Ask the expert: What salary to ask for

By MARIE WILSON

Q. I am always reading advice that before I apply for or accept a job offer, I should know what the salary might be (to avoid disappointment later). My question is, how do I find out the market rate for a job?

A. The concept of a market rate is a bit misleading, since it really depends on what market and job you are comparing.

Generally, you are trying to find out what companies are likely to be paying, and that is usually a range of rates that reflect differences in the job, the size and type of organisation, how long people have been in their jobs, and the ability of different employers to pay within that range.

While market rate sounds like there is a single number, you are really trying to figure out a range that an employer might pay, and comparing that with the amount of money you are interested in working for. While there are general statistics available through the Department of Labour and Statistics New Zealand, they are generally not too helpful if you have a certain job in mind.

Other sources include published surveys (there are hundreds online and in print), many compiled by professional organisations or industry bodies for their members.

If you are looking at pay surveys, don't forget to figure in wage movement (the percentage wages are moving each year) from the time that the information was collected, which is often up to a year before the information makes its way into general circulation.

General wage rate movement is available on-line from Statistics New Zealand. Large scale union agreements contain wage scales with lots of information about jobs and levels of experience for different pay rates.

So, if you are a nurse, for example, you can look up surveys of nurses' salaries and also ask for salary structures from employers in your area. Then you could add on how much pay has moved since those wages were measured, and have a reasonable idea of the range of rates for the job now.

You can also ask other people who work in the field for their experiences and expectations, and if you are a recent graduate, the career centre at your secondary or tertiary institution may have information specific to new graduate pay experiences.

If there are a number of positions advertised, you can do your own research by asking for additional information on the posts, including the salary. If you are being offered a specific salary, you might ask potential employers to indicate what information they have relied on to develop a salary profile for the position.

Medium to larger size employers should have access to information to back up their decision, and even smaller employers have access to surveys from the EMA or their industry association.

It pays to be well-informed when entering a job, as subsequent increases often depend on the terms and conditions you are able to negotiate when you first take a job.

Don't just focus on salary, however. Many other issues can make a substantial difference to your long-term financial well-being, including access to superannuation and other fringe benefits (parking springs to mind), as well as opportunities for regular reviews of performance and pay, and options for professional development and education.

And whatever you do agree, make sure you get it in writing, including future reviews and increases and any extras that are part of recruiting you to the job.

* * *

Email a question for Dr Marie Wilson

Dr Marie Wilson is associate professor of management at the University of Auckland Business School, research director of the ICEHOUSE business accelerator and a veteran of 20 years in corporate management and small business.