Salary question in 1st interview....I had a first interview today for a start up company, and about 3/4 of the way through the hiring manager explained how because the company was a start-up, he had financial incentives to offer once the company was cash flow positive, but in the meantime (e.g., the rest of 2007),what was the lowest amount I could get by on in order to pay my mortgage, food, etc.? And, what did I think I was worth after it would be possible to pay me my market value? I gave him an honest answer, but my wife thinks I blew it and seriously devalued myself. What do you think? Should I run away from this opportunity, if I have the opportunity to go further? Did I blow it by not giving him a market value number? You blew it -- sorry to be so blunt. You devalued yourself, and gave a potential employer information regarding your personal financial obligations that they have no right to know. Your work is worth no less now than it will be after the end of this year, but you' ve basically indicated to this potential employer, a stranger, that you' re desperate enough for a job that you are willing to scrimp and save to get his business off the ground. As the owner, HE is the one that needs to be making financial sacrifices to get his business off the ground, not asking his employees to. Start-ups statistically don' t make it, so if you were offered the job and accepted, you are more likely to see the unemployment line at the end of the year than you are likely to see a pay increase. Then, you will have the joy of finding employment with a failed start-up on your resume that no one will be able to contact for references because they won' t be there. But, for arguments sake, what if you are considering accepting the job. Figure out what the difference is between what you told him you could live on and what your market value is. Will the incentives he says he can pay make up for that? In writing? And is there any recourse available to you if he changes his mind because he just isn' t in a position to increase your salary "quite yet"? And be prepared for that to happen -- anyone who wants to hire someone at a discount will milk this for all it' s worth. Just out of curiosity, during the interview, what did you ask HIM about his business, and his past experience in running this type of business? Most likely you did. Personally, I wouldn't enter a startup business because of the mere fact that they would not be able to pay me what I am worth. Second to that is the fact that there is no guarantee that you are still going to be employed by the end of 2007. The business could go bust. The owners of the business could decide that because they were not making the profit they thought they would be making by that time, they start letting people go until they can afford to re-hire. Entering a new business, or even an established business that starts a new branch in a new city, is risky and very vew can afford to take that risk. The question regarding how much under the market value you are willing to accept would lead me to believe that they already knew your market value and did not intend to pay that anyway. Don' t walk, RUN away from this. The guy was trying to see how little he could get you for, and even then, you can bet that the $$ wouldn' t be what the two of you discussed. When it' s $$ time, even if the start up did well, he' ll cry poor mouth and talk about "down the road," etc. I don't think you blew it at all. Honesty is the best thing you can find in and employee these days. Also in the Boss , kuddoos to both of you. I would agree most vehemently that honesty is the absolute best thing that can happen between boss and employee. BUT, was the boss being honest with John or is he just leading John by the nose in an attempt to get quality work for minimum pay? If this owner/boss was being completely honest,he would have said at the very beginning of the interview that this was a start up business and that there is a chance that he may not be able to pay John as much as he would like right away. He wouldn' t have waited until John told him everything there is to know about his experience, etc and then drop this news. If this boss/owner were being honest, he would have just paid John the market value of his worth and not even worried his potential employee about these things. As was said previously, it is not John and his family who should sacrifice while trying to get someone elses business off the ground, it is the person who is undertaking this venture. This is not a right or wrong things; honest or dishonest. ITS HISTORY. move on. The real question is how do you handle this in the future. Answer: YOU need to know your bottom line. Here' s how I would have answered it. Interviewer: What was the lowest amount I could get by on in order to pay my mortgage, food, etc.? And, what did I think I was worth after it would be possible to pay me my market value? "So, your asking me if I will bet my future income on working for McWages today. There is nothing wrong with that question. But here is my perspective since we are being up front. Right now as a start-up and you need to get to a positive cash flow as fast as possible or there will be no tomorrow and if you are under-capitalized now --that is can' t pay market wages-- you need to get to a positive cash flow even faster. My skills, that will help you get to positive cash flow, are in the $75-85K salary range. So I would turn the question around and go back to the axiom of --fast, cheap, done correctly. Pick any two.-- do you want fast and done correctly? If so, you aren' t going to be able to get it for cheap. To answer your question directly, I am looking for a compensation package that is in the $75-85K salary range with decent benefits. If you want to look at something alternative to that pay range then we are into a process of due diligence. For that let' s elevate the conversation to discussing your business plan and having a frank conversation about your capitalization, the benchmarks your aiming for and your progress to date on hitting those benchmarks. Then let' s look at the competencies of your board and Sr management team." "what was the lowest amount I could get by on in order to pay my mortgage, food, etc.? " So, John, in other words you are being asked to accept a pay at sustenance wage, with nothing left over for emergencies? What if your car breaks down, your furnace, your wife loses her job (if she works), etc.? Why on earth would you even consider that? Any start-up business should have some source of financing such that if it needs to hire outside employees, it can pay them a fairly competitive wage. If it can't it should not being hiring anybody just yet, and/or the entrepenuer and his/her family should be the ones working for little more than sustenance wage. Not you. If you are offered this job, you should simply say that you have reconsidered and are not in a position to work for a wage that allows you no cushion and that is not competitive with what others in your industry & position are making. | |
|
Career Tips
|