No BS Career Advice: May 11, 2025
By Jeff Altman, The Big Game Hunter
“There will be obstacles. There will be doubters. There will be mistakes. But with hard work, there are no limits.” – Michael Phelps, Olympic swimmer
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Decoding How Companies Arrive at Salary Offers
Salary negotiations can be stressful for job seekers. When you receive an offer, you naturally want to understand how and why the company came up with that particular number. Asking the right questions can provide valuable context and information to help you respond.
What Factors Do Companies Consider?
Several elements come into play when determining salary offers:
Market Rate – Companies review competitive salary data to see what similar roles at other organizations pay. This provides a baseline for calibrating their own ranges. Resources like PayScale, Salary.com, and trade associations give benchmarking information.
Internal Alignment – Salaries for the same or comparable positions within the organization are analyzed to ensure consistency. Large discrepancies between employees with similar experience and duties can lead to retention issues.
Budget – Each department is allocated a certain budget for compensation. Offers must align with what is fiscally possible and approved by leadership. Budgets are usually set annually.
Candidate Background – Your specific skills, qualifications, experience and education factor into the offer. Roles requiring highly specialized expertise often command higher salaries.
Value to the Organization – The more critical the role is to achieving business goals, the more companies may invest in salary to attract and retain top performers.
Growth Potential – If the position offers clear advancement opportunities within the company, the base offer may start on the lower end.
Location – Salaries adjust based on geographical location and cost of living. The same role pays differently in New York vs. Boise.
Negotiation Range – Many companies budget 3-5% above the initial offer, knowing candidates will counter. They leave room for negotiation.
How Should You Ask About the Salary Offer?
When the offer comes in, resist the urge to react right away. Here are some productive ways to discuss the components of the offer:
· “I’m very excited about the opportunity, but wanted to understand how you arrived at the proposed salary. Can you walk me through the considerations?” This is an ideal question whether you are disappointed in the offer that was made or happy with it
· “The offer is close to my expectations. Just so I understand, how was the salary determined for this role?”
· “I appreciate the offer. Since the cost of living varies so widely between regions, can you share some insight into how the location you are in was factored in, if at all?”
· “The salary range seems in line with my research on industry standards. Were there any other benchmarks used when creating this offer?”
· “Thank you for the offer. I’d love to hear a little more about how my qualifications specifically contributed to reaching this compensation level.”
Avoid framing the questions in a confrontational tone. You are seeking information, not negotiating (yet). Listen closely to the full explanation without judgment.
Key Follow-Up Questions
Digging deeper with a few targeted follow-up questions can uncover key details:
· Can you be a little flexible with the starting salary? You need to be prepared to answer with a salary that will make you say, “yes,” without them wanting to say, “no.”
· What are the performance metrics and timeline for salary reviews and increases?
· How does bonus and equity compensation factor in for total rewards?
· What is the salary growth trajectory for top performers like me in this role?
· Does the company offer benefits like a signing bonus or paid relocation?
Their answers will help you gain clarity about the offer and whether it matches your expectations, as well as how they see you. With this information, you can decide whether to accept or negotiate the final deal further.
Being forthright leads to more productive conversations around an offer. Make sure the company provides the context you need to properly evaluate a salary offer before moving forward.
Remember, their answers should not be the only criteria they use when deciding whether to accept their offer. Pay attention to subtle signals such as impatience or outright hostility before deciding.
I released new content this past week that included:
Employment Situation Summary: May 2, 2025 https://wp.me/p4aIk1-mTE
Send a Thank You Note the Fast Easy Way https://wp.me/p4aIk1-eBj
10 Common Resume Mistakes to Avoid https://wp.me/p4aIk1-eut
Resumes and Keywords https://wp.me/p4aIk1-27
Career Management Mistakes: 10 Things You May Be Doing Wrong https://wp.me/p4aIk1-8x
When a Manager Doesn’t Intervene https://wp.me/p4aIk1-lv6
Launching Your Career So It Isn’t Doomed https://youtu.be/NBZ8IeqX-kg
How to Ask for the Job https://wp.me/p4aIk1-LV
Stupid Interview Mistakes: Crossing The Line https://youtu.be/NBZ8IeqX-kg
Online Resumes https://wp.me/p4aIk1-6J
Body Language to Show You’re Thinking of An Answer https://wp.me/p4aIk1-2gH
There’s No Reason to Use a Stupid Background Image on Your LinkedIn Profile https://wp.me/p4aIk1-mTq
Three Things You Must Do Every Time You Submit a Cover Email https://wp.me/p4aIk1-32
The Top Lessons from The First 1000 Episodes of No BS Job Search Advice Radio https://wp.me/p4aIk1-f7h
Describe a Time You Had to Interact with a Difficult Client https://youtu.be/Iz14VQQf3t8
Send a Thank You AFTER Getting the Job? YES, But to Whom? https://wp.me/p4aIk1-mTN
No BS Career Advice: May 4, 2025v https://wp.me/p4aIk1-mUk
Career Management https://wp.me/p4aIk1-mUr
Editing the Résumé That Is Too Long https://wp.me/p4aIk1-Dd
I Want to Be a Salesman https://wp.me/p4aIk1-ip
The #1 Resume Mistake People Make https://youtu.be/cFN_byBxUqg
8 Months After Graduation & STILL No Job? https://wp.me/p4aIk1-mUf
Public Layoff Announcements https://wp.me/p4aIk1-mu5
Your Resume Is Like Your Clothes Closet https://wp.me/p4aIk1-mUL
Empathy https://wp.me/p4aIk1-eEK
Should I Stay Underemployed So I Don’t Damage My Resume? https://wp.me/p4aIk1-3bN
Behavioral Interview Questions and Answers https://youtu.be/Cmn9ddBTylo
The skills needed to find a job are different from those needed to do a job. You may be great at what you do, but job hunting, especially during difficult times is very different than being a good employee.
Become an Insider at JobSearch.Community at any level and you’ll receive access to all my video courses, books and guides plus the ability to ask me questions and/or be coached by me so that you don ‘t have to figure out what to do and how to respond.
Join me as an Insider at JobSearch.Community for advice about your job search and coaching from me (on Insider+, Insider Premium, Insider 30, Insider 60 or The Insider Bundle). You can also schedule a free discovery call with me to evaluate me as a coach.
Share this. Subscribe if you haven’t already. Click the like button. Comment. Do things to help others in need of finding work.
ABOUT JEFF ALTMAN, THE BIG GAME HUNTER
Jeff 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, 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 3000 episodes.
You will find great info to help with your job search at my new site, JobSearch.Community Besides the video courses, books and guides, I answer questions from members daily about their job search. Leave job search questions and I will respond daily. Become an Insider+ member and you get everything you’d get as an Insider PLUS you can get me on Zoom calls to get questions answered. Become an Insider Premium member and we do individual and group coaching.
Are you interested in 1:1 coaching, interview coaching, advice about networking more effectively, how to negotiate your offer or leadership coaching? Schedule a discovery call at my website, www.TheBigGameHunter.us
Connect with me on LinkedIn www.linkedin.com/in/thebiggamehunter Mention you listen to the podcast or watch my YouTube channel.
Job Search Going Nowhere? “Diagnosing Your Job Search Problems” for Kindle on Amazon and receive free Kindle versions of “No BS Resume Advice” and “Interview Preparation.”
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