Career Tips

Underpaid friend, now underpaid me


My friend works for a company that she really likes. I told her to keep me informed if there was ever a job opening, and recently the same position that she has opened up and I interviewed for the position. After stringing me along for more than six weeks, they've finally offered me a job. They offered me the same salary I'm currently making (I made the mistake of telling them what that was during the interview), which is also the same salary they started my friend at. However, my friend didn't negotiate the salary when she started, and then found out from someone else at the company that starting range for her position is usually $5-15k higher than what she accepted. It appears they expected her to negotiate, she didn't, so she screwed herself over.
So here's the deal -- I'm positive that this position should pay at least $5-15k more, even for an entry-level starter like me with no experience. The interviewers know I know what my friend's starting salary was, and they've been hassling her for the last six weeks about how much money I would accept (she kept deferring and wouldn't give an answer, good for her).
1) They're trying to low-ball me on salary because they were able to get away with it with my friend
2) If they pay me more, they know she'll probably demand more too (she's worked there a year and a half now)
however
3) This position has been open for more than two months, I'm the only person they've interviewed, and while I'm not directly experienced in this field, they know I'm a great candidate that is going to learn quickly.

I really want to get away from my current company, but I am afraid if I take too low of a salary that it will take me years (or several job changes) to catch up to where I should be. How do I tactfully negotiate salary in this situation when they know it'll probably require them to ultimately pay my friend more too?  (As they should have been all along!)
(She and I have exactly the same degree, from the same college, the same experiences, etc. -- she's just worked there while I've worked in a different industry.)
Thanks for the help.

Well, you could start by going with the old adage that it's never worth switching jobs for a salary that's not AT LEAST 10% to 15% higher than you're earning now.  So, the first step, in my opinion, would be to ask these folks if their initial offer is negotiable and see what they say.  If it's not, stay put.  If the salary is negotiable and you're asked what salary you have in mind you could say that you were anticipating a salary at least within the $X to $Y range - letting X equal your present salary plus 10% and letting Y equal your present salary plus 15%.  On the other hand, if this really is a "no experience needed" entry-level position, the starting salary may not be negotiable, but you'll never know unless you ask.  Entry-level positions are called that for a very good reason - they're designed for new employees who are willing to "earn while they learn."  Most entry-level salaries are, therefore not negotiable for that fundamental reason.  But I certainly wouldn't take the job if the salary is exactly the same as you're earning now.  If you have experience in some other field, skills, training, and education that can make a job more valuable to an employer - then that's what you should be looking for - not a lateral move back to an entry-level position for the same dollars you're earning now. 

Paul W. Barada

The Negotiation Expert

"...and then found out from someone else at the company that starting range for her position is usually $5-15k higher than what she accepted."

The position may have started higher at some point in time (possibly during an employee-driven market), but it obviously doesn't start there now. You have real data (your friend) who is earning $X. If they offer you $X, you can be pretty sure that the market rate for this job, at this company, is $X.

Assuming your friend would have got more if she negotiated can be dangerous. She could have negotiated herself out of a job offer, too.

As Paul said, all other things equal, you should look for 10-15% more in salary before you make a lateral move. In your case, you have issues at your current job and have to decide whether you are willing to give up some money to get out of that job.

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