There's good news for workers this year. "On average, we're seeing salaries rise about 8 [percent] to 10 percent with a job change," said Brett Stevens, president and CEO of the SearchLogix Group, an Atlanta-based executive search firm.
With the economic downturn in 2001 and the dot-com bust, many people were stripped of high salaries and took jobs for the opportunity of having jobs, he said. "Now they're rebuilding their careers, asking for more money and getting it - if they have the talent and can wow the hiring manager. We're seeing companies come out with better offers to land good talent."
If you suspect that you might be undercompensated for the job you're doing, the first step is to find out what others are making in your job and region.
"There are several ways to get salary comparisons," said Emory W. Mulling, chairman of the Mulling Corp., an Atlanta-based management consulting firm. "Most professional societies and organizations will share salary ranges for job titles or descriptions. There are also many Web sites which give that information, and, if you're dealing with an executive search firm, they can be of assistance when it comes to compensation packages."
"Don't ask or share salary information with others in the company," said Bruce S. Dreyfus, managing partner with Dialogue Consulting Group, a recruiting firm. "If you're making a lot more, it will just make you a target; a lot less, and you'll feel like a patsy.
People may not tell you the truth, and there could be other mitigating factors, such as more education, extra training, length of time with the company or a family tie to the boss."
If statistics show that you're making less than you deserve, it's time to negotiate for more money. Take a deep breath and do your homework. The last thing you want to do is enter the conversation unprepared.
"Salary negotiations are one of the most difficult parts of a job interview and one of the hardest conversations to have with a present boss," said Brenda Young, employment and training consultant with the Georgia Department of Labor.
"Job-seekers may think that they need the job more than the company needs them, but that's not necessarily the case," Young said. "Hiring is costly, and the human resource manager's reputation is on the line to hire the right person for the job. They don't want to have to replace someone in six months. There are stresses on both sides of the negotiating table."
Before accepting a new position, know the average salary range for the kind of work you are seeking and what you need to receive to make your budget work. If you're working already, you'll have more leverage in negotiations.
If asked about salary, ask what the company is prepared to pay for the position. If it's less than expected, "tell them that you're excited about the position but were hoping the compensation would be higher. Then ask for time to consider it," Young said. "Most companies won't give you their best offer first but will leave some negotiating room."
If the salary remains the same and you want the job, ask what you can do quickly to make yourself more valuable, and get it in writing.
As a job candidate, you'll land an interview based on background and experience.
You'll get more salary and perks by proving your value and impressing the hiring manager during the interview process.
"If you're the one they want, they may add a signing bonus or a car allowance," Stevens said. "A signing bonus is a good way for a company to attract a top candidate without skewing its normal compensation ladder."
If you think you deserve a raise in your current job, prepare your case before making that critical appointment with the boss. Show your value in facts, not feelings - and certainly not from the point of view that the company owes you something. Never ask for a raise based on what someone else in the company is making, out of anger or resentment, or because you're in debt.
"Never threaten or whine," Mulling said. "The money you make is based on your performance, not on what you think you need."
ONLINE SALARY RESOURCES
THE SANDWICH TECHNIQUE Use the following steps to ask for an internal salary increase or to negotiate the salary for a job offer.Part 1: State several quantifiable accomplishments that you have made in your job - using dollars, percentages or numbers. Keep it factual. Part 2: Ask for the desired amount of income. Part 3: Remind them what you will bring to the job in the future - using quantifiable facts, such as years of experience, training and past record. Points to remember:
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An effective approach is to sandwich the request between your past accomplishments and future prospects.
"I tell clients to write out a third-person narrative of what they have done that has benefited the company. It should go beyond listing the tasks in their job description to talking about their accomplishments," Dreyfus said.
Have you increased profits or sales? Headed a major project? Adopted cost-saving measures in your division? Never taken a sick day? Volunteered for tough assignments?
Worked overtime when needed? Been loyal through downturns or staff changes?
"The hidden agenda here is that you have to be honest and realistic about self-evaluating your performance," Mulling said. "If you can't come up with four or five specifics of why you're valuable to your boss, then maybe you should work on being a better employee before asking for a raise."
If your list describes a valuable employee, then why not give your boss the first crack at keeping you?
"Most bosses aren't going to lose a good employee over $3,000 or $4,000. If benefit premiums have escalated and decreased [your] take-home pay, tell your boss your concerns. Allow him to help you, and he gets to keep a happier employee and avoid the costs of turnover and retraining. A raise can be a powerful retention tool," Stevens said.
By keeping the conversation professional and not adversarial, an employee minimizes the risks of opening a salary negotiation. The boss may agree with the facts and grant a raise, give a promotion or offer other benefits, such as more vacation or a company car. Or he may say "no" - because he doesn't agree with your assessment or because the company has hit the salary ceiling for that position.
"He may even get angry that you asked," Young said. "Don't fall into the trap of getting angry back or showing resentment. You can't control his behavior, but you can control yours."
"Most bosses won't fire you just because you asked for more money, but you need to keep doing a good job and proving yourself," Stevens said. "It's up to you to manage your career."
A rejection could be the catalyst for a new job search, or it could help you re-evaluate your current job, Dreyfus pointed out. Money is only one part of the working equation, and a high salary won't compensate for a bad job. Do you enjoy what you do? Do you have good benefits? Do co-workers appreciate you?
"How do you feel about going to work when you get up in the morning? That's what counts," Dreyfus said.