Q & A Table of Contents
Did I Ask For The Right Amount?
From: Jim, Clovis, California
Question: I recently had a job interview and was asked how much I was looking for? the job description was 30-50k, but it also said generous salary, plus commission. I replied with my currant guarantee,(33K) and added that with commission I could make double that. What should I have done differently?
Response: When you're getting ready to negotiate for your pay -- whether in your current job or a new one -- you need to do some serious homework. Clearly you need to know as much as you can about the 'market value' of a person doing the job you fill, with your qualifications and experience. You should try to find out how much people in similar jobs are paid within your company and its competitors within your geographic market and in other areas. In this case you walked into the interview knowing the range was thirty to fifty thousand dollars; that should have given you a good sense of the breadth of possibilities.
You also need to do homework about what kind of pay (and other benefits) is appropriate for you. How much does it cost to afford an appropriate standard of living? What long-term plans do you have that today's or tomorrow's salary will influence: retirement, how much you'll get paid next time you have a salary review or get a new job, etc.
With this kind of information in mind, it is critical to figure out how much you're willing to settle for as a guaranteed minimum and how much you're willing to gamble you can add to the minimum through bonuses or commissions. Then, multiply your minimum happy pay level by a factor with which you feel comfortable: 110%, 125%, 150% or whatever. When you are asked "How much pay do you want?" answer with a range that gives the interviewer room to bargain without offering them space to go below your minimum. In the case you present, you probably should have said, "I'm thinking in the range of the high 30s or low 40s." That might be said to allow for the possibility of $37,500 to $42,500. Your interviewer may respond by saying, "We've been looking for someone who would accept something in the high 20s."
By going through that process both you (by yourself) and you and the interviewer are 'bracketing' the range within which you are likely to settle. This is often referred to as looking for the ZOPA -- the Zone Of Possible Agreement.
Taking the first offer tends to be a mistake. Asking for your minimum is generally a mistake as well. If you have done good homework before the negotiation, you are far more likely to feel comfortable aiming high. And unless you aim high, you won't reach your target.
Good luck,
Steve
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