IDENTIFYING AND NEGOTIATING YOUR TARGET PAY
What’s your income target? What is your expected salary? For many job applicants, particularly first time job seekers, these pay questions can be tricky. You don’t want to give a number that could over price you out of the running. At the same time you don’t want to miss out by asking for a salary that could be lower than what the company is actually willing to pay. Without having the exact information on the salary the employer pays, there are still ways to navigate this question as best as possible.
Usually employers post the salary range for job openings on line. That gives you an idea of how much a company is willing to pay for the position you’re applying for. It will also help you determine what amount to aim for and anchor on. If the target company didn’t post the salary range, you can look at their competitors or similar companies or positions to give you an idea of how much the position or the industry typically pays.
Once you have identified the salary range, it is important to understand the psychology sliding up or sliding down this range and what amount within the range to anchor on. Companies post the salary range to help them attract more experienced candidates. It also helps candidates judge for themselves if this is the job for them, especially if the range is much lower than what they are currently receiving. So when looking for an amount to anchor on or aim for, assess it based on your actual relevant work experience. If you have had several years’ experience in the field then you can aim for the mid- to top- end of the range, depending on the relevance and length of your experience. However, if you are a fresh graduate with little or no experience then its probably more prudent to anchor on the low end of the range.
Having other alternative job offers can also help you identify your anchor amount when negotiating pay with your target employer. Often times applicants use other higher job offers they’ve received as the anchor in pay negotiations in order to bargain for a higher salary. However, it’s still important to do your homework and try to find out how much the company pays. You might inadvertently end up asking for and getting less than what the company would’ve actually offered you.
It’s also important to be realistic and take into account your living expense when deciding on a target salary. Consider location, cost of living in the area, transportation and other things you’ll be spending on and adjust your anchor accordingly. Although, companies strive to keep personnel costs lower, they also acknowledge the cost implication of disgruntled employees and a high turnover. So being able to justify your asking price based on a realistic and reasonable living expense could be helpful in bargaining for the pay you want.
Lastly, look at all the aspects of the total package being offered. Salary is just one component of the company’s offer. Look at the other benefits such as commissions, bonuses, HMO, transportation allowance, communication allowance, vacations, and even the intangible items such as liking the work that you’ll be doing. Remember that although the salary is a large determining factor, there are also other things to consider when deciding on whether to take the job or not.
