Anyone who’s reached the stage in their career where it’s possible, knows negotiating a salary can be daunting.
Because… where do you start?
Many people – including Red Balloon founding director Naomi Simson – would tell you that the best way to figure out the ideal salary to ask for is to research and find out at what people of your experience level in a similar role earn.
But a writer at career website Career Contessa has discovered another way of working it out.
Writer Kit Warchol reports on the theory of a San Fransisco woman who works at a company that funds lady startups.
She suggests using a simple equation to calculate the wage you should ask for next time you land a new job – or the pay rise to request during your next annual review.
STEP 1: Add up your monthly expenses.
So this includes your rent and bills (water, electricity, gas, phone, internet etc) but also an average of your monthly food shops, and your entertainment spend. And then make sure you’re also accounting for all the necessary extras, like birthday presents, or clothing. Basically an average of how much you spend each month.
STEP 2: Double it.
This is to allow for all the unexpected extras in your life, like concert tickets, plus allow you to save money for things like holidays, or a house. Plus, set some money aside for a rainy day (or a redundancy).
STEP 3: Add 20 per cent
Okay, you already accounted for extras, what’s this for, you ask? As Kit Warchol explains, the reason for the 20 per cent addition is two-fold.
First, it forces you to ask more than you’re comfortable with – which as, Kit points out, is probably a good sign you’re asking for the amount a man wouldn’t think twice about requesting,