The mysterious salary formula

manpreet Best Answer 2 years ago

I've been observing a trend in several European and American software companies when it comes to salary negotiations. Basically, HR says we have a "formula" to calculate the salary for our employees according to their years of experience and the interviewers' feedback. However, none of them ever let you see that formula. They just tell you that this is a fair way to calculate the salary for all employees so that people with the same experience have close salaries.

Is this true? Or is this just a tactic in negotiations to convince the applicant to accept the offer?

I personally found it difficult to ask for more because it comes off as someone who wants more than his "equal" peers. After all, the company is telling you that all employees in your level are treated equally which gives a false sense of confidence in the deal from my side.

Is there really a salary formula out there? And if so, how do you negotiate for more in that situation?

Update for duplicate votes The duplicate question states how to determine a reasonable salary. My question comes at a later stage of negotiation and aims at countering the situation when HR somewhat put you in a situation where asking for more implies that you are asking them to ignore the policy laid for salaries.

manpreet 2 years ago

Is there really a salary formula out there? and if so how do you negotiate for more in that situation?

Initial response

Yes, there are several sources available for this data for both the employer and you. I would ignore this tactic entirely however, its a facade used to make you think you are not worth as much as you expect. ( in the hopes you will take less money to come work for them )

Follow up

There are tons of resources available online that are accurate with what a person in a particular field with X number of years should make. ( yes a simple average formula based on field, location, and experience )

If that number does not fall in the range of what is being offered to you by a prospective employer, then I would decline and move on to the next opportunity. If asked for a reason, then tell them what you salary expectations are, and cite your sources. I am intentionally not offering any sources for this information in this answer. ( Easily Google-able )

Employers know, or at least should know, what the going rate for a particular skill set it.