Considerations before negotiating salary in a new city
Moving to a new city is exciting, especially if it involves a new job! Some of the changes that you will anticipate include a new community, position, company, and professional network of colleagues. What can surprise you are the financial implications of such a transition. Your compensation will be different, and most likely your cost of living will vary from your previous location as well. You can set yourself up for financial success by effectively negotiating the compensation you will receive in your new role as well as considering the financial implications of your new situation. Before you accept that offer and start packing, get your financial house in order. To do so, it’s essential to research the value of the new position (and your skills) in your new market and the cost of living in the anticipated location.
How much are you worth? It is important that you know your value as you pursue new job opportunities and engage in the salary negotiation process. Your value depends on a number of different factors including your experience and skills, as well as the going rate for the position you are pursuing. How can you determine this? Do your research! Use sites such as Glassdoor.com, Salary.com, and the salary function on LinkedIn.com. Compare similar positions, and leverage your network to get an idea of rates related to specific roles, companies, and industries. If you want to command more money, you need to prove to an employer why you are worth it. Keep in mind that appropriate rates will also be affected by geography, as pay rate can be related to cost of living.
Cost of living is how much it costs for you to live in a certain location given your core fixed and variable expenses. A few years ago, when I relocated from the southeastern part of the U.S. to New England, my cost of living rose almost 20%. That is significant! There are a couple of great resources that allow to you compare the cost of living between two locations. One resource is bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx and another site is nerdwallet.com/cost-of-living-calculator. Once you have this information, build a budget that reflects your expenses in order to find out how much money you will need to sustain your lifestyle. A resource to help you build a budget is risla.com/budgeting-calculator.
It’s important to know that just because your cost of living may increase based on a move, that does not mean an employer owes you more money! It’s a factor, but not the only one. Focus on your value and what you bring to the position. Do your research, showcase your skills and experience, and show the employer why you are the best fit for the position in order to maximize your earning potential.
