Editor’s Note: This story originally appeared on FlexJobs.com.
When considering a new position, whether for a promotion or a new career, it’s essential to know the fair market value for your target role.
Not only will this prepare you to negotiate a better salary, but it will help you highlight key skills and attributes throughout your job search. Using that information to focus on your in-demand skills, you’ll attract the attention of recruiters and hiring managers.
If you’ve never researched the fair market value of a position before, use the following steps to get started.
Resources for Market-Value Salary Research
Before launching your research, it’s helpful to understand the factors that affect a job’s market value.
More obvious factors are years of experience and any degrees or certificates you hold, but other variables come into play as well. Use the following list to gather up-to-date salary info.
Review Industry-Specific Salary Surveys
You might not realize how much the industry you’re pursuing can affect your bottom line.
For example, if you’re a software developer, the general median salary looks incredibly appealing. But if you’re entering the education or legal fields as a software developer, you can expect to make approximately 20{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} less than you would as a software developer in the personal consumer services field.
So, one of your first steps should be leveraging industry-specific information to make your decisions — either to choose a career path or to find the fair market value of a role you’ve already got your eyes on.
A great place to start is with professional organizations and trade associations in a specific industry or your local area. They frequently conduct regular salary surveys that provide information for industry-specific job titles and locations.
Understand the Impact of Your Location
Many companies use location as a significant factor in determining their average compensation, whether that’s due to the cost of living or increased competition for quality talent.
Suppose that you’re in a technical field. If you live in a technology hub on the West Coast, it’s safe to assume that employers will need to compete for your talents with higher compensation and benefits based on the area’s market rate.
On the other hand, if you live in a rural area where technical jobs are fewer, organizations may offer less money.
The market rate and cost of living might factor into compensation. And those variables extend within a company that has employees in multiple locations as well.
Also, note that it’s not just your location that is a factor. The headquarters of a company also come into play.
This is especially true if you’re looking to work for a company headquartered overseas. Perhaps the company offers the ability to work from anywhere. In that case, realizing your travel dreams might be excellent compensation for a smaller paycheck. But you’ll want to head into your salary and benefit negotiations with relevant data and salary information.
Check Government Sources
The U.S. Bureau of Labor Statistics (BLS) provides data on median salaries for various occupations. It also offers information on projected job growth in a specific area and the skills you need to make yourself attractive to employers.
Furthermore, the BLS offers both national and regional data, so you can investigate how a relocation might affect your salary before you make any permanent moves. But it’s important to note that most government sources provide median wages instead of average salaries.
Curious about the difference? Basically, the median salary represents the middle salary number reported when all of the salaries listed are arranged in order from lowest to highest.
In comparison, an average salary is calculated by adding together all of the salaries reported, and then dividing by the total number of salaries.
Typically, average salaries are more likely to be skewed by a few very high salaries or a few meager salaries. In contrast, the median salary tends to be more representative of the “typical” salary for an occupation than the average salary.
Consult With Recruiters or HR Professionals
If you’re already working in your field, consult with HR professionals at your company to get a better understanding of salary trends for the position you’re interested in. Their experience and knowledge can be invaluable in assessing what the fair market value looks like for the job title you’re targeting.
Recruiters are another great source of information about salaries. They typically work with multiple companies and can provide insights into the job market as a whole, including which roles command higher wages and what current skill sets employers are looking for.
Explore Job Postings
If you’re not employed yet or don’t want to involve the HR department at your current company, you can dive into the research phase of a job search.
You’ll get a detailed understanding of the fair market value for a given job title, along with the requirements that command higher salaries. And niche sites can significantly help you narrow down your median salary expectations.
For example, by exploring flexible postings on the FlexJobs job board, you can examine remote and flexible roles. Those roles might have a different pay structure than those limited to in-person positions near you geographically.
Consider Company Size
Another factor in your salary exploration should be the size of the company you’re hoping to work for. Larger companies with higher annual revenues may mean you can command a more significant salary.
Acknowledge Gender Gaps
According to a study by Pew Research Center, the average wage gap for women is holding at 84{1652eb1ffa4184925f6a63a9c04ea6b421acb7a78117241e7d4325cdca8339fa} of earnings compared with men in comparable roles. But progress is being made, and that average isn’t true across the board any longer.
Pew Research Center has also provided a calculator that highlights discrepancies based on location.
If you’re eager for a remote role or considering a relocation, companies in metro areas with lower wage gaps warrant a second look.
Using Your Salary Research
Once you’ve considered your skill set, analyzed job descriptions, and researched various company and geographical pay ranges, you’re ready to pursue a fair wage.
Whether you’re requesting an equitable salary or a raise from your current employer or you’re prepping for an upcoming job search, being equipped with data is the best way to begin your salary negotiations.