Quick: salary negotiation help, please.

[KelNottAt]

Help! DSis just got a new job offer today. She’s currently part-time making $19.50 per hour non-exempt. The new job offers a full-time annual salary of $35,500 exempt (the absolute bottom of the posted "hiring range"). That’s only $17.50 per hour. The new job is with her current employer of 15 years.

When the HR guy told DSis the salary, she politely pointed out what she’s currently making hourly. HRGuy didn’t spot the PT/FT hourly difference and said he would go back to the Compensation people for a more equitable offer. (We don’t blame him; he’s just filling in since the HR gal who has worked the position all along has a few days off.)

So, how will this play out? Does DSis have a shot at something better? What’s the typical HR/Compensation rule of thumb in a situation like this? Any advice?

DSis really wants the job. But a net annual increase won’t feel too good if it’s an hourly cut. KWIM?

TIA,

 

[snoopy]

We offer the lowest and depending on skill, we'll go about 3/4 of the way up the range. In her case, she should be brought up to at least what she is making and probably 10% on top of that.

 

[LadyyRedd]

Actually, $35,500 is only $17.06, so make sure she realizes that if she takes it (I know that you generally about double the hourly rate to figure out the salary, but the hourly rate is really a little less than half).

Kimya

 

[barkley]

if it's a government job they generaly offer you the pay step that is at least 5% above your current salary-but only if the position is considered "promotional". if the position is a lateral transfer or to a lower rated job (which some folks do to get into a better promotional track) you stay at your current salary and do not get any increase.

 

[Laurajean1014]

If she really wants it then there is no negotiations.

To negotiate successfully, you have to be willing to walk away.

$17.06 an hour is cheap for 15 years of service.

Did she ask why she was offered the low end of the scale? Did they give her a reason for their offer? Just because they know what she makes does not make it right to offer less per hour.

Does the company offer great benes? Do they offer a pension, extensive vacation, sick or personal time? Do they offer bonuses or stock options? These questions should be factored into the yearly salary, because they do hold value.

I would question why after 15 years, are they offering so little.

 

[Honu]

Generally, when I'm coverting someone to exempt status their salary is increased 10-20%, depending on the position. She also should factor in any perks or additional benefits she may get with the promotion. I agree that her base is low for that many years of service.

One of the worst times in my career was going exempt and losing $20k+ in pay because there was no more overtime. It was worth it in the long run, but it took a long time to catch up.

 

[TENIA66]

We do a great deal of hiring, and generally do not waiver from the bottom end, however.....a few individuals are so qualified or potentially beneficial to the business that we do basically let them "name their price" within reason and then meet it...those are few and far between.....she needs to be willing to stay where she's at and express how she is more uniquely qualified for the position than any other eligible candidate and how she would in that position would provide a contribution to the business in excess of her salary...............................

 

[KelNottAt]

Thanks for the replies, everyone. To answer a few questions...

It's not a government but job, but it does have great benefits. medical, dental, FSAs, 529, 401k, lots of PTO, bonus, etc.

We believe they offered her the lowest end of the hiring range because, since she's currently making $26,000, an offer of $35,500 looks great. Until you look closer and realize that if she was FT in her current job, she'd actually be making +/-$41,000.

This job is considered a promotion, not lateral. At her company, there are 2 non-ex grades and 3 exempt grades. She'd be leaving the higher non-ex for the lowest exempt.

Yes, $35,500 is low for 15 years of service. It's a shame. But, I think there's a history of people accepting that insult just to escape the call center.

I haven't asked DSis if she's willing to walk away from the offer; and I hope she's not. She's miserable where she is and really needs to get out. But, OTOH, she is quite disheartened by the offer. We're all hoping the inequity is just an oversight and the HRguy who's substituting on this recruit will be able to get Comp to at least match her current hourly. If I was in her situation, I'd take about $18.00 per hour just escape; but I haven't told her that. This is a personal decision and I don't want to be seen as pressuring her.

Thanks again and stay tuned...

 

[KelNottAt]

Well, the Compensation dept gave its reply to matching DSis's hourly wage: no.

So, since she's so desparate to get out of her current work environment, DSis took the new job at $35,500.

While it's not the money she wanted, it is an escape and $10,000 more than she's making part-time. So, we're looking at the glass as half-full.

Thanks for your insight,

 

[russtwinsmom]

Instead of a raise now, counter with a review in six months with a percentage raise based on the results of the review.

 

[Judy from Boise]

I calculate that her old job she would of earned 40,560 annually if FT. So in reality she took a 5000 pay cut and gave up OT!
In spite of that I can see where quality of life can be priceless!

 

[chell]

Does the company see it so that the benefits offset the pay? Hopefully they will give her a raise real soon.

 

[Pop Daddy]

if I asked for more money they would threaten to replace me with a monkey

 

[LuvTigger]

Does the company see it so that the benefits offset the pay? Hopefully they will give her a raise real soon.

I was wondering this too. I worked PT at a bank once, where I was receiving a higher hourly pay, but few benefits. When I went full-time, my hourly pay went down, but they paid for my medical. What your DSis needs to find out (if she hasn't already) is if she will be receiving more benefits, and the value of those benefits. She cannot just look at the hourly salary alone without considering those other factors. Another example is vacation and sick leave. If she does not have those things right now and will be getting them by going FT, there is value added to the package.

BF's company is really good about detailing the actual cost of the benfits, so he can see not only his salary, but the actual value of all of his benefits.

 

[KelNottAt]

Instead of a raise now, counter with a review in six months with a percentage raise based on the results of the review.

Yes, that was one reason she took the job. Everyone in the company gets a review in February, with merit raises effective in March. So there is potential to go up 3% - 4% in 4 months. (Her start date is early Nov.)

As for benefits, she was eligible for all the same benefits (including PTO), at the same prices, as FT employees...except she earned fewer "credits" for purchasing them.

Have a good weekend,