You’re ready to switch jobs. You’ve found a likely position and the process is moving towards the negotiation stage. How much of a pay raise should you ask for?
In the post-pandemic world, pay rates are rising throughout the economy. That puts you in a good position. The tight labor market gives you significant leverage when switching jobs. However, you have to understand the nuances of the process to get the most out of the situation.
In choosing a job, it may seem obvious that you always want to maximize your compensation. However, that’s not the only factor to keep in mind. Here are some aspects to remember as you ask yourself, “how much of a pay raise should I request when changing jobs?”
Current Market Conditions
Yes, you are a unique snowflake, singularly precious in your distinctive idiosyncrasies. But you’re also a worker trying to sell your skills in a labor market.
That means you need to understand the market conditions that influence your salary. Learning this information will let you understand your value. That way, you can intelligently weigh your career options.
- Job duties: Figure out the going rate for your profession.
- Geography: Discover the cost of living in the areas where you’d consider taking a job and understand how that influences your potential compensation.
- Labor market situation: Take a look at the broader economic situation. Will you have a lot of negotiating leverage or should you be happy just to land a job?
- Your experience/skill level: Special skills and advanced experience can demand premium pay rates.
You Vs. Everyone Else
Compensation is competitive. To earn more, you need to provide something special. This will let you command a higher salary at your next employer.
As you go into a negotiation, you want to make a value argument. You need to convince a prospective employer that you can deliver, that you’re worth the additional outlay.
The Money Situation (for Both You and the Employer)
Some employers can afford to pay more than others. Are you looking to maximize your paycheck? In that case, you should gravitate towards companies with a deep wallet, which can get generous with its compensation package.
However, other factors might appeal to you at various times during your career. Sometimes, you might want to emphasize flexibility or making connections or learning new skills.
At these times, you might focus on potential employers who don’t have big budgets but offer other, less-tangible benefits. In that case, you might not demand as big a raise as you switch jobs.
In this way, your own personal financial situation matters as well. How much do you need the extra money? A look at your cash requirements will help you strategize your next career move, shaping whether you push for big bucks or focus on other aspects of the job.
Your Longer-Term Career Goals
People take unpaid internships all the time. Why? To get experience, so they can score a better job down the line.
At this point in your career, you’ve probably moved past the unpaid internship phase. Still, you shouldn’t necessarily maximize salary at every career stop. Gaining experience and developing skills can give you the keys you need to unlock significant opportunities later on.
As such, you should keep your larger career goals in mind. As you weigh how hard to push for additional compensation, consider how this job fits into your professional development. It might be worth getting underpaid for a bit, as long as the position offers chances to grow.
Looking for the perfect next step in your career? A top recruiter, like PrideStaff, can steer you to the ideal situation.
Contact PrideStaff Bend today to get the most out of your next move.