Salary is a sensitive topic. It’s what we work so hard to obtain, and what puts food on our tables and a roof over our heads. Here are some helpful tidbits to keep in mind:

(1) Today’s average yearly merit increases are floating around 3 to 3.5%.

(2) Candidates typically seek an 8-10% increase in salary to change jobs, while often accepting 5-8%. It’s not always about the money, and many people realize that. (In fact, ‘change of environment’ is the #1 reason why our job seekers are open to new opportunities, and approximately 25% of our active candidates are open to lateral moves if the new position and company culture are a great fit).

(3) If you’re interested in comparing cost of living in different cities to determine salary equivalents, http://www.numbeo.com/cost-of-living/ is a great resource!

(4) Not sure how to approach salary discussion during an interview? Be prepared to discuss two numbers: (1) where you want to be, and (2) where you’ve been in the past, or where you’re currently sitting.

INSIGHT: Aside from budget alignment, the hiring team is seeking justification, and proof that you’re taking the process seriously and putting some thought into it. Do you have to tell them your current salary, or else…? No. Is it a good idea to? Generally, yes. While some hesitate to ‘show their cards,’ (a) nothing is better to back-up claims and requests than raw data, and (b) everyone appreciates collaboration and honesty. Give them the data and be honest: “This is my situation; this is my reasoning, and I’m stickin’ to it!” The more you work with the hiring team, the more they’ll trust you and want to bring you onboard. It’s better if they think, ‘Yikes! But I guess I can see where they’re coming from…’ than ‘Hmm, they’re being pretty closed-off. I don’t know about them…’ And to be fair, if your assessment of the hiring team is that they aren’t giving you the time and energy, and aren’t being honest and transparent with you about the opportunity and the company . . . ‘strike 1’ against them!

(5) Interviewing for multiple jobs? Trying to gauge market pay? Watch out! The higher-paying companies are not always better.

INSIGHT: Above-average salaries can sometimes be a red flag for poor financial management and allocation of funds. A company whose salaries aren’t too exciting might offer a more appealing corporate culture, where extra dollars are put toward employee happiness or a critical enterprise software that makes your job easier. Or they might offer an above-average benefits or PTO package. The company that consistently dominates the pay scales might be compensating for an absence or risk somewhere else, perhaps long hours, or inexperienced leadership. When business is slower, the company with modest pay scales might weather the storm more effectively due to a larger contingency fund and smarter financial management. Our best advice: look at retention, do your research, and think about the big picture.