Important Salary Related Links


• The Salary Calculator
  http://www.homefair.com/homefair/calc/salcalc.html?type=to
  A nifty tool featured on Realtor.com that is used to compare the cost of living in hundreds of U.S. cities.
  
  
• JobStar Central: Salary Information
  http://jobstar.org/tools/salary/index.cfm
  With an emphasis on employment opportunities in California, this national job search engine features resume advice, career advice and salary information.
  
  
  

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  Negotiating Your Salary: Getting Prepared
  
  Sources: CareerBuilder.com, 2004; South-Western College Publishing, 2000; the Career Services Center, 2004; Gordon, David, 2004; Impact Publications, 1998.
  
  There is still much work to be done even after you have completed a one or more several good job interviews. If you get a job offer, you have to decide whether to take it and what salary is appropriate. This process can be both stressful and time-consuming. Negotiating your salary can be difficult - especially for job seekers with little experience. This process is easier if you know what to do and are able to avoid the pitfalls.
  
  Determining your Salary Range
  
  Before doing an interview, decide on a desired salary range for that job. To do this you need to find out about the organization and industry. Do research to find out what someone with your education and experience typically earns in the industry. Also determine the median salary and ranges. If at all possible, find out what your predecessor earned. This will help you support any salary requests you make. www.jobsmart.org is a great website to help you do research on salaries in different industries. Consider also the normal salary progression for someone in your position.
  
  Consider Your Basic Needs
  
  Think about what kind of income do you need? Determine what your basic expenses are. That is, how much do you need for housing, transportation, utilities, food, and healthcare. Will you be able to save (for emergencies and the future) while on the job? This will help you to determine the lowest salary you can accept.
  
  Consider Other Benefits Too
  
  Think about all aspects of your compensation. Consider what the company pays for benefits such as medical, optical (vision) and dental plans; vacation package; retirement benefits; stock options; signing bonus; reimbursement for education; flexible working hours; and other fringe benefits. If your salary offer is not as high as you might like, see if the fringe benefits make up for the loss in wages. For instance, some companies offer stock options in addition to wages. Here is a list of benefits that may come with a job offer:

• Health insurance
• Dental insurance
• Vision care
• Disability insurance
• Life insurance
• Paid vacation time
• Paid sick leave
• Paid holidays
• Child and day-care services
• Company car
• Cost-of-living adjustments
• Desirable office
• Education and training programs
• Expense accounts
• Flexible work schedule
• Maternity/Parental leave
• Parking
• Professional membership dues
• Profit sharing plans
• Relocation expenses
• Retirement plans
• Savings plans
• Special equipment (i.e. computer)
• Research expenses
• Paid business-related travel
• Stock Options
• Supplementary pay plans
• Termination agreement (severance pay)
• Unpaid leave time
  • Bonuses
  • Fellowships and scholarships
  • Housing
  • Sabbaticals
    
    

The amount and kinds of benefits offered depend on the company and the position being applied for. Many entry-level positions will have fewer benefits and perks than more senior positions. So, before you interview with a company, determine what you want to earn, the minimum you need to live on, and the minimum you are willing to settle for.


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The Negotiation Process: Understanding the Negotiation Process

Salary negotiations are sometimes like a chess game. You need to figure out the other person's intention and limitation without playing all your cards. You are sometimes asked on job applications, or by interviewers or company representatives to name your desired salary. If you find yourself in this position, avoid giving a specific number by all means. You might be pressured to do so in an interview, so be prepared for the question and have a plausible response ready.

When asked a question such as, "What kind of salary are you looking for?" You can respond by saying something like, "I will consider any reasonable offer," or "I am sure that if I do receive an offer, it will be fair or reasonable." If you are prompted to be more specific, then provide a salary range. The bottom of your range shouldn't be lower than your minimum acceptable salary and the top should be a bit higher than your ideal salary. Never say, "I need a minimum of ___ dollars." (That's probably what you will end up getting.)


The amount and kinds of benefits offered depend on the company and the position being applied for. Many entry-level positions will have fewer benefits and perks than more senior positions. So, before you interview with a company, determine what you want to earn, the minimum you need to live on, and the minimum you are willing to settle for.


Other salary related questions and possible responses:

• If asked: "What are your salary requirements?" Summarize the requirements of the position as you understand them, and then ask the interviewer for the normal salary range in his/her company for that type of position.
• If asked: "How much did you earn on your last job?" Tell the interviewer that you would prefer learning more about the current position before you discuss compensation, and that you are confident you will be able to reach a mutual agreement about salary at that time.
• If told: "The salary range for this position is $44,000 to $55,000, is that what you were expecting?" Tell the interviewer that it does come near what you were expecting, and then offer a range which places the top of the employer's range into the bottom of your range (i.e., I was thinking in terms of $55,000 to $64,000). Remember: be sure that the range you were thinking about is consistent with what you learned about market rate for that position.
• If told; "The salary is $2,400 per month." Try not to look excited or disappointed. Simply repeat the salary, look up as though you were thinking about it, and pause. Don't worry about the silence; give the employer an opportunity to increase the offer. If the interviewer does not change the offer, try the response suggested in #3 above.


Remember you will need to strike a balance between knowledgeable, confident, professional, and interested. You don't want to appear overly competitive and greedy. Employers are likely to respond positively to a salary request based on fact, rather than on the mere wishes of the job seeker.

Be aware that there is less room to negotiate entry-level salaries than mid-career and senior executive salaries.

Knowing When You've Had The Best Offer

In some cases the person making the offer does not offer you the highest salary at the beginning of the negotiating process. This is where your research comes handy. If you know the firm's or industry's minimum and median salary for someone with comparable education and experience, then you will have an idea whether your offer is a good one and how much negotiating room you have. If you think the salary offer is too low, thank the firm for the offer, express a strong interest in the job, let them know you want to work for them, and politely request a higher salary. Provide a brief rationale for your request. There is no guarantee you will get your request, but if you don't ask, you won't know if you will get it.

On the flip side, the employer will probably assume that you are starting from the highest salary request once you have stated one. The employer might try to lower that request. If you start reasonably high, there is a good chance you will end up with an acceptable salary offer.

In stating your salary request, remind the employer of what you bring to the table. Restate the special qualifications, experience, educational background and skills you have that will benefit the company. Remind them of your accomplishments. Most importantly, state what you hope to contribute to the company, and your vision of the future for the position in question (or the company). Presenting it in writing helps you. Remember that some employers operate within tight fiscal constraints. It is not only your needs that should be met, the employers have needs that they want to meet also. Find out what these are and how you can best meet them. For instance, if the employer really wants to hire you but is concerned about departmental costs and pay equity within the unit, think about that, discuss it with the company, and consider it in your decision. At What Point Do You Discuss Salary?

You should not bring up the salary question. Never discuss the specifics of salaries till you have a job offer. Getting into a discussion about salaries too early in the process might leave you under pricing or "low balling" yourself. If pressured to get into discussions about wages early on, tell the company representatives that you would like to find out more about the company and the job before determining your salary.

What If You Are Set On A Salary Figure?

If you have a specific wage in mind and the company does not meet it, try to negotiate some of the benefits. For instance, if your spouse has an excellent health plan that covers your family and you will not need your company's health insurance, see if they will give you a higher salary in lieu of paying for hour health benefits. Depending on the amount of vacation time you have, try negotiating taking less vacation for a higher salary.

You can also ask for a shorter performance review or probationary period. If the company typically reviews new employees after a year, you may consider asking for a quicker review. Earlier reviews can translate into faster pay raises.

Even when an acceptable offer is made, ask for it in writing and take some time to think it over. Do not say yes right away. Do your research and know the norms of your industry for the "mulling it over" period. In some industries the norm might be one day, but it can be two weeks or even several months depending on the position. Find out what the appropriate mulling period is, thank the company for their offer and ask for some time to think it over.

Once you have decided to take a job, get the final offer and details about bonuses, performance reviews, job expectations and requirements, etc. in writing. If the company balks at putting your offer or "promise" in writing, think seriously about the company before going to work for them.

Try to avoid the following:


• Avoid disappointment and bitterness in the outcome of negotiations, even if you win. Remember you are not bargaining for what you've heard your friends and family make, you are bargaining based on your qualifications, experiences and abilities.
• Be persuasive, and convincing but avoid being demanding and annoying. Do not argue with your employer about the salary offer. Try to use the aforementioned techniques to make a persuasive case for increasing the offer.
• Avoid telephone negotiations, unless you are calling to accept the offer letter. Even then, be sure that you put it in writing.
• Avoid thinking that you are indispensable or irreplaceable to an employer when you might not be.
• Don't try to play "hard to get" when you have little or no bargaining room or skills to leverage.
• Don't lie about your past salary, experience, educational attainment (grades, courses taken, etc.), or skills.



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Finding Out More About Salaries and Information About Employers


• Search job sites like www.jobsmart.org, CareerBuilder.com, or Jobstar.org.
• Check with the relevant professional association.
• Look at trade publications like InfoWorld, Ad Age, Working Woman, and the Wall Street Journal, National Business Employment Weekly for salary updates and surveys.
• Look at the Sunday newspapers. In particular, look at local and regional papers in the area you are thinking of working. These papers can provide you with information about salary scales and cost of living (rent or purchase price of homes, etc.).
• If the company is large enough to have a Human Resources Department (HRD) contact them. You can get specific job descriptions, job expectations, salary ranges, performance reviews, etc. from HRD.
• Go to the company's website.
• Try the state employment office also.
• If the company has a union, talk to a union representative.
• If you know employees of the company, you can also check with them.
  
  

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