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Think about what you want. Are your salary expectations closely linked to your overall happiness, or do you need a healthy benefits package?
How to determine your salary range
A lot of factors go into determining a range for your salary expectations that best fits your skills and experience. We recommend looking at the market rate for your current job and assess that alongside your next job. Places like Glassdoor and SalaryExpert offer pay-scale ranges that can be a helpful gauge for where you fit in the market.
Know the company
Some firms have strict salary bands. In those circumstances, you can expect to be rewarded “in-line” with other people at the same “grade”, with little scope for fast growth. Other firms offer lower salaries but nevertheless reward you in other ways, for example with great benefits.
Be mindful of salary terms
Nevertheless, be wary of taking a salary range at face value. A high salary might not mean all that much if the job demands long hours. Salaries should always be considered together with the benefits that a company offers on top. The next step, then, should be to ask the right questions of the company.
Higher-level positions won’t always come with higher salaries
Pay grades in the public sector mean that a lot of responsibility doesn’t always equate to better pay. Teacher salaries seem low but may receive incredible pensions, and get longer holiday. Banks will pay higher salaries than a charity, but the reward of working for a cause about may outweigh salary.
How to estimate the value of benefits packages
It is so important to figure out the benefits together with your salary! Benefits are often the most overlooked part of a job offer, and it is in your best interests to consider them. A pension contribution, for example, can be an incredible long-term benefit for you that far outweighs a higher salary. We recommend taking these steps to estimate the real value of your job offer:
List the benefits
Do they offer health insurance benefits? How much holiday are you allowed to take each year? Does the company offer flexible working hours? Have they offered you shares in the firm or a hybrid working environment? How about professional development courses?
Evaluate each benefit based on your personal circumstances
Prioritise the listed benefits. If you’re a mid-career, single parent, you may value flexible working hours more than an entry-level graduate looking to network. If you need upskilling to get to your dream job, a company that values room for growth with training should feature high on this list.
Weigh these benefits against the salary
If you have found the listed benefits substantial, then this should factor in to your evaluation of a lower salary. If the benefits aren’t relevant to you, consider asking for a higher salary to make the job worthwhile.
Work out how much you need to be happy
People like to put numbers on happiness. Some time ago, roughly £60,000 ($75,000) was calculated as being the ideal figure for happiness. Of course, this doesn’t take many personal factors into consideration. To figure out what you need, break down all the items you need to function – the cost of your commute, food, clothes, toiletries, childcare, rent or mortgage costs. This figure should be the absolute minimum salary you are willing to accept. Add to this luxuries like days out, and holidays, and you’ll have a figure that is likely to make you happy and joyful to get to work each day.
How to negotiate salary
Before you start the application process, be clear with your recruiter what you want to earn and minimum salary that you would accept. Their expert perspective on your salary expectations will help you to determine how likely your chances are of getting your desired amount, and what would stand in the way of the firm offering it to you.
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Don’t discount a great job if you think the salary is lower than you want! Remember to assess all the “hidden” benefits and identify your personal motivators and interests alongside your salary expectations.
If you’re struggling with this, let us help you! We’ve helped our candidates find top positions with great salaries + benefits packages at the finest companies in the City of London and beyond. Send us your CV and leave us a note about what you’d like to talk about. One of our consultants will be in touch.