Although hiring of new college grads is down (NACE poll ..

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Deal or No Deal? How can I get the starting pay
I want?

• March 30, 2009
• Sally C. McKay
• Director Human Resources
• Belmont University

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The Bad News

• 52 companies are cutting back on hiring
• It takes longer to find a job average is 6 to 9
  months
• Although hiring of new college grads is down
  (NACE poll shows employers expect to hire 22
  less college grads than 2008), hiring of high
  school grads is even lower
• With the current economy, the value of a college
  degree is even higher!!

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The Good News Value of College Degree

• US Census Bureau report 2006, the average gap in
  salary between those with high school and college
  degree almost 20,000.
• Average college grad earns 1.62 times the
  lifetime earnings of high school grad.
• Recently published 10-year Hudson Institute study
  sponsored by Bill and Melinda Gates Foundation
  showed 35 increase in median earnings for
  college grads over students who left college with
  no degree.

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The Value of a College Degree?

• US Census Bureau, State of TN 2006 American
  Community Survey
• Degree levels in Tennessee
• 81.8 have high school diploma
• 21.5 population have bachelors degree
• 7.3 population have advanced degree
• Average personal income in Tennessee
• 24,286 with high school diploma
• 40,838 with college degree
• 67,986 with graduate or professional degree

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How Is My Pay Determined?
Job
Individual
Internal Value
External Value
Individual Performance
Job Value
Performance Rating
Pay
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Internal Value of Job

• Depends on size of company - may use formal or
  informal system to define jobs
• Titles do not tell the whole picture
• Common factors used to differentiate internal
  value of jobs within a company
• Scope Complexity of Job
• Financial Impact of Job
• Interpersonal Focus / Communications with
  Customers
• Leadership or Supervisory Responsibility
• Education / Knowledge / Skills

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External Value of Job

• What is Market Value of Job?
• Companies pay for salary survey data specific to
  location and industry
• Market value differs depending on level of job
  (experience, education, etc.)
• Company philosophy
• Pay at Market
• Pay above Market
• Pay below Market

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Belmont Entry Level Professional Jobs
Nashville Market - Salary Survey Info

• Assumes 1-3 years experience
• Computer Technician - 43,994
• Admissions Counselor 34,872
• Campus Health Nurse 51,406
• Accountant 44,487
• Associate Mgr. Bookstore 40,597
• Writer/Editor 49,238
• Graphic Designer 43,839
• Communications/PR 44,698

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National Starting Salary Offers New College
Grads (bachelors degrees)NACE Fall 2008
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Offers for Business Majors NACE Fall 2008
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Hot Jobs in TN 2006 to 2016More than a
Bachelors Degree
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Hot Jobs in TN 2006 to 2016Bachelors Degree
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How does an Employer Calculate Starting Pay?

• Starting pay is generally decided by Hiring
  Manager with assistance from HR
• Hiring manager/HR considers
• Pay range of position
• The candidates experience, knowledge and most
  recent pay level
• The pay of comparably experienced staff within
  the company in the same pay grade
• Supply vs. demand for position
• Budget of the unit

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The Range is 25,000 - 40,000How much will
they pay me?
Maximum Pay of Range
40,000
Top third
Performance consistently exceeds standards
Performance meets and occasionally exceeds
standards
Typical market range
32,500
New to position or performance does not
meet all standards
Lower third
25,000
Minimum Pay of Range
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They offered me a job and a starting salary.
What do I do now?

• Dont accept immediately ok to ask for a few
  days to consider.
• Do some research
• Look at the job ad and key factors to assess
  internal value of job.
• Look at company website for any info on pay
  ranges and company benefit information.
• Talk to others in similar jobs to get an idea of
  starting pay.

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Do Some Research

• Use Belmont Career Services
• Use Belmont and local Library resources
• Look at websites specific to your profession
• Look at total pay package consider what if any
  to negotiate

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Why Negotiate?

• 100 employers expect you to negotiate, but only
  about half try
• Men negotiate more than women
• Employers perceive those that negotiate to have
  higher skill levels because of the effort shown
• Be polite and know that some companies do not
  negotiate
• Know when to stop and make decision

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Three Principles of Negotiating

• Only negotiate after a firm job offer
• Be respectful, know what you are talking about
  and dont beg
• First person to name an exact amount in effect
  loses ability to negotiate any more
• If they ask how much you expect, ask them, What
  is the salary range?
• Do you have more than one offer? How attractive
  a candidate are you?

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Why Negotiate? Salary Differential in 3 years
with 4 Raise Each Year

• 30,000 after 3 years 33,745
• 32,000 after 3 years 35,996
• 35,000 after 3 years 39,370
• What is negotiable other than Pay??

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What can I negotiate?

• Sometimes negotiable
• Pay and review date for merit increases
• Signing bonus for jobs in demand (nursing for
  example)
• Starting date
• Job title
• Additional first year leave for already planned
  vacations (generally unpaid)
• Relocation expenses
• Perks such as cell phones, lap tops
• Professional conferences, training
  certifications, graduate school tuition
  reimbursements
• Flexible scheduling such as start time
  telecommuting

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What can I negotiate?

• Rarely if ever negotiable
• Overtime eligibility i.e. if the job pays
  overtime when gt 40 hrs/wk worked
• Retirement benefits such as 401K matching amount
  vesting schedule
• Health, dental, vision and other insurance
  premiums
• Insurance and other benefit start dates

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Other Areas to Consider

• Is the company culture similar to what I value?
• Similar dress, work hours, work/life balance
• Are the people I met enjoying their jobs?
• What are the opportunities for job advancement?
• How far a commute or how much traveling is
  required?
• Is parking free?

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Make Your Decision

• Remember, it is easier to move up in an
  organization than to move into a new one.
• Whether you accept or not, be polite and thank
  everyone associated with the hiring process
  NEVER BURN BRIDGES!

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Your New Salary

• Assume starting annual salary of 38,760
• Social Security/Medicare _at_ 7.65 2,538
• Approx. Federal Taxes for single person with
  standard deduction 4,305
• 401K contribution _at_ 5 salary 1,935
• Approx. cost medical dental 960
• Total Annual Net Pay 29,022
• Net Monthly Take Home 2,418.50

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Websites for more information

• www.salary.com - Excellent tool with free salary
  range information and more extensive fee paid
  information
• www.sourcetn.org TN wage and job info
• www.tn.gov/labor-wfd/wages/intro.htm - TN wages
  for over 700 occupations
• www.acinet.org - Government site with a variety
  of career-related information
• www.homefair.com/ and www.bankrate.com
• Calculators compare salary offers by location

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Websites for more information

• www.naceweb.org/ - Website for Career Services
  professionals with links to info on jobs for new
  college grads
• www.collegegrad.com- Offers free job-related
  videos. Each video is about 1 minute in length.
  Provides quick, practical advice on resume and
  interview preparation, answering tough interview
  questions and info on over 50 different careers
  and industries.

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Other Print Resources

• Help Was that a Career Limiting Move? Pamela
  Holland Marjorie Brody
• Women Dont Ask Negotiation and Gender Divide,
  Linda Babcock Sara Laschever
• Negotiating Salary How to Make 1,000 a Minute,
  Jack Chapman
• 101 Salary Secrets, Daniel Porot and Frances
  Bolles Haynes
• Perks and Parachutes, Paul Fargis

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Questions??