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26 March 2007

I got an expected 'second phone call' from one of my interviews last Thursday. They want to talk about salary. I've never done this before and I have no idea how to proceed. Help me so I don't mess this up![More:]

He just left me a voicemail saying that my current salary is more than what the open position pays. He did not say by how much more, or the salary of the open position.

He said they like me and he hopes we can come to an agreement. I'm in love with this company and want to make it work, but the idea of making less money scares me.

I'm going to call him back on my lunch break and I'm so scared... I've never had to do this before. How do I determine how much I can sacrifice per year? I'm also getting health and dental insurance (no cost to me) at my current job. Is this the time to bring that up too, as it's something I need?

AAGGGHH!
I think the general advice for these things is to see if you can get more non-money things from the new job -- vacation days, for example. Definitely check on insurance, and whether you'd have to contribute to that.

But I can't say I've ever been particularly good at asking for such things. I've come to realize that business negotiations are really not my thing; I don't understand the psychology of office culture.
posted by occhiblu 26 March | 11:14
Also, congratulations!!!
posted by occhiblu 26 March | 11:15
Thanks! Office psychology is so odd that most of the time, it just pisses me off. I am very nervous to make this phone call. But the guy is nice, and the company is wicked creative so that's a plus. I also know I don't have to settle, so I need to keep that in mind.
posted by youngergirl44 26 March | 11:22
I can offer little concrete advice, mostly just congrats and excited whuffles. Just make sure you get the benefits you need. The ball is in their court; find out how short the salary offer will be. Maybe it won't be too bad.
posted by Doohickie 26 March | 11:26
It is often said, no-one ever lost an offer because she tried to negotiate it. A friend of mine just went through this and ended up taking a hit in salary for a coveted job but getting tuition reimbursement.

When I took my most recent job, they low-balled me. I told them it was too low; they disagreed. We went back and forth, they mostly won, but the initial low-ball was based on a misunderstanding of how much time my teaching would keep me out of the office.

Just don't be apologetic when you ask them questions about what they're offering and don't be apologetic when you tell them what you need. Be clear that you're excited about the opportunity and you want to figure out what you can do together to make it work. Never ever apologize. State facts and offer solutions. Be firmly convinced that you are worth a market wage for your work and worth decent treatment by your employer.

Say "well, I'm not too concerned about the initial difference in salary because [this is the work I'm really hoping to do/you're an excellent organization/whatever], but it is something I have to consider. Are the benefits comparable?" If they're not, you then say, "Well, that lowers the salary by an addition $500 a year in insurance that I'm not currently paying, what can you do to compensate for that? Do you offer the transit benefit?" Ask how many paid days off there are in addition to vacation that you earn. Get solid answers to real questions. Make it clear that you need to make a rational decision based on the opportunity. Do they promote from within? Do you get profit-sharing after so many months? Are there regular salary reviews?
posted by crush-onastick 26 March | 11:49
Also, cool. I always wanted to work for a company that I liked. Go you!
posted by crush-onastick 26 March | 11:49
crush - it's actually at Division and Kedzie, very close to home!
posted by youngergirl44 26 March | 11:53
If I feel the salary is low and the job is really good, I demand, in writing, a six month review with the criteria/expectations spelled out. It's a way of saying "look, you're taking a risk by bringing me on board, I'm taking a risk by taking a salary cut. Let me show you how much I'm worth to you."
posted by plinth 26 March | 12:01
Say "well, I'm not too concerned about the initial difference in salary because [this is the work I'm really hoping to do/you're an excellent organization/whatever], but it is something I have to consider. Are the benefits comparable?"

Although I generally agree with crush-onastick's advice, I would not say that you are not concerned about the difference in salary. Indeed, I would make it clear that you are concerned about the difference, in the hope that maybe they will come up a bit. I would also absolutely ask about all other benefits, including insurance, 401(k), etc., and make to sure to tell them where their benefits fail to measure up to your current position. If they want you, they will compromise.
posted by brainwidth 26 March | 12:15
I actually did something similar to what plinth said, once. The offer seemed low-ish, and I (very nervously! I really hate negotiating about numbers!) asked if it would be possible to increase it by $X. They ended up splitting the difference and promising me a one-month performance review -- at which time they gave me a raise that brought my salary up to more than I had asked for originally.
posted by occhiblu 26 March | 12:18
okay, first off, don't be nervous about negotiating.

seriously. often one of the reasons this question is asked is to determine how decisive you are.

i know they've offered you the job, but this can also (depending on your job description) be a good indicator to your supervisor how effective you'll be in negotiating contracts, etc... with the company.

i'd encourage you to look up a salary guide for the work you're doing, based on the area where you live, then ask pointed questions about benefits, continuing education opportunities, vacation/holiday, bonus, profitsharing, 401(k), and other 'non-monetary' compensation. hell if they offer a gym membership or a cheap sam's club account, add that to your consideration.

just present the facts of the case. don't dick around 'trying to be polite' about it. not telling them what you want isn't polite, honestly - HR departments can and do consider people who don't ask for what they want to be an employment liability. it's really not nice to expect them to read your mind. i know i personally flunked clairvoyance.

outline your current salary, your current job description, what benefits you are currently receiving, and what they have on the table. then compare apples to apples. detail that you expect to receive either a) compensation, or b) benefits or c) intangibles

the intangibles thing can be very, very valuable. it can include things like tuition reimbursement, telecommuting opportunities, job satisfaction, career advancement opportunities, knocking an hour off your commute, a super-ultra-warm-and-friendly work environment (i mean at my job, the boss buys us beer to celebrate accomplishments, that's a hell of an 'intangible' if you ask me), the ability to learn new skills... whatever.
posted by lonefrontranger 26 March | 13:43
Before you worry about the salary figure itself, look at the advice already given ref. bennies and "intangibles" (some of which seem pretty tangible to me, actually). Then, for the salary itself, pick an absolute-minimum "hard deck" figure, find out from some recruiters a "hard ceiling" figure for how high a salary the job could reasonably command, and start negotiating at the higher figure, giving ground only in exchange for other consideration as suggested above.
posted by PaxDigita 26 March | 13:52
You guys are so great. :)

I called the guy back at lunch and it went well. The difference isn't as bad as I expected, but still on the high end of what I'm ok to give up without much thought. We did talk about insurance and he's willing to factor part of that into the final offer. It sounds like I may have another meeting with him and possibly the owner of the business on Wednesday of this week. I'll certainly mention a review at six months or whatever, to be sure there's the possibility of increasing my salary in the future.

I'm also having the BF look into domestic partner benefits through his insurance company. It's something we've talked about in the past and may help ease the shock of having to pay for insurance - something I haven't done for five years.
posted by youngergirl44 26 March | 13:57
Woo! Yay! Congrats.
posted by essexjan 26 March | 13:58
Lots of good advice here. Especially asking in writing for a salary review. If you take the job and are really really good at it, they'll know in the back of their minds that they need to do that review to keep you long-term. I've gotten two substantial raises in less than three years on that regard. Just keep in mind that if you are in an industry where your manager changes frequently (I've had 5 managers in that same amount of time), to keep reminding the new manager of the commitment to a review.
posted by matildaben 26 March | 14:49
Heh, for my last real job (not the last one, that was just fill-in) I gave the company president a salary that, after a LOT of research, I figured was 15% too high. His response, "Can you start this afternoon?"
posted by mischief 26 March | 16:52
Things I am pointlessly nostalgic for: || omg human-animal hybrids!

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