Liz Ryan, CEO and Founder of Human Workplace has a great article up here on Linkedin where she talks about how every job solves a “business pain” – and how your ability to erase or ease that pain via your own performance is a key variable in determining your market value.
The amount of money your employer will pay you is driven by how much it would harm the business if you left and they had to replace your efforts.
How much money do you make (and/or save) the business every year? If you left, how easy would it be to replace the value you bring to to the table (and what would be lost in the interim)? This is the calculus an employer applies when determining if the costs to retain an employee is worth it.
To this point, I’ve written before about the knowledge transfer process and how an employer can ease the business pain of losing a top talent by having a strong bench of people ready to step in and fill any role.
With that said, where Liz goes a step further – and I think she’s onto something here – is when she talks about how a unique skill set takes you off the “pay grid” entirely: i.e., if you have a highly unique skill set that adds value to a business, you don’t really “fit” into a pay grade or pay band anymore – your value is basically then determined by whatever you can negotiate (because if the business pain you lessen can be eased by very few others in the marketplace then your market value goes up dramatically).
…There is (I think) also a lesson here about the value of brand equity, but I started writing really late this morning and don’t have time to go into it just now.
As always, please share your thoughts in the comments below.