Factors That Impact Salary
Of course, determining the salary you should be receiving is easier said than done. There are many components that can affect the amount of pay you receive, including your level of education or type of degree, your professional experience, your skill set, your references, and how you perform in an interview. External factors may impact your salary as well.
How to Get Salary Information
Salary data is a great starting point to get a sense of what constitutes fair pay for your role, experience level, and location. You can start by checking the Bureau of Labor Statistics (BLS), which produces a survey of wages that includes median salary figures as well as salary data for the top 10% and bottom 10% of earners. For example, construction managers’ median annual wage was $98,890 in May 2021, but the highest 10% of earners made more than $163,800, while the bottom 10% of earners made less than $60,050. In addition to the BLS data, there are many other sites you can use to find salary information.
PayScale.com, Indeed.com, and Salary.com that provide salary information for various job titles and occupations. If you’re interested in learning about salaries at a specific company, you can check sites like Glassdoor.com. You can also look at salary data for a certain location. For example, Zippia ranks the top 100 job markets, with the average salary for each location.
In general, you should refrain from asking someone else’s salary outright. Rather, frame your approach as a question about yourself. For example, you can ask, “Given your understanding of my background, what would be a good salary for me?”
Salary Variations Based on Location
When you’re researching salaries, keep in mind that salaries can vary drastically based on where the position is located. For example, a good salary in Topeka, Kansas, would likely not be considered good in New York City. Salary may also vary based on the unemployment rate and job outlook for the state. You can search the BLS for salary by state and then compare that to national data for the same occupation. Salary calculators such as the PayScale Cost of Living tool enable you to factor in how location can impact salary. For example, as of 2022, someone earning $50,000 in Omaha, Nebraska as a marketing manager would need to earn $101,251 to maintain the same standard of living in San Francisco, California.
Remote Work
These salary differences can make things a little trickier when you’re trying to determine a fair salary for a remote job, especially if a company is entirely based in a different city or state. Look into what constitutes fair pay for your location, as you’ll be the one paying for your living costs.
Other Factors to Consider
Another angle for evaluating a salary is to think about the organization’s expectations for its employees. If you will be expected to work 80 hours a week in an intense, high-pressure environment, then a “good” salary would likely be considerably higher than for another company that offers greater work-life balance, flexible hours, and less stress. Ultimately, it’s up to you to determine your priorities. Also, keep in mind that salary is only one component of total compensation. You need to consider employee benefits, such as health insurance, vacation time, and 401(k) matching, when evaluating salary. Try to get a full picture of the compensation package—including any perks such as relocation funds, commuter benefits, gym memberships, and complimentary lunches—when considering a job offer. Lastly, when evaluating a salary for a new position or a career change, you should keep in mind the potential for growth at the organization. For example, you might be comfortable with a lower starting salary if the employer has a proven track record for training and promoting employees from your initial title.
The Best Salary for You
Ultimately, a “good” salary is a very individual decision that is dependent on not just your marketability but also your personal priorities. It can be important to have a clear idea of your requirements for a position beyond just the salary, enabling you to enter any conversation about pay with a comprehensive understanding of what you need from your employer. It’s also important to understand that your idea of a good salary will likely change over time, depending on your needs and your evolving skill set.
