How to research salary and compensation trends in your field so you can confidently talk about it in a job interview. This video is by Patra Frame, Human Resources Consultant.
Showing posts with label salary negotiation - benefits. Show all posts
Showing posts with label salary negotiation - benefits. Show all posts
Wednesday, April 11, 2012
Monday, July 16, 2007
Salary Negotiations for Career Change
Question
I recently interviewed for a position in a different profession and industry than the one that I am in currently (and had worked in for over 10 years). I think I messed up with the salary requirements and was wondering if its too late to fix it. Because I thought--hey I've never worked in this field—I can't expect what I'm making now (plus I would be going from Big City Salary to Little Town Salary), I gave my salary requirements way too low for myself (about $15k less than I am making now, not including bonuses and bennies).
After reviewing my finances, I don't think I can swing the pay cut I would have to make but really want to make this seed change in my life. Is there a way to fix this properly in negotiations? Is it ok to say, after reviewing my finances I was incorrect and can not accept below $X or should I just let this whole thing go and start over someplace else? I am losing sleep over this.
---Feeling like an idiot in NY-Dan
Answer
by Jeanne Knight, JCTC, CCMC, Career and Job Search Coach
Dear Dan,
Congratulations to you for embarking on a career change! Making a career change can be an exciting and fulfilling endeavor, but can also be fraught with uncertainties and frustrations, such as the one you describe.
I don’t believe all is lost with this particular company, but some soul searching and research is in order prior to re-contacting them. The first thing to recognize when making a career change is that taking a step backwards in salary is sometimes necessary. After all, unless you are entering the field with significant skills and accomplishments that qualify you for a mid-level position in this new career, you are probably starting somewhat “over” and will need to work your way back to your present salary. And hopefully, over time, you will love and excel at your new career so much that you will exceed your present salary.
However, before jumping to that conclusion, you’ll want to do some research into what jobs in your new field are paying someone with your level of experience. I assume you have researched your new field and have a sense of what the “entry” jobs are versus the more mid-level and senior jobs. Given that, you’ll first want to identify what transferable skills you bring to this new job, as well as any education and training that you’ve had. Based on that information, as well as your prior research, decide what level (entry-level, mid-level, etc.) you’ll be entering this new field. Then go to some of the popular salary websites, such as salary.com and wageweb.com, and determine the range of pay for this particular job in your geographic area at the level you’ve determined. This may take some time as the exact job at the exact level may not be readily found. You may also want to do a Google search on your chosen profession to see if you can find salary ranges there.
Once you’ve identified the going salary for jobs at your level, develop a salary range that fits your research. You’ll want to make the range wide enough and high enough to account for your previous work experience, and to give you some wiggle room for negotiations (for example, stating a range of $20,000 – 23,000 is too narrow… a range of $20,000 to $30,000 is better).
Now, if your research tells you that the job you are about to enter has a salary range that is less than you can afford to live on, then you’ll need to do some soul searching and identify some options you can live with. Perhaps for a period of time you can work two jobs to make ends meet. Or, perhaps when an offer is made, you can ask if your salary could be reviewed in six months and increased if your performance warrants it. If you are committed to making a go of this new career, frugal living may be the order of the day until your salary can climb back up to where it is now.
If, however, your research tells you that you misspoke during this interview and the going rate is higher than what you quoted your salary requirements to be, then you can call the company back. Explain that you thoroughly enjoyed the interview and are excited about this position, but that since your interview you’ve done some research on what the market is paying for this type of job. Explain that the market appears to be paying someone with your experience and level $xx,xxx - $xx,xxx (your determined range), and that would be a salary you would be looking for. Ask if this is in line with what they were thinking of paying and if they are still considering you a viable candidate for the job.
If your original salary requirements knocked you out of the running, your follow-up phone call may put you back in the running. If it doesn’t, then you will have done your research and will be that much more informed and confident when asked for your salary requirements in future interviews.
Best of luck to you!
Jeanne Knight is a certified Career Coach/Resume Expert who helps senior professionals and executives navigate career transitions. She offers career and job search coaching as well as resume writing services. She is also the creator of “10 Steps To Interviewing With Confidence”, a 60-minute DVD program that offers a step-by-step process for succeeding on interviews.
I recently interviewed for a position in a different profession and industry than the one that I am in currently (and had worked in for over 10 years). I think I messed up with the salary requirements and was wondering if its too late to fix it. Because I thought--hey I've never worked in this field—I can't expect what I'm making now (plus I would be going from Big City Salary to Little Town Salary), I gave my salary requirements way too low for myself (about $15k less than I am making now, not including bonuses and bennies).
After reviewing my finances, I don't think I can swing the pay cut I would have to make but really want to make this seed change in my life. Is there a way to fix this properly in negotiations? Is it ok to say, after reviewing my finances I was incorrect and can not accept below $X or should I just let this whole thing go and start over someplace else? I am losing sleep over this.
---Feeling like an idiot in NY-Dan
Answer
by Jeanne Knight, JCTC, CCMC, Career and Job Search Coach
Dear Dan,
Congratulations to you for embarking on a career change! Making a career change can be an exciting and fulfilling endeavor, but can also be fraught with uncertainties and frustrations, such as the one you describe.
I don’t believe all is lost with this particular company, but some soul searching and research is in order prior to re-contacting them. The first thing to recognize when making a career change is that taking a step backwards in salary is sometimes necessary. After all, unless you are entering the field with significant skills and accomplishments that qualify you for a mid-level position in this new career, you are probably starting somewhat “over” and will need to work your way back to your present salary. And hopefully, over time, you will love and excel at your new career so much that you will exceed your present salary.
However, before jumping to that conclusion, you’ll want to do some research into what jobs in your new field are paying someone with your level of experience. I assume you have researched your new field and have a sense of what the “entry” jobs are versus the more mid-level and senior jobs. Given that, you’ll first want to identify what transferable skills you bring to this new job, as well as any education and training that you’ve had. Based on that information, as well as your prior research, decide what level (entry-level, mid-level, etc.) you’ll be entering this new field. Then go to some of the popular salary websites, such as salary.com and wageweb.com, and determine the range of pay for this particular job in your geographic area at the level you’ve determined. This may take some time as the exact job at the exact level may not be readily found. You may also want to do a Google search on your chosen profession to see if you can find salary ranges there.
Once you’ve identified the going salary for jobs at your level, develop a salary range that fits your research. You’ll want to make the range wide enough and high enough to account for your previous work experience, and to give you some wiggle room for negotiations (for example, stating a range of $20,000 – 23,000 is too narrow… a range of $20,000 to $30,000 is better).
Now, if your research tells you that the job you are about to enter has a salary range that is less than you can afford to live on, then you’ll need to do some soul searching and identify some options you can live with. Perhaps for a period of time you can work two jobs to make ends meet. Or, perhaps when an offer is made, you can ask if your salary could be reviewed in six months and increased if your performance warrants it. If you are committed to making a go of this new career, frugal living may be the order of the day until your salary can climb back up to where it is now.
If, however, your research tells you that you misspoke during this interview and the going rate is higher than what you quoted your salary requirements to be, then you can call the company back. Explain that you thoroughly enjoyed the interview and are excited about this position, but that since your interview you’ve done some research on what the market is paying for this type of job. Explain that the market appears to be paying someone with your experience and level $xx,xxx - $xx,xxx (your determined range), and that would be a salary you would be looking for. Ask if this is in line with what they were thinking of paying and if they are still considering you a viable candidate for the job.
If your original salary requirements knocked you out of the running, your follow-up phone call may put you back in the running. If it doesn’t, then you will have done your research and will be that much more informed and confident when asked for your salary requirements in future interviews.
Best of luck to you!
Jeanne Knight is a certified Career Coach/Resume Expert who helps senior professionals and executives navigate career transitions. She offers career and job search coaching as well as resume writing services. She is also the creator of “10 Steps To Interviewing With Confidence”, a 60-minute DVD program that offers a step-by-step process for succeeding on interviews.
Friday, April 13, 2007
Salary Offer Not Enough
Question
My question is in regards to negotiations. I have interviewed with a potential new employer and all contact has gone very well. Early in the interview process I was twice asked what my salary requirements were and I clearly stated them to both my initial HR contact and the senior HR manager. I was told both times what I was asking was within the position range--in the ballpark.
I had a final interview yesterday with the CFO which went well and I was contacted by the HR head today. Their offer is 10k less than my minimum requirement. I stated to the person that we had discussed it previously and I was assured by him it would not be an issue/problem. He then stated that after yesterday's interview, he spoke with the dept. mgr. as to how much he would be willing to pay for the position and the 10k lower amount was his answer. Mr. HR then said he might be able to get him to go 5k more but that would be it.
How do I negotiate this, or do I just tell them to forget it? As an aside, I am currently employed with a good company, just in a position that cannot lead to further advancement, but I get a steady salary increase every year. In the new position, I would incur additional commuting costs, which would lead to the increased salary being equal to what my next raise here would be. Oh yeah, I’m 45 .
-- John (confused in NJ)
Answer
by Marc Effron, VP, Talent Management, Avon Products
Hi John – This reminds me an experience I had many years ago when interviewing with a major hotel chain. After an exhaustive interview process, they offered me $10,000 less than my then current salary. Their logic was: “Because you said you got your raise recently, this is still more than you made before your raise.”
John, you’ve answered your own question. If the offer is below your minimum -- end of story. Also, if they’re this cheap and disorganized right now, it won’t be any better when bonus/merit increase time rolls around. They don’t deserve you and you’ve just proved you’re employable, so move on.
It’s sad that yet another HR department has hurt the reputation of this field. Their job is to understand the budget and job requirements before interviewing. Before your next interview process, you might want to double-check that they’ve done this.
I hope that helps!
Marc Effron is Vice President, Talent Management for Avon Products. He has authored two books (including Leading the Way) and numerous articles about leadership. He is a frequent speaker at industry events.
Susan Ireland’s Two Cents
John, when you negotiated your compensation, did you consider the entire salary and benefits package? If you’re still interested in the job, get out your calculator and add up the value of the health insurance, vacation pay, 401k benefits, gym membership, etc. to see if, in fact, the job offer is what you want. To get help thinking about all those perks, check out Negotiating Total Compensation Can Be Totally Awesome by Barbara Safani.
Job Lounger, do you have a question? Email (joblounge@aol.com) it to me and I’ll post your question and an expert’s answer here in The Job Lounge.
My question is in regards to negotiations. I have interviewed with a potential new employer and all contact has gone very well. Early in the interview process I was twice asked what my salary requirements were and I clearly stated them to both my initial HR contact and the senior HR manager. I was told both times what I was asking was within the position range--in the ballpark.
I had a final interview yesterday with the CFO which went well and I was contacted by the HR head today. Their offer is 10k less than my minimum requirement. I stated to the person that we had discussed it previously and I was assured by him it would not be an issue/problem. He then stated that after yesterday's interview, he spoke with the dept. mgr. as to how much he would be willing to pay for the position and the 10k lower amount was his answer. Mr. HR then said he might be able to get him to go 5k more but that would be it.
How do I negotiate this, or do I just tell them to forget it? As an aside, I am currently employed with a good company, just in a position that cannot lead to further advancement, but I get a steady salary increase every year. In the new position, I would incur additional commuting costs, which would lead to the increased salary being equal to what my next raise here would be. Oh yeah, I’m 45 .
-- John (confused in NJ)
Answer
by Marc Effron, VP, Talent Management, Avon Products
Hi John – This reminds me an experience I had many years ago when interviewing with a major hotel chain. After an exhaustive interview process, they offered me $10,000 less than my then current salary. Their logic was: “Because you said you got your raise recently, this is still more than you made before your raise.”
John, you’ve answered your own question. If the offer is below your minimum -- end of story. Also, if they’re this cheap and disorganized right now, it won’t be any better when bonus/merit increase time rolls around. They don’t deserve you and you’ve just proved you’re employable, so move on.
It’s sad that yet another HR department has hurt the reputation of this field. Their job is to understand the budget and job requirements before interviewing. Before your next interview process, you might want to double-check that they’ve done this.
I hope that helps!
Marc Effron is Vice President, Talent Management for Avon Products. He has authored two books (including Leading the Way) and numerous articles about leadership. He is a frequent speaker at industry events.
Susan Ireland’s Two Cents
John, when you negotiated your compensation, did you consider the entire salary and benefits package? If you’re still interested in the job, get out your calculator and add up the value of the health insurance, vacation pay, 401k benefits, gym membership, etc. to see if, in fact, the job offer is what you want. To get help thinking about all those perks, check out Negotiating Total Compensation Can Be Totally Awesome by Barbara Safani.
Job Lounger, do you have a question? Email (joblounge@aol.com) it to me and I’ll post your question and an expert’s answer here in The Job Lounge.
Tuesday, February 20, 2007
Does Health Insurance Pay?
Question
I have been offered a job that offers health insurance but I do not need it because I am covered under my spouse's plan. I'm wondering what is a fair compensation for leaving health insurance on the negotiating table. For instance, if the HMO plan the prospective employer offers costs them $5K per year, is it reasonable to expect at least 50% compensation for declining that costly benefit? After all, the employer stands to gain substantial money by not having to pay for my health insurance.
-- Frustrated Negotiator
Answer
by Townsend Belisle, former professional headhunter
The cost of health benefits is a slippery subject. Benefits (and taxes) tend to be the largest factor in cost of employment to a company, so companies keep a close watch.
You are correct to assume that an employer would not compensate an employee the entire cost of providing their health benefit (it is their choice). But asking for a percentage of their cost savings to be applied to your salary is very reasonable. And it is common. People with spouses and partners are typically not employed by the same company as their partner – so the couple will naturally assess the health insurance benefits of both employers and choose the one that suits them best.
Just make sure these negotiations are with the HR or personnel department, and not your direct boss (unless you’re being hired to monitor costs or some other super detail-oriented position). You should be careful that you’re making the right impression with those to whom you will directly report. Your negotiation should stay within the tact of “finishing the final details” rather than “potential trouble-maker.”
Health insurance, to you, is equal to nontaxable income. Health insurance, to your employer, is a benefit for employees (both as an option potentially required by law and to promote employee retention), a cost efficiency (the more employees, the lower cost per employee) and a tax break. So it is not necessarily a full-cost benefit.
Taking these into account, it is fair to leave health insurance on the negotiating table, but don’t expect too much. As a benefit, you may need to understand that most companies see benefits as privilege, an “added bonus,” for your employment - not a right or “sure-thing.” There are no laws to govern this – a company could shut the door on such conversation by simply stating that they have a “policy in place.” Some of the folk at FastWeb feel stronger about this.
You have the right attitude - it never hurts to ask. Saying something in a professional manner, like “I do not intend to take advantage of the health benefits you provide, and for this I would be pleased to receive a modest increase in my salary, given such cost savings to you.”
Bottom line – yes, the health insurance benefit is negotiable. So shoot for the moon and ask for as much additional compensation as you like, just manage your expectations that companies rarely compensate more, and if they do, the increase will not likely be equal to their cost of the benefit.
“He is great who confers the most benefits.” ~ Ralph Waldo Emerson
Townsend Belisle is a former advocate for hundreds of talented people. Having played the roles of a recruiter, agent and headhunter, he championed the salary and benefit negotiations that landed all sorts of New Yorkers their dream jobs. This aside, he is not terrifically excited about the benefits package at his day job. His current employer (his favorite to date) seems to have inside knowledge that Townsend and his coworkers are truly enjoying their work and Townsend feels they could be the victims of the classic maneuver, “swindle-the-happy-campers.”
From Susan Ireland
Job Lounger, do you have a question? Email it to me and I’ll post your question and an expert’s answer here in The Job Lounge.
I have been offered a job that offers health insurance but I do not need it because I am covered under my spouse's plan. I'm wondering what is a fair compensation for leaving health insurance on the negotiating table. For instance, if the HMO plan the prospective employer offers costs them $5K per year, is it reasonable to expect at least 50% compensation for declining that costly benefit? After all, the employer stands to gain substantial money by not having to pay for my health insurance.
-- Frustrated Negotiator
Answer
by Townsend Belisle, former professional headhunter
The cost of health benefits is a slippery subject. Benefits (and taxes) tend to be the largest factor in cost of employment to a company, so companies keep a close watch.
You are correct to assume that an employer would not compensate an employee the entire cost of providing their health benefit (it is their choice). But asking for a percentage of their cost savings to be applied to your salary is very reasonable. And it is common. People with spouses and partners are typically not employed by the same company as their partner – so the couple will naturally assess the health insurance benefits of both employers and choose the one that suits them best.
Just make sure these negotiations are with the HR or personnel department, and not your direct boss (unless you’re being hired to monitor costs or some other super detail-oriented position). You should be careful that you’re making the right impression with those to whom you will directly report. Your negotiation should stay within the tact of “finishing the final details” rather than “potential trouble-maker.”
Health insurance, to you, is equal to nontaxable income. Health insurance, to your employer, is a benefit for employees (both as an option potentially required by law and to promote employee retention), a cost efficiency (the more employees, the lower cost per employee) and a tax break. So it is not necessarily a full-cost benefit.
Taking these into account, it is fair to leave health insurance on the negotiating table, but don’t expect too much. As a benefit, you may need to understand that most companies see benefits as privilege, an “added bonus,” for your employment - not a right or “sure-thing.” There are no laws to govern this – a company could shut the door on such conversation by simply stating that they have a “policy in place.” Some of the folk at FastWeb feel stronger about this.
You have the right attitude - it never hurts to ask. Saying something in a professional manner, like “I do not intend to take advantage of the health benefits you provide, and for this I would be pleased to receive a modest increase in my salary, given such cost savings to you.”
Bottom line – yes, the health insurance benefit is negotiable. So shoot for the moon and ask for as much additional compensation as you like, just manage your expectations that companies rarely compensate more, and if they do, the increase will not likely be equal to their cost of the benefit.
“He is great who confers the most benefits.” ~ Ralph Waldo Emerson
Townsend Belisle is a former advocate for hundreds of talented people. Having played the roles of a recruiter, agent and headhunter, he championed the salary and benefit negotiations that landed all sorts of New Yorkers their dream jobs. This aside, he is not terrifically excited about the benefits package at his day job. His current employer (his favorite to date) seems to have inside knowledge that Townsend and his coworkers are truly enjoying their work and Townsend feels they could be the victims of the classic maneuver, “swindle-the-happy-campers.”
From Susan Ireland
Job Lounger, do you have a question? Email it to me and I’ll post your question and an expert’s answer here in The Job Lounge.
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