Assessing your Value
According to the latest census, today's labor shortages will continue until 2015 which means an entire generation of businesses will have an inadequate supply of skilled workers. This sounds like leverage to the average job-seeker, but as the popularity of the "am I fairly compensated?" job board topic indicates, many people cannot gauge their value in this chaotic employment market.
Assessing Your Value
According to the latest census, today's labor shortages will continue until 2015 which means an entire generation of businesses will have an inadequate supply of skilled workers. This sounds like leverage to the average job-seeker, but as the popularity of the "am I fairly compensated?" job board topic indicates, many people cannot gauge their value in this chaotic employment market. And companies are no better off. To determine what an individual is worth as an employee, employers need consistent metrics and standards. These are absent at most start-ups and outdated at many old guard media houses.
Since the Internet economy has changed the rules for companies (multi-billion dollar valuations for money-losing endeavors) and people (six-figure salaries plus five-figure stock plans for four years of total work experience) alike, this dilemma is no surprise. The one-company career employee with a salary and a 3-5% annual raise is going the way of the buffalo. Historically employees were told what they were worth; today many name their price. Years ago college curriculum prepared you for a profession that followed a track; now salesmen, engineers and lawyers all want to do business development. Even corporate Japan, home of egalitarianism and "all-for-one and one-for-all," is tearing up the lifetime employment contract.
So how do you make a good decision in this frenzy of opportunity and uncertainty? First, honestly evaluate yourself and your contributions. Ask the tough questions. Things are usually more complicated than "I did a good job and I deserve more." Take sales for example, a functional area in which performance is easy to measure: you sell, you get paid. Right? Not really. When I hear "I increased sales by 100% and my company won't pay me more," I want to know more.
What was the starting point? If total revenues grow from $250K to $500K, the company may still be deep in the red.
What was the quota? $500K is an impressive 200% of a $250K goal but a paltry 50% of $1M.
Where did the business come from? New clients command a sizable premium over inherited accounts that naturally grew in size.
These are not just a recruiter's cynical challenges. A hard look in the mirror is worth it to you and your prospective employer. You will be prepared for the job you pursue and better able to sell yourself for that opportunity.
Meanwhile, look around for some points of comparison. There is more career information available to the general public today than ever. The WWW is littered with employment-related postings, surveys and message boards. Myriad sites (e.g. http://careers.wsj.com) provide informative articles as well as tables that outline positions and compensation by sector, role, level, geography, etc. For almost any job you can find 5-10 postings for similar positions with compensation ranges.
So you determined what you bring to the party, what you enjoy and how much that typically pays. What next? Apply the Golden Rule: compensation is a function of perceived value. People earn what they are worth, which is a matter of perspective, so sell yourself. Forget about whether or not you have four other offers and make this company want you. Then you can tell them what you are worth.
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