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Market Positioning
7 min
How to Benchmark Your Daily Rate or Salary
Are you paid what you're worth? Most professionals have no idea. Undervaluing your compensation means leaving money on the table. Overvaluing it means risking missed opportunities. This guide gives you a concrete methodology to precisely benchmark your daily rate (if freelance) or salary (if employed).
1
Understand factors that influence compensation
Your compensation depends on multiple factors. Knowing them helps you position yourself.
Factors related to you: • Years of experience • Level of technical expertise • Rare or sought-after skills • Track record and references • Personal branding / reputation
Factors related to the market: • Demand for your profession (supply vs demand) • Client's industry sector • Geographic location • Company size • Economic climate
Factors related to the assignment: • Technical complexity • Level of responsibility • Assignment duration • Urgency of need • Available budget
Estimated impact on daily rate: • Paris vs Province: +20-40% • Finance/luxury sector vs non-profit: +30-50% • Urgent assignment: +10-20% • Rare expertise: +20-50%
Factors related to you: • Years of experience • Level of technical expertise • Rare or sought-after skills • Track record and references • Personal branding / reputation
Factors related to the market: • Demand for your profession (supply vs demand) • Client's industry sector • Geographic location • Company size • Economic climate
Factors related to the assignment: • Technical complexity • Level of responsibility • Assignment duration • Urgency of need • Available budget
Estimated impact on daily rate: • Paris vs Province: +20-40% • Finance/luxury sector vs non-profit: +30-50% • Urgent assignment: +10-20% • Rare expertise: +20-50%
2
Collect market data
A good benchmark requires reliable data. Here's where to find it.
Free sources: • Compensation studies (Robert Half, Hays, Michael Page) • Glassdoor and Indeed (salary ranges) • LinkedIn Salary Insights • Industry surveys (tech, finance, etc.)
Paid sources: • Specialized studies (Figures, Regate) • Industry databases
Field sources (most reliable): • Exchanges with peers (same job, same experience) • Feedback from specialized recruiters • Job offers with displayed salary • Professional communities (Slack, Discord)
Collection methodology:
1. Identify 5-10 relevant sources 2. Note the ranges for your exact profile 3. Weight according to source reliability 4. Calculate a low/median/high range
Warning: General studies are often behind the real market. Prioritize recent field data.
Free sources: • Compensation studies (Robert Half, Hays, Michael Page) • Glassdoor and Indeed (salary ranges) • LinkedIn Salary Insights • Industry surveys (tech, finance, etc.)
Paid sources: • Specialized studies (Figures, Regate) • Industry databases
Field sources (most reliable): • Exchanges with peers (same job, same experience) • Feedback from specialized recruiters • Job offers with displayed salary • Professional communities (Slack, Discord)
Collection methodology:
1. Identify 5-10 relevant sources 2. Note the ranges for your exact profile 3. Weight according to source reliability 4. Calculate a low/median/high range
Warning: General studies are often behind the real market. Prioritize recent field data.
3
Calculate your current positioning
Compare your current compensation to collected data.
For employees:
Calculate your total annual package: • Fixed gross salary • Variable / bonus (actual amount, not theoretical) • Profit sharing • Valuable benefits (car, meal vouchers, premium health insurance) • Shares / stock options (estimated value)
For freelancers:
Calculate your effective daily rate: • Annual revenue / number of billed days • Note: count actually worked days, not business days
Positioning grid:
| Percentile | Meaning | |------------|---------| | <25th | Below market • urgent action | | 25-50th | Slightly below median | | 50th | At market median | | 50-75th | Above median | | >75th | Premium • very well positioned |
Exercise: Where do you stand? Note your estimated percentile.
For employees:
Calculate your total annual package: • Fixed gross salary • Variable / bonus (actual amount, not theoretical) • Profit sharing • Valuable benefits (car, meal vouchers, premium health insurance) • Shares / stock options (estimated value)
For freelancers:
Calculate your effective daily rate: • Annual revenue / number of billed days • Note: count actually worked days, not business days
Positioning grid:
| Percentile | Meaning | |------------|---------| | <25th | Below market • urgent action | | 25-50th | Slightly below median | | 50th | At market median | | 50-75th | Above median | | >75th | Premium • very well positioned |
Exercise: Where do you stand? Note your estimated percentile.
4
Identify your target rate or salary
Define your realistic compensation goal.
Calculation method for freelancers:
Step 1: Define your needs • Desired net income per month • Social charges (~45% on average) • Professional expenses (coworking, tools, accountant) • Holiday/sick leave provision (15-20%) • Safety margin (10%)
Simplified formula: Minimum daily rate = (Net income × 12 / Billable days) × 2.2
Example: €5000 net/month × 12 / 200 days × 2.2 = €660/day minimum
Step 2: Compare to market • If minimum rate > market: adjust expectations or upskill • If minimum rate < market: you have room to negotiate
For employees:
Target 60-75th percentile if: • You have a good track record • Your skills are in demand • You're ready to negotiate
Target 50th percentile if: • You're in career transition • You lack experience in the role • Stability trumps salary
Calculation method for freelancers:
Step 1: Define your needs • Desired net income per month • Social charges (~45% on average) • Professional expenses (coworking, tools, accountant) • Holiday/sick leave provision (15-20%) • Safety margin (10%)
Simplified formula: Minimum daily rate = (Net income × 12 / Billable days) × 2.2
Example: €5000 net/month × 12 / 200 days × 2.2 = €660/day minimum
Step 2: Compare to market • If minimum rate > market: adjust expectations or upskill • If minimum rate < market: you have room to negotiate
For employees:
Target 60-75th percentile if: • You have a good track record • Your skills are in demand • You're ready to negotiate
Target 50th percentile if: • You're in career transition • You lack experience in the role • Stability trumps salary
5
Build your argument
A benchmark is useless without the ability to defend it.
Elements of your argument:
Market data • "Studies show the median rate for this profile is €X" • "Comparable offers show salaries between X and Y" • Cite your sources (credibility)
Your added value • Differentiating skills • Quantified achievements • Client/employer references • Certifications or training
Context elements • Market tension • Urgency of need • Assignment complexity
Standard phrasing:
"Given my X years of experience in [skill], my achievements at [references], and market data placing this type of profile between X and Y, I position myself at Z."
Tip: Prepare responses to classic objections: • "It's above our budget" → Propose an adjusted scope • "Other candidates are cheaper" → Highlight your differentiating value • "We can review in 6 months" → Ask for objective review criteria
Elements of your argument:
Market data • "Studies show the median rate for this profile is €X" • "Comparable offers show salaries between X and Y" • Cite your sources (credibility)
Your added value • Differentiating skills • Quantified achievements • Client/employer references • Certifications or training
Context elements • Market tension • Urgency of need • Assignment complexity
Standard phrasing:
"Given my X years of experience in [skill], my achievements at [references], and market data placing this type of profile between X and Y, I position myself at Z."
Tip: Prepare responses to classic objections: • "It's above our budget" → Propose an adjusted scope • "Other candidates are cheaper" → Highlight your differentiating value • "We can review in 6 months" → Ask for objective review criteria
6
Update regularly
The market evolves. Your benchmark must follow.
Update frequency: • Complete benchmark: once a year • Light monitoring: continuously
Trigger signals: • Job or assignment change • Significant evolution of your skills • Major movement in your market • Preparing a negotiation
Rituals to implement:
Monthly (15 min) • Browse job offers in your field • Note displayed salary ranges
Quarterly (30 min) • Discuss compensation with 1-2 peers • Update your tracking file
Annual (2h) • Complete benchmark with all sources • Review your target positioning • Action plan if significant gap
Suggested tracking tool:
| Date | Source | Profile | Range | Notes | |------|--------|---------|-------|-------| | 01/2025 | Hays | Senior PM | 65-80K | Paris, startup | | 01/2025 | Peer | Senior PM | 72K | B2B scale-up | | ... | ... | ... | ... | ... |
Update frequency: • Complete benchmark: once a year • Light monitoring: continuously
Trigger signals: • Job or assignment change • Significant evolution of your skills • Major movement in your market • Preparing a negotiation
Rituals to implement:
Monthly (15 min) • Browse job offers in your field • Note displayed salary ranges
Quarterly (30 min) • Discuss compensation with 1-2 peers • Update your tracking file
Annual (2h) • Complete benchmark with all sources • Review your target positioning • Action plan if significant gap
Suggested tracking tool:
| Date | Source | Profile | Range | Notes | |------|--------|---------|-------|-------| | 01/2025 | Hays | Senior PM | 65-80K | Paris, startup | | 01/2025 | Peer | Senior PM | 72K | B2B scale-up | | ... | ... | ... | ... | ... |
Conclusion
Benchmarking your compensation isn't about ego, but smart career management. Knowing your market value allows you to negotiate with confidence, make the right career choices, and identify when it's time to move. Start this week: collect 5 market data points and calculate your current positioning.