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Salary Negotiation for an IT Position?
HerculesMO asks: "I am a Windows Systems Administrator and work for a pretty large corporation. I know that I'm underpaid for what I do, and as such, I've been looking for another position. The problem is however, that a lot of potential positions ask for what you are currently making -- and it's a bargaining chip that the company I interview with will (and have) used to negotiate salary." Given that businesses usually base the salaries of new hires on their previous job, how can one arrange a fair salary if they were badly underpaid?
"I'm currently in a series of interviews with a company that I really like, the work environment, people seem young and friendly (like myself), and the business is something I wouldn't hate doing. I'm well qualified for the work, and their director already likes me. I just feel that, if I accept the position, I won't be able to bargain my way up to the market rate for the position, given it's such a leap from what I currently make. In New York, many of the companies require the disclosure of salary so just 'saying no' locks me out of a lot of potential positions."
Never tell them what you currently earn. Just tell them what sort of range you're looking for. If it's the kind of organisation that's worth working for, they'll understand that this is the relevant piece of information for you to provide anyway and not even question it.
If they start trying to dig, politely decline to tell them, saying that you don't think it's relevant and/or that you feel it's inappropriate to discuss the specific details of a professional relationship with another employer. (In some places, talking about salaries is bizarrely taboo, and most businesses will respect that the same way they'd respect you if you declined to talk about specifics of previous work because of a confidentiality clause: they'd hope for the same professional conduct if you were leaving them and working for someone else.)
If they persist even then, then they're the kind of place that pays what it can get away with and not what it should pay on merit, and you probably don't want the job anyway.
If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
But after 2 years with the company. What helped me was I did a lot of homework, and I was honest. Told them I liked my work, and wanted to stay with the company, but these are my personal goals.... The one that made it for me was housing - I told them one of my goals was to own my home, in the city. Gave them a realestate map with the areas of the city I liked, and the median home price in each of those areas, and then the median income I would need to get a home in each area. They decided to invest in me and my goals. I don't have a home in the historical district I really like, but I have a very nice place with a shorter commute than many of my co-workers and one of the best school districts in the area.
I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress -J Adams
A companies first offer is their lowball, god what if this sucker goes for it offer. If you are currently employed, you have no pressure, so hit them back with a counter equally far above what you want. work your way to what you want, or as close as you can get them.
I have worked with folks who took the first offer, and made WELL below me for the same work.
BTW, I'm a UNIX system administrator, who does windoze only when absolutely required.
Just three more hours seapeople and you can finally take me away from this crappy God Damned planet full of hippies
Given that you did not mention asking your current employer for a raise, we can conclude that either (A) you didn't ask for a raise yet, or (B) you have been denied a raise. Let's examine these options more closely.
In the first option, we assume you have not asked for a raise. This is either (A) because you are afraid of your boss, and/or (B) you're afraid of rejection, and/or (C) because you're not confident in your abilities, and/or (D) you know you don't deserve a raise. If you deserve a raise, ask. If you don't, then you're just experiencing salary envy. Odds are slightly in favor of the fact that you do in fact deserve a raise. Getting another offer before asking your boss is an extremely passive aggressive move, and it WILL hurt you in the long run because it proves to both employers that you will stab them in the back without first confronting them about your situation. Stop being passive aggressive and just ask your boss for a damned raise already.
In the second option, we can assume that your request for a raise has been rejected. This is either because (A) your employer cannot afford to give the raise, and/or (B) you don't deserve a raise. Again, we'll assume that the odds are in favor of you deserving a raise. Experience tells us that if your employer can't afford to give a raise, then layoffs are coming and your head will be on the chopping block within a year, and you probably need to worry about getting a new job (any job) rather than getting a higher paying job. Remember: The job market gets more difficult after layoffs start because you have a lot more competition.
In both cases I assumed that you actually deserve a raise. However, it is quite possible that you do not deserve a raise (i.e. you might be a n00b that is experiencing salary envy). If that's the case, then suck it up and enjoy the good work environment as you gain experience. In three years, you will be able to easily negotiate a 50% higher salary.
In conclusion, if you haven't asked for a raise yet, do it first thing Monday. If you have asked for a raise and you've been turned down, inform your boss that you cannot continue at the current salary and that you would like to continue working there, but you will be forced to start looking for a new job if you do not get a substantial rase. Be ready to follow up on that, because odds are if he has already turned you down for a raise, nothing you say will help.
Above all: If you do not deserve a raise, DO NOT ASK. All you'll do is make it more difficult for the next guy to get what he deserves.
When I got my programming job, I remained firm the entire interview. By firm, I mean I gave direct answers. Sounded confident (HA! FOOLED THEM!), but there were no 'uhhhh. ummmm. well.... err...'s at all. When it came to it, he asked how much I want and I stated my figure with confidence. When I was hired, I actually got more than I asked for.
Also, if you dont want to give out your current salary (which you shouldnt), you could always state "I would like give you that information upon negotiating my salary". Or something to that effect.
I just feel that, if I accept the position, I won't be able to bargain my way up to the market rate for the position, given it's such a leap from what I currently make.
A feeling? You're basing business decisions on a fear?
Be honest. Decide for yourself whether you release information about a business relationship you had/have with another company. Then go into your interviews knowing what you will share and how you will share it.
Don't sit around and wonder what they'll do, or what they'll think.
You are developing business relationship. Be professional. Don't go in there hoping you do everything right, and in the process spend more time worrying about doing the right thing than about presenting yourself and your skills.
I have made a few largish jumps in the past (12%, 25%, 63%). Each time I went in and told them what I liked about their company, how I believed I fit in, and the range I expected to be paid for the position. Each time I was honest without telling them my current sallary. This last time several companies turned me down primarily, I assume, because I was asking for what I was worth. Eventually I found a position that was perfect for me, and apparently perfect for them.
But then, I don't bargain. I don't do counter-offers, and I let them know up front that I'm not interested in doing so. If they don't feel like paying what I'm worth, then I'll not waste any more of my time or their time.
Your mileage may vary, and unless you have the personality that I have these tips may not work for you. But I would suggest at minimum that you treat this as a two way business relationship. They are trying to sell you on the position as much as you are trying to sell them on your skills. Don't make yourself out to be the party with less power.
"We have hundreds of applicants, what makes you so special?"
"There are hundreds of campanies I could work for. I want to work for yours. Can you say that of your other applicants?"
-Adam