how to determine salary expectationsI am currently looking for a new job. I think I am underpaid at my current position, but I have been hearing from recruiters that a typical jump in salary when moving to a new position (not lateral) is 15 to 20%. This would make me underpaid at my next position. My question is, do companies realy base their offer on your current salary, or do they pay based on the position and your skills, experience etc. It would make no sense for me to accept a position that should be paying say 90-100k for 75-85k just because my current salary is too low. Am I wrong in my thinking? Just as a general rule, it ordinarily makes no sense to switch jobs for less than an increase in salary of at least 10% to 15% more than was being earned before. So, it' s not so much a matter of prospective employers making offers based on previous salary as it is a matter of job seekers looking for job offers that offer salaries at least 10% to 15% more then they' ve been earning. Rhetorically speaking, what makes you "think" you' re underpaid in your present job? But to respond to your question directly, sure, some companies make salary offers based on a candidate' s previous salary, but by far the most common practice is for employers to make a determination of how much a particular job is worth to their organization and budget a salary range for the job accordingly. The whole idea behind salary negotiations is to match the qualifications of the candidate to the specific requirements of the job. So, no, I don' t believe most employers decide how much a job is worth to them based on what various candidates were being paid - that makes no sense. Your side of the negotiation equation, however, is to be able to demonstrate how your past job performance, experience, skills, training, and education are an outstanding match for the requirements of the job, so that you' ll be offered a salary that fits well within the company' s budgeted range for that position. That' s where salary negotiations begin. But keep in mind that it' s not the candidate to gets to decide how much a job "should" pay. The employer gets to do that. I have the same problem. I am currently working at a University at a job for which I am very overqualified - I took it to make a move to a new city. I am very much wanting to move back into the corporate world but I' m finding road blocks especially from recruiters/headhunters. They always want to know my current salary and will not put me up for jobs that are more than 10-15% above my current salary. This makes absolutely no sense to me. First, you can not compare a university salary (notoriously low) to that of a corporate job. Once I was called by a headhunter for a job that was more than twice my current salary (and the new salary was the range that I feel I am worth). The new job had an established salary range and he obviously thought I was qualified for the job because he e-mailed me and said how great my background was, etc. But he insisted on knowing my current salary and when I told him, he said no one would increase my salary that much and refused to send my resume on to his client. I don' t like to lie but sometimes I think I should. I feel I should be paid what my experience and background are worth in the corporate world, not what my job at a university is worth. The way to handle this situation, in my opinion, regardless of whether you' re talking to a recruiter of to a prospective employer directly - assuming you' re asked what you' re earning is, first, to be honest! To confirm what you claim your salary is, all a prospective employer has to do is ask you to bring in a recent pay stub or W-2 to verify it, so you really don' t want to get caught in a lie. Second, I think the proper approach is to state what you actual salary is, but make it clear that you KNOW that it' s low compared to what comparable jobs in the private sector pay and low in terms of your experience, training, skills, and education. Then propose a salary range that you genuinely believe is fair for the position, assuming you don' t know the budgeted range or haven' t been made a salary offer. I recommend putting it this way, "My present university salary is only $X, which I know is very low. My anticipated salary range, however, is negotiable within the $Y to $Z range." You challenge then is to be able to demonstrate how well your qualifications FOR the job match the requirements OF the job. I think you can explain away the low university salary by explaining why you took such a low paying job in the first place. I also think you can make the point that you KNEW you were overqualified for the job when you took it, (but remember that employer' s, particularly colleges and universities, aren' t going to pay extra for skills or training the job itself doesn' t require - in other words, the university is paying what they think the job is worth, not what you think you' re worth). Hope this helps. Well I appreciate your response and its a wonderful theory. One that I have been trying out myself. Your proposed response is almost verbatim what I have said but I still find recruiters just stop talking to you when you make statements like that. If you make that low of a salary, well then, you must not be a good candidate for their job even though 3 seconds earlier your resume and interview indicated you were perfect for the job. I also find it interesting that most professional recruiters (or to be more fair, the many I have dealt with) have no concept how low paying university jobs are. They just don't get that comparing my salary with a corporate salary is like comparing apples and oranges. I know lying is a bad response and I really would never do it but sometimes I get frustrated enough to think it might be the only way to get a fair salary. "Have no concept how low paying university jobs are. They just don' t get that comparing my salary with a corporate salary is like comparing apples and oranges. " IMHO, any recruiter who doesn' t understand this isn' t a very good one... However, you need to educate them as to this fact, and also, as Paul pointed out, explain that you took a job that paid less than what you should be making and that you were overqualified for--for the sole purpose of having a job when you relocated. However, you are now looking for a position that more closey matches your qualifications, and you expect to be paid accordingly. It is SO stupid for a recruiter not to submit an eminently qualified candidate because you are making what you' re making.... Also, if your resume matches up well to the job, it is not up to the recruiter to decide whether or not a company will pay you that much more--it is up to the client company. The recruiter is doing the client a huge disservice by not submitting an otherwise qualified candidate. I' d say just what you said here, "Comparing a corporate salary with a university salary is comparing apples and oranges. You can verify that easily by doing some research." If it happens again, and a recruiter flat out refuses to submit you strictly due to salary, I' d contact the company directly and submit your qualifications, without stating your current salary. Yes, I agree, the situation is rather ridiculous. And I appreciate you confirming my beliefs as I can at least have some support in my theory which at least makes me feel like I' m not completely out in left field. I do try to educate them with responses much like you suggested but unfortunately I don' t usually know the company so I can' t bypass the recruiter. Believe me, if I could, I would. Maybe it is just my field or something but my job search has been very discouraging. I feel like my one decision to take my current job to be able to relocate has completely screwed my current and future career. I' m a 14 year veteran of the event/conference management field with experience in a wide variety of industries, my resume and cover letters have been reviewed by professional writers (very few changes were suggested) and I can' t get an interview! And I HATE working at a university - bores me to tears - which adds to my frustration. | |
|
Career Tips
|