The learner estimates the market range for a role and calculates total compensation, not just base salary.
What the market range and total compensation are
The market range and total compensation
Before you discuss salary, you need to know the market. The market range is the pay range for a specific role, level, and location. You can research it through several sources: salary data sites (for example, Glassdoor and LinkedIn Salary), industry surveys, and conversations with peers in your field. One source isn't enough: the data varies, and you need to see the whole picture.
Your total compensation is more than base salary. It includes: base salary (the fixed part) + an annual bonus (a percentage of base for meeting goals) + stock options or RSUs (company shares that vest over time) + benefits (health insurance, retirement contributions, training, meals, extra vacation days, etc.).
Example: Company A offers a base of $9,000/month. Company B offers a base of $8,000/month + a 15% annual bonus ($1,200/month when converted to a monthly amount) + health insurance worth about $400/month + training worth $250/month. In total, Company B pays about $9,850/month — more than Company A, despite the lower base.
The takeaway: a higher base salary doesn't always mean a better offer. Compare the full picture, add up the annual amount for each component, and only then draw conclusions.
Lesson notes
The market range and total compensation
Before you discuss salary, you need to know the market. The market range is the pay range for a specific role, level, and location. You can research it through several sources: salary data sites (for example, Glassdoor and LinkedIn Salary), industry surveys, and conversations with peers in your field. One source isn't enough: the data varies, and you need to see the whole picture.
Your total compensation is more than base salary. It includes: base salary (the fixed part) + an annual bonus (a percentage of base for meeting goals) + stock options or RSUs (company shares that vest over time) + benefits (health insurance, retirement contributions, training, meals, extra vacation days, etc.).
Example: Company A offers a base of $9,000/month. Company B offers a base of $8,000/month + a 15% annual bonus ($1,200/month when converted to a monthly amount) + health insurance worth about $400/month + training worth $250/month. In total, Company B pays about $9,850/month — more than Company A, despite the lower base.
The takeaway: a higher base salary doesn't always mean a better offer. Compare the full picture, add up the annual amount for each component, and only then draw conclusions.