FYI Candidates – June 2008
Going for the Gold: Making the Jump to a $100K Job
By Orrick Nepomuceno, CPC, VP Dick Wray Executive Search
Have you ever felt as though you are under-compensated for the position in which you fill? Have you contemplated leaving your current position for a higher paid opportunity? Or, are you out of work, having left such a position, but feel as though you shouldn’t be limited to the salary which you used to receive? If you are or were making less than $75,000 per year but truly believe that you could qualify and would work well in a position with a salary of at or more than $100,000,then the question probably comes down to, “Should I go for it?”
The Answer is “Yes”
If you are among those that sit and ask themselves everyday whether or not they should make the type of move defined above, then the simple answer is “Yes.” Many candidates have a solid argument behind going for positions that equate to a large jump in salary, but are unable to do so simply out of intimidation. What you must keep in mind is that many individuals come out of college in job search mode and often do not take the time or know how to properly negotiate salary, so the starting mark is often much less than it should be.
According to Molly Joss, a career expert with TechRepublic, “You get paid whatever the market will bear. In other words, you get paid whatever the company can get you to take. Whatever that is may or may not have any relationship to national averages, industry averages, or with what anyone else in the company is making.” With this in mind, it is easy to see how someone can start out low or stay low even in a position that could draw and pay much more.
There is a Difference in Attitude
What you must know before we go any further into “how” you should approach such situations, you need to know that there is a huge difference in the approaches that can be taken. If you do not have the right attitude going into this, it does not matter how great your argument is, you probably will not be able to convince anyone other than yourself of your worth.
First and foremost, get rid of any indignation that you might be holding onto for the years that you were underpaid. You do not want to approach a potential employer or even your current employer (if asking for a raise) with a chip on your shoulder. Second, you also do not want to outright make it about the money. The last thing you want to do is let an employer know that you are desperate for more cash. This will show 1) that you don’t know how to manage what you have or 2) that you are in it for the money and not so much for the satisfaction that the job itself brings. You will want to, instead, let the potential employer know that aside from salary, which you are willing to negotiate, you are excited about the opportunity, the position, and the company.
Tips on How to Get it Done
There are several things that you will want to do to effectively represent your case when applying or interviewing for a position that pays significantly more than what you were paid in a previous position or are currently being paid.
Research
Any successful career expert or consultant will tell you that you must do your research to get what you want. In addition to asking around or utilizing networks to find out what friends and acquaintances pull in similar positions, there are a number of other available resources. Search the web for sites such as Salary.com, which provide information on salary averages in positions, titles and zip codes. While industry and company earnings must also come to bear on the situation, this will at least give you a ballpark in which to negotiate. The Bureau of Labor Statistics (BLS) also provides a list of comprehensive occupational information for these purposes. Once you have this information in hand, you can utilize a range for negotiating purposes. Don’t say, “I need $100K.” Instead, use the approach, “Based on research, I have found that similar positions average somewhere between $90K and $110K.” This provides for flexibility and a negotiating window.
Track Responsibilities
Consider your most recent position. Make a comprehensive list of all your responsibilities and include metrics where possible (i.e. achieved within 1% of budget in 2007). With this list, you can compare to what you will be doing in the new job. If the list for the new job is shorter, then you have a bargaining position for the additional responsibilities you are able to bring to the table. If the list is longer, then you have yet another bargaining chip for the increase in responsibilities. (If the latter is the case, make sure that you are qualified to handle those additional tasks effectively and be prepared to discuss how you plan on doing so if you have yet been faced with those challenges/situations).
Get Creative with Pay Options
Make sure that you can compare apples to apples, so to speak between jobs. Often, a company may pay less than the market will bear, but they will provide so many great benefits that the compensation is almost the same. For example, an individual making $75,000 per year in the grand scheme may be close to one making $100,000 if his or her previous company offered tuition reimbursement, childcare, low-cost or fully paid healthcare, etc. You might have a very good argument if you are looking at a company that has a little or a lot less benefits than your past position, but a higher salary range. Be very careful here though. When talking about compensation packages, do not lump everything together in your representation to the potential employer. Do not say, “I made $99,000,” when you actually made $76,000 but had a bonus of $12,000 plus a number of other benefits. Be truthful and divide them out as such so they know what comprised the package.
Be Prepared to Negotiate
It has been said that you don’t get what you deserve, you get what you negotiate. Using the other guidelines provided above, you already have some tactics that can be put in place to help get your desired salary. Be prepared that it probably won’t happen on the first try and may not happen on the second try. However, a company will be honest with you if it believes that you are not fighting for a reasonable salary. You may even hear, “We just don’t see a connection between your salary/position/history/etc. Our ceiling for this position is X.” If you don’t hear this argument, then keep on negotiating.
Be Realistic!
The number one thing you should keep in mind is reality. Before you use any of the tactics outlined above, you need to ask yourself whether you truly believe that it is realistic for you to be making such a requirement or whether you merely want more money. While pulling a higher pay scale than you are used to is definitely doable, you must be realistic when it comes to salary. However, if you have weighed the situation and feel as though the pursuit is warranted, then go for it! The bottom-line is that if you feel as though you are worth more and you just can’t get a particular employer to see that, then the job is not for you. Move on to another company that will appreciate you not only for what you are worth, but will pay you as such as well.
Orrick Nepomuceno, CPC, Vice President Dick Wray Executive Search, and author of Hitchhiker In the Corner Office: Avoiding The Top-10 Potholes So Your Emloyees Don’t Hit The Road.