Your market value

Performance summary

Understanding your performance from your trusted sources and colleagues’ perspective is key to identifying if you are meeting or exceeding the objectives of your role. “If you have gaps to close, work with your leader to create a development plan and regularly discuss this in your meetings together,” David advises.

Where you are excelling in your performance, make sure you highlight this to your leader and talent teams - regularly. It’s important to not be shy and of course, not boastful but where you have facts and data to support exceeding your deliverables, your business will want to know. According to David, “Highlighting what you are excelling at not only supports future remuneration discussions, but it also opens the conversation for what you enjoy, what you are good at and identifies areas where you can continue to add value. It’s been noted time and time again, where individuals can play to their strengths is where they tend to excel”. 

Market research summary

“A volatile market or poor market conditions doesn’t mean your role isn’t in demand. In fact, it might mean your skills and experience are even more valuable to your organization”. According to David, this research is really important for context as to whether external forces really are impacting key positions within an industry.

“Pay Gaps do exist. A common reason recruiters often see this, is when an individual has been with one company for an extended period of time and that individuals has been regularly promoted within the same organisation. In many cases when this happens salary increases can be small or non-existent. We find candidates have been happy to accept a minimal increase in remuneration in exchange for being given an opportunity to take on a new challenge, learn skills or gain experience. Of course, there is absolutely nothing wrong with this but over time, as individuals have gained experience and mastered their role, this approach can put them behind market levels.” David suggests if you are finding this point relevant to your situation talk to your internal talent team about how you can overcome this challenge and take bigger increases within your organisation for your next role.  

Once you’ve understood your salary benchmarks you’ve given yourself a reference point both within and outside your organisation. David advises against seeking too many sources: “Asking your colleagues what they earn is one strategy but beware of the answer. If you discover someone in the same role as you is earning a lot less or a lot more, it might lead to discomfort for you and them. The most effective and confidential way to benchmark your salary in the external market is to speak to a recruitment consultant. If you don’t have a good relationship with someone who works in your area of specialisation and market sector find one - and start building a relationship with them. Someone who knows you, understands what you do, the market you work in, and your skills and experience will become invaluable to you. They can provide a very accurate assessment for you, particularly if they have known you a long time and have a deep understanding of your career evolution and development.”

Situational context summary

The ability to change organisations or move up or within one can greatly affect an individuals market value. On one hand loyalty is seen as a strong value, however diversity of thinking which can come from multiple workplaces is also seen as a strong value. Here David breaks down somethings to consider for your situation.

“There is a balance between moving too often or even internally with one employer and staying in the same role and employer for an extended period. While tenure is valued as it demonstrates loyalty and stability, overstaying with an employer or in one role can also lead to plateauing in a role or falling behind your peers who may have been more mobile.” He goes on to say that “staying in one place too long can also be seen as becoming less able to demonstrate adaptability and exposure to new thinking and ways of doing things.” Whilst this doesn’t necessarily mean that staying in a role for a long time is a negative or demonstrates any of these things, he does stress it’s important to highlight the fact that “where you can demonstrate adaptability and new thinking – it’s always encouraged to do so – particularly if you’ve been in a role for an extended period”.  

Finally, the market sector you work in also affects your remuneration. Sectors that are either growing or declining can impact a similar role’s remuneration. As such it’s important for individuals to become exposed to new products or customer channels and keep up to date with significant changes in technology that are disrupting the industry. David makes the point that it’s important to keep up to date with technology no matter the role. “It’s key to understand how technology will affect segments of industry in the future. Individuals should have an understanding of whether their role will be replaced, or significantly eroded in five years by technology.”

Over the last 20 years David has seen this framework highlight all sorts of scenarios for people he’s worked with. “It never ceases to amaze me that when people take a step back and go through this process, they learn a lot. Not just about themselves, or their organisation, but often what they really truly enjoy. I encourage individuals to do this exercise each year – well before performance review time and not necessarily to discuss remuneration. It’s also an exercise in giving oneself options, choices and an awareness in the world. And finally – it’s always an exercise that is as individual as the individual. Enjoy the journey of learning through the stages as much as the outcome you are trying to achieve. Then you’ll never be disappointed”. There you have it, thanks David.