QUESTION: Dear Amy – Do you have any tips on negotiating salary? From: Joe W.
ANSWER: Last Sunday's New York Times had a fascinating article about salary, Not So Personal Finance. The author, Alex Williams, considered a recent trend among young professionals of comfortably and openly disclosing and discussing their salaries—an absolute taboo for most people over age 35.
I couldn't help but wonder if this new trend—probing one another's most well-preserved secrets—is really taking hold throughout the country? Are young adults in Maine openly discussing their salaries like the New Yorkers profiled in the article?
Whether or not you are ready to tell anyone and everyone the details of your new job offer, there's a larger point here that's applicable to both those looking for a job and those that already have them. Knowing what a job pays, knowing what you are worth, and knowing how to negotiate a salary are all a critical part of career management. Here are a few tips to make sure you get paid what you're worth:
1. Get the information
If you're seeking your first professional job, the starting salary is less important than simply getting the offer; your top priority should just be getting that foot in the door. That said, it's important to have some knowledge about entry-level salaries (and growth potential) within your chosen field (more on how to learn about this below).
For many of my clients who are considering a career change, and who have at least a few years of experience under their belt, salary is usually the number one or two concern. They want a job that will pay at least as much (if not more) than their current position, but they assume that they may have to take a pay cut to jump into another field. And this assumption often leads people to remain, for years, in jobs they hate.
2. Line up the informational interviews
The best way to learn about a career is an informational interview. Note that an informational interview is very different from a job interview. In an informational interview, you meet with someone who has a job that interests you to ask about their work and how they got the job. The goal is to help you—the job seeker—to learn directly from someone who has had real experience in your potential line of work. (Note that the goal is not to get this person to offer you a job.) During an informational interview, it is absolutely appropriate to ask about salary in a polite and professional way. Good questions include:
• What is a typical starting salary in this field?
• Tell me about possible career paths and salary potentials for this line of work.
• Given my education and experience, what kind of salary range could I reasonably expect to get in this line of work?
3. Look around online
You should also conduct research about salary on a macro level. Online resources such as Salary.com can be useful, offering data about average salaries and differences among geographical regions. (The data should be taken with a large grain of salt, however.) The Maine Department of Labor lists all kinds of interesting statistics including wages and employment data about occupations and industries in Maine.
4. Consider the big picture
Many job offers include much more than just an annual salary or hourly wage. With health care costs on the rise, benefits such as medical, dental, and vision, are an increasingly significant element of a total compensation package. Likewise, retirement plans such as 401K and 403B, should be considered as an important part of a salary, especially if a company offers retirement matching incentives. Certain jobs and industries offer bonuses based on individual or company performance, which can add significantly to your annual earning. Other benefits may include life insurance, long term disability insurance and stock options. Some company’s even offer reimbursement for tuition, gym memberships, commuting expenses, childcare costs, and smoking cessation programs. Take home pay is really only one part of the bottom line.
Quick Tips About: Salary Negotiation
Don’t be the first to name a number
Give a range, if pressed, to describe your salary expectations
Ask for time to consider the offer—at least one day, although many employers will give you up to one week
Always negotiate—most employers expect some back and forth, and many will see willingness to negotiate as a strength
Once agreed upon, get the final offer in writing
Click here to ASK AMY a question.
Amy and Heart at Work owner, Barbara Babkirk will be speaking at the Maine Human Resources Conference this week in Rockport, Maine. Their topic: Averting Quarter and Midlife Crises at Work: Five Key Retention Strategies. For more information about the conference visit: http://www.mainehr.com/convention/.
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