The Common Challenge of Knowing Your Worth
Many professionals struggle with determining their worth in the job market, especially when it comes to setting salary expectations. Iran Pineda Franco, a career coach and human resources expert, emphasizes that not knowing how to price your work is more common than one might think.
Even accomplished individuals face difficulties in accurately valuing their professional contributions, according to Pineda Franco. There are four primary factors influencing this issue:
- Imposter syndrome: the feeling of being a fraud despite evidence of success.
- Lack of self-awareness: not recognizing one’s professional value.
- Outdated inventory of achievements and skills: not keeping track of one’s accomplishments.
- Unfamiliarity with the labor market: not understanding salary ranges for similar roles.
Often, professionals are unaware of how much others earn for similar roles or believe that accepting lower pay makes them more attractive to employers, when in fact, it may convey the opposite message.
A Payscale study reveals that 60% of people undervalue their ideal salary, while only 20% have a realistic estimate of their market worth.
Pineda Franco stresses the importance of understanding modern compensation practices through information, strategy, and self-awareness.
“Choosing Not to See Myself as a Number”
According to labor coach Itzel Orozco, salary can be viewed from various angles. However, her most successful approach is to “choose not to see myself as a number.”
Orozco values the talent she brings to the table and understands that her compensation depends on the role, its responsibilities, and the organization’s context. She explains that factors to consider when applying for a position include:
- The function to be performed
- Experience level
- Position’s scope (regional, national, or international)
- Leadership responsibilities
- Location, considering the cost of living
Pineda Franco agrees that market research is crucial. He notes that some professions are more economically valued due to supply and demand, but understanding the role’s impact and context is equally important.
He explains that a small company’s human resources manager role differs significantly from leading an 8,000-person team with unions, multiple operational locations, and corporate offices. Although the job title may be the same, the level of responsibility and strategic value changes dramatically.
Pineda Franco advises against disclosing a specific salary figure until understanding the company’s expectations and role scope.
The “Zero Point” Formula for Determining Your Ideal Salary
Orozco’s formula is the “zero point”: a minimum salary you could live on, but not disclose, with an additional 15% to 20%.
“This minimum, worthy of you, allows for basic living expenses—food, clothing, housing, services—without being tied to a fixed label like ‘I’m worth two, someone else is worth three,'” she explains.
When asked about your current salary, Orozco suggests saying: “I earn this, but I’m requesting this or 15% more.” This approach allows for salary negotiation based on your current employment and desire for growth.
If you’re unemployed, use this formula to establish your salary expectations close to the market value. If employed, base your starting point on your current salary.
Pineda Franco recommends answering salary expectations questions by stating, “I’m open to discussing a competitive package aligned with the role’s responsibilities, market value, and my professional contributions. Do you have a salary range for this position?”
If pressed, use your current salary plus 30% as a growth and projection baseline.
“Setting a price on your work is not intuition; it’s strategy,” Pineda Franco emphasizes. “It’s about what you contribute and impact as a professional, not just the hours you work.”
Building Your Salary Valuation Criterion
Orozco believes that establishing your work’s value is an ongoing process of creating opportunities, gathering information, and building a criterion for informed decision-making.
