out our Salary Center, where you'll find out how to negotiate for the salary you want, as well as the salary calculator, which will estimate your worth.

Q. What salary should I ask for?

Our members say:
"Ask for 15 to 20 percent more than you were making at your previous job."
"Never quote a range... a range means that you're willing to accept the lowest in the range, and that becomes your target offer.

The Negotiation Coach says:
This question is related to the previous one -- you should ask for what you think you are worth. When you do your homework, you will have you answer.

In selecting a salary figure, avoid tactics that lead to arbitrary numbers. Whenever you put a figure out there, you have to prepare a persuasive answer for the question "Where does that number come from?" In many cases, a random increase over your last salary feels like an arbitrary number. You will be more persuasive, and probably feel better about the figure, if you do your research.

I have no problem quoting a range, as long as you are certain that the lowest figure is still a fair salary and you are willing to accept it to close the deal as long as your other interests are satisfied (e.g., benefits, title, job responsibilities). One way to lessen the danger of being tied to the lowest number in the range is to make clear why you believe the higher figures are more appropriate for you, given what the market pays for your distinctive abilities and experience.

Q. How do I counter-offer?
"I have been made an offer for a job. I know the offer was less than what they were willing to pay. Employers always low ball, so you better start real high and give yourself negotiating room."

Negotiation Coach's Answer:
Many people negotiate based on the assumption that people start at extremes and then haggle to an appropriate compromise in the middle. So it is often wise to assume that is what the other side is doing.

Many people then counter by asking for 10 or 20 percent more than whatever the company just offered. This seems silly to me, since all you are doing is putting out an arbitrary number that you really cannot support if pressed.

Instead of playing their game by putting out your own extreme number, stay true to your research and put out a figure that is justifiable given what the market is paying. Be sure to share your reasoning and data, too. Your goal is persuade the company to agree to what's fair, not haggle to a compromise between two relatively arbitrary figures.

Q. Should I tell them my current salary on my resume or when they ask?

Our members say:
"I have always left this blank and therefore avoid telling or writing anything untrue. Anything too low or too high can hurt you."

"I've tried "omitting" salary history because I didn't want to screen myself out from the get-go. I have actually received terse responses from staffing folks that I would not be considered because I didn't include salary history."

Negotiation Coach's Answer:
Most HR departments seem to want this information at some point in the hiring process. However, like everything else, this is negotiable. By not answering it right away, you may risk losing a few opportunities, but most companies will not let a disagreement stop the interviewing process. If you choose not to respond directly, you can say (or write) "I will be happy to discuss my current salary when we talk about that issue. Until then, there are many other aspects of the job I would like to discuss."

If the company insists on the information, ask why they need it and think of other ways to satisfy that interest. For example, if the company wishes to ensure that there is a figure that would satisfy both of you so that no one is wasting time, an exchange of salary expectations may be sufficient. You could say, "I would feel fairly treated if I were paid comparable to what others make, which I believe is about $x. Is that in line with your expectations?"

Finally, if the company insists, provide the information. At worst, the company will use the information to make you a salary offer. If you think it is too low, your task is the same as it always is when facing an unacceptable offer -- to persuade them that you should be offered more, based on the value you can provide and what the market is paying for your skills.


Ask the Negotiation Coach

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