It
is true that reasonable minds generally prevail, except in the City of Chicago
and the State of Illinois. But, if you
are hiring, what is reasonable when you are trying to attract the best
talent? If you are a job candidate, what
is reasonable pay for someone at your level?
Here are some things to consider:
What should a
candidate accept:
While
seeking a controller for a small manufacturing company a few years back, I came
across a candidate who had perfect experience, all the required credentials,
lived in the general proximity of the client’s small town location, and was
unemployed. Great, I thought. Job done!
Unfortunately,
the candidate had gained her experience at some larger companies which had
paid much more generously than my small client could afford to pay. She told me, “I won’t even consider that …I’ve
been making $$$$$.” Of course she had not made $$$$$ for the six months she
had been unemployed, she had not yet found a comparable new job, and we were in
the midst of the “great” recession, but who was I to say?
I
kept on searching and found another ideal candidate who was happy with the
salary being offered. And I do not know where
my highly paid candidate landed.
If
you are looking for a job, keep in mind that your current position is your
current position. If you do not have
a position right now, "Unemployed" is your current position. Here are some general salary negotiating guidelines
for the employed and the unemployed:
¾ If you are
happily employed, you may want to negotiate a significant raise before you
leave the comfort and stability (?) of the position you know.
¾ If you are
unhappily employed, you may be willing to take a lesser raise or no raise at
all just to get out of the hell-hole.
¾ If you are not employed, you are not
employed. During this recession,
many professionals have been forced to accept decreases in pay. I suggest that you negotiate every offer very
carefully.
If you are an employer hoping to make a successful hire, start by realistically assessing the pros and cons of your position in order to determine the kind of salary you need to offer.
If
you are in a large metro area like Chicago, it should be easy to determine a
reasonable salary for a position by performing a little research. Contact a headhunter; do some networking;
make a few phone calls; study internet job posting sites for comparable
positions in your locale.
If
you are in a small town 60 miles from the next small town and the average
yearly temperature is 28 degrees, it might be a little harder to figure out
what you need to pay to attract a good employee, but my guess is it will cost
you a little more.
Similarly
if you are looking for a combination CPA/MBA/MD, you might have to pay more.
A
general rule is: the fewer people who
are qualified for and/or would accept a position, the more you will have to pay. Any negatives regarding job content, title, geographic
location, office appearance, financial circumstances of the company, etc. may
require a corresponding positive in the way of compensation.
Listen and Learn
By
the time I have made a week’s worth of recruiting phone calls on a position, I
can tell a client whether his salary range is realistic. If I have been told by
a dozen prospective candidates that the job is interesting, but the salary is
unacceptable – chances are the salary is, in fact, unacceptable. Some clients believe that if I work hard
enough, I can find someone who will take the lower salary – that is not always
true. You can’t buy a steak for the
price of a hamburger. If you do, plan on
lots of ketchup.