It’s salary review season. Benchmarks are everywhere. Salary websites, industry reports, and recruiter estimates are flooding your inbox. But here’s the problem: most of this data is flawed.
Ever felt a wave of doubt right before naming your salary number? That doubt often comes from relying on data that wasn’t built for YOU.
The Hidden Flaws in Salary Data
As a compensation professional, I’ve seen how misleading salary data can be. Many websites rely on self-reported figures – often inflated, outdated, or pulled from a limited sample. Even structured reports from reputable sources miss key variables like:
Industry-specific pay trends
A salary benchmark from one sector may be completely irrelevant in another. For example, a marketing manager in fintech may earn significantly more than one in the non-profit sector due to industry demand.
Evolving job responsibilities
The role you’re in today may not fit neatly into standard pay bands. A product manager in a fast-growing startup might take on strategy, operations, and analytics, whereas a counterpart in a larger corporation may have a more defined scope.
Variations in seniority, expertise, and niche skills
Two people with the same title can command vastly different salaries based on what they bring to the table. A software engineer specializing in AI and machine learning may earn considerably more than a generalist developer with the same years of experience.
The result? You start second-guessing your worth.
"Am I aiming too high? Too low? And why does this number feel so arbitrary?"
Market Data is a Starting Point, Not the Answer
Salary reports can give you a reference point, but they shouldn’t dictate your entire strategy. Before taking any number at face value, ask yourself:
Does this reflect my impact?
Numbers don’t capture your unique contributions. Think beyond the market rate – what ROI do you bring to the business? For example, if you streamlined processes that saved the company millions, your pay should reflect that value.
What’s happening in my industry?
Salaries shift with demand, competition, and business cycles. A data analyst at a fast-
growing tech firm might see rapid salary growth, while those in traditional industries may experience slower increases.
How do I position myself?
The number is just one part of the equation. The way you communicate your value is what makes it compelling. If you’ve led a critical initiative or pioneered a new revenue stream, leverage those achievements in your negotiations.
Shaping Your Salary Strategy
Rather than relying solely on benchmarks, take a holistic approach to understanding your worth. Consider your skills, experience, and the specific needs of your industry. Confidence in your number comes from knowing its rationale, not just repeating market data.
When preparing for your next salary discussion, focus on articulating the value you bring – because that’s what truly sets you apart.