How can you use market data to support your salary negotiation?

Market data helps both the employer and employee know what salary expectations are realistic. As a candidate, you need to know where to set your salary expectations based on experience that you bring to the table. As an employer, you need market data to know how to be competitive to attract top talent.

Two dimensions to it. Employer/Hiring teams need to have a realistic outlook on what the external markets are offering for skills / role they are hiring for. Many a time its the current incumbent's budget becomes the baseline, versus the skill required for the role. Similarly, candidate's evaluating their next move, should just not restrict their optics to base salary, but explore benefits, culture of the organization, career development, growth etc. This would add tremendous value in overall decision making process. At the end, it has to be a win-win

Recruiters are valuable mediators in the salary negotiation process, using market data to ensure that both candidate and organization reach a fair and mutually beneficial agreement.

In my role at The Chambers Group, I recognize the pivotal role of market data in salary negotiations. It’s not just about numbers; it mirrors the ebb and flow of talent supply and demand. It deciphers the salary maze, revealing not just the “what” but also the “why” behind figures – the crucial role of skills, qualifications, performance, and benefits. Market data is more than data; it’s my strategic partner in salary negotiations, underlining my value and credibility in our ever-evolving industry.

It helps justify the value an employee deserves. So the employer and employee should be aware of the market trends to finally be able to discuss .

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. Here are some of the free sources that are very useful in finding the market data: 1. Glassdoor 2. Payscale 3. Salary.com 4. LinkedIn Salary Insights 5. Job Descriptions/Job postings (Yes! It's mandatory in some countries to highlight the salaries in the JD) 6. HR Consulting firm's data 7. Government websites 8. Job Boards like Indeed.com

Here are some tips: → Salary surveys are great for this! Specialized IT companies usually have all the information you may need. → It's important to stay in contact with recruiters. This is the method to learn about current salaries and the latest job opportunities. → Research wages + tax equivalents. For example, even if a candidate receives the salary in Germany and in Switzerland, the net salary will be always higher in Switzerland since the tax system is different. → Salary calculators and cost of living calculators are an excellent resource! Make wise use of them!

I have used various effective ways to find the market data. 1. Free Salary websites: I would say it would be my least preference. I have noticed few mismatches in multiple instance. 2. Industry reports: We can rely on industry survey reports from Micheal page, Randstad, People matter, ADP etc. 3. Consulting with recruiters in the network is another efficient ways to know where we stand. Defenitely a high level discussion only. We should also consider the common factors like location, years of experience, skills and specific responsibilities as they impact significantly with salary ranges. Also we should consider the market is volatile and it changes time to time. We should refresh our search in every instance.

It's very simple: you can Google market salaries for a particular position in a city or region OR you can go to salary.com or another free website like glassdoor.com where the data is collected for you. Proving what you're worth with the data to back it up is the best way to help negotiate a salary.

Start by researching salary data for your specific industry and job role. Websites like Glassdoor, PayScale, LinkedIn Salary Insights, and government labor statistics (such as the Bureau of Labor Statistics in the United States) can provide valuable information. Consider Location, Analyze Experience and Education - Pay attention to how experience and education levels impact salaries. If you have unique qualifications, certifications, or advanced degrees, this can be used to justify a higher salary. Factor in Company Size and Industry, Compare Job Responsibilities. Highlight Achievements and Contributions. Consider Benefits and Perks - health insurance, retirement plans, stock options, flexible hours, and remote work options.

When collecting publicly available market data, don't assume that employers pay in the top quartile, many may be closer to mid-point, even below mid-point. Also keep in mind that this data is publicly-sourced, so it may not be an accurate depiction of the company's pay practices and current internal equity. All that said, use market data as reference points to build your compelling pitch on why you, with your incredible skills and talents, will positively impact the company and because of that impact, deserve to be paid higher in range (or higher than the initial salary offered).

Leveraging market data in salary negotiations is a strategy I champion at The Chambers Group. But it’s not just about the data; it’s how you wield it. The key is ensuring the data is realistic and current, using it as a reference, not a weapon. It’s essential to balance with cultural fit, growth prospects, and overall alignment with the role. Flexibility, respect, and honesty are our guiding principles. We’re not just negotiators; we’re partners in achieving win-win outcomes.

How to follow up after salary negotiation? → Concentrate on the entire value of the proposition in the long run. Flexibility. Progression. Growth. Meaning. Don't focus exclusively on the salary. → Stay connected, but remember to be patient after the conversation concludes. The organization still wants you, regardless of where you are in the process. To prevent misunderstandings, ask for a timeline during the negotiation process. Life is like a marathon, not a sprint. Negotiations about offers are just like any other negotiation.

Two things that are missing here; 1) Salaries can vary significantly depending on where you live in India due to cost of living. For example, salaries in major cities like Mumbai and Delhi are typically higher than in smaller cities and towns for similar roles. So take this into account when negotiating as the market data are often role based and not location centric. 2) Your skills and experience are also important factors that will affect your salary. If you have in-demand skills and experience, you can command a higher salary than the market standards.

you can make a real impact by presenting concrete evidence of your value. Showcasing your accomplishments, skills, and unique expertise can make a compelling case for why you deserve a higher salary. Combine this with the market data to demonstrate that you're worth investing in.

Using market data in salary talks can be a strong move but it's vital to do it right. Think about what makes us special in the job - like our skills/experience. If the market data shows that people with our niche qualities get paid more, that's a good point to make. Also salaries can be different in different places. It's important to know how about cost of living. Lastly, know how our company is doing and what's happening in your industry. If our company is doing really well or if the role is very important for its growth, that's a good reason to ask for more money. By showing that we've thought about all these things, we can make a strong case for a higher salary by makes our points/ argument stronger and can help us get more money.

Transparency from the beginning is of utter importance. If everyone is open and honest from the first engagement about the salary expectations and possibilities then there will not be issues with closing offers. Recruiters need to go to the market with possible salary brackets that respect market data and internal equity. Candidates need to be respectful of the numbers and honest in their expectations. Meeting each other in the common ground is the key.

In a recent pharmaceutical recruitment, the salary negotiation seemed challenging. The candidate, an experienced AI specialist, used market data wisely. They presented specific, relevant data as a reference, not a weapon. This approach bridged the gap between their expectations and the employer’s budget. The result? A win-win negotiation, showcasing the power of strategic data use. It’s more than numbers; it’s a shared journey toward success in pharmaceuticals and medical tech.