When is the Job More Important Than the Money?

This may come as a shock. You may need to sit down? Are you sitting down? Sure you are. We’ll wait…

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Okay, now that you’re sitting down, we’ll tell you a secret about life: Sometimes money is not that important.

If you need a few minutes to catch your breath from that surprising blow to everything you have ever learned in life, you can minimize the browser for a few minutes. Maybe listen to some Pandora. Come back when you are done though.

Are you back? Okay, it’s time to discuss what we mean.

Why Money May Not Be The Primary Decision Making Factor

You just went through a long job interview. You learned a lot about the company. They offer you a job, but they offer you much less than you were hoping to make. Maybe not so much less that you cannot afford to live, but enough of a cut that you cannot live as richly as you had hoped. Even though the salary may be beneath your expectations, there are reasons that you may want to take the job anyway.

Reasons to Take a Lower Paying Job

• Growth Potential

Some jobs have a low starting pay, but a considerable amount of growth potential within the company. If you are a hard working employee that is confident in your abilities, then you have the potential to move up quickly, and if you move up quickly, you will get more money. Your initial pay may be low, but your future pay five or ten years down the road may be higher than you would have gotten if you had taken a different job.

• Happiness

Before you laugh – sometimes it is worth taking a lower paying job if you will be happy with what you are doing. We know, it’s a hilarious thought, but some jobs are simply rewarding. You like the coworkers, you like the services or the product, you don’t feel a lot of stress; you are happy. Happiness is underrated. What is the point of being rich if you’re unhappy 40+ hours a week?

• You Are Really Good

Imagine if you are offered a job where you know you can not only succeed, but you can thrive. All of the tasks represent your greatest skills. You will ace this job, and you know for a fact you will literally be the best thing to happen to this company once you take on the role. Sometimes that’s a good place to be. You can start working for lower pay, and when you reach evaluation time in one or two years, ask for a raise. If the company has the means to pay you and sees how valuable you are, they will offer you a raise. If not, you can always try to find another job in the future.

• Good Experience for Future Work

Sometimes in a tough economy it is worth the time you have to invest in a role to improve your resume and make you more attractive to other employers. If you were struggling to get a job because you didn’t have enough experience, and then you are offered a job that will supply you with that experience, spend two years working for less pay and then seek better paying work elsewhere.

Money is Not Everything

It’s great to pick up a large paycheck, but it is also important to remember that paychecks are not everything. There will be times where it is more advantageous for either your career or your happiness to take less money when you get hired. It may be hard to justify, but money isn’t everything, so learn what you can about the job and, if they offer you less than you want, weigh the pros and cons.

Take Away Interview Tips

• There are times where less money is still worth your time.

Interview Question: What Are Your Current Salary Expectations?

You should not talk about salary until you have the job in hand. If you are asked about salary, you politely say you would like to learn more about the job and would be happy to figure out salary once it appears you are a good fit for the position. However, if you are forced to talk about salary, or you have finished both interviews and it looks like you are about to be hired, you will need to answer that question.

How to Answer

Do research. The more research you have on hand, the easier it will be to negotiate salary. Don’t talk about what you want. Talk about what you know the job is worth. Look up labor statistics, etc. Also, see if it is possible to make the interviewer give you a range first. We will show two options of that below.

Bad Answer

“I would like $50,000 plus full benefits, including vision. I would also like maternity leave, and I would like a company care. No, wait… Two company cars. And a masseuse. Shaken, not stirred.”

Good Answer #1

“What salary range is your company looking for?”

Good Answer #2

“According to the bureau of labor statistics, the average salary for this job in well-populated cities is between $40,000 and $50,000 per year. Based on both my experience and the work expected in the position, I am looking for around $47,000.”

Good answers will either make the employer give you an offer first, or be backed with a considerable amount of research so that you can justify why you deserve the amount of money you are asking for. If you make the first move, remember to always start with a number above what you want to make, in case the employer tries to bargain you down.

Take Away Interview Tips

• See if you can get the company to make an offer first.
• If not, back up your salary expectations with research.
• Never answer questions about salary until you have the job in hand, if you can help it.

Why Negotiating a Higher Salary is Good for the Employer

Sweet. You nailed the second interview and it is time to negotiate salary. We are so proud of you. You are our prized pupil and you deserve a pat on the back, but now you need to try to get as much money as possible from the employer. Squeeze them for whatever you can.

When you are fairly desperate for a job, there is a natural tendency to try to lowball your needs and wants during salary negotiation because you do not want to ask for a number that may affect the employer’s decision. The last thing you want to do is to ask for a few million dollars and get your contract ripped up before you sign it. You don’t want to ask for some ridiculous number.

However, you do not want to ask for too little either. In fact, you want to try to get as much money as possible. Why? Because the company wants you to.

What?

Okay, maybe they don’t want to give you more money than you are worth. They don’t want to be cheated out of revenue that could be used elsewhere. It’s a tough economy, and companies are struggling enough as is.

However, they also want you, and once they have you, they want you to stay. Once you are hired, they never want you to leave provided you do your job adequately. You are an investment, and they want to continue making good ROI.

One of the best ways to do that is to pay you a dollar value that you are satisfied with, because one of the most common reasons that people leave jobs is because they find a higher paying job elsewhere. Since the company does not want you to leave, finding a pay you are satisfied with is the best way to keep you around. Thus the company wants to pay you a dollar figure that makes you happy, provided it is not egregiously high.

Try to Get the Realistic Dollar Amount You Want

You cannot ask for the moon, but you should try to get a dollar amount that you will be very happy with. The company wants you to stay, so any amount of money that might encourage you to leave 1, 2, or even 5 years down the road is too little.

Take Away Interview Tips

• Try to get as much as you can.
• Realistically.

Expert Answers: Should I Respond With a Counter Offer?

Question:

“I recently completed a job interview and I was offered the job. In their letter, they offered me a salary that was roughly what I expected, but less than I wanted. Should I respond with a counter offer?”

Answer:

It is difficult to answer this question with accuracy without knowing your specific financial situation, including the area you live, scarcity of jobs, etc. Here is generally the best way to approach counter offers after a job interview:

• Leverage

First and foremost, how much leverage do you truly have? Mass hiring firms that offer the same basic salary to every entry level employee are unlikely to respond well if you try to ask for more money. On the other hand, if you are applying to a management or upper level position and/or if the company sought you out specifically in order to get your expertise, you have leverage that can help you get more money. Similarly, if you have another job offer by another company, feel free and see if one job is able to increase their salary.

• Desperation

Asking for more money always has risks. If you are seriously desperate for a job, taking the pay cut may be useful for your security. If, on the other hand, you have ample savings and know that your services will be valued elsewhere, you can take that risk in order to get the salary you want. Counter salary offers, in these cases, are as useful for you as they are for the company, because the company does not want to hire someone that is going to leave them eventually for a higher paying job.

• Realistic Expectations

If the company offers you considerably less money than you should be paid, why take the job? Do you need it that badly? Assuming you do not, it is well within your right to present a reasonable counter offer, because unless you are desperate for money, there is no reason to take a job that you are going to leave once a real offer comes on the table.

• Growth Potential

It is always a good idea to see if you can find out your growth potential if you take the offer. If promotions and raises are common when you hold on to the job, then you will only have to deal with six months or one year of low pay before reaping in the benefits of sticking with the position.

You Are Well Within Your Right to Request a Counter Offer

In some ways this entire post above is misleading. You can absolutely always request a counter offer. It is a standard part of salary negotiation. In fact, it’s why they call it negotiation. In some cases during your job interview they ask you what you would like to make, and you have the opportunity to start out with a number that is acceptable. Making a counter offer is not uncommon and in some cases welcome.

Yet there is always going to be a risk, especially if you do not have leverage. Some companies, especially for entry level, may be extremely turned off by your counter offer to the point where you either will not get the job or you will start off very negatively. For non-entry level (and some entry level), most companies will understand, but the risk is still present. If you are desperate for a job and it is extremely hard to get employment and you have no leverage, it may be best to leave it alone. If you weigh your options, you’re okay with the risk, you have a little leverage or you simply do not want to sacrifice your services for less money, asking for a realistic counter offer may be worthwhile.

Take Away Interview Tips

• Counter offers are a part of salary negotiation.
• Be sure you are prepared for the risk.

How to Handle Salary Negotiations

One of the toughest parts of a job interview is negotiating salary. Salary negotiations are never pleasant. Employers are trying to get you at the lowest cost and you are trying to earn as much as possible for your work. The lower your salary, the longer it will take to earn the type of income you dream of. Negotiating salary is like giving a dollar value on who you are. It is unpleasant for all parties involved.

Getting the Most That You Can

In our last post we discussed how to avoid the salary question until the end of your final interview. However, you will need to discuss this topic eventually. You want to make sure that you are put in the best position for negotiating the highest salary possible for your work.

Make Them Answer First

The best negotiating tactic is to get them to answer salary questions first. Penelope Trunk had a great example of how to do this effectively. From her blog:

I need to know what salary you want in order to make you an offer. Can you tell me a range?

“I’d appreciate it if you could make me an offer based on whatever you have budgeted for this position and we can go from there.” This is a pretty direct response, so using words like “appreciate” focuses on drawing out the interviewer’s better qualities instead of her tougher side.

It may be hard to get the employer to answer the question first, but if you can sway the conversation into making them provide you a range, you have the upper hand in negotiating and can easily maneuver the best salary from there.

Come Prepared

Another important part of negotiating is confidence. The more confidence you have during the negotiation, the easier a time you will have negotiating a higher salary. There are several effective ways to prepare:

• Find out the average salary of those in similar jobs in your local area.
• Find out the average salary of the company staff (if you have connections within the company).

Also, adjust these numbers based on your own experience, skills, qualifications, role and education. The more you know about potential salary the better an opportunity you will have to negotiate a higher one.

There May Be Times to Walk Away

In very rare cases, you may find that the available salary is less than you wanted to make. You have to make a decision. Do you need the job badly enough that you are willing to take the pay cut? Or are you willing to walk away and find employment elsewhere?

Only you can answer that question. If you cannot afford to take a huge salary cut then you need to be honest about the salary you expect to make and be willing to walk away if they do not offer it. If you need the job badly and can live with a lower salary, try to get as much as possible and call it a win.

Salary Discussions are Inevitable

Companies need to know how much you want/expect to make at the position. Use the above tips to negotiate the highest salary for yourself and receive what you deserve for your work.

Take Away Interview Tips

• Try to make the employer provide a salary range before you answer a salary question.
• Research what you “Should” make in the position based on the type of work and your location.

Additional Resources

• How to answer tough interview questions

How to Avoid the Dreaded Salary Question

Few interview questions are as difficult to answer as questions about salary. Salary interview questions are important, but they are also an opportunity to completely ruin either your interview or your future earnings. Consider the risks of answering this question:

• Dollar Value Too High – If you ask for too much money, you risk turning off the employer right away. Perhaps you would have been willing to take less money if you knew the job required it, but if you answer with a salary that is too high, you will never get the opportunity.
• Dollar Value Too Low – Companies should not get discounts just because the employee did not want to hurt their job chances. If a company budgeted more money for the job than you require, it is not your responsibility to help them save money. In addition, if you ask for too low a salary, employers may think you are desperate for a job and not necessarily a worthwhile employee.
• Answering at All – Once you answer a salary question, you have immediately put a value on your abilities. The company should care about your skills first and your salary second. Once you have provided them with a number, even if it’s the perfect number for their budget and yours, you will still spend the rest of the interview tying to live up to that number.

There will be a time that you need to discuss salary with your employer. That should be saved until after the interview is over and it appears you have the position. Until then it is important that you avoid answering interview questions about salary.

How to Avoid the Answer

There are a variety of tips you can employ in order to avoid answering questions about salary. Follow these tips in order to gently explain to the employer that you are not ready to answer the question yet.

• Interview Question: How Much Are You Expecting to Make?

“I would like to learn more about the position before I answer questions about salary.” This is the best type of answer to these types of salary questions. It makes sense and it is to the point. You are telling the interviewer that you cannot make an accurate salary estimate until you know every last piece of information about the job.

• Interview Question: What Have You Made in the Past?

“All jobs have different requirements, so it is easier for me to leave discussions of my past salary out of the conversation until I know what this particular job entails.” This is a tough answer to make, but your employer should understand. Your past salary should have no basis on your current salary.

It is important that you do whatever it takes to keep this question unanswered until the end of the interview. Only then can you answer questions about salary. In the next post we will discuss tips on how to negotiate your salary with the employer.

Take Away Interview Tips

• Avoid discussing salary until the very end of the last interview.
• Answer early interview questions about salary with “I would like to know as much about this job as I can before I make a salary estimate.”

Additional Resources

• Penelope Trunk’s blog has a great post about salary negotiating.