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Show me the money

Salary is one of the most important elements of any job – particularly for cash-strapped graduates – so it’s crucial you get a good deal. We show you how.

It’s the killer interview question that is sure to send your head spinning and your heart pounding: ‘Can you tell us what your salary expectations are?’

To many it’s a Catch-22 style dilemma. Pitch the answer too high and you’re worried that you’ll not only look greedy and naïve, but will price yourself out of a job. But pitch too low and you might be taken for a mug and paid a fraction of what you’re really worth.

However, it doesn’t have to be such a nightmare – with a bit of effort you can be confident of what sort of salary to expect. The key is knowing what you want – and how to get it.

Business coach Sean McPheat (www.gradskills.com) says discussions about salary shouldn’t be anything to shy away from.

‘Unless there’s a fixed package for the role in which you are applying for that cannot change, it is standard practice to talk about your terms and conditions at the end of the interview.

‘Most people feel uncomfortable when talking money and what they want. This need not be the case. If you have had a good interviewer and you can see that the company is keen then you do have a considerable amount of power.’

It’s crucial that you do your homework on what sort of money you should be asking for before you go anywhere near the interview room, according to Arvind Devalia, life coach and author of Get the Life you Love and Live it, (www.getthelifeyoulove.com).

‘Do your research and find out the starting salaries for the seniority level and type of job you are going for, and prevalent within the industry you are targeting,’ he says. ‘Do not undersell yourself for fear of appearing greedy.’

‘Come across as confident and state your worth. Pitch yourself at the level that seems right to you – employers may make you a lower counter offer if they are really keen on hiring you’.

What’s the minimum?
Work out the minimum salary you could live on by calculating your living costs and monthly outgoings – including rent, food, travel, socialising, loans and so on. Be realistic and accept that you may have to reign in spending.

The minimum income you can live on without drowning in debt will help you fix a baseline salary you shouldn’t dip below, though of course you’ll be aiming for a far higher amount.

There are exceptions to this however – for instance some media jobs in London pay so little that the salary isn’t enough to cover the high costs of living in the capital. In these cases new recruits often live off savings or their parents and hope they’ll get swift promotion in order to earn far better money.

Do your research
It’s crucial you know what a reasonable salary in the sector will be – this should prevent you making any damaging mistakes when it comes to talking about money.

Look around job adverts, websites, newspapers and talk to friends and family, particularly if you know someone already in the industry.

Careers fairs are also a great way to pick up information on expected salaries as you can often meet a large number of employers in a short space of time. Feel free to chat over with the representatives what sort of pay is on offer – they’ll be more than happy to give you the lowdown. Log on to www.gradjobs.co.uk for careers fairs listings.

What’s the hidden value?
Some jobs pay very little initially, but for those recruits who stick it out, the financial rewards can increase relatively quickly with experience and promotion.

The sort of training, support and guidance on offer in a job can be far more important than just the salary, especially when taking into account long-term career goals.

You should ask interviewers exactly what the prospects are for promotion and career progression, and what sort of position or role they expect you to be in a year or two’s time.

Remember that by only going for jobs with higher initial salaries but poorer long-term prospects, you could badly limit your overall earning potential.

Get the timing right
Aim to discuss money towards the end of the interview when hopefully you’ve shown the panel how impressive you are and why they should want to employ you.

If you’ve got a series of interviews with a firm, it may be best to leave the money discussions until the second or third round, as this will demonstrate that you consider the job itself rather than the pay to be the most important factor.

Try to be confident and calm when discussing your salary, and keep something of a poker face to avoid showing your true feelings on how much – or how little – you’re being offered.
 
The salary question
Answering ‘What is your salary expectation?’ is never easy, but if you’re clever you can turn the tables on the interviewer. Instead of blurting out what you want, try to discover what the firm is offering.

When posed with the salary question, say to the interviewer: ‘Could I ask what the salary range is for this job?’

It’s likely that interviewers will be honest in their reply, possibly saying something like ‘About £16,000 to £19,000 depending on experience and qualifications.’

Once you know what the firm is willing to pay, you should aim for the top level – or even more - giving the interviewers hard evidence of why you think you’re worth the money.

Negotiate
Depending on the job and the company, there may well be a fair degree of leeway on salary or parts of the employment package. Remember, if you don’t ask, you won’t get.

The trick with negotiating, like poker, is to hold a strong hand. And while it’s fine to push the boundaries a bit, too much bluffing could see you fall flat on your face.

Remember that salary negotiation is a two-way street – you obviously want the job, but the firm wants to fill the position with the best person available, and will often pay a premium to achieve this.

The key is to keep in mind your own unique strengths, skills, experience and abilities – and why the firm will want them.

Asking for more money or a better benefits package shouldn’t harm your chances of getting the job, so long as it’s done in a professional and courteous manner. You may just get what you want – and at worst you’ll probably get a polite, but very firm, ‘no’.

Be realistic
Just because you’ve got a degree doesn’t mean you’re going to walk into an executive-level job. The fact is that the best jobs are so hard fought over that salaries for new recruits can be kept artificially low – if one candidate won’t do it for the money there’ll be 10 more who will.

Walking into an interview demanding a vastly inflated amount – with a figure far above the accepted norm – will at best amuse the interviewers and at worst irritate them. It’s fine to be optimistic, but you also need to know how far to push it.

What’s the overall package?
Salary isn’t everything. Look at the overall benefits package on offer to see if there’s any other perks – financial or otherwise.

These can include: company cars, expense accounts, holiday allowance, sick pay, pensions plans, health care, child care, gym membership, paid-for training, and maternity and paternity leave.
It’s also possible that you may be able to negotiate an increase in benefits even if you can’t get a higher salary – more holiday allowance for example.

Be wary of statistics
The average graduate starting salary is £23,000, according to the Association of Graduate Recruiters. While this figure is true for some of the biggest employers in the UK, many other smaller businesses not included in the survey are offering far less.

This means you have to look carefully at the industry sector you’re in and the sort of firm you’re applying to before making direct comparisons.

Where a firm is located will also be a large factor in what they are prepared to pay thanks to the difference in the cost of living. Employers in London and the South East are more generous when it comes to salary, while those in the North for example will offer smaller pay packets. This bring us to…

London weighting
The cost of living and working in the capital can see your salary squeezed dry before the paycheque even hits the bank. London is one of the most expense cities in the world and it’s crucial you factor in the extra cost of housing and travel.

Some large employers with presences across the country – mainly in the public sector such as healthcare, the civil service, teaching and the police – offer a London weighting allowance which is meant to help make up for the higher costs.

This weighting can be worked out as a percentage of salary or as a fixed amount – anywhere between £2,000 and £4,500 is common. Sometimes the figure is worked out on the distance you live from Charing Cross – defined as the centre of London – with the reasoning that accommodation is cheaper the further out you go.

And finally…
Even if you don’t get the money you want, or that company car or free gym membership that you had your heart set on, don’t worry too much.

After all, you’re at the very beginning of your career and what you earn in the future and how fast you progress is down to you.

If your first job doesn’t pay what you’d hoped, use it to gain valuable experience and contacts and move on when the time is right. If you concentrate on being the best you can, it’s far more likely that the money will find you than if you just dwell on how much you want to be paid.

The experts’ view
‘Be confident. If you don’t ask for enough it’s hard to increase it later; if you ask for too much and they like you, they will negotiate or offer a staged increase say in six months or after a probationary period. If you ask for far too much they will let you know one way or another’. Mike Guttridge occupational psychologist and career coach, www.metamorph.co.uk.

‘Do some research before the interview – look at job advertisements for similar roles or on job boards.  This should give you a flavour for what your market worth is.  Most employers will pay employees what the job is worth not what they can get away with.  So if you really don’t know be guided by the company.’ Lindsay Hanson, joint founder of recruitment consultancy Resourcing Matters, www.resourcingmatters.com.

‘The best option is to be honest, most employers know what they will pay their graduates; and unless you have a specific figure in mind that you would not accept the job on, it is best to say you are looking for the market rate. But make sure you find out what that is.’ Kate Douglas, HR director of online media buyer specialist i-level, www.i-level.com.

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