ScottyUK quote:
A good manager should know how much you are worth.
I agree with that - however, as a manager who tries to keep my people busy, well paid and happy, I must say this is a very difficult thing to do. There really is no way to truly find out "how much you are worth". This is a moving target and is based upon a large number of variables, conditions, and effects.
For instance, an engineer on my staff may be "worth" $50,000/year in January. Then, in March, a large economic change happens, say a big drop in the stock market, or a boost in the interest rates. Now, the voluum of projects diminishes, our firm (and other firms in the area) don't have enough work, and my employee becomes less valuable as he cannot demand higher wages (less market for his services) and I cannot pay him higher wages (low firm income). Is he now "worth" $40,000?
But then in June, the market recovers, a large business moves into our town and competing businesses follow and there is too much work for the existing firms. We try to hire additional staff...and this requires higher wages, and my $50,000 employee is now getting offers of $60,000 from our competitors.
Every year I try very hard to purchase and study numerous salary surveys, and get information from other Human Resource personnel of our competitors. These all provide a vast array of salary ranges based on location, firm size, discipline, private/public employer status, years of experience, education level, and license status.
I've spent hours setting up spreadsheets to interpret these surveys and I at best can only get a rough range of what my guy is "worth".
Bottom line: it is very difficult to set salaries at a level where the firm can not be overwhelmed by "overpaying" staff and at the same time pay enough to satisfy the employee to stay...to tell him that we want him to stay, grow, and add to the value of the firm.