Job seekers and employees invariably cite lower salary as one of the chief drawbacks of the job. Annual pay is one of those tricky aspects of employment that many people don’t quite know how to handle. Should they simply accept the unsatisfactory compensation and be quiet about it, or should they try to negotiate a higher pay? Here’s what to do when the paycheck seems a bit too low.
View Salary Comparison Websites
Numerous websites feature an easy to use salary wizard for comparing average compensation. One such site is Salary.com which displays compensation information in a bell curve chart showing pay for the lower 10th percentile, median, and 90th percentile. Also view average bonuses, benefits, and bi-weekly paycheck estimate. CNN Money, PayScale, and Homefair also feature similar calculators.
However, the accuracy of these calculators is debated. According the Resume-Help.org article, “Using Salary Calculators,” some employment experts believe they often display results that are higher than what the market actually reflects. “Most salary calculators do not provide information about the size of the sample used in determining the figures, nor how the sample was chosen,” quotes the website.
Perform a Salary Assessment
Before attempting to negotiate more money, assess the overall package factoring in not just salary but perks that may make up for the lower compensation. A good health plan, 401(k) profit sharing plan, free meals, lower cost of living area, free gym membership, or even free (or discounted) room and board may compensate for a less than stellar monthly check.
Negotiate With the Employer
For the candidate who has just received a job offer and still feel the compensation is simply too low, he or she can contact the hiring manager and negotiate a bump up in pay. This can be done by telephone or email, and the conversation could go something like this:
“Hi, this is John Smith. You offered me a job for the position of quality assurance analyst, and I have one quick question. I had originally requested a salary range of $50K-$60K per year; however I was offered $51K. I’d like to see if we could bump the compensation up a bit closer to the middle.”
A good time for established employees to negotiate pay is during the annual review. State the case by citing job accomplishments, consistently meeting deadlines, positive reviews, and high quality of work. In any case, never allude to the median pay determined by compensation calculators. Do not try to threaten the employer with pulling out or quitting. Don’t attempt to bluff the company by citing fictitious competing job opportunities with higher pay.
Most people are so nervous about requesting higher compensation they avoid it altogether. Caution and diplomacy is key; for example, do not attempt it if the company is having financial trouble or if the worker has received negative performance reviews. In ordinary circumstances, using online salary calculators to get a general idea of the person’s worth, assessing compensation to include perks and benefits, and diplomatically negotiating, the worker may find more money in his or her pocket.
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