How much are you worth in today’s job market? Is your salary reflective of the level of contribution you have been making to your company? The answer may surprise you, as many employees are seriously underpaid. The amount of money that you receive is, in great part, determined by negotiations between you and your employer. There’s an old saying that “you aren’t paid what you’re worth; you’re paid what you can negotiate”. It illustrates the importance of knowledge in the salary negotiation process. If you are equipped with little or incorrect information about your marketplace value, you’re likely to be underpaid. The amount employers are willing to pay will vary — sometimes drastically — from employer to employer. It is not uncommon to find two people with similar backgrounds and talents receiving substantially different salaries from two different employers for doing essentially the same work.

Money wise

How can you protect yourself from being underpaid? The answer is clear: know your worth before entering into any discussion about your salary, and be willing to promote yourself at the appropriate salary level. This requires you to do some research. Your objective should be to determine the salary range typically paid by employers for someone with your background, experience and talent. Once you have identified a salary range, the final step is to determine where you fit in the range based upon the perception of your credentials.

Salary source

Where can you find information on salaries? Unlike earlier years when salary information was jealously guarded by employers, today it’s relatively easy to access. Here are some sources you can use:

Internet: The Internet offers many websites that contain information on salaries. Check out the salary centre for the most current compensation statistics.

Books: Check your local library and bookstores — each will typically have several books that list salaries according to industry, occupation, type of employer and geographic region. One common source is the Occupational Outlook Handbook.

Employment recruiters: Check the Yellow Pages and the Internet to find recruiters who place people in your industry. Contact them and ask for their assistance in determining your value. Recruiters typically do this to maintain a database of potential candidates.

Networking: Contact a number of colleagues working within your occupational field or industry and ask them for their opinion concerning salary levels typically paid to a person with your credentials.

Job listings: Monitor national, regional and local job listings. Employers will often post salaries as a means of qualifying their pool of applicants.

Personal salary surveys: Yes, you can conduct your personal salary survey. Call up several companies that hire people like you. Speak to the human resources director or manager and ask for advice regarding how to determine your value.

Professional associations: Check your local library for the names of professional associations that support people in your field. Contact their headquarters and ask for any salary survey data that may be available with them.

State employment services: Visit your local state employment service office and ask for any information they may have on salaries.

Ask your past employer: If you left your last job on a pleasant note, your past employer may have information on salaries and may be willing to share it with you.

Armed with the above information, you should be able to convince your employer to pay you a fair and reasonable salary — one that probably will be higher than what you could have got without doing your research and homework.