It Isn’t Just $5000 You Are Leaving On The Table | No BS Job Search Advice Radio

 

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EP 1959 When you are negotiating salary, someone may try to guilt or shame you into accepting less.

Salary negotiation

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When I worked in recruiting, I negotiated a lot of deals. I think the final tally was I know it was more than 1200 full time jobs, plus consulting assignments. Often, when I would be negotiating for people, often when I was negotiating for an employer because that's the truth of it, you may be presenting yourself as negotiating for the job hunter, but since the employer is paying, that's really who you're negotiating for, I was asked to try and get someone to accept the lesser offer. So, the title of this video is, "It Isn't Just $5,000 You're Leaving on the Table." Let me explain what I mean by that. If you accept the $5,000 lower offer, often a recruiter (this wasn't one of my bits, but I heard other people do it) is going to tell you, "we're talking about less than $100 a week. Like maybe $98 a week pre tax. After tax, if you're a big tax state, maybe it's 65 or $70 a week. This is a great opportunity for you. You love this job. It's such a small amount, could you take the offer, so you can have a job that you really want"? And if it's $10,000 less, you know, the numbers are, let's say double.
However, I just want to point something out to you and that is, your subsequent salary increases are going to be based upon the starting salary. Even if they give you a sign on to compensate for the fact that they've offered you less, all your salary increases are going to be based upon the starting salary.
So, for example, you joined for, I don't know $100,000. And your next he wanted one of five; there's a $5,000 differential. And let's say you get a 3% increase. What you've lost in the way of money is $5150.
Then, from there, what happens is you start losing some additional amounts of money after that. So each year, it's another $5,000 plus the salary increase, excuse the noise in the background. eeShe result winds up being over five years, you've lost about $25, $26,000.
Your raises are also going to wind up being lower from that point on. There's a loss of income to you based upon each of those years of experience. Each of those additional years that you've lost the $5,000 over the course of a career (let's say, you're 25 at the time that you've decided to take $5,000 less), just on the basis of taking $5,000 less and not even taking into account salary increases, that's $200,000. Can you afford to leave that on the table?
Now, you may say, "Subsequent increases, I can make it up." But employers often predicate an increase salary based upon your existing one. Yes, I know there are states and locales where they're not allowed to ask you about your compensation. But functionally, they figure it out because they start to develop experiences with people who work at these firms. They learn an idea of how much someone earns. You're leaving money behind.

ABOUT JEFF ALTMAN, THE BIG GAME HUNTER

Jeff Altman, The Big Game HunterJeff Altman, The Big Game Hunter is a coach who worked as a recruiter for what seems like one hundred years. His work involves career coaching, all as well as executive job search coaching, job coaching, and interview coaching. He is the host of “No BS Job Search Advice Radio,” the #1 podcast in iTunes for job search with more than 1900 episodes, and is a member of The Forbes Coaches Council.

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