If you are thinking about changing jobs, exploring a new career, or asking for a raise, your first thoughts are likely swirling around numbers. You're probably asking yourself questions like, "What should my salary be?" or "What do I deserve?"
These are vital questions, but the work environment has shifted rapidly over the last 12 to 18 months. The "Great Resignation" caused many of us to re-evaluate what we truly want from our work lives. While money matters, we believe you deserve a career that supports your life goals, your well-being, and your happiness.
Defining your professional value
The first step in getting the compensation you deserve is understanding exactly what you bring to the table. Start by identifying what your potential employer values most. This usually includes your level of education, your experience, and your specific expertise in the field. Your background and certifications can add significant leverage here. For example, if you are a salesperson who also has technical experience, you may be more highly valued than a candidate who lacks that specific background.
Once you know your strengths, you need to analyze the company you are interested in. Look at their competitors and the industry overall. These factors affect your market value and what an employer is willing or able to offer.
Key research areas include:
- Company size: Are they a massive corporation or a small team?
- Growth stage: Is it a start-up, a funded start-up, or a mature company?
- Industry norms: Tech industries tend to offer stock awards, while others might focus on bonuses or offer more flexibility with paid time off.
Knowing what you personally value
Once you get the dollars and cents out of the way, it's time to think about the trade-offs you are willing to make. This requires some honest introspection about what makes you tick.
Ask yourself these questions:
- Do you prefer a stable, consistent income, or do you want the upside potential of bonuses and stock awards?
- Are you comfortable betting on yourself in a commission-based role?
- What does your ideal work-life balance look like?
- Is a shorter commute or the ability to work remotely non-negotiable for you?
- Are you looking for a stepping stone to career advancement or a place to settle down?
- Does the company's mission align with your values?
If you have a partner or family, sit down and discuss these values together. Remember that there are no "right" answers here. There are only the answers that are right for you.
Analyzing the entire benefits package
When you receive an offer, you must look at the total take-home pay. This isn't just your salary. It includes bonuses, commissions, and the risk involved in that compensation structure. Benefits can make up a large percentage of your compensation, so you need to evaluate them carefully.
Key benefits to investigate include:
- Healthcare: Does the company provide quality health insurance? Do they cover some or all of the premium?
- Retirement: Do they offer a retirement account like a 401(k), and is there a good matching program?
- Protection: What about disability insurance?
- Wellness and Legal: Do they offer a health savings account (HSA), estate planning programs, legal advice, or health and wellness benefits?
If your goal is to climb the corporate ladder, consider whether the company will pay for your education, such as college courses or certification programs. Don't forget to weigh the value of a flexible schedule, paid time off, and maternity or paternity leave.
Where to find salary data
You don't have to guess what you are worth. There are many resources available to help you find average salaries and other key information. We recommend checking LinkedIn, Indeed, Glassdoor, and Payscale to get a baseline.
You should also look at job boards specific to your industry as well as professional trade associations. Don't be afraid to ask people in your professional network or attend networking events to gather intel. While these resources won't give you the complete picture, they are a great place to start.
Planning for the ripple effect
A job change, promotion, or new compensation package will have a ripple effect on your entire life. If you have a family, it affects them too. This is why proactive planning is essential.
You need a strategy for how this new job will impact your cash flow, insurance coverage, taxes, savings, and retirement roadmap. When you understand the full financial picture, you can make informed decisions and stay in control of the next chapter of your career.
Why Facet is different
Changing careers involves complex financial decisions, from evaluating equity compensation to rolling over old 401(k)s. At Facet, we believe you shouldn't have to navigate this alone. Our flat-fee membership gives you access to a team of experts, including a CFP® professional, who can help you weigh your options without the pressure of sales commissions.
We don't charge you a percentage of your assets, which means our advice is objective. Whether you're analyzing a stock option grant or figuring out how a new salary changes your tax bracket, we're here to help you build a life that reflects your values.
