We are now ready to talk about the "nitty gritty"-money. The employer may have alluded to the subject earlier, but was probably careful not to discuss it in specific terms. Before you make the decision, in your mind, to place an equitable dollar amount on the position, consider the following factors:
- How good is the job? If the position is exactly what you have been looking for, then you definitely must weigh that factor accordingly. If the job itself is only slightly better, or equal to, your present one-then money is obviously going to have to come into play much more significantly. In fact, if the job is not that much better and there are no further reasons for changing, why bother changing?
- How many times a week can you eat steak? Offers of this magnitude, unfortunately, hardly ever occur. If an offer seems too good to be true-check it out closely. It just may be too good to be true. You may have misunderstood the terms of the offer, or there may be "something rotten in Denmark."
- Where is the job located? Do you have to pay for any moving expenses? If so, what part? Some items to consider are actual moving expenses, temporary living expenses, closing costs, real estate fees, increased mortgage rates, even new drapes. What portion of the expenses will the employer pick up? These are all substantial expenses which can reduce an otherwise attractive salary increase to a net loss-if a good portion of costs is not absorbed by the company.
- Is the new geographical location favorable? Sun Belt companies sometimes pay their employees partly in sunshine. You cannot spend it, but at least it is not taxable-that is, not yet! If the position is located in an undesirable and higher-cost-of-living area, then that all has to be figured out. Some states have very low income taxes, while others may be extremely high! Some states have low real estate taxes, while others are quite substantial. Some states have no personal property taxes, while others are certainly worth thinking about.
One of the best sources of help in finding out about a particular city is the local Chamber of Commerce. If they do not have the answers at hand, then they will surely know where to direct you.
The Opportunities Beyond
Is this going to be your only forseeable opportunity to obtain a substantial pay increase with the new employer? In other words, is this the top job-with no place to move-up with your present background? If there are good opportunities beyond this position-either at the corporate or divisional level-then this factor is certainly worth weighing.
Fringe Benefits
How do they compare to your present package? Do they have profit sharing, pension plan, major medical, disability, dental, tuition reimbursement, credit union, or any other valuable considerations? Is there a country club membership, or a company car? Does the employer pay bonuses? Does either employer provide a good company cafeteria at reasonable prices? All of these factors, when totaled, will add up to several thousand dollars. There could thus be a several thousand dollar difference between the two fringe packages!
Also, what about vacations and paid holidays? Will you lose or gain on your vacation by switching? This may not seem very important to you, but it just may irk your family to see you go from a present three-week vacation to one week! You must have your family's support. If your family feels they are being short-changed on your move, then you should not change positions unless you absolutely have to!
A job change affects the entire family, so obviously your chances of making a successful move are greatly enhanced when your partner and kids are with you all the way.
Travel and Commuting
Will you be reducing or increasing your percentage of travel and commuting time?
Summing It up
The above factors are all to be considered before and during your salary negotiations. Have you completed your homework in finding out, through some of the previously discussed sources, just what the competitive salary range is for the position? You want to avoid pricing yourself out of the market, but yet you do not want to "low-ball" yourself either.
The employer may begin the final act by simply stating, "I would like to extend you an offer for [X] amount of dollars, what do you think?" Or, he might indicate that he would like to hire you-and what would you consider coming to work for?
Keep in mind that no matter which approach is used to extend an offer-and there are several-the employer wants to pay you the least he can, and you want to receive the most you can get. This is all done in very friendly fashion of course-everyone playing their specific roles.
If you are presently underpaid in your position, and you have indicated your present salary to your prospective employer, do not expect him to make up for what your present employer has failed to do. There is usually only so much of a percentage increase that a company will go to-so, do not blow an otherwise great opportunity by telling the employer that he has to practically double your salary in order to hire you.
If you have checked out the salary range for the position, or even if you were unable to, do not be afraid to ask the interviewer what the complete range of the job is-and also, at where would they like to hire? He may tell you straight out, or give you enough information for you to come up with a good number as to what you are looking for in the way of a starting salary.
