| BostonDotCom: | Good afternoon Big Help Chatters! |
| BostonDotCom: | Welcoeme to Money Money Money Day |
| BostonDotCom: | We are joined for the next hour by Bill Coleman, Senior Vice President, Salary.com |
| BostonDotCom: | Welcome, Bill |
| Bill_Coleman: | Great to be here |
| Bill_Coleman: | I'm interested to hear what the BostonDotCommers are interested in chatting about |
| BostonDotCom: | Chatters, fire away with your questions about your salary - |
| Trevor: | Q: I am just graduting with an MBA. What is a good salary for me to shoot for. I've heard varying reports on how much I should make. |
| Bill_Coleman: | That depends greatly on the type of job and industry |
| Bill_Coleman: | and the School you graduated from |
| Bill_Coleman: | Mid tier school MBAs typically earn $60-$90k depending on industry |
| Bill_Coleman: | Top tier schools are typically 20-30% higher |
| Doreen: | Q: If I find out I am making less than someone who is working FOR me, can I demand a raise? Should I quit? |
| Bill_Coleman: | Interesting question, Doreen. Utimatums aren't the best approach for an employee-employer negotiation. |
| Bill_Coleman: | You have a good point and it's worth using that as a converation starter with your boss (or possibly your boss's boss) |
| Bill_Coleman: | about why you're supervising someone who's earning more than you. |
| Happy: | Q: What percentage of my salary should I put away for my 401k? |
| Bill_Coleman: | This is really a financial planning question. |
| Bill_Coleman: | The general rule is that you want to put as much in as you can afford because it's tax deferred (and so is the interest) and will help you in retirement |
| Bill_Coleman: | Many people can't afford the maximum contribution. If you're one of those, look to see if you can at least put in enough to get the maximum company match (because that's "free" money to you). |
| Confused: | Q: I'm confused? It seems to me that the salary calculators that I see on the internet are overly optimistic. I don't think I would ever work again if I asked for was some say is going rate. |
| Bill_Coleman: | As in any situation where you're looking for information, you should look at multiple sources of data AND apply common sense. |
| Bill_Coleman: | Often, salary websites require that you find a very close match for your exact roles and responsibilities.
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| Bill_Coleman: | Our experience is that casual visitors to salary sites don't read the detailed job descriptions carefully enough, or they inflate their own roles. That can lead to what appears to be inflated numbers. |
| turtlefur: | Q: Bill, with Boston being recently named one of the most expensive places to live in the U.S., it's clear that on average, people may not be getting paid enough to live here. Many people have not seen salary increases in years. Do you see any hope for those of us who work here? |
| Bill_Coleman: | Great question. |
| Bill_Coleman: | Salaries do tend to lag the economic conditions. Since the business indicators have been looking up recently (albeit slightly) |
| Bill_Coleman: | and because people can only live so long on a non-increasing salary, |
| Bill_Coleman: | employers in Boston (and all over the country) report that they expect salaries to increase this year on average of about 3.5% |
| moremoney: | Q: Do you have any advice about how to negotiate your salary when you know new employees are being hired in at a higher starting salary? |
| Bill_Coleman: | That's a common question. |
| Bill_Coleman: | Keep in mind that these issues often resolve themselves over time, but I realize that doesn't make you feel better today... and your boss realizes that too. |
| Bill_Coleman: | It's fine to bring it up with your boss by asking about why new hires are getting paid more than you and what you can do to earn that same amount (or more). |
| Bill_Coleman: | You can focus on the fact that you know the business and you have known strengths, etc. but be prepared to hear, "we'll take care of that at the next review cycle." |
| Bill_Coleman: | Also be prepared to hear that the new hire has more qualifications than you---sometimes that pans out, sometimes it doesn't. Time will tell. |
| jpb: | Q: Should I expect to take a salary hit for the flexibility to work from home 2-3 days/week? |
| Bill_Coleman: | Yes. |
| Bill_Coleman: | That is a benefit that has a value to you and therefore is normally taken into account in determining your pay. |
| Bill_Coleman: | The amount of the "hit" will depend on the hours and constraints that impact your work from home. |
| rcb3: | Q: i'm interviewing for a entry level type position that supposedly has a starting salary between 35k and 45k, the interviewer asked what I made currently. I said 35k. did i just pigeon-hole myself at 35k for my new job? |
| Bill_Coleman: | Not exactly, but you may have to work a little harder to get your offer up to the $45k level. |
| Bill_Coleman: | In your next interaction you might want to discuss the fact that you believe you were underpaid at your last job (i.e., $35 is too low). |
| bill: | Q: I am starting negotiations with an employer. The starting point is already significantly higher than my current comp, but they are in a "desperate" situation. How far do I push without setting my own bar too high from the get go? |
| Bill_Coleman: | Good for you. |
| Bill_Coleman: | Don't get greedy, but don't leave money on the table. |
| Bill_Coleman: | Push a little and see how it goes, but make sure that you can deliver what is expected---ideally, 10% more than is expected. |
| ceo: | Q: Hi Bill. Don't you think the biggest thing affecting salary increases is the state of the job market? When employers have trouble filling jobs, raises are bigger etc.? |
| Bill_Coleman: | YES. |
| Bill_Coleman: | When the job market is strong, salaries and bonuses increase. |
| Bill_Coleman: | Signing bonuses and retention bonuses increase in popularity. |
| Bill_Coleman: | ...and when the market softens, those trends reverse. |
| Bill_Coleman: | There is more focus now on "pay for performance" so in many situations, peple will see BONUSES vary more with the economy while BASE PAY levels will be a bit less volatile. |
| Frank: | Q: If an initial offer comes in over the phone. Is it alright to to ask for the offer and the specifics to be sent in writing to be reviewed, before I make a counter (if one is to be made?) |
| Bill_Coleman: | Interesting question. |
| Bill_Coleman: | In general, asking for the offer in writing is a good idea, but normally one doesn't ask for the first offer in writing only to negotate from it. |
| Bill_Coleman: | If you have a concern about "documenting" the offer, you can send an email thanking the employer for the offer (with details). |
| Bill_Coleman: | Alternatively, if you want to know all the ancillary details (bonuses, benefits, etc.) explain that and ask for a summary of those details. |
| It01: | Q: When an interview if they ask what I would like to earn, shoud I tell what I am earning? |
| Bill_Coleman: | "What would you like to earn?" is an employer's way of testing what your salary expectations are. |
| Bill_Coleman: | Answer the question carefully. You may want to provide a range based on what you know about the job you're applying for. |
| Bill_Coleman: | Or you may want to tell them your current pay, or you may want to simply say, "I'd expect to be paid fairly based on the market for this role." |
| x: | Q: Do you think it's wise to take a job for a 90-day introductory salary, expected to rise after that, without knowing what amount it will rise to after the 90 days? |
| Bill_Coleman: | How risk averse are you? |
| Bill_Coleman: | First, you want to be sure you can over-deliver in the role. |
| Bill_Coleman: | Second, make sure you have discussions about your expectations for what will happen in 90 days. |
| Bill_Coleman: | If you can't get commitment, at least you can tell the boss what you expect. He/she will take that into account in 90 days. |
| Bill_Coleman: | Remember, they don't want you to leave after 90 days either. |
| bruno: | Q: Hi Bill, I work for a very small company. While our revenues have been stagnant, my boss tells me I'm exceeding his expectations. The portion of toal revenue my role brought in used to roughly 10-25% it is now about 50%. I would like a raise is it okay to ask for one? |
| Bill_Coleman: | Yes, but think "out of the box." |
| Bill_Coleman: | You might want to ask about alternatives. By that I mean, explain the situation as you did above, but then acknowledge that cash might be tight. |
| Bill_Coleman: | Is there room for more base pay, a bigger bonus, perhaps a commission or profit-sharing alternative, or perhaps more equity? |
| karin: | Q: Hi, I have been at my job for 6 years, and reduced my schedul to part time a year ago when I had my son. my program is expanding and growing...what advice do you have for asking for a raise, although I only work part time? thanks |
| Bill_Coleman: | It's always harder to ask for things when you're outside the mainstream of employees (e.g., part time). |
| Bill_Coleman: | But as long as you're still a valued contributor, you should still participate in programs like salary increases and bonuses. |
| Bill_Coleman: | You may find that you're getting overlooked because you're in a special group (p-t) or that your raise looks small because it's based on a reduced annual amount. |
| retail: | Q: People say not to talk about salary in the first interview but what is a good way to to bring it up to make sure that you have a good idea of what the job would pay? |
| Bill_Coleman: | That is a reasonable rule of thumb. If you're concerned that the pay might be completely off the mark, it's OK to ask about the pay range. |
| Bill_Coleman: | Some people find it more comfortable to ask the recruiter on the phone while scheduling the interview (rather than doing it at the actual interview). This way they can make sure both sides expectations are in line with eachother. |
| kj: | Q: Hello Bill, my question is the folloiwing: I'm working in almost a startup environment, and there is high growth, yet still no profit. How can I ask for a raise? |
| Bill_Coleman: | Cautiously. |
| Bill_Coleman: | Startups are the classic high risk / high reward environment. That's the nature of a start up. |
| Bill_Coleman: | That said, since the bubble burst in 2001/2002, it's been harder for startups to pay people below market. But it's a delicate balance because salary increases require cash. |
| Bill_Coleman: | If there's not enough cash it's hard to get a salary increase. That's why stock options are so popular. Another alternative would be a year end bonus if the cash is available. |
| j_2: | Q: I currently make 30k at a company i have been with for a year...my year review is coming up....i am 2 years out of a 4 year college...with a prior job....what is an appropiatae raise? and do you think i am underpaid? (admin plus more...we are a small company.) |
| Bill_Coleman: | That's a specific situation. |
| Bill_Coleman: | It doesn't sound like you're particularly underpaid, but depending on your situation you might be. |
| Bill_Coleman: | Check around for job postings or salary sites to see if there's room for more pay --- above a normal annual increase, which you should probably expect. |
| Bill_Coleman: | Also consider if it's time for a promotion, or volunteer to take on more responsibility as a way to EARN more pay. |
| BostonDotCom: | .Chatters, great questions. Time for just one or two more for Bill. |
| sjcesq: | Q: I'm a young attorney with 2-3 years of experience. My recent job search yielded positions that pay between $35K-$38K. The legal job front is harsh in Boston. Any input on salaries in the legal arena? Can't usually find salary range info for attorneys. . |
| Bill_Coleman: | Those sound low for members of the bar. |
| Bill_Coleman: | There are a number of large and medium sized law firms that will pay much more than that. |
| Bill_Coleman: | I would shoot for at least an informational interview at some of those firms (use your contacts) to learn more about the local market. |
| Bill_Coleman: | Those firms can be a great source of referrals to other firms and, more to the point, corporate clients who are looking for inhouse legal staff. |
| poiuyt: | Q: Can you illustrate how a company will benchmark salary levels - what resources they use? |
| Bill_Coleman: | Companies use information collected and provided by human resource consulting firms and from sources like Salary.com. |
| Bill_Coleman: | They will look at comparable employers, called the "recruiting market", that may vary from job to job. |
| Bill_Coleman: | For example, executives trnd to be recuited from the same industry but a broad geographic region, whereas administrative employees often come from any industry but typically close to the location of the office. |
| BostonDotCom: | Bill, many thanks for sharing your salary knowledge and experience with us today. |
| Bill_Coleman: | Thanks. It was great being here with you. |
| Bill_Coleman: | ...and it was great to be on the Boston.com home page with Brittany Spears. |
| BostonDotCom: | Britney is lucky! |
| BostonDotCom: | Chatters, thanks for joining us.. |
| BostonDotCom: | A full transcript of this chat will be posted at http://bostonworks.boston.com/chat/ |
| BostonDotCom: | Thanks again to all, and good luck in those negotiations! |
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On Thursday, Sept. 15, 
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