QUESTION
I’ve accepted a promotion that would take me from an hourly wage to a salaried position. Do you have any advice for negotiating a salary?
ANSWER
The quick and simple answer to this question is you negotiate it based on what you’re worth to the company. Now, how do you figure that out?
There are a couple of measuring sticks you can use. One is associated with the revenue you bring in, and that’s a nice, concrete reference. Another thing you can do is research some of the more reputable career websites and develop a compensation study based on comparable positions in your area.
Honestly, most positions are priced initially at the amount you can be replaced for in the new role. In other words, what’s the going rate for someone in your position?
I’d produce two or three well-researched compensation studies. Give them to your bosses, and talk it through with them. It’s not that you’re telling them what to do or presenting an ultimatum, you’re asking questions and presenting information.
Financial advisor Dave Ramsey is a prolific author and radio host.