Seeking financial growth through a career move: understanding compensation package and industry standards

Switching companies is often driven by the search for a higher salary. However, employees often gauge their compensation expectations based solely on their current company’s internal parameters, making their expectations vague and potentially misaligned with the job market. This article aims to enlighten readers about the components of a financial package they can negotiate when switching companies, as well as average salary increase expectations.

 

A Structured Approach to Compensation

Firstly, it’s essential to understand that companies make their compensation decisions based on internal guidelines. There are salary tables for different roles and levels, and larger, more structured companies have specialized HR teams for calculating compensation and benefits. Hence, any offered salary will be in line with these internal parameters, aimed at motivating you without causing internal discord among colleagues.

 

The Role of Headhunters

If you’re engaging with a competent headhunter during your selection process, you’ll have a valuable ally during negotiations. These professionals have in-depth market knowledge, especially concerning average salary parameters for various roles.

 

Compensation: More Than Just Salary

Companies assess your compensation from a holistic perspective. In Italy, for example, the average ratio between the gross salary you receive and its actual cost to the company is around 1 to 1.4 or more. This means that companies might offer economic components in the form of benefits, like meal vouchers or reimbursements for transportation, as a way to navigate the tax wedge, which can be significant.

 

Compensation Packages: A Closer Look

We advise you to think in terms of a complete financial package, not just your fixed salary. Here are two examples illustrating compensation packages for an entry-level worker and a top manager:

Entry-Level Worker Package
Top Manager Package

As you climb the career ladder, your compensation package will become more intricate, featuring a broader array of components.

Real-World Figures and Considerations

On average, salary increases for employees switching jobs within the same city range from 10% to 15%, with a median at around 13%. However, if the new company is already a popular choice for job-seekers, they might be less inclined to offer salaries above market rates. On the flip side, less prominent companies may offer more attractive packages to secure top talent.

If a job change involves relocation without an existing residence at the new location, the average salary increase can be between 18% and 25%. In such cases, companies often offer one-time incentives like entry bonuses or subsidized housing.

In Conclusion

In all scenarios, it’s crucial to have a clear understanding of the net gains you wish to achieve, and to think in terms of an overall package. With this perspective, you’ll be well-prepared to negotiate a satisfying offer and attain your financial goals.

Related Articles

Need a Head Hunter?

¿Necesitas un Head Hunter?

Brauchen Sie einen Headhunter?

Need an Head Hunter?