Salary negotiation

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Ok…in business, supply and demand is the rule. You buy something at a low price, then sell it for as much as you can get for it/vs volume sold…that economic curve thing.

In salary negotiations, one is often asked ‘So what is your current salary?’

Do you think it is morally right to inflate this figure just asked for? If I make 20k a year, and tell them I make 40k a year to hopefully get a higher salary, do you think it’s right?

I don’t go to the store and ask the grocer…‘so what was your wholesale price on this before you marked it up?’

Isn’t it all the same thing, except you are selling yourself in this case? Why not try and get the most you can?

I hate business sometimes…it’s a dirty thing. I wish all could be honest 100% of the time. If someone had a job opening, post what it pays and that’s it. Want a car? Post what it costs with your markup…take it or leave it. This negotiation stuff creeps me out sometimes.
 
Sales puffing is one thing.

A certain amount of that is expected in any negotiation. However, your salary is an objective fact.

I don’t think it is morally ok or even prudent to not tell the truth about it. Setting aside the moral problems, it is a fact that your employer can confirm. If they find out you lied to them, it would be grounds for termination, and would probably get you fired.

A more moral and prudent tactic would be:
I make X a year, but

–I expected to get X in raises,
–by leaving now I am losing X in retirement contributions,
–At my old job I only had to work 40 hours during normal times,
–My salary was low but I had great benefits.
etc.

These are just examples, but truthfully state the desireable things about your prior job to put the salary in the proper perspective.

Best of luck.
 
ForwardProgress said:
Ok…in business, supply and demand is the rule. You buy something at a low price, then sell it for as much as you can get for it/vs volume sold…that economic curve thing.

In salary negotiations, one is often asked ‘So what is your current salary?’

Do you think it is morally right to inflate this figure just asked for? If I make 20k a year, and tell them I make 40k a year to hopefully get a higher salary, do you think it’s right?
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The lie you tell today, will force you to lie tomorrow.

Tell the truth, you’ll be better off for it.
 
Do not lie.

At the same time, you need not answer every single question as if you are in the confessional.

"I expect that you are knowledgeable of the demands of the position and my qualifications. With that in mind, I am certain that you will offer a just compensation package. Otherwise, we are both wasting each other’s time.”
 
It might very well work against you in two ways. First of all most business people with any smarts, know very well about what most jobs pay. Your resume tells your experience, etc. and it isn’t too difficult, unless you are a world wonder, to tell you have inflated it. Second of all most of these same people have a pretty good fix on what the job is worth to them, assuming of course that you are capable of doing it effectively. If you ask too far out of sight they are just gonna put that application in the “NO” File. Is it a sin? I would say no, but it isn’t very smart unless you know that your current employer is really underpaying you for your output.

As a side note. Many businesses trade pay scale data with each other and use that data in setting their own rates. So unless the business you want to work for is really radically different, the ranges are pretty well known. When asked, “What wage you require?” I was always told to say negotiable. 👍
 
Rather than give a specific dollar amount, give the range you are making. So instead of saying 20K, say that you make in the 20s. They use a range when interviewing for the job, so it’s a similar response.

In addition - look at total compensation. If a company gives n% to a 401(k), and pays 90% of your health insurance premium, that could be a HUGE factor financially if the next company doesn’t include that. When you answer - rephrase the question - ‘well, salary, bonus… total comp would be $x’.

Negotiations are a game - I hate playing it too. But, it’s the way the world operates. Keep your numbers reasonable!
 
“I’m not willing to disclose that information… your salary offer is one of the reasons for my application”.

Let them sweat the $$, not you.
 
If they are in the job offering stage…then I would not disclose your current salary. Say something like, “I’m hoping whatever you are offering will be competitive with the market.”

If you are still in the interview stage, "I’m considering positions that compensate in the (insert range.) Don’t inflate it. Be honest with what you believe you are worth. And be prepared to explain why you believe you are worth whatever salary range you’re seeking.

If they insist on knowing your current salary, tell them, but be sure to include the other benefits you have.
 
Interesting answers…I’m not looking for a job…friend of mine just got one. We are in the same profession (IT). Same skill sets, same length of time in the field. He fudged the answer to the above question and is now making 40k more a year than I am…he has passed his previous salary by 20k…as you can see, if he would have been honest about his real pay at his old job, he would be making 20k less. He didn’t need the job; he just threw out that high number to see if they would bite. They did. There is quite a range out there for the same types of position. Makes me wonder if I de-value myself. We are both IT directors for same-sized companies. I had to struggle to negotiate what I have now…I’m very happy for him. But if he would have been honest, it would have been good for the company, bad for him. By puffing the number, he now has a take home pay that is over 1000 more a month. A month. He told me today, it feels like he hit the lottery.
 
Yes, but the ends don’t justify the means. Someday, they could find out the truth and fire him.

I simply refuse to answer the question. I’ve never lost an offer for doing that.
 
I believe that 40k is too high. I doubt they would believe you. Say you make 26K at the most.
 
I think that employers have a moral responsibility to pay the proper wage for the job. There is no reason why an IT major should not get 40k. So I don’t think your friend did anything wrong.
 
If one is asked directly “How much do you make now?”

A truthful and sincere answer can be -

“In order to take this position, I would need an offer in the mid-forties.”

It is not a lie, as one did not exaggerate their salary. The party did not answer the question. This is the type of answer that often occurs at news conferences. One question is asked (How much do you make now?) and another is answered (How much do you want to be paid?).

One is rarely paid what they are worth, they are paid what they negotiate. The value of a job or object is only what a willing seller and buyer are willing to pay. Only in governmental type jobs and regulated jobs (nursing, pharmacy, unions, etc.) are the market forces artificially controlled; and salary questions moot.

Most other markets (like IT), it more a question of what the person willing to work for and what the employer willing to pay.

One should not, in fact, can not lie. But understand that one is not obligated to answer the question asked. In the scenario above, the answer is not a lie, but a truthful response to a compensation question.
 
ForwardProgress said:
Ok…in business, supply and demand is the rule. You buy something at a low price, then sell it for as much as you can get for it/vs volume sold…that economic curve thing.

In salary negotiations, one is often asked ‘So what is your current salary?’

Do you think it is morally right to inflate this figure just asked for? If I make 20k a year, and tell them I make 40k a year to hopefully get a higher salary, do you think it’s right?

I don’t go to the store and ask the grocer…‘so what was your wholesale price on this before you marked it up?’

Isn’t it all the same thing, except you are selling yourself in this case? Why not try and get the most you can?

I hate business sometimes…it’s a dirty thing. I wish all could be honest 100% of the time. If someone had a job opening, post what it pays and that’s it. Want a car? Post what it costs with your markup…take it or leave it. This negotiation stuff creeps me out sometimes.
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Never lie about your salary…a potential employer can find that info out when checking your background…and what’s worse? the salary you make or lying about it? Lying about it will cost you the job.

Typically in business through raises…promotions…longevity within a company…one can see a gradual increase in salary…or a large jump depending on if one is promoted. But, many employers looks at salaries as why is this person asking for double their pay here, when they aren’t making nearly that amount where they are? Just food for thought.
 
whatevergirl said:
Never lie about your salary…a potential employer can find that info out when checking your background…and what’s worse? the salary you make or lying about it? Lying about it will cost you the job.

Typically in business through raises…promotions…longevity within a company…one can see a gradual increase in salary…or a large jump depending on if one is promoted. But, many employers looks at salaries as why is this person asking for double their pay here, when they aren’t making nearly that amount where they are? Just food for thought.
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Ah…but most places can’t give that info out…they can confirm title and when you worked there, but not salary info.

BTW…this guy went from making mid 60-s to making 85k.
 
One other bit is to talk to headhunters and find out what the range is for someone in your industry with your skill sets. I was able to negotiate a 25k increase over 2 years because I knew I was underpaid and while I never outright threatened to quit I told the company my low salary would make a long term commitment difficult.

I too hate the “How much do you make?” question 2 minutes into an interview; or when they thrust an application form in your face right when you get there.

Can support much of the above advice: not answerwing the question or answering a question that wasn’t asked. It’s best not to be too confrontational right away. Showing your full benefits, 401k contributions, etc. is important. Also, consider intagibles too, like a dress down policy vs. suit-n’-tie, commuting distance, etc. Also, this is tough, but you should employ the non-verbal body language in the interview of wanting the job, but not being desperate.

And lastly, don’t lie. Good luck and I’ll pray for you.
 
Pay rates in the IT field, unlike many other industries, can be all over the board. I don’t find this surprising at all to hear a 20K difference for similar responsibilities, background, experience, etc, between different companies. Actually, my experience is this is the norm.

Boils down to Company B placing a higher value on the individual and his responsibilities more than Company A. Many companies do not have a high value for this type of service, other firms recognize that this position is crucial to the business.

As others posted, never good to puff up your salary. However, this is a perfect reason to offer on the question “Why are you looking for a new job”.

Depending on your length of employment at your present company, you may be victim of annual raises not keeping up with new-hire salaries for the same position. In other words, your company would need to pay X dollars more than they’re paying you, to replace you.

So, you can either start interviewing, ask your present employer for a raise, or do nothing. Your choice, good luck!
 
Thanks for the info, guys…no need to pray for me…I’m not looking for a new job…was wondering about the morality of such a thing.
 
ForwardProgress said:
Thanks for the info, guys…no need to pray for me…I’m not looking for a new job…was wondering about the morality of such a thing.
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Honesty is the best policy. Telling a huge lie in the interview is not the way to start a new job. Good luck with your job search. Give dice.com a try if you haven’t yet.
 
ForwardProgress said:
Ah…but most places can’t give that info out…they can confirm title and when you worked there, but not salary info.

BTW…this guy went from making mid 60-s to making 85k.
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That’s a different range than 20’s to 40’s…

Yes, most places should not give that info out…you’re right about that.
 
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