Deciding your salary expectations can be daunting, whether you’re preparing for a job interview, negotiating a raise, or applying for a new position. Many people find themselves unsure of what to ask for, leading to underestimation or overestimation, which can affect their chances of securing a job or being satisfied in their role. This guide will walk you through the process of calculating your valued salary, using tech jobs as an example while keeping the advice applicable to any industry.
1. Understand Your Worth
The first step to determining your salary is understanding your worth in the job market. This involves assessing your skills, experience, education, and industry demand. Here’s how:
- Skills and Experience: Identify your core skills and how they compare to others in your field. Are you a beginner, intermediate, or advanced?
- Industry Standards: Research salaries for similar roles in your location using platforms like Glassdoor, PayScale, or LinkedIn Salary Insights. For example, a junior front-end developer might earn between $40,000 and $70,000 annually, depending on their city and company size.
- Certifications and Education: Additional certifications or degrees can justify a higher salary.
2. Consider the Cost of Living
The cost of living in your area greatly impacts salary expectations. Use online calculators to compare the cost of living in different cities. If you’re in a high-cost city like San Francisco, you’ll need to ask for a higher salary compared to someone in a smaller city.
Same also goes for Nigeria, the cost of living varies across Nigerian cities. Professionals in Lagos or Abuja may need higher salaries than those in smaller cities due to higher living expenses.
- Use local data or online tools to compare the cost of living in cities.
- Factor in housing, transportation, utilities, and other essentials.
Example:
A software engineer working in Lagos may need to account for rent of ₦700,000 annually, transportation costs of ₦200,000, and other expenses when determining a viable salary.
3. Factor in Benefits and Perks
Salary is just one part of your total compensation. Consider:
- Health Insurance: Is your employer offering an HMO plan?
- Pension Contributions: Does the company contribute beyond the minimum required by law?
- Leave Entitlements: Paid time off, maternity/paternity leave, or sabbaticals.
- Flexibility: Remote work or hybrid options can offset transportation costs.
In some cases, robust benefits can make a slightly lower salary more attractive.
4. Define Your Bottom Line
Calculate the minimum salary you need to cover your expenses and still save. Include:
- Rent or mortgage payments.
- Utilities, food, and transportation.
- Savings and investments.
- Loan repayments or debts.
This bottom line will serve as the minimum acceptable salary during negotiations.
5. Set a Salary Range
Once you have a bottom line and have researched industry standards, define a salary range with your ideal figure at the center.
Example: If your research shows ₦3,000,000 as the average salary for your role, and your personal calculations suggest ₦3,200,000 is ideal, your range might be ₦3,000,000–₦3,500,000.
6. Prepare for Negotiation
How you communicate your expectations matters. Here’s how to handle common scenarios:
- When Asked About Salary Expectations:
“I’m open to discussing compensation based on the responsibilities of the role and the company’s overall package. From my research, I expect a range of ₦3,000,000–₦3,500,000 annually.” - When the Offer is Below Your Expectations:
“Thank you for the offer. Based on my experience and the market, I was expecting something closer to ₦3,500,000. Is there room for adjustment?” - When the Employer States a Range First:
This is ideal, as it allows you to adjust your expectations based on their range.
7. Special Considerations for Tech Roles in Nigeria
The tech industry often has unique factors to consider:
- High-Demand Skills: Developers with expertise in Python, DevOps, or cloud computing are in high demand and can command higher salaries.
- Remote Opportunities: Global remote roles may offer higher salaries in USD, even for Nigerian residents.
- Portfolio Strength: A strong portfolio showcasing completed projects or measurable impacts (e.g., increased website traffic by 50%) can justify higher pay.
Example:
A mid-level web developer in Lagos with three years of experience and proficiency in React and Node.js might negotiate for ₦4,000,000– ₦5,000,000 annually, based on market demand and their portfolio.
8. Final Tips
- Practice Confidence: Salary discussions can be nerve-wracking, but preparation will help you stay composed.
- Know When to Walk Away: If the salary offered doesn’t meet your minimum requirements and there’s no flexibility, it’s okay to decline.
- Stay Updated: Keep track of market trends and reassess your salary expectations periodically.
In summary, calculating your valued salary involves a mix of research, self-assessment, and strategic planning. Whether you’re in tech or another industry, the key is to approach the process with confidence and data. Remember, the goal is to find a salary that reflects your skills, meets your needs, and aligns with market standards.
