Understanding your market value will help avoid horse trading at the interview

Mentoring

By David Thatcher

When a trading mentality influences the hiring process then it’s fair to say that business does attract sub-standard talent. If this subsequently feeds the local and regional markets creating a pool of tomorrow’s managers who fall below the mark, then this will affect regional growth. Hardly a good start to things and a strategy that will no doubt create inertia to the plans of some companies that aspire to compete in today’s global arena.

As we have explored in the past, companies that treat the human component of their business as a commodity, are creating an inherent weakness within their operations, and this weakness manifests itself amongst other things as a demotivated and despondent workforce who are expected to make difficult decisions that drive and often position businesses. A real challenge when competing under increasingly difficult and complex business conditions and, this may even put the company at risk.

Career path planning is becoming increasingly difficult to execute and manage. A major obstacle is a practice where many companies believe that is appropriate to absorb auction techniques within the hiring interview. If the hiring company is to attract the right calibre talent then it has to move away from the “what is your present salary and what are your salary expectations from this position”. This translates to “although we have set a budget for this position within our company, our driver is not who is best for the role, but who will do it the cheapest”.

Often however, the new hire has absolutely no idea of their worth in today’s job market. The question often posed hinges around ” Is it more or less than you are getting at present or in your most recent job”?

If you can’t answer these questions with a specific Dirham figure, as well as discuss benefits and perks appropriate for someone with your qualifications, you will be at a disadvantage when it comes to negotiating your compensation package.

It is fair to say that some employers may value you less than what you are actually worth and even more so to suggest that often, they will try to get away with paying as little as possible.

By the very fact they are hiring, employers have a problem to solve, the need to find the right talent for a specific position that contributes to the company’s performance. You can assume there are many good employers that are reasonable about money, although there are those who either lack comparative salary information from which to make a rational decision, while others are simply out to pay as little as possible.

Unfamiliar with what other employers are paying for comparable positions, they may offer a lower than expected salary figure. While they would prefer hiring someone who does not cost a great deal, they know top talent for solving their problems costs money, perhaps more than they are prepared to pay.

Many do not want to pay a new hire more than their last salary, yet at the same time, they do not want to develop a reputation for being a cheap or exploitative employer. What is more, they do not want to be seen as the salary leader for your type of position. They prefer paying the “norm”, which is the going market rate based upon an understanding of what other employers pay for such positions.

Early on in the interview, they may ask you about your salary history or salary requirements in order to screen you. They may want to know if you are at the appropriate pay level and if they can afford you. Or as is often the case, they may just want to see how cheaply they can get you.

Knowing the employer’s perspective, you can expect most employers have room to negotiate salaries. After all, they need to solve a problem and they know this will cost money. If they decide you are their top candidate, the person who has exceptional talent to solve their problem, they will make a good effort to attract you to their company by negotiating an appealing compensation package.

As long as your negotiating position is considered reasonable, that it reflects the salary norm for comparable positions in other organisations, you should have room to negotiate a satisfactory compensation package.

However, should your salary demands appear unreasonable, because they exceed the norm for comparable positions, you should expect to encounter difficulties in negotiating a compensation package.

Once you narrow down your choices to a single employer and begin negotiating a compensation package, the tendency is to lose sight of the larger picture of the company, the position and your future career.

As you approach the compensation issue, try to keep the big picture in mind. This big picture comes in two forms: The immediate value of the total compensation package and the long-term value of you and the position to the company.

While you should initially focus on negotiating the major cash elements in your compensation package, keep in mind the many benefits and perks that make up the total offer. At the same time, take a long-term look at the position and the company. What, for example, can you expect to be earning in six months, one year, or three years? You need to get some sense of how your income will grow with this employer in the future.

So, before you go for an interview, you need to understand what is your market value. To find out your market value, you must do your homework. Use these four pointers to guide you: Your recent salary history, what the employer is currently paying for the position, what other employers currently pay for this position and your future value to the company.

Remember, you get what you negotiate and you can only negotiate a good deal if you have given a great account of yourself at the interview.

Copyright

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Based in Dubai, David Thatcher, (CareerPartners@ameinfo.com) is the principal of career management and mentoring specialists Career Partners in the Middle East.