Getting what you're worth
Online salary data helps level the playing field in salary negotiations.
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Ms. Wong recommends that employees buttress their online research with information from the Occupational Outlook Handbook published annually by the US Department of Labor's Bureau of Labor Statistics. The handbook outlines most occupations, the responsibilities and typical qualifications of each, as well as the future outlook and earnings potential.
Many employers view the new pay transparency created by online data with fear and loathing, but historically, performance and productivity improve when information about any market is widespread and accessible to all parties.
"Access to pricing information is a prerequisite of an efficient market," Coleman notes. "It is in the interest of both employer and employee to make market compensation information available to both sides in salary negotiations."
Mr. Black believes that "employees often learn that they are more fairly paid than they suspected, and a more healthy relationship can result. Most well-managed companies find this information to be conducive to creating and maintaining a healthy working environment."
Several job websites carry salary information. But sifting through the differences between one salary survey and another can cause confusion. To help judge the quality of salary data, Colleen Stenholt, Metavante Corp.'s senior vice president for human resources, suggests job-hunters do the following:
Find out if the data are current and industry-specific.
Understand the geography behind matched jobs. Salaries differ by location because of variations in the cost of living and labor markets.
Learn how the data were gathered. When individuals report their own salaries, they may exaggerate and skew the data.
Know if the job was matched simply by job title or by using a thorough job description. Matching by the title alone does not always provide an accurate picture.
Find out whether the survey includes contractors. Contractors typically are paid at higher levels, so they can skew the data.
Consider how many companies participated in the survey, and how many people are in each job covered. The larger the sample size, the better the information.
Once you know your market value and your prospective employer, put that knowledge to use. Tony Lee, editor in chief of CareerJournal.com, offers these tips for negotiating your salary:
Size up your competition. You may have unique skills that are in great demand, or you may be one of several qualified candidates the company would be happy to hire.
Don't disclose what you know too soon. Conveying too much to a potential employer about your bottom line may limit what you get.
Consider value of the total package. You might be able to find creative "trades" that allow you to withdraw requests that might be problematic for the company in return for improvements in areas where the employer has more flexibility. For example, you might take less pay in exchange for greater benefits.
Recognize what the employer can and cannot do. A start-up company may not be able to offer a market-rate salary, but will typically offer stock options.
Know when to quit bargaining. Being perceived as greedy or unreasonable may cause the deal to fall apart. Job negotiations are the starting point for your career with a company. Get too little and you're disadvantaged throughout your career there; push too hard and you can sour the relationship before it begins.
