RE: Newbie/tight market question

["Glenn Maxey" <glenn -dot- maxey -at- voyanttech -dot- com>]

Regarding the postings that mentioned divulging what you are presently
earning during the HR interview.

One posting came close to hitting the nail on the head by stating that
whoever (employee/employer) names a salary figure first loses. Actually,
only the employee will lose; employers are non-feeling entities. (Your
boss or HR representative is also an employee, but negotiating on behalf
of the company makes the salary figures funny-money to them where they
won't feel personally affronted or taken advantage of for +/- $300
difference in _your_ salary per month.)

IMHO current or last salary is one of those irrelevant pieces of
information that shouldn't be asked like your GPA in high school. It has
no basis on the _new_ job with _new_ and _different_ duties than the old
job. Inflation, length of tenure at the old job, nature of the old job,
region where the old job was located, etc. all play a role in making
that figure meaningless for the _new_ job and its _new_ responsibilities
and expected skills.

A salary negotiation audio learning course I once purchased brought out
several important tips.

First of all, we all have a salary range within which we can live, pay
our bills, and keep our families happy. Employers have a salary range
that they're willing to pay. The employer's salary range is _always_
going to be much wider than the employee's. Proof: an employer would be
willing to pay you next to nothing if that's what you'd be willing to
work for; employers also don't blink when qualified executives command
stock options, moving expenses, down-payments on homes, etc. on top of
inflated salaries.

Why shouldn't the potential employee mention a salary figure first?

(1) If the figure is low, it tells the employer that your skill set
might be below the responsibilities that they associate with the
position. You could put yourself out of the running. You lose.

(2) If the figure is low, maybe they'll be willing to pay that lower
figure. You lose, because you could have gotten more.

(3) If the figure is high, it might take you out of the running because
they'll say they can't afford you. You lose.

(4) If the figure is within the wider salary range envisioned by the
employer, you might get the job. However, you will never know the top
end of that salary range or how much more you could have negotiated for.
You lose.

(5) Your figure might be within the range but _below_ the salary
mentioned by another candidate. Jobs don't always go to the lowest
bidder. Everything else being equal between the other candidate and you,
the higher salary gives the perception of more experience. The employer
might be willing to pay more for this perceived experience. You lose.

If you turn this around and let the employer name the figure first, you
can avoid these losing situations. The employer makes the commitment
first that they _want_ you and are willing to pay you what you're worth.
You'll know that there is probably room above that figure that you could
then aim for -- if not now, then when raise time comes around. 

(1) If the employer's figure is lower than you expect, it tells you that
they might be looking for someone with fewer skills. It tells you their
expectations. If you can't get them to raise it by emphasizing your
superior skills, you can turn down the offer, because how can you be
happy if you can't make ends meet at home?

(2) If the employer's figure is significantly higher than you expect, it
could be an indication of the higher level of responsibility that they
expect from you. You could be setting yourself up for failure within
months of starting if you don't measure up to their higher level of
expectations for which they are compensating you. (In other words, don't
just jump at it if it is really high, otherwise you might end up back
out on the street much sooner than expected.)

In either case, if you wait for the employer to name a figure, you are
given an clue as to their expectations and where you might fit in. And
you will have wiggle room up.

When asked point blank what you want, dance around the question. "I want
a salary that is appropriate for the responsibilities of the job." Keep
dancing. When they ask what you are presently making, dance some more.
"What I made at my last position isn't applicable to this position,
because of the new job responsibilities, region of the country, etc."
Always make it sound nice like you're trying to answer the question.
Talk in generalities; emphasize your experience; point out how you have
the exact skills the company seeks; keep dancing but don't give in.

Of my 7 US employers, I have never actually had to name a figure. The
employer always did. If I made any mistakes it was in being satisfied
with the offer and not negotiating more. Usually the figure was well
within industry standards on the higher end. If anything, I tried to get
them to include some moving expenses. In the one case where it was low,
I should have heeded my own advice because it ended up being one of the
factors for making me unhappy and leaving (aside from getting canned :)
-- actually the low salary was an early indication that they weren't
serious about me.)

When I worked in Europe (twice), I didn't take my own advice, got backed
into the corner several times in interviews, and was forced to name a
salary figure. I did my best song and dance having studied the lessons
of the audio tape. 

In one case, I broke down and mentioned what I could earn in the US.
Silly me; didn't have my calculator handy. I got burned by believing the
exchange rate that was used in the calculation by my future boss, by not
considering taxes, and by being thrilled with a lower offer just for the
"opportunity" of working in Europe. Once in the position, I became less
happy with the job because I felt (1) that I wasn't making what I was
worth and (2) that I was being taken advantage of. Being a foreigner (in
Germany), I realized too late that I couldn't get out of this situation
at the same employer. "What do you mean that you're not happy with your
salary?! How can we justify giving you a 12% raise when everyone else is
only getting 2% this year?" Permit hassles made it impossible to jump in
at a higher, more appropriate level at a another company. I return to
the US, where the company offered me 15% more salary on top of 10% less
taxes.

The second time I negotiated in Europe (Austria), I did my utmost to
negotiate _net_ salary, because taxes are inevitable everywhere and it
always comes down to how much I have left over in my wallet. I still got
burned: lots of unknown expenses ate into my take-home pay, and the
exchange rate at salary negotiation wasn't the exchange rate throughout
the year (important because I still had financial responsibilities in
the US.)

My two Schillings of experience for what its worth.

Glenn Maxey
Voyant Technologies, Inc.
Tel. +1 303.223.5164
Fax. +1 303.223.5275
glenn -dot- maxey -at- voyanttech -dot- com



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