Previously OverpaidI was recently let go with a round of cut backs and have entered the job market. I have been working in consulting for the past 7 years with two job changes within the last few years - moving from Company A to Company B, then back to Company A. With each move, I had leverage and was able to negotiate for substantial increases (20% and 33% respectively). Now that I am unemployed, I've lost my leverage and am looking at straight market rates for positions with other consulting firms and industry. The salary ranges I'm hearing for positions that I am qualified for are 20-25% below my last salary and I've begun to think that my salary was inflated. The majority of salary ranges I've been quoted have been from outside recruiters, but with one consulting firm that I'm likely to get an offer from fairly soon, the internal recruiter actually stated that the salary mentioned by the external recruiter was high for the position. With an industry firm that I expect an offer from this week, when asked about salary expectations, I commented on making the change from consulting to industry and asked what the range for the position was. The recruiter answered with "commiserate with education and experience" and asked for my last salary. I provided that even though I know it is probably out of range. How should I handle these questions when I know that I will be taking a cut? If you were an independent contractor, you probably will be taking a cut. When discussing salary, there are a couple of things you can do. First, try to look at your annual earnings. Let's say you charge $50/hr for your work. That's $104,000/year on a full-time basis but you don't get paid for holidays, time off, etc... so figure out what you *really* earn on an annual basis. And right off the bat make sure the interviewer knows that you expect a pay cut. You should also know what the market value of the job is so your target salary is in the right range. Chet - thank you for the response I was a full time employee with a Big 5 consulting firm - I've never been an independent contractor. Through the two job changes I made, I believe that I was able to use some leverage to negotiate a higher than market salary. Now that I do not have a job, that leverage is gone and I expect my salary to drop back down to market. Many of the opportunities I'm looking at are Project Manager positions - many designated as PM I, II, III or IV. The job descriptions on these are not enough for me to get an indication of specific level of responsibility in order to determine market salaries. I've looked at a few salary surveys and none have more than one category of project manager. The industry also plays a part in determining the salary with drastically different ranges for IT, Manufacturing, Banking, Government, etc. The question about my last salary was asked at the end of a string of casual emails I had with the internal recruiter. At the time, I simply answered his question. Should I follow-up and state that I am expecting - or willing to accept - a lower salary?
First off, you need to establish what salary range you're willing to accept, but even more importantly, you need a good handle on the level of income you need to at least maintain your present standard of living and pay the bills on an annualized basis. Having come up with what I presume will be a lower salary range, as soon as you're asked about previous salary, I'd make a point of saying I was willing to take less than I was earning previously and state what that new, lower range is first. Then I'd say what my previous salary was and also why I was willing to be paid less. Secondly, I would not rely on any external salary data for jobs similar to the one you're seeking. Your job search is about YOU, your individual skills, experience, training, education, and past job performance and how all those particular qualities line up with the particular requirements of THIS job with this particular employer! It's OK, as Chet suggested, to do your homework with regard to what similar jobs are paying in your particular part of the world as a reference point, but getting a salary range on the table that's realistic for you at this point should come first, in my opinion. Paul W. Barada The Negotiation Expert While I agree with most of what Paul says, I disagree when he says "getting a salary range on the table that's realistic for you at this point should come first". If this implies "the level of income you need to at least maintain your present standard of living and pay the bills on an annualized basis", I don't think that is the first thing on the table. For example, I'm a CFO. Most of my kids are out of the house, my mortgage is paid off and I have no loans. If I go looking for a job, would I think "well, I could live on $40K per year so that will be the bottom of my range" when CFOs make $100K+? Of course not. You need to know what you need to live on AND what the market value of the job is. If what you need is more than the value of the job, you need to look for different (higher paying) jobs. If the market value of the job is equal or more than what you need, then you are OK from a salary viewpoint. Just to clarify regarding Chet's point; I sent the wrong message when I wrote that getting a salary range "on the table" that's realistic for you... I didn't mean to suggest that you tell anybody what that realistic salary range for you is, but merely that you need to know what that range is as a point of reference before you come up with the range that you do intend to mention to prospective employers. By knowing what it costs you to make ends meet, you'll have a far better idea of how much flexibility you have with regard to the range you propose. Paul W. Barada The Negotiation Expert | |
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Career Tips
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