askST Jobs: Using a salary guide as leverage for better pay
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Workers should use the figures as a starting point for negotiations, not a rigid demand.
PHOTO: ST FILE
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Manpower reporter Tay Hong Yi offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times’ HeadSTart newsletter
Q: Can I use data from a salary guide to negotiate a higher wage?
A: Salary guides are designed to provide a benchmark for understanding prevailing employment and salary trends, says Ms Betul Genc, senior vice-president and head of Asean at recruitment firm Adecco.
“Candidates can use these guides to gauge the market value of different positions, plan their careers and evaluate job offers.”
Used wisely, salary guides can give candidates an edge in their job search and salary negotiations, says Mr Ken Tan, director for specialised contracting and head of sales at recruitment firm Persolkelly.
Persolkelly has linked with SkillsFuture Singapore to produce annual salary guides since 2020.
Another is The Straits Times’ 2024 Singapore Salary Guide
One way to effectively use a salary guide is as a form of leverage in pay negotiations.
“Knowing the average salary for their role in their industry helps candidates set realistic and competitive salary expectations,” Mr Tan notes.
He adds that guides help justify salary requests due to the credibility of figures derived from research, as well as the objectivity of an external source independent of personal expectations or company budget constraints.
“Demonstrating that you have done your research shows that you are well-prepared, professional and serious about your career,” Mr Tan says.
These guides also aid career planning by letting workers see where their current salary stands compared with industry standards and decide if it is time to seek a raise or a new job.
Moreover, candidates can identify which industries are paying above-average salaries for their skill set and target those for job applications through these guides, Mr Tan says.
He also advises that candidates use salary guide data to present a counter-offer if they receive an offer that appears to be below the market rate.
Still, care must be taken to cite these guides well.
Mr Tan advises candidates to select a reputable and recent salary guide relevant to their industry, role and geographic location.
“Focus on data points that directly relate to your role, experience level and the job location,” he adds.
He also advises workers to use salary guide figures as a starting point for negotiations rather than a rigid demand.
“Be open to discussing other forms of compensation if the base salary cannot meet your expectations.”
Likewise, Ms Genc emphasises that these guides may not account for factors such as the size of the prospective employer, a candidate’s unique value, or industry-specific norms for similar jobs in different sectors.
“Relying too heavily on salary guides may suggest inflexibility in salary negotiations or insufficient market research,” Ms Genc says.
“We recommend that candidates consult multiple sources of salary data, as different sources may employ varying methodologies.”
She adds: “Since salary guides typically focus solely on monetary aspects, it is beneficial to consider the overall remuneration package including career progression, learning and development opportunities, as well as mobility options.”
Echoing her sentiments, Mr Tan says it is possible that citing a salary guide could backfire on the candidate, though the risk can be minimised.
While focusing too much on salary figures might give the impression that a candidate is only motivated by money, discussing other factors like the job role, career growth, company culture and benefits would balance the conversation out.
Care should be taken to ensure the data in the guide or guides cited is accurate, relevant and up-to-date, as misunderstanding or misrepresenting the salary data can weaken a candidate’s standing for a prospective job, Mr Tan adds.
Workers also need to navigate the differences between salary guides on wage figures for seemingly similar roles.
“Different guides may survey different populations, including varying industries, company sizes, or geographic regions,” Mr Tan says.
The timing of data collection can also affect the figures, as salary trends can change rapidly.
Mr Tan notes that different guides may use different data sources.
Some might rely on self-reported data, while others use job postings or company-reported figures, or even combine different sources.
The definition for the same job title could vary between guides as well, especially in terms of job responsibilities and seniority levels.
Moreover, some guides report median salaries, while others report mean salaries, which Mr Tan notes could lead to differences, especially if the data distribution is skewed.
“Reconciling differences in salary data from multiple guides involves a strategic approach to understand and interpret the variations effectively,” Mr Tan advises.
One thing candidates can do is to calculate an average or median across the figures of multiple guides. They can also seek out common trends, or find overlaps in pay ranges.
That said, salary guides are not the end-all in this process of discovery.
Mr Tan suggests workers seek out other resources beyond salary guides. Some companies may reveal salary ranges in their job postings, for example.
He also advises: “Speak with industry peers or mentors to get anecdotal insights that can complement the data from salary guides.”
