The easiest way to do this is to determine how much value your work has added to the company you work for. If the software you've worked on has added a million dollars in extra profit to the bottom line, that is a good starting point to start from. Secondary business objectives could count as well, e.g. increased customer satisfaction, innovation, etc.
A problem for many people is that it's hard to compute their exact value, or they are afraid to have that kind of discussion.
If you're being paid $75k a year, and you've added a significant amount to the bottom line, I doubt you'll have a hard time negotiating a $10-20-30k increase. Same goes for a new job: give them examples of achievements, and show how you were beneficial to the business.
Negotiating a new secondary offer is a great thing to do; it gives you additional leverage. If there's a chance a value creating employee will leave, there is no reason not to give a raise. You could use that offer to negotiate a 25-35% increase, if you can show the value you've created at your current company.
To put it bluntly, most employees are actually not worth that much. They get hired at the least amount possible, and they execute strategies, for the most part, set by a few people who are paid significant amounts.
A problem for many people is that it's hard to compute their exact value, or they are afraid to have that kind of discussion.
If you're being paid $75k a year, and you've added a significant amount to the bottom line, I doubt you'll have a hard time negotiating a $10-20-30k increase. Same goes for a new job: give them examples of achievements, and show how you were beneficial to the business.
Negotiating a new secondary offer is a great thing to do; it gives you additional leverage. If there's a chance a value creating employee will leave, there is no reason not to give a raise. You could use that offer to negotiate a 25-35% increase, if you can show the value you've created at your current company.
To put it bluntly, most employees are actually not worth that much. They get hired at the least amount possible, and they execute strategies, for the most part, set by a few people who are paid significant amounts.
I also like this Quora post: http://www.quora.com/What-kind-of-jobs-do-software-engineers.... Check out the first answer written by Amin Ariana; it explains things well.