How do you determine and negotiate your market value?
What are you worth on the job market?
It may seem like a simple question, but the answer is rarely a single figure.
Two professionals with a similar job title can have very different market values. Their responsibilities may differ, the complexity of their roles may vary, and factors such as sector, expertise, type of organisation, and compensation structure also play a part.
Professionals who have been with the same employer for a long time do not always have a clear view of what comparable profiles earn elsewhere. A realistic assessment of your market value therefore requires more than looking at your current salary or a single online salary benchmark.
Market value is a combination of factors
Experience naturally plays a role, but the number of years of experience only tells part of the story. The content and relevance of that experience are at least as important.
Specialist expertise, for example, may have a different market value from a broader profile. The level of responsibility you carry, the complexity of the cases you work on, your management experience, and the impact of your role also matter.
The job market itself also plays a part. When organisations struggle to find certain types of expertise, this can influence compensation levels. Supply and demand change, however, so it is wise not to assume that a particular profile is automatically “scarce” or “highly sought after”.
The employer context also makes a difference. A similar role may be structured and rewarded differently at a bank, insurance company, consultancy firm, or corporate organisation.
Making a realistic assessment
Use several sources of information. Salary platforms can provide an initial indication, as can vacancies that include a salary range. Conversations with colleagues or people in your professional network can also provide useful context.
However, interpret that information carefully. Job titles are not standardised, and two roles with the same title can differ considerably in terms of responsibilities and scope.
A specialised recruiter can provide additional market context. Because recruiters regularly discuss roles and compensation packages with candidates and employers, they can help position your profile against comparable opportunities.
That still does not mean there is one exact figure that represents what you are “worth”. A realistic market value is better viewed as a range that depends on the specific opportunity.
When should you discuss salary?
You do not necessarily need to open an initial conversation by immediately asking about salary. First, there should be sufficient clarity about the role itself and whether there is mutual interest.
At the same time, there is little point in waiting until the end of a lengthy selection process only to discover that expectations are far apart.
The right moment therefore usually lies somewhere in between: once there is enough clarity about the role and both parties are interested, it makes sense to align expectations around compensation as well. If the employer or recruiter raises the subject earlier, you can of course respond openly and transparently.
Prepare for a salary discussion
Make sure you have a clear understanding of your current package before entering negotiations. This includes not only your gross monthly salary, but also variable compensation and other benefits.
Then consider what you expect from your next career move. Do you want to make a clear financial step forward? Would a comparable package be acceptable if the role itself is significantly more interesting? How important are flexibility, remote working, annual leave, training opportunities, or career progression?
That assessment is personal.
It is therefore advisable not to focus solely on one desired gross salary figure, but to consider the overall package. A higher salary does not necessarily compensate for a role that is less aligned with your ambitions. Conversely, an attractive career move does not always have to result in the largest immediate salary increase.
Negotiating salary without playing games
A professional salary negotiation does not have to be confrontational. Explain your expectations calmly and clarify what they are based on.
If an offer is lower than expected, for example, you can ask how the package is structured and whether there is room to discuss certain components. This is usually more effective than immediately issuing an ultimatum.
In such a situation, a recruiter can act as an intermediary. They understand the expectations on both sides and can help clarify where there is room for negotiation and where there is not.
Ultimately, a good salary negotiation is not a contest in which one party has to win. The aim is to reach an agreement that reflects the role, your market position, and the expectations of both parties.