Pinpointing your value and understanding what companies will pay for those skills and experiences can feel like decoding a secret language. In this first part of our two-part salary negotiation series, Danielle Lucia, Recruiting Manager at Ambrion, shares her expert insights on:
- How to gauge if your salary expectations align with market realities
- The factors that influence what companies are willing to pay
- How to interpret salary offers and understand the full picture
- What transparency laws mean for your job search and negotiations
Q: What factors influence salary expectations in a new role?
Danielle Lucia: When candidates ask me, “I’m making XYZ. What can I realistically expect?” I tell them there’s no one-size-fits-all answer because it depends on their skill set and how it aligns with the role.
Skill Transferability
Take accountants as an example. You’ve got a specific set of skills that are in high demand. But here’s the thing – if you’re looking at a role where you’ll need significant additional training, a company won’t pay you as much as someone who can hit the ground running. Don’t get me wrong, you’d still be a valuable employee, but companies factor in that training time when creating the offer.
Industry Differences
Salary is a lot more complex than most people think. Just because your peer in a similar role earns a certain amount doesn’t mean you will. It’s all about how your skills transfer to the specific role and industry you’re applying for.
Learning Curve
Be realistic about any learning curves you might face in the new role. If you need time to get up to speed, that could impact the initial salary offer.
Value Communication
This is crucial. You must be prepared to clearly articulate how your skills and experience align with the new position and why you’re worth a specific salary.
So, when considering salary expectations for a role, don’t just focus on what you’re making now. Instead:
- Consider how your skills align with the new position
- Be realistic about any learning curves
- Research industry standards for the role
- Prepare to communicate your value effectively
Q: How should I evaluate a job offer?
Danielle Lucia: The key is to understand what makes up the offer and determine if it’s the right fit for your specific situation and career goals. A higher base salary doesn’t always mean a better overall package.
Example
Candidate A has a spouse and two dependents. They’ve received job offers from Company Y and Company Z.
- Company Y offers a base pay of $75K and pays 100% employer-paid family medical premiums. There is no cost to the employee.
- Company Z offers base pay of $85K and pays 80% of employee-only medical premiums. There is no contribution for family premiums. The coverage cost for the spouse plus 2 dependents is $1,530 total per month.
In this case, Candidate A would earn approximately $700 more per month working for Company Y despite the lower base salary. This example shows why it’s so important to look at the full picture.
Components to Consider
When evaluating an offer, consider these components:
- Base Salary
- Benefits (health insurance, retirement contributions, paid time off)
- Equity or stock options (if applicable)
- Opportunities for career advancement
- Work location policy – hybrid, in-office, remote
Remember, the “best” offer is the one that most closely aligns with your financial needs, family situation, and career objectives—not necessarily the one with the highest base salary.
Q: How will salary transparency laws affect job seekers in 2025?
Danielle Lucia: Starting January 1, 2025, companies in Minnesota will be required to include salary ranges in their job postings. As a job seeker, this change will give you more information upfront, which means you’ll need to be prepared to understand and discuss where you fit within these ranges.
Example Scenario
Let me give you an example. Say you’re applying for a Senior Financial Analyst position at ABC Company. Their job posting includes a salary range of $70,000-$95,000. After going through the interview process, you’re really excited about the opportunity, and the hiring manager extends an offer of $80,000. You might wonder, “Why didn’t I get offered the top of the range?”
Understanding Salary Ranges
The posted range typically reflects a spectrum from entry-level candidates who meet the minimum qualifications to highly experienced candidates who exceed all requirements. Your offer within this range will depend on how closely your skills and experience align with their ideal candidate profile. This is where your ability to articulate your value becomes crucial.
How to Use This Information
So, when you see these ranges, don’t automatically assume you’ll be offered the top number. Instead, use this information to:
- Assess if the range aligns with your expectations before applying
- Prepare to discuss how your skills and experience justify your position within that range
- Understand the potential growth in the role if you’re offered a salary on the lower end
These transparency laws are designed to help you, but they also mean you must be more prepared than ever to advocate for yourself effectively in salary discussions.
Final Thoughts
As you navigate your job search or consider new opportunities, I hope you feel better equipped to evaluate offers and understand the value of what you bring to the table!
Check out part 2 of this Q&A series, where I dive into negotiation strategies to help you confidently advocate for yourself.