Q & A Table of Contents
How Much Should I Get Paid?
From: Jeff, Jacksonville, North Carolina
Question: I am leaving the military after 20 years service to work in corporate America. I have been offered a position as a technical trainer with a large defense contractor in Orlando FL.
I have no competition for this position, the employer has made it clear he wants me because of my skills and experience. The HR department is going to contact me next week with an offer. I have done extensive research on salary negotiation but I do not know anyone who works in similar position to access possible salary ranges.
I did find some info on the web. How do I come up with a good salary range so I do not under value myself to this company?
Response: If your new employer gives you a salary range, that would make your life much easier. But without that information, it could make sense to do a different kind of homework.
One thing you might do is look at the kinds of salaries earned by ex-military people who've gone to work with your new company. Even their work is different from what you'll be doing, you may be able to do some 'reverse engineering' and develop ratios of private sector pay versus military pay. You should pay attention to the total compensation packages; the money paid to military personnel is part of the total package. The value of housing, uniform allowance, PX privileges, health and other insurance, and other benefits needs to be added into your calculations.
Once you've done the mathematics of your compensation history, done a comparison of the differential between the military pay package for others and their civilian pay, then you have one additional job: You need to take a look at what kind of pay will yield you an incentive to take the job. While the work may be interesting and rewarding, clearly unless you are well-enough paid, you might be a lot happier living as a beach bum, volunteering with troubled youth, or doing something completely different.
You also need to factor in your age, how you want to prepare for your ultimate retirement, what kinds of costs you face over the next ten or twenty years (college tuitions, vacations, buying a home, etc.), and any other financial considerations that drive your decision-making.
When it comes time to meet with the folks at the company, you are probably best advised to offer them a salary range: "I would like to make a salary at least in the low 50s." for example. That means the minimum you'll accept is $50,000 but you're asking for something between 50 and 55 thousand. Once the hiring folks hear your desired range, you've set the standards and they may feel triumphant if you agree to work for the $50,000, figuring that you were looking for more. In other words, you set up the bargaining range, then give 'them' the opportunity to do the bargaining.
In negotiating salary, you are in the challenging position of setting a value on yourself -- and wondering what kind of value others see in you. Ideally these are close enough to make it possible to reach a mutually-favorable agreement.
Good luck,
Steve
| 
