Well, there's all sorts of factors involved, but I've found that the more you know about the company, the better you are at negotiating. That sounds like a no-brainer, but that's probably just as important as market value.
For example, I was contracting a company that had most of their software development teams working as contractors. About 6 months into contracting there, I learned that they had made a strategic decision to try and hire everybody instead of contracting and the reason they did that was to save on money and more importantly, retention.
So they would ask me to convert, and I would pretty much blow them off for a couple months, and they would ask me again a couple months later. So after a few times of this routine, I knew I was in a better position to start the negotiations. Also, I had waited for several other contractors to convert and got some tidbits from them.
At the end of the day, I negotiated for much more than average salary in my market.
If you're contracting, it pays to be contracting with a staffing firm that knows the decision makers in the company.
For example, I was contracting a company that had most of their software development teams working as contractors. About 6 months into contracting there, I learned that they had made a strategic decision to try and hire everybody instead of contracting and the reason they did that was to save on money and more importantly, retention.
So they would ask me to convert, and I would pretty much blow them off for a couple months, and they would ask me again a couple months later. So after a few times of this routine, I knew I was in a better position to start the negotiations. Also, I had waited for several other contractors to convert and got some tidbits from them.
At the end of the day, I negotiated for much more than average salary in my market.
If you're contracting, it pays to be contracting with a staffing firm that knows the decision makers in the company.