>> How To Do The Salary Dance!
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How To Do The Salary Dance!
Salary negotiations are a dance. There are times when the sparks fly and you're making out with your dance partner right there on the dance floor. And, sadly, there are other times when you're stepping all over each other's feet.
There are rules of engagement for salary discussions that fall between the formal etiquette required of a Victorian Ball and the combustive friction of Freak Dancing. A more accurate metaphor is a darkened junior-high school gym where a few awkward teens sway to Spandau Ballet while the rest watch and wait. Picture the candidates sitting on one side of the gym and employers sitting on the other side. Both know that they want to dance, but not quite sure how to make that first move.
After eight years of staffing for the games industry, I have seen a lot of different approaches to this dilemma. While some have been smooth and successful, others have resulted in a crash and burn of epic proportions.
Here's a sampler of job candidates' potential missteps:
- Too Much, Too Soon. Candidates, just as you don't go in for a lip-lock at the beginning of a dance, you can't always expect to be given a salary range up front. Even if an open position has a corresponding salary range attached, it does not mean that these are the fixed limits of a potential salary. Your ability to demonstrate your worth and capability to perform within the employer's professional environment during the interview process will be an important factor in determining an accurate salary range.
- Failure To Research. Using the wrong information can be worse than having no information. Failing to research the market or using erroneous research (i.e. "My friend in Constantinople just got a job for 700,000 piastre, therefore I should be making …") is not the best way to get off on the right foot. Obviously …
… salaries differ between locales and cost of living is a significant variable to be addressed when considering two disparate places. There are many places to gather cost-of-living information online and using the data from a single source can result in skewed data. Use several sites to determine an aggregate range and don't forget to take a look at the fine print. Some salary calculators define their data by assuming either home ownership or rental living, and if a calculator uses a variable that does not match your situation, the results are not going to be as accurate for you. Try some of these sources:
Money Magazine: Best Places To Live 2008 and How Far Will My Salary Go In Another City?
Sperlings's Best Places: Cost Of Living Calculator
Salary.com: Cost Of Living Wizard
Home Fair: Research Your Location
Pay Scale: Cost Of Living Calculator
- Linear Expectations. Simply because an online calculator shows that a geographic region is more or less expensive, there is typically not a dollar-for-dollar compensation adjustment. I know of one job seeker from North Carolina who was interviewing at a studio in Los Angeles and this very topic of conversation came up. He demanded a 150% salary increase because the calculator said that was the difference. It may take some time for your financial barometer to reset for somewhere that is more or less expensive. Doing your research in advance can make it easier to acclimate.
- Empty Negotiations. Few people love to negotiate their own salary and research has shown that those who claim to be great negotiators are often not as successful as they think. If there are intractable barriers to accepting a position with a new studio, don't waste anyone's time making counter offers that you don't intend to accept. In the long run, negotiating without any real intent in accepting a job can make you look greedy and less than sincere. Don't be a tease; decline with dignity.
- Gross And Net confusion. Bigger is not always better when it comes to salary. A higher gross in an expensive location may end up being less. Remember, the amount you make each month is not as important as how much you keep after you pay your bills each month.
- Trying To Negotiate After Accepting A Job. Being candid about your interest in working for a company is acceptable behavior, but saying yes to a salary before doing your due diligence can result in failed expectations on both sides. Practice a variation of "I am very interested in this opportunity and need to gather some additional information before I can provide an accurate range." A good follow up question is "Do you have any suggestions for places to research or information that you have given to other prospective employees?" Hopefully, you have already done your homework and have some ballpark numbers to facilitate your decision.
And here's a sampler of several faux pas by employers:
- Too Much, Too Soon. Employers, don't be too aggressive up front. Be aware of the pitfalls of requiring salary information during a resume submission and treating it as a concrete variable. This can result in two distinct problems: Ignoring a higher-priced candidate who might be flexible or not allowing a candidate to increase their target number as more information about the studio, project, or position responsibilities come into focus. Salary demands can change during the interview process (just as your target range can). As more information about the position and studio becomes available, a candidate may increase (or even decrease) the salary that they would need to earn as an employee.
- Roll With The Changes. Should you become aware of a change in their desired salary range, it is helpful to ask about the reasons for these changes, but make sure you don't attack the change itself. (Try this: "I noticed that you were initially looking for 100 Schrute Bucks, but are now seeking 375 Stanley Nickels. Is there anything that you can share with me about this change?") If you find that you become frustrated by changes in salary expectations, ask yourself: "Do I want to hire a person who is so concrete in their decision-making process that they would not recalculate when presented new information?" While in the political arena this is lambasted as flip-flopping, here, in the real world, it is simply "changing your mind," something we all do hundreds of times a day. Take note of their reasons for the increase in their salary demands and use this to provide targeted information to your studio or specific location.
- Averages Are Just That -- Averages. I am on the fence about the utility of proprietary salary surveys. This is because their use appears to enter into discussion when the employer's offer is well below the candidate's expectations, competitive offers currently on the table, and/or what the candidate is currently being paid. Many times "off the mark" salary offers are defended with statements like: "But this is what the salary survey says they should be paid." Much like the housing market, an annual salary is not a fixed number; it should be based on what someone will pay. If a candidate is making more than your equivalent employees or has competing offers above the salary survey, it can mean a couple of things. Perhaps this candidate has something special above the average candidate, or perhaps your compensation levels need to be reviewed. If the latter is of concern, you could be well-served to put some attention to this lest your staff find out that there is the potential to make more money elsewhere.
- Give Them What They Need. Have information handy to provide prospective employees. This can come in a variety of forms: articles or publications on the local market including cost of living or housing/rental costs, Chamber of Commerce Web sites, and local realtors. One proactive employer I'm working with is in a location where they have found it helpful to utilize a relocation services company to show candidates around the area when out for interviews. The tours are scheduled in advance so that enough time can be carved out during the candidate's stay. As a result, they have found that having a local expert giving a no-pressure tour of potential neighborhoods for homes and apartments helps to better define some of the candidate's compensation variables. This is far better ammunition than "Check Craig's List for places to live."
I hope that this primer has given you some insight and ideas on how to increase your chances for success when discussing salary. Now, when the time comes, you can take a moment, dry your palms, and cross the dance floor with confidence.
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Salary negotiations are a dance. There are times when the sparks fly and you're making out with your dance partner right there on the dance floor. And, sadly, there are other times when you're stepping all over each other's feet.
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