You made it past the application and all the interviews, and now the company of your dreams is offering you a position; however, is the salary offer what you expected? According to numerous surveys across the employment industry, more than 60% of new hires do not negotiate a salary. This does not mean that everyone needs to negotiate a salary, but it does assume (correctly) that most people are uncomfortable about talking about salary.
Is this you? You are not alone; most employers do not like to talk about salary as well. This is one of the reasons that most public sector (government oriented) jobs actually post either the salary or the salary range on their job postings. Only those people who are qualified and accept the pay range need apply.
When I was working with contractors in the technology industry, one of the toughest part of my recruiters’ job was locking down the pay with these very talented people. My companies had a specific margin (profit) in mind with each contract position or project team; therefore, salary negotiations with a candidate was a critical part of the recruiter’s job. Our customers were already locked into a bill rate, and we had a maximum pay for each position; however, the recruiters had targeted margins that reflected paying lower for a candidate (yet still at market rate) if they could get it. With so much competition amongst the contracting world, it was a wonder that any company hired anyone.
So what does all of this have to do with you? It shows you that all positions are negotiable, but there has to be some data behind why you want a specific pay rate. As noted in my previous articles, doing your research on a company is so important in landing a position. You know this is true if you have made it to the offer phase. It was your knowledge of the company, the industry, the customers’ served, etc. that got you to this point. Now you need to know not only what the market rate is for the position, you need to know what is needed to live in the geography of where you will be living and working.
This means that you have to know a lot about the monetary aspects of the position and your current financial circumstances. As most of you know, it cost a lot more to live in Washington DC and Los Angeles, CA than it does to live in Little Rock, AR or Atlanta, GA (don’t take my word – look it up). The following steps will help you organize your research in an orderly manner.
- Know the Salaries for the Position – and the Region
As you research out specific opportunities within a company (or companies), part of that research has to be what the pay rates for the position is in a specific geography. This research has to be done before you apply! There are numerous sites that share this information. For example, the Bureau of Labor Statistics show that a Social Worker’s average wage in Stockton, California is $36,190 per year; however, just a few miles away in San Francisco the average salary for the same position is $88,330. This sounds like it is better to go for the position in San Francisco, but the reality is that the cost of living in San Francisco is considerably higher than in Stockton. (source: www.bls.gov)
- Know Your Budget
Can you live on the salary being offered? Creating a budget should be the first thing that you do when identifying an occupation and its geography. Of course, a person or family that has no debt is in a better position to take a lower offer than those who do have debt, but knowing what the position pays by doing step one and then comparing that to your budget will help you decide whether to apply or not. Basic budgeting includes taxes, housing, utilities, phone, insurance, travel, food, clothing, and debt, and additional budget items include entertainment, Wi-Fi, furnishings, saving for the future, and many others. The key is to make sure you have every type of expense in your budget and identify what is necessity and what can be postponed.
For example, the average salary for a social worker in Atlanta, GA is $37,960. Salaries typically start from $24,780 and go up to $56,180. (source: www.sokanu.com) According to MIT’s Living Wage Calculator, the living wage in the Atlanta, GA area for a single person is $26, 187 before taxes are taken out. (source: livingwage.mit.edu) This does not include any debt the person has, so that has to be calculated in the equation. With good budgeting, this could be a viable opportunity, but it also could be an opportunity to negotiate a higher salary that brings a better quality of life that one can enjoy.
- Know Your Value
Doing your research on the position and comparing the skill and education requirements to what you currently possess is very important. This information will help you know that the range of salaries will or will not fall into your salary requirements (based on your budget). If it does not fall into your salary requirements, don’t waste the employer’s or your time to apply for that position at that location. Find a more suitable position. This is why research is so important. If the position does match your salary requirements, and you have the appropriate experience to be paid above the entry level rate, then be prepared to share that with the employer. You will find information about the salary ranges on the Bureau of Labor Statistics website. This is where salary negotiation skills will be needed.
It is important to know your value and not lie or bluff your way through. Base your budget on actual budget items and this will give you an honest salary to target. It is also important to understand that although salary is important, passion with an occupation is more important. If you are passionate about what you will be doing, then that will create a great working environment for both you, the employer, and the stakeholders of the company. You may decide to take a lower salary because you know it does not pay what you require; however, if your budget affords it and the quality of life you obtain will be a benefit, then the position will be great! It may have benefits that are just too outstanding to pass up (i.e. free tuition to a university).
- Practice Negotiating
Doing anything well takes practice. Interviewing and negotiating salaries is not different. It is best to do this practice with a mentor or coach, but however you do it – just do it. Confidence is a visible trait – the employer will see that confidence if you exude it. For example, if you know that your salary needs are $80K, and the position has a market value of $80K, then your target salary should be $80K. Most employers have a budget for their position, and if you did your research appropriately, then you will know that the employer should be able to accommodate your need. If this is the case, let them make the offer, and accept or negotiate if necessary. You may get a higher offer than what you need, which is great because you did not leave additional dollars on the table.
If offered less, then state that you really appreciate the offer and you are very excited for the opportunity, but that you have done a lot of research on the position, the market and the company, and have a salary requirement of $80K, and if they meet that rate then you will accept immediately. They may come back with an OK, or with a counter offer that is less than what you want. If less, then evaluate if that counter is acceptable – keeping in mind that you need a living wage. It is perfectly professional to negotiate a salary, but you need to do so with solid data backing up your request and practice to show confidence and professionalism.
About RTG Enterprises
At RTG Enterprises, we specialize in assisting our clients in the full career search process – which includes career assessment, building a brand and resume, how to research occupations, employers, and geographies, networking, interview techniques, salary negotiations and onboarding. All professional people have mentors and coaches. Whether you are a new graduate, a seasoned professional, or an executive, RTG has a career coaching plan for you. Contact us to be your coach today for your success tomorrow. Find more information at rtg-enterprises.com.
About Richard Glass
Mr. Glass has been connecting talent with employers for over 20 years. For six years, he led the career center of the largest non-profit university in the United States, which had over 265,000 students and alumni and over 11,000 employers using its services. He has helped thousands of students, mid-career professionals, and executives learn what it takes to professionally brand themselves and stand out amongst their competitors. He has also trained dozens of recruiters, account managers, account executives, business development professionals, employer relations coordinators, and career counselors to fully provide solid professional development to job seekers, and solid staffing and solution expertise to employers. His expertise includes strategic relationship development, business development, entrepreneurship, career counseling and coaching, networking, resume and cover letter writing, personal and business branding, and philanthropic giving. He has worked with employers in both the public and private sectors, including higher education, public and private K-12 schools, federal, state and local governments and agencies, Fortune 1000, mid-size and small businesses, non-profits and ministries. RTG customers include executive management (C-Suite), information technology professionals, engineers, teachers, professors and administrators, accounting and finance professionals, human resource professionals, business development and sales professionals, marketing and communication professionals, law enforcement professionals, and transitioning military personnel.
Contact Mr. Glass at rglass@rtg-enterprises.com