Defining Your Future US Employee’s Salary

Defining Your Future US Employee’s Salary

CHALLENGES:
  • Finding accurate information on salaries that reflect the current job market’s trends and candidates’ expectations in the USA

  • Defining an attractive offer for US candidates and being prepared to conduct negotiations during interviews

  • Understanding how to adjust the gross salary amount depending on the future employee’s location and occupation

Even if you meet industry players during your first business interactions in the USA, defining the appropriate salary range for the various jobs you have to offer can be quite difficult at the beginning of your expansion, and there are several criteria to consider: your budget, your ambitions and requirements, industry standards, as well as geography. These criteria may even impact decisions beyond HR, like the states in which you intend to to business, have an office, etc.

Define Your Future US Employee's Salary

The Foreign Labor Certification Data Center is a good start to assess your future employees’ salaries in the USA. The platform is effective but not as intuitive as it should, so let’s guide you through the process.

Step 1: search by location and occupation

Using the FLC Data Center’s Search Wizard, you can select criteria such as the geographical area and the occupation type. Let’s say for instance that you want to recruit a General Manager in the New York / New Jersey area:

Defining your future US employee's salary_Step 1_Search Wizard

As you click on “search”, the tool provides you with salary estimates for your employee, as well as a “JobZone”:

OK, but you are left with quite a broad salary range! How can you refine the salary assessment?

Step 2: compare the JobZone and Level Wage data

2 indicators help you narrow the salary range for your specific requirements: the “JobZone N” and the “Level N Wage”.

The occupation that you have selected is associated with a “JobZone” defined by the FLC Data Center’s nomenclature. You can find the list of all 5 JobZones at this link. This JobZone indicates the level of “preparation” needed to take on the various responsibilities and tasks usually required by the job description, including field experience and degrees. Each JobZone is associated with an “SVP range” that in turn matches the job with a specific number of years of experience.

Defining your future US employee's salary_Step 2_JobZone

In our example, a General and Operations Manager corresponds to the JobZone 4 and a [7.0-8.0] SVP range, which means… between 2 years and 10 years! That’s quite vague…

The “Level N wage” then comes into play to help you assess your future employee’s salary. As you see on our example, there are 4 wage levels to consider. To understand which level you should consider for your future employee, please refer to page 7 of this document.

Getting back to our example with that document in hand, we can see that the descriptions of the wage levels call for selecting Level 3 Wage or Level 4 Wage for the General and Operations Manager that belongs to the JobZone4.

Step 3: define which wage level applies to your future employee

You can now get back on your search results. For an experienced General and Operations Manager, the salary will be between $170K/year and $220K/year.

Defining your future US employee's salary_Step 3_Defining the best salary range

Arbitrating between Level 3 Wage and Level 4 Wage then depends on your specific requirements for growing your business in the USA (e.g. track record of success on equivalent positions, years of experience in your specific industry, etc.) and on your candidates’ requirements during salary negotiations (e.g. salary raise as they transition to this new job, risks associated with your business in coming years, etc.).

Want to talk about your expansion to the USA? We offer a free consultation to all TradeSherpa members who sign up for a 3-month Expansion plan (no strings attached). Check this out!

Disclaimer: The materials provided in this US Toolbox are for general information purposes only and are not intended to constitute comprehensive or specific legal, accounting, tax, marketing, or other advice. These materials may not reflect recent developments in the law, may not be complete, and may not pertain to your specific situation and circumstances.TradeSherpa, Inc. assumes no responsibility for errors or omissions in the materials, or for any losses that may arise from reliance upon the information contained these materials. Because these materials are intended to provide only general advice, specific advice should be taken from qualified professionals when dealing with specific situations and circumstances. 

2018-07-09T11:13:52+00:00