Salary Expectations - how do you know what to aim for?

Having recently compiled data from across the UK for a salary survey we conducted in our Legal Accounts division (results to be published on our website in July if you’re interested!), it got me thinking about how it will affect people’s expectations of their worth. And by “worth”, I’m talking specifically about the basic salary they are paid by their employer to do the job they do.

A common mistake I see people making is relying purely on one source of information and believing that to be sufficient evidence. I do hope that our salary survey will prove to be a useful, accurate measure for employers and employees alike, but it should only be viewed as guidance. For example: the level of responsibility and day to day duties of a Management Accountant can differ widely from one firm to another, so going by a job title on a salary survey alone is not sufficient.

Another source of information that often misleads us is job vacancies. An individual might read through a job advert, mentally tick off all the duties and reach the conclusion they should therefore expect to be paid the top end of the salary bracket. Securing interviews for these positions will provide even stronger evidence that this is achievable. Of course, on some occasions this will indeed be the case, but if you’re only reaching interview stages and not securing offers, it may suggest otherwise.  

As a recruiter working in a very niche market for many years, I like to think I have a pretty accurate view of what is an achievable salary expectation from those I meet with, and when conducting interviews with jobseekers, it’s an important part of the registration process to ensure that expectations are realistic, which from time to time does involve bursting a few balloons.

Naturally, I don’t expect everyone to take my views as gospel (I’d like it, but I don’t expect it), but you can generally rely on experienced recruiters to have a good understanding of what would constitute a reasonable expectation. It’s sensible to look out for relevant salary surveys and vacancy adverts to see what might be achievable, but be wary of placing too high an emphasis on them as you might find you’re pricing yourself out of being considered for good opportunities.

Salary Surveys: pay close attention!

It’s the time of year again when HR departments are busily analysing market salary data and employees are discovering whether they will be happy or frustrated when learning of their annual pay reviews.

For employers it’s crucial that they have an informed understanding of what constitutes ‘market rate’ salaries for all the various positions they employ within their business. Equally it’s just as important that individuals know their market value relevant to their responsibilities, qualifications and experience.

That’s not to say that salary surveys provide an individual with proof that they are ‘worth’ a certain salary. But they do give guidance on what a future employer might expect them to be earning, which can be of huge importance. Rightly or wrongly (in my view: wrongly!), a fair proportion of prospective employers will consider an individual’s current salary when considering what they feel is a fair offer to attract someone. If they’re already well below market rate, they might be happy to take any payrise even though it is still below the market average.

Therefore, if you find yourself being paid a salary lower than your peers, you may well find that this sticks with you for the duration of your career (unless you do something to address it), which can amount to a considerable sum – more than you might be consciously willing to forego in favour of good team morale, convenient location and stability.

Of course, I wouldn’t advocate marching in to your line manager and demanding a pay rise but, if you haven’t already, it may be sensible to raise this as a topic for conversation during appraisals/reviews at an appropriate time. If you come to the realisation (or are informed) that your current employer knowingly pays at the lower end of the market, you should really consider the potential long term difference in earnings rather than just the next 12 months and based on this decide whether it’s an amount you’re happy to sacrifice or whether you might want to start looking to increase your salary elsewhere.

I’m currently conducting a salary survey in association with the Institute of Legal Finance & Management (http://www.ilfm.org.uk/) for the niche area I recruit for – accounting staff working for law firms. If you’re working within this area, please click the link and participate!