Tired of Getting Underpaid? Here’s What You Need to Know About Understanding Your Market Value

Compensation is important. We need to understand it to get paid what we deserve. But often, I find that my clients don’t have a clear understanding of compensation and their own market value. 

Why is compensation confusing? For starters, there’s a never-ending supply of “comp data” online that may or may not be accurate based on the source. People can also fall into the trap of listening to friends as the source of truth who may not have the expertise or have a comparable position, industry, etc.

Another mistake I notice is clients who put their trust in their employers to pay them what they’re worth without doing their own research. This trust can be misplaced, and people could be significantly underpaid.

With all these things in mind, I’ve put together a few tips that’ll get you started in determining your own market value:

Capture your career journey 

You’ll want to create a detailed list of all your relevant experiences, significant accomplishments, education, certifications, skills and associated proficiency levels. You need to understand what qualifications you bring to the table and be able to quantify them. 

Find the right data 

Determine a few reliable compensation sources based on your role/industry that you can trust for accurate, up-to-date compensation data. Payscale is an excellent database and one of the largest available today. The larger the sample size the better because it makes the data more reliable. I always recommend looking for a couple, so that you can calibrate and ensure you are seeing consistency. 

Understand your industry 

What are the current job market trends you’re seeing in the news and how they may influence your market value? What roles or skills are in high demand according to market research reports? What roles were recently laid off in multiple companies? These trends can influence the numbers you are seeing. Stay in–the-know by reading reports from job sites, business news outlets, and market research reports just to name a few.

Talk with experts

Experts on this topic can include career coaches, compensation professionals, and recruitment professionals who work with compensation data regularly. I also recommend connecting with mentors in your field who can give you perspective of what they are seeing and hearing. 

A big takeaway here is that it’s best to do your own research so that you are well-informed of your market value and what your field is offering. Knowing your value will be helpful in compensation discussions with your current employer or offer negotiations with a future employer. You never want to show up to those conversations without the relevant data to support your argument.

If you’re ever seeking a partner to help you understand your own market value and how to stand out in the job market, contact me today!