Let's Talk Money

Let’s Talk Money.

Religion, Politics, and Money: things you just don't talk about.

In my business, I talk about money all day every day. It is a very important part of what I do, and it is necessary to talk about it openly. Want a peek behind the curtain of my expertise, and how it affects you? 

Contrary to what I thought prior to starting my career in recruiting, positions do not have a concrete salary. The first position I applied to post-graduation said “$30,000 - $50,000”, and of course I thought I would get an offer at $50k and was surprised when the offer came in at $30k.

Where the Numbers Come From:

Positions don’t pay a certain amount. There is typically a range, but that is very flexible depending on the candidate and what he/she brings to the table. The way that companies figure out offers are more formulaic than anything else. The market is driving an increase in base salary of about 7%-10%. Meaning, if you make $100,000, I would expect my client to come in at an offer of $107k-110k. Maybe more, maybe less, but right around there would be my expectation.

What I Tell my Clients:

Unless candidates have expectations above the market rate (ie someone at $100k that says they won’t make a move for less than $125k) it is the expectation that I will communicate to hiring managers what candidates are currently at, and managers consider the market increase as a reasonable expectation. If giving a candidate a fair market increase is above the team’s budget, the manager typically does not invite the candidate in to interview. Along with your resume I would put “Current compensation: $100k” + any bonus, extra benefits outside of the norm, etc.

The Ball is in Your Court:

Besides the straight forward mathematical increase, a few other factors play a part in what an offer may come in at. I would expect higher increases if:

• You will be commuting out to the suburbs
• You match the job description perfectly and need little to no training
• You will be working longer hours
• You win over the hiring managers and they just plain out LIKE you!
• You will be increasing your level of travel

Pay Stubs:

Now one may think it would be a good idea, knowing the above information, to fudge salary information so that I communicate that you are at $110k instead of $100k so you are more likely to get a flattering offer. Although salary information does not show up on a background check, I have had numerous clients who have requested pay stubs to confirm salary. I have had offers rescinded because pay stubs do not reflect what was originally communicated. One might be able to get away with it, but is it worth starting the relationship off on the wrong foot?

Less is More.

Although it may not be the number one most important thing to you, few of us can afford to or wrap our brains around taking a pay cut. There are times when it would make sense. When a candidate is asking for one of the below, but is expecting an increase in salary, I encourage them to look at it from the company’s point of view. 

• You want to travel less – you are making more because you are traveling. If you want to travel less, you may get paid less
• You want better work life balance – you want to work less hours, so your salary may reflect that
• You want to change careers – you are taking a step back and will need to be trained.
• You want to work closer to home – less time commuting and less wear and tear on your car
• You are relocating – the market leads the offers - $100K in New York City is not the same as $100K in Des Moines, IA
• You see long term advancement – look at the long term play, not the immediate position you are interviewing for. Where will you and your salary be 5 years from now?

I'm Underpaid

Although not impossible, it is very hard to make up for the fact that you feel underpaid. I know this may not seem like it makes sense, but I have learned time and time again that companies are not excited about making up for it. Typically they wonder why you are underpaid- if you aren't getting raises or were extended a low offer and accepted you may be opening up more concerns for them than it is worth. I would still expect an offer that is market value as opposed to a huge increase above 10%. Again- not impossible, but not common. 

Double Raise 

You just got a raise, and you want to jump ship and get another 7-10% increase? Again- not impossible, but not likely. You'll get a little bump, and an incentive to make the move, but it is not the same as if you have had that salary for the past year. Professionals who are at 100k, who got a raise to 107k, should not expect to get an offer from another company for more than $118k. This is even more true when an actual raise has not been issued, but will become effective a few weeks away.

Go Get'um Tiger

Although not typically the main motivator in changing jobs, it does play a big part in the decision, as it should. I hope this has been helpful information that will give you a better idea of what to expect, and the hurdles you may need to overcome when trying to get generous offers. I hate to have people go through weeks of an interview process and get to the end with complete disappointment because they were expecting higher offers.

I talk about money all day every day, and if I can help you with anything or to understand the way the market is working right now, please feel free to reach out! I am happy to give advice or help in any way possible.

*Please keep in mind that the above information is just the typical and does not mean anything is impossible.

I will leave you with this: 

What we really want to do is what we are really meant to do. When we do what we are meant to do, money comes to us, doors open for us, we feel useful, and the work we do feels like play to us. –Julia Cameron