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High Salaries Haunt Some Job Hunters

187 pointsby kliaoover 9 years ago

25 comments

pmoriartyover 9 years ago
&quot;Time and again, he says, employers seem to lose interest after he answers a question that they ask early on: &#x27;What was your last salary?&#x27;&quot;<p>I never answer that question.<p>Almost always it&#x27;s been recruiters asking that (and only some recruiters, the less reputable ones).<p>This is a seller&#x27;s market for IT talent. You don&#x27;t have to give in to bullying tactics to get a good job. I&#x27;ve had to walk away exactly once when a recruiter wouldn&#x27;t accept that I wasn&#x27;t going to tell him my previous salary and refused to work with me on that basis. The other recruiters who&#x27;ve asked accepted my refusal to reveal that information. They&#x27;re generally more interested in getting paid for recruiting you than in finding out what you used to be paid.<p>I also never reveal the salary I&#x27;m looking for and insist on doing my own salary negotiations with the employer. I let the employer make an offer they think is reasonable and go from there.<p>You do have to be willing to walk away in the handful of times when this leads to an impasse. Fortunately, the way the IT job market is right now, there are plenty of other fish in the pond, and not showing your hand prematurely puts you in a much stronger negotiating position.
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ChuckMcMover 9 years ago
I expect there is more than one factor at work here.<p>I&#x27;ve known folks who &quot;grew up&quot; in a single company; joined out of college, worked there 15+ years, got annual raises, then got laid off and then couldn&#x27;t find work at their previous salary. And the expectation of an annual raise kept forcing up their salary but I don&#x27;t think the company was actually evaluating whether or not the person was getting more valuable over time.<p>I once had an interesting conversation with a recruiter who wanted me to pony up my current compensation. I asked, &quot;Why is that relevant? You are the one with the job, and you are willing to pay some amount for someone to do that job, isn&#x27;t it up to me to decide if I would be willing to do that job at the price offered?&quot; There are jobs I would do for free, and jobs that you almost couldn&#x27;t pay me enough to take, and that has nothing at all to do with what I&#x27;m currently being paid.<p>And if someone insists, I really do think they are looking to have something on paper that they can point to which will give them a safe &quot;out&quot; for hiring someone else while minimizing lawsuits. So much safer than &quot;we are looking for someone who has more time to spend in this position&quot;, or &quot;we were really hoping for a masculine point of view&quot;, or &quot;we don&#x27;t think you could relate culturally to our customers.&quot; All of which would violate the equal opportunity guidelines.
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cushychickenover 9 years ago
The moral of the story: never, never, NEVER answer questions about your salary to a recruiter. It firmly pigeonholes your next salary to your current one, instead of the value you bring to a company.<p>Patrick MacKenzie&#x27;s article on salary negotiations is excellent (I would maybe even say &quot;required&quot;) reading on the subject.
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skewartover 9 years ago
&quot;Say, ‘I’m open to a salary commensurate with the job,” recommended Blake Nations, a former recruiter who was laid off and then founded Over50JobBoard.com. “And if they keep going, ask: ‘What do you expect to pay someone with my experience and education for this position?&#x27;&quot;<p>This. If you&#x27;re asked early on just flip the question back to them.<p>Companies don&#x27;t publish salaries for jobs because they&#x27;re afraid of turning people off from applying to the job in the first place. They know applicants are more likely to take a lower offer after they&#x27;ve invested time into the process and maybe have a little rapport with the interviewers. You can use the exact same strategy as a job seeker. Companies can be more likely to accept a higher ask after they&#x27;ve put resources into interviewing you and gotten to know you a bit.<p>That said, an honest chat about expectations early on - where the hirer says roughly how much they&#x27;re looking to pay and asks if it&#x27;s something you&#x27;d be interested in - can be a really nice way to save everyone&#x27;s time.
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pc86over 9 years ago
&gt; <i>After more than 20 years as an electronics engineer, Pete Edwards reached the low six-figure pay level.</i><p>Where is it that late-career engineers are barely pulling in six figures? Don&#x27;t get me wrong, it&#x27;s a lot of money (3x mean personal income in the US, and ~1.75x mean HHI, give or take), but I&#x27;d expect most senior folks in any engineering field to be in the mid 100k range if not pushing 185ish.<p>&gt; <i>Time and again, he says, employers seem to lose interest after he answers a question that they ask early on: “What was your last salary?”</i><p>Your last salary has absolutely no bearing on what you are worth or what the market rate is for the position for which you&#x27;re applying. You have absolutely nothing to gain by sharing a previous salary.<p>&gt; <i>A survey by AARP last year found that of job seekers between 45 and 70 years old who found work after a spell of unemployment, nearly half earned less than before.</i><p>I don&#x27;t think this is that surprising, is it? If I make $100k and lose my job, often with little notice, I will take $80k. If I make $100k and leave of my own volition, it&#x27;s unlikely I&#x27;ll entertain anything below $110 or $115.
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vinceguidryover 9 years ago
I have been thinking about this phenomenon for awhile and how to hedge against it. My feeling is that employees are getting more and more exposed to broader economic trends, and not just the low-wage workers.<p>It&#x27;s one thing to be at the low end of the totem pole, where anonymity and insecurity force you to hedge against the possibility of suddenly losing your job. But once you clear all that and find a bit of professional success, you&#x27;re still not necessarily secure.<p>So you have to extend this hedging behavior further out. Keep building your skills, expand into other fields so that you are more employable. Complacency will put you into this position eventually, it&#x27;s just a matter of time.<p>Don&#x27;t leave a secure position to take one with more earning potential but less security. Constantly keep building bridges at your current job and don&#x27;t give them a reason to fire you.<p>Above all, try not to hate your job. You may find 5 years down the road that it was the best thing you had going for you. As nasty as the work world can get, it&#x27;s better than not working.
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hackercomplexover 9 years ago
In my view the entire problem is that developers in general have been brainwashed into beliving that they are better off dealing with recruiters when in fact the best thing they could do for themselves would be to do their homework, that is, research companies that are hiring, figure out who to contact, and write a personalized introduction email.<p>If you do that then you have two things in your favor already..<p>1. you are cheaper to hire because there are no recruitment feeds associated with you.<p>2. you showed some initiative to zero them out, and you demonstrated that you have creative writing skills which are an important trait in software development
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OhHeyItsEover 9 years ago
Finding engineers is soooo hard! There are no good engineers!
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free2rhyme214over 9 years ago
This is a surprise, said no one ever.<p>Sometimes companies will pay for experience but often they&#x27;ll hire someone younger who screws up more because they cost less.
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y-c-o-m-bover 9 years ago
Companies that hire like this will typically be the first to layoff employees when shareholders are not happy. They often struggle to meet customer expectations over time. This is particularly true if they have never ending layers of management going up the chain. That&#x27;s why startup culture is so appealing to many.
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marktangotangoover 9 years ago
I recently found myself in a stale role, and hence I&#x27;ve been job searching lately, so I have recent experience. From my anecdotal experience, the local job market is hot for my skill set, so I&#x27;m looking for a 10% raise. I&#x27;ve gotten 3 offers from 3 companies. Two would not come up to my required salary so I walked. The third came up, but it was a W2 at a contracting shop, and wasn&#x27;t too appealing for a couple of reasons. So I passed on that as well. I still get pinged multiple times per week, sometimes for the same job at the same company I&#x27;ve already turned down, which I find a bit amusing.<p>Now I&#x27;m continueing the search, but openly talk about what I&#x27;m looking for salary wise, I&#x27;ve wasted quiet a lot of my own time this past month.
njharmanover 9 years ago
Moving from engineer in financial industry to engineer in &quot;regular&quot; industry (same city) I just accepted and told potential employers I expected a pay cut. Sooo much money in finance, everyone is &quot;over&quot; paid.
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lmmover 9 years ago
The tendency to talk about salary upfront is a good one for both sides - it avoids wasting everyone&#x27;s time when the expectations simply don&#x27;t align.<p>It does need to be mutual though. I expect employers to include some salary guidance in a job ad. And if they claim to offer market rates, I expect them to live up to that.
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throwaway29342over 9 years ago
I did something sort of crazy when the last recruiter asked me about my salary. I lied.<p>The number I told him I was being paid at the time was actually the number it would take for me to leave my job. He came back with an offer that was slightly higher than that and I accepted.<p>Perhaps that&#x27;s not the best idea?
alvernover 9 years ago
Sigh, paywall
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giziover 9 years ago
I am only ever in the market for co-founder jobs, and not really looking at the moment, because I really like my current co-founder job. Besides good domain knowledge, and preferably an existing customer base, the non-technical co-founder will need to find enough money for the startup to survive until the inflection point. Otherwise, they are 12 in a dozen. If a potential non-technical co-founder wants to save money by not paying enough, it is quite easy to cut the discussion short and to move on to another candidate -- entire websites full of them. There is really no shortage there. Lather, rinse, repeat. Salary history? Sounds like a ridiculous concept. I don&#x27;t even remember my previous salaries.
sqldbaover 9 years ago
Wow, madness. So before we were told not to ask the question in interviews; but suddenly it&#x27;s ok to be asked the question in interviews.<p>For me it&#x27;s definitely negotiable. If you can&#x27;t afford me then after negotiation then any gulf can be made up with a guaranteed longer contract or shorter hours; it&#x27;s as simple as that.<p>Disqualifying off the bat is stupid, especially as some places pay extra because they need someone urgently for a short period.
pjungwirover 9 years ago
Interesting discussion here about whether candidates and companies should reveal their range up front. Personally I would not quit freelancing except for something really exceptional, so I lean toward talking numbers immediately. That saves my time, but I feel like it&#x27;s actually pretty unreasonable. In the freelancing world, we suffer from a &quot;market for lemons&quot; situation where the bad freelancers hurt everyone&#x27;s rates. To charge a premium rate you need prospects to trust you a priori, which probably means referrals. I suppose candidates for full-time jobs suffer the same thing: asking for an &quot;unrealistic&quot; salary at the beginning of the process, when you are an unknown, just gets you thrown out. I suppose the way around this is to have an insider who will vouch for you. Any other advice on being able to ask for a high salary and not be dismissed?
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learnstats2over 9 years ago
“I’m unemployable now as a result of getting to the top of the tree”<p>This shows a lack of understanding of the market and poor self-awareness for someone who claims to be at the top of the tree.<p>The average company is looking to employ someone who will do the same job cheaper.<p>In order to earn more, it&#x27;s necessary to identify employers who are willing to pay a premium for convenience or for an unusually skilled or experienced worker, and be aware of those before getting laid off.<p>This man seems particularly aggrieved that he lost a role to a &quot;young woman with five years experience&quot;. A white man should not and does not automatically trump a woman - if he costs more (which he doesn&#x27;t actually know for sure) then that&#x27;s his problem.
dba7dbaover 9 years ago
This is why for every thing I learn in IT&#x2F;computer, I angle for a skill that I can use in freelance or 1-person company. Not interested in some proprietary skill that requires expensive hardware to stay current. Such as Cisco or storage stuff.
pmoriciover 9 years ago
The article doesn&#x27;t really address it directly but they seem to be mainly talking about people who are looking for jobs who are currently _unemployed_. They are in a position of weakness when it comes to looking for a job and especially when negotiating salary. I think this has way more to do with that than any alleged trend of talking about salary up front. It&#x27;s been the norm for decades to ask framing questions about salary early on.
smileysteveover 9 years ago
I find recruiters hurt this more than help it too. If you tell them your last salary, they&#x27;ll just try to get enough % more to make it worth the transition.
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meltedover 9 years ago
IMO the whole situation could easily be avoided if employers provided salary ranges up front. I heard that&#x27;s what they do in Japan, and several recruiter pings I have received from there did contain the ranges. Alas they were too low to justify the aggravation of moving to another country, but from what I can tell, they were very respectable by Tokyo standards.
desireco42over 9 years ago
As someone who keeps getting more and more money, I find other limit as well. Your only job is to be in-demand and don&#x27;t tell recruiters everything. Let them tell you, how much they can get you (and this is often bull, so think and research).
aaron695over 9 years ago
TL;DR people who are unemployed aren&#x27;t willing to take less than 100,000 a year and feel like the system is screwing them?<p>Off topic, but I&#x27;ve said I won&#x27;t answer it because of commercial in confidence reasons before.