In a tight economy, know what you need in the salary game

Working Section, November 7, 2001

By Laurie Kahn

Hiring is a game; the person hiring will always want to pay the least, the person interviewing will always want the most.  It is smartest to keep definite salary figures to yourself until the offer stage.

In today’s economy, you should know exactly what you have to make, not to be confused with what you want to make.  There are lots of competitors up for every open position and companies, when hiring, are watching every dollar.

Many people are taking less money to get the right position with a company where they feel secure.  It is an employer’s market, which is much different than where we have been for the past few years: It is important to really know your personal finances as well as the going rate for the job you’re applying for.

It is crucial when you go into an interview that you really understand what you are being paid in your current job.  Many people give their take-home figure versus the gross pay, which will hurt them in the offer stage.  They also do not always include bonus and perks when quoting a salary.

Consider what costs are related to your position.  Do you get parking or transportation reimbursement?  Do you have 100 percent of you insurance paid?  Do you have an expense account?  How about cell phone coverage?  These are all items to consider when considering what you really earn.

If you are negotiating for a freelance position where you will be paid as an independent contractor, you must add your tax burden to your figure.

Many companies have a pay scale per position.  By requesting your salary range, they will know how and where you fit.  Keep in mind that if this is a new position that the company has not hired for the past, you may not fit in their structure due to your past salary history.  They may need to do additional homework on your position to really get an idea on what the “going rate” is for the position.

Once the person doing the interviewing recognizes that there is a partial fit, they should bring up a salary range to confirm that the position for which you are applying fits in the range being paid.

Always be honest about what you have made in the past.  You may be asked to document your salary by showing a previous tax form, W-2 or pay stub.

More than likely your salary history will be on the employment application, which means it may be verified.  Should you give an overestimated number, which comes to light in the verification process, you may be discharged for not being honest.

In may cases, the employer needs and wants to hire the right person and will do what they can to match those needs.