If you were to interview again for your current role and the interviewer asked you your salary expectation, what would be your response?
Could be a TRAP: You may also phrase the question as, “What salary are you worth?”…or, “How much are you making now?” This is your most important negotiation. Handle it wrong and you can blow the job offer or go to work at far less than you might have gotten.
Before you go into any negotiation, make sure you have no issues with calling “big money”. This does not mean that your salary expectation should be in the same range as the Founder/CEO of a company.
Many people make the mistake of researching the organisation but not on the range of salary that is competitive in the market and for the experience they have.
I have devised a simple formula to help you calculate your salary expectations.
To calculate an expected salary based on a person’s experience and level within an organisation, you can use the following formula:
You can call this Formula ISPF (Tell me what you think it means in the comments)
Expected Salary Formula:
Expected Salary= Base Salary + (Experience Multiplier × Years of Experience) +(Level Multiplier × Organizational Level)
Explanation of Terms:
- Base Salary: The starting salary for the lowest level of experience and organizational level.
- Experience Multiplier: A fixed amount added to the base salary for each year of experience.
- Years of Experience: The total number of years the person has worked in relevant roles.
- Level Multiplier: A fixed amount added to the base salary for each level within the organization.
- Organizational Level: The level or rank of the person within the organization (e.g., entry-level, mid-level, senior level).
Example Calculation:
Assume the following values:
- Base Salary: N70,000
- Experience Multiplier: N50,000 per year
- Level Multiplier: N70,000 per level
- Years of Experience: 5 years
- Organisational Level: 3 (where 1 is entry-level, 2 is mid-level, 3 is senior level)
Using the formula:
Expected Salary=N70,000+(N50,000×5)+(N70,000×3)
Expected Salary=N70,000+N250,000+N210,000
Expected Salary=N530,000
In this example, the expected salary for a person with 5 years of experience at a senior level (level 3) in the organisation would be N530,000.
Customising the Formula:
Adjust the Base Salary, Experience Multiplier, and Level Multiplier according to your preferred organisation’s specific salary structure and industry standards.
Next week we will address some of the most diplomatic ways to answer the salary questions at interviews.
Until next week cheers.
