How to Research Your Salary and Know Your Market Value: The Complete Guide (2025)

The Market Value Knowledge Gap

Here's a striking paradox: 74% of job seekers research salary before interviews ¹, yet 68% of workers believe they're underpaid ². Even more revealing? Among workers actually paid at market rate, 63% still think they're earning below market. And 47% of those paid above market still feel underpaid.

This disconnect—what researchers call the "market value knowledge gap"—costs professionals thousands of dollars in unrealized earnings and creates unnecessary anxiety around compensation discussions.

The problem isn't a lack of information. It's knowing how to find, interpret, and apply the right data.

Why Salary Research Matters More Than Ever

The data on negotiation outcomes is clear: roughly two-thirds to four-fifths of people who negotiate receive more than the initial offer ³. Those who counter job offers achieve an average compensation increase of 12.45% over the initial offer—equivalent to roughly $27,000 per year in tech roles ⁴.

But here's what most articles miss: negotiation success depends heavily on the quality of your research before you ever discuss numbers.

The Research-to-Results Connection

A 2025 UCLA Anderson study of 3,858 tech job seekers found that participants who received negotiation guidance (which included advice to use objective salary data) were more likely to counter offers—and those who countered achieved significantly higher compensation ⁴.

Meanwhile, PayScale's 2025 report shows that 72% of employers have seen an increase in employees negotiating salaries based on online information ⁵. The research game has changed—employers know you're researching, and they expect you to come prepared.

The Total Compensation Reality Check

Before diving into salary databases, you need to understand what you're actually measuring.

Base Salary Is Only 60-70% of the Picture

According to the U.S. Bureau of Labor Statistics, for private-industry workers ⁶:

• Wages and salaries: ~70.5% of total compensation
• Benefits: ~29.5% of total compensation

For government workers, benefits account for even more—up to 38.3% of total compensation.

What Total Compensation Includes

Direct Compensation:

• Base salary
• Annual bonus (target and actual payout percentages)
• Sign-on bonus
• Equity/RSUs/Stock options
• Commission (for sales roles)

Indirect Compensation:

• Health insurance (employer contribution)
• Retirement matching (401k/pension)
• Paid time off (calculate daily rate value)
• Professional development stipends
• Remote work allowances
• Wellness benefits

The 5-Source Research Method

No single salary database tells the complete story. Each has biases, coverage gaps, and methodology quirks. The most accurate picture comes from triangulating multiple sources.

Source 1: Job Postings with Salary Ranges

Job postings are now the most popular source of salary research, used by 36% of employees ⁵. With salary transparency laws expanding across states, more postings include ranges than ever before.

Best practices:

• Search for your exact title + location + company size
• Look at postings from the past 3-6 months for current data
• Note both the low and high end of ranges
• Factor in that posted ranges often represent the middle 50% of actual pay

Where to look:

• LinkedIn Jobs (filter by salary)
• Indeed (salary estimates and posted ranges)
• Glassdoor job listings
• Company career pages (especially in states requiring disclosure)

Source 2: Crowdsourced Salary Databases

These platforms aggregate self-reported salary data from workers. Each has different strengths:

Glassdoor

• Best for: Broad industry coverage, company-specific data
• Accuracy: A 2024 working paper found ~0.87 correlation with official QCEW wage data at the industry level ⁷
• Limitations: Skews toward larger employers; self-reported data is unverified

Levels.fyi

• Best for: Tech and startup roles, especially Big Tech (FAANG, Microsoft, etc.)
• Accuracy: Uses a mix of self-reported and verified offers; considered "remarkably precise" for elite employers ⁸
• Limitations: Represents top-paying companies; data skews significantly upward vs. broader market

PayScale

• Best for: HR/employer benchmarking perspective; broad role coverage
• Accuracy: Supports ~65% of Fortune 500 companies; combines self-reported and employer data ⁹
• Limitations: Less granular for tech roles than Levels.fyi

LinkedIn Salary

• Best for: Data tied to actual LinkedIn profiles; professional-level roles
• Accuracy: LinkedIn reports ~85% of hold-out salaries fall within their predicted 10th-90th percentile ranges ¹⁰
• Limitations: Requires LinkedIn Premium; smaller sample sizes for niche roles

Source 3: Government and Official Statistics

For baseline reality checks, official statistics provide unbiased (if sometimes delayed) data:

Bureau of Labor Statistics (BLS)

• Occupational Employment and Wage Statistics (OEWS)
• Quarterly Census of Employment and Wages (QCEW)
• Best for: National and regional medians by occupation

O*NET Online

• Detailed occupation profiles with wage data
• Skills requirements and job outlook

State labor department data

• Regional cost-of-living adjustments
• State-specific wage trends

Source 4: Professional Networks and Communities

Why networks matter:

• 70-85% of jobs are never publicly posted
• Insider information on actual offer ranges vs. posted ranges
• Context on company-specific compensation philosophy

How to gather intel:

• Informational interviews with people in similar roles
• Professional associations and industry groups
• Slack communities and Discord servers for your field
• LinkedIn connections who recently changed jobs

The right way to ask: Don't ask "What do you make?" Instead: "I'm researching market rates for [role]. Based on your experience in the industry, what range would you expect for someone with [X years experience] in [location]?"

Source 5: Recruiters and Hiring Managers

Recruiters have real-time market intelligence that databases can't match:

• External recruiters: Ask about typical ranges for roles they're filling
• Internal recruiters: During interview processes, ask about the budgeted range
• Hiring managers: In later interview stages, discuss compensation philosophy

Key questions:

• "What's the budgeted range for this role?"
• "How does your company approach compensation—market rate, above market, or competitive with specific companies?"
• "What would someone at the top of this band need to demonstrate?"

The Market Value Calculation Framework

Once you've gathered data from multiple sources, here's how to synthesize it:

Step 1: Establish Your Base Range

Create a spreadsheet with columns for:

• Source name
• Reported salary range (low/median/high)
• Sample size or confidence level
• Date of data
• Notes on relevance (company size, location match, etc.)

Step 2: Weight for Relevance

Not all data points are equal. Weight sources by:

Higher weight:

• Exact role match
• Same geographic market
• Similar company size/stage
• Recent data (within 12 months)
• Large sample size
• Verified data

Lower weight:

• Adjacent roles
• Different cost-of-living areas
• Different company stage (startup vs. enterprise)
• Older data
• Small sample size
• Self-reported only

Step 3: Adjust for Your Differentiators

Your market value isn't just "average for role X." Factor in:

Experience premium:

• Entry-level: -10-20% from median
• Mid-level (3-7 years): Median
• Senior (8-15 years): +10-25% from median
• Expert/Principal: +25-50% from median

Specialized skills:

• In-demand technical skills: +10-20%
• Rare certifications: +5-15%
• Domain expertise in hot industries: +10-25%

Performance track record:

• Quantified achievements
• Promotions faster than typical
• Recognition or awards

Step 4: Set Your Three Numbers

Minimum acceptable (walk-away number):

• Below this, you decline
• Based on your financial needs and alternatives

Target (likely outcome):

• Where you expect to land
• Usually 60th-75th percentile for strong candidates

Aspirational (opening ask):

• Your initial number in negotiation
• Should be justifiable with your research

Common Research Mistakes to Avoid

Mistake 1: Using Only One Source

Each database has selection biases. Glassdoor over-represents large companies. Levels.fyi skews toward top-paying tech firms. Government data lags 12-18 months. Triangulate.

Mistake 2: Ignoring Location Adjustments

A "Senior Software Engineer" salary in San Francisco vs. Austin vs. remote varies by 30-50%. Always adjust for:

• Cost of living
• Local market conditions
• Remote work policies (some companies pay based on HQ location, others on your location)

Mistake 3: Comparing Apples to Oranges

"Product Manager" at a Series A startup vs. Google vs. a regional bank are fundamentally different roles with different compensation structures. Match:

• Company stage and size
• Industry
• Scope of role
• Reporting level

Mistake 4: Focusing Only on Base Salary

A $150K base with 20% bonus target, 4-year equity grants, and full family health coverage may be worth more than $180K base with minimal benefits. Calculate total comp.

Mistake 5: Using Outdated Data

The job market shifted dramatically in 2023-2024. Data from 2022 or earlier may be significantly off. Prioritize sources with recent data.

How to Use Your Research in Negotiations

Knowing your market value is only valuable if you can apply it effectively.

The Anchoring Principle

Research on negotiation psychology shows that the first number mentioned heavily influences the final outcome (anchoring effect). When you've done thorough research:

• You can confidently state a number first
• You can justify it with specific data points
• You're less likely to be anchored by a lowball offer

Presenting Your Research

When asked about salary expectations:

Strong approach: "Based on my research across Glassdoor, LinkedIn Salary, and conversations with people in similar roles, the market range for this position is $X-$Y. Given my [specific experience/skills], I'm targeting the upper portion of that range—around $Z."

Why this works:

• Shows you've done homework
• Cites multiple sources (credibility)
• Connects your ask to objective data
• Positions you as informed, not arbitrary

Handling Pushback

If the employer challenges your research:

• Ask what data they're using for benchmarking
• Offer to share your sources
• Focus on the value you bring, not just market rates
• Ask what it would take to reach your target number

The AI Advantage in Salary Research

PayScale's 2025 report reveals that 18% of employees now use AI assistants like ChatGPT when setting salary expectations ⁵. This trend is accelerating.

How AI Can Help

• Synthesize data from multiple sources quickly
• Calculate cost-of-living adjustments
• Generate market-rate talking points
• Practice negotiation conversations
• Analyze job postings for salary signals

The Limitation

AI models are trained on historical data and can't access real-time salary databases directly. Use AI as a synthesis and preparation tool, but base your actual numbers on primary research from the sources outlined above.

Your Pre-Negotiation Research Checklist

Before any compensation discussion, ensure you've completed:

Data Gathering:

• [ ] Checked 3+ salary databases for your role
• [ ] Reviewed job postings with salary ranges
• [ ] Consulted government statistics for baseline
• [ ] Talked to at least 2 people in similar roles
• [ ] Asked recruiters about current market rates

Analysis:

• [ ] Calculated total compensation (not just base)
• [ ] Adjusted for location/cost of living
• [ ] Factored in your experience level
• [ ] Identified your differentiating skills/achievements
• [ ] Set minimum, target, and aspirational numbers

Preparation:

• [ ] Documented your research methodology
• [ ] Prepared 2-3 data points to cite
• [ ] Practiced stating your number confidently
• [ ] Prepared responses to pushback
• [ ] Identified your BATNA (best alternative)

The Bottom Line

Only about one-third to two-fifths of workers feel fairly paid ¹². But the problem isn't that companies are systematically underpaying—it's that most professionals don't know how to accurately assess their market value.

The research shows:

• 74% of candidates research salary before interviews ¹
• 66-80% of negotiators get more than the initial offer ³
• Average gains for successful negotiators cluster around 10-20% ¹¹
• Workers with good market data negotiate more effectively and feel more confident ⁴

The difference between knowing your market value and guessing at it can be tens of thousands of dollars over your career—and significant peace of mind in your current role.

Don't be part of the 68% who believe they're underpaid without knowing if it's true. Do the research. Know your number. And negotiate with confidence.

Ready to put your salary research into action? HiredKit's AI interview simulator can help you practice salary negotiation conversations with realistic feedback, so you walk into your next compensation discussion fully prepared.