How do you decide how much is enough pay?

[notallwhowander]

When you're looking at a new position, how do you decide how much is enough pay? How much do you think the economy is hurting the pay rates for your current profession (not that you'd be asked to take a pay cut, but if you found the same position at a different employer)?

I've just been offered a job (yippee!) at a significant pay decrease (and with fewer benefits) from my last job. The responsibility level is almost exactly spot-on the same.

I can't decide if I was just overpaid at my last job, if they're lowballing me, and/or if this is the pay for the job in this economy. I don't know anyone else who has this same job, so have no one to ask around here. I checked a couple online sources, and their "average" for my area is about what I made before, way more than I'm being offered. But are those out of whack, again because of the changed economy?

What resources do you use to estimate what a position salary should be in the range of?

[thyme4change]

I think in many cases, employers are hoping to find desperate employees for cheap and use the economy as an excuse. Sure, the unemployment rate is high, but most people are still employed. I know there have been some pay cuts, but I suspect a vast majority of people earn the same or higher than they did 3 years ago. I would try and negotiate to get closer to the average in the area.

That said, I have taken small paycuts in my career to jump into a company that I wanted to work for. In my case it was worth it. I've done well at smaller companies, but sometimes the entry comes at a price.

[notallwhowander]

Hmmm. This is a cut of $6.50/hour. I was thinking about $2/hour more than the offer would be okay. I'm waiting on a call back on some other questions, perhaps I will try to negotiate up that $2. I suppose it doesn't hurt to ask, as long as I am professional about it?

[Rocky Mtn Saver]

How would the paycut work for your needs? Would it be enough? How desperate are you for a job?

[thyme4change]

I would just say "This is quite a cut in compensation compared to my previous position. I did a little research, and you appear to be significantly below market value. Is there room for improvement on your offer?"

[Rocky Mtn Saver]

Oct 8, 2012 18:20:31 GMT -5 thyme4change said:

I would just say "This is quite a cut in compensation compared to my previous position. I did a little research, and you appear to be significantly below market value. Is there room for improvement on your offer?"

Nice wording!

[notallwhowander]

I would just say "This is quite a cut in compensation compared to my previous position. I did a little research, and you appear to be significantly below market value. Is there room for improvement on your offer?"

That's perfect! Thanks and K!

Rocky Mtn Saver: I can meet my needs on the offered pay, if DH continues to make what he has been making (his position has become somewhat tenuous of later, although nothing drastic should happen for at least 6 months) or in that range. Maybe a little less for extras than I would like, but bills would be paid, some $ would be going to retirement, some $ to savings, etc.

I've been out of work for 6 weeks at this point, and really, really would be uncomfortable (mentally, at least, financially we'd still be okay) if I didn't find something before Christmas.

[notallwhowander]

Additionally, unemployment in my county is at 9.3%, down from 11.8% two years ago.

[Rocky Mtn Saver]

Hmmm, tough call, then. When/if to take a lowball is always a tough one. I'd definitely try Thyme's diplomatic inquiry tactic.

[Deleted]

I don't know, i have had jobs across the spectrum. A dollar is a dollar. Obviously, when looking for a job you try to negotiate the best deal and go from there. And, money isn't the only factor as you might look at benefits, perks, and other opportunities.

[p8nt]

Were you able to get more pay from them?

I am still making 7% less than I was 3 years ago. (At one point it was 13.9 % less) My industry has taken pay cuts and I'm part of California's sweeping pension reform. *grumble grumble* I live in a very small town and even at 7% less, it beats most jobs available out there.

Where do you live? My sister is an HR manager in the San Francisco Bay Area. Her company moved their HQ to Denver in February and she's received multpile job offers in the last 8 months. She accepted a position that she felt wasn't quite right for her because she was worried about the economy, and now she's looking again and is in final interviews for 3 jobs and got offered a fantastic 2 month contract position at a huge pay increase. So, depending on your area and industry, I may hold out for what you know you're worth.

[CarolinaKat]

Are you currently employed? This will give you more leverage in negotiation than if you are currently unemployed.

[notallwhowander]

Well, that didn't work. I did counter at $2 more and get it, but arrived on the first day to find that the job was not what it was purported to be in the interview. After a discussion with the main partner, we ended up parting ways quickly. I was/am so upset about it, since I thought it was going to be a good learning opportunity, but staying would have ended up a disaster. I was glad to see when they relisted the job posting, they made it more accurate to what the job actually is! Don't understand how they really thought I wouldn't notice the job wasn't as described? What they had indicated was 80% of the job was actually only about 5%.

Unfortunately, the two offers I had turned down after taking this one had already moved on to their next candidate, but I do already have one interview on the books in a couple weeks.

p8nt - I'm in the Northern Valley in CA. There are quite a few jobs in my industry because of where I am, luckily.

[p8nt]

Good luck, I hope the perfect job comes through for you. I'm also glad you got out of there quickly. I despise being at a miserable job and if it wasn't what you wanted, then I'm glad you aren't sticking around.