There’s a disturbing trend out there of people taking less money than they should when they are offered a job.
I know, the media, including me, spend our days writing endless stories about how bad the economy is. These stories may feed your fear that no one will want to hire you during tough times so when you get an offer you’re so happy you’ll take what ever the hiring manager gives you. But don’t get duped people!
According to a survey by Jobfox the median salaries for certain jobs actually dipped.
“While the value of the dollars is shrinking, many job seekers - including in-demand technology specialists - must accept new positions at lower salaries than they did just a month ago, according to findings in the Jobfox Top 25 Most Wanted U.S. Job Candidates: May 2008 rankings.”
Jobfox’s May rankings of the professions in highest demand among employers found that some median salary ranges being asked for by job seekers dipped $10,000, compared to a month ago. Median salary ranges demanded by job seekers fell for workers seeking jobs in:
Software Design/Development, with a median salary range of $95,000 to $105,000 in April to $85,000 to $95,000 in May.
Product Management, with the median salary range falling to $85,000 to $95,000 in May.
Networking/System Administration, dipping to $65,000 to $75,000 in May.
Finance, shrinking to $65,000 to $75,000.
Government Contracts Administration, settling for $55,000 to $65,000.
Jobfox’ CEO Rob McGovern says, “Overall, workers remain confident, both about current employment and about their abilities to find new jobs. However, like businesses, workers realize that the economy is a bit bumpy and they may have to slightly lower their salary expectations to land the jobs they want.”
Well, I’m hear to tell you — DON’T DO IT!!
This is exactly what companies want, workers who are running scared prepared to take any amount of money; prepared to take cuts in benefits; time off, hand over your first born.
Companies that have a budget to hire have enough money to pay you what you’re worth. I’m not saying be greedy. Figure out what the job should pay and jive that with your experience and what you bring to the table. Then ask for what you know is fair. Get information before you got into the negotiation. Hear me? I’m rhyming here. Emily Dickinson would be proud — GET INFORMATION BEFORE YOU GO INTO THE NEGOTIATION.
Folks, CEOs are not lowering their asking price, and salary reductions for their pay would actually make a big difference.
This is not time for workers to be running scared. And making a decision to take less money, while it may not seem like a big deal on the surface, will come back to haunt you.
“It hurts your self-confidence and lowers the money you can make in the future. Or, in other words, there is catch up to do,” says career coach Deborah Brown-Volkman. “The goal in your career is to go forward, not backward.”
Let’s be realistic here. There are different scenarios and you have to decide what’s best for you. That means actually investigating the financial footing of the company you want to work for.
If the company you’re applying to is in bankruptcy and your only goal in working there is to get the experience on your resume, then maybe, you should sell yourself off at a bargain basement price. I have known CEOs that took a step back in their careers, went to work for a dying company with no money, and felt it paid off.
If the company has solid financials and maybe took a bit of a hit on the stock price lately, but they’re hiring and growing certain business segments, then you want to make top dollar for the position you seek. If you have the top credentials of course. If not, gauge what someone like you, with your experience should be making.
One of the big problems for women, and potentially why we’re still paid less than our male counterparts, is at some point they accept lower salaries than men. And then, they never catch up, and the chasm gets wider and wider. Why? Because women typically are afraid to ask for more money, and heftier raises. So they get more and more screwed as time goes by.
So, accept the most money you can get out of the gate. Or you’ll end up like that horse from the Kentucky Derby, Eight Belles — coming in second when it comes to salary but ending up breaking your legs when the hiring race is over.
May 7th, 2008 at 1:34 pm
Do remember, too, the value associated with any difference in benefits (e.g., going from having a pension to not having one), and you also must consider the size of your potential employer.
In the past week, I’ve interviewed for two positions–one for different responsibilities with my current employer, and one with a company that is very near my home. My current commute is over 45 miles each way, averaging about 2.5 hours a day. Getting the local gig would drop an equivalent of 15 work-weeks of commuting time from my life, but it’s not as simple as that. There are significant differences in health plans and vacation time. My current employer has over 1,000 employees. The potential local employer has less than 100. Both companies have been around for almost 100 years. While the rest of the economy seems to be in a rough patch, the local employer is growing (the position for which I interviewed is for a new position in a new division).
I created a spreadsheet to compare costs, savings, and other variable. Then, I also created a list of the various factors and took some time ranking them in order of importance. I asked my wife to do the same. We’ll use that information to help us make any final decision, but my the actual base wage is still a huge consideration. While, on the surface, it seemed that I might be able to seek a lower wage due to perceived savings (especially in commuting costs–time and money), I would likely need to seek a higher wage to balance losses in areas like vacation, the lack of a pension plan, and a high-deductible healthcare plan.
The way I look at it is this: put an initial figure on the table (and definately not lower than your current salary), but make it clear that you may need to negotiate a different number after you calculate the value of the benefits package. If they really want you and your skill set, they will negotiate with you. If they are not willing to negotiate, then they are looking for a cog and you’re not likely to be valued or appreciated in the position anyway.