Talking Salary with a Recruiter

During an interview with a recruiter (it doesn't matter if it is over the phone or across a table) the topic of salary is usually going to come up. Salary is always a sticky point for most candidates and many people approach it the wrong way.

A common misconception is that a recruiter will manipulate the information given and do wrong by the candidate. For the most part this is the farthest thing from the truth. Many (if not most) recruiters work on contingency from the client. This means they don't make a dime from you and they don't get paid by the client until they fill a position. Generally the fee they receive is based upon a percentage of the salary that they get for you, the candidate. In other words, the more money you make the more money they make.

Candidates also assume they are interviewing directly with the client, at which point it is usually a good idea to differ the topic of salary until both parties know the job is a good fit. With a recruiter, you are often not going to be presented to a client unless they know what numbers work for you. They will start at the higher points of the salary range for the position and your experience, but knowing if there is wiggle room during the negotiation with the client will greatly help the cause leading to the ultimate goal; a quick close ahead of the competition.

Another mistake is that candidates assume that if they quote an astronomic number they will receive the highest salary possible. This is the reason that many recruiters will ask for the salary you were making at the last one or two positions on your resume and may confirm that number during a reference check.

It is perfectly alright to want to make a bump up from your last salary. Just remember that if you ask for too much you will generally not receive a fair representation and will, in most cases, price yourself out against competition for a position. A common practice will be for a recruiter to "back burner" you, after trying to tell you that you might be too high. The recruiter will check in with you in a couple of weeks to see if your pain threshold has brought you down a little closer to reality.

If you are contracting, and have a rate that is 10% higher than the other candidates in the market, you might have to sit for several weeks until you find a company willing to pay your rate. If you're not making a paycheck it will take you 10 weeks to make up the difference for every week not worked.

Example A:

A contractor agrees to take market rate of $30/hr and lands a job immediately:

$30/hr x 40 hours a week = $1,200 / week

In 10 weeks he has made $12,000

Example B:

A contractor holds out for one week until his rate goes up to $33/hr

$33/hr x 40 hours a week = $1,320

At the end of the same 10 weeks he has only made $11,800 (one week no pay, 9 weeks paid).

It isn't until the 11th week that both candidates pull up equal and the candidate in Example B starts to make more money. That's ten weeks of work that has to be done for every week's wages lost to holding out.

At 15% the number comes down to 7.5 weeks per week with no pay, but I've seen people stay out of work for three months waiting for that higher wage. At the end of the year they end up making less total income than if they had just gotten back to work at the more reasonable rate. Many times the candidate is forced to bring their expectations down after sitting those weeks and settle for the original rate anyway (bills don't pay themselves). Who knows, maybe the candidate would have gotten a pay raise within that year if they'd proven that they were as valuable as they thought (or knew) they were...

Lastly, I've seen candidates quote a low price for their services only to request more once they get a company interested in employing them. Outside of the ethical issues this posses (which most times will lead a client company to withdraw any offer and pass entirely on the candidate) there are negative consequences for this "tactic" as well.

Most times the salary you require is as much of an indicator of your skill set as the information on your resume. If your salary requirements are too high, people will assume you are ready for a position that you may be over your head on. This will usually come out during the interview, so you probably won’t get that job anyway.

The inverse is also true. If your salary is too low, a client may assume that you are not the right fit for their role because someone with the skill set they need would be currently making a salary somewhere in the neighborhood of the market rate. Trust me; for the most part clients know what they should expect to be paying long before they speak to a recruiter.

It is best to do some research on what the going rate is for someone in your field before starting your job search. Remember, when you find the range for your position to be $50,000 to $70,000 that you might be doing yourself a gross disservice by waiting until that $70k role comes in. Be honest with a recruiter (maybe me). Tell them what you have been making and what range you would like to be in going forward. You might just be pleasantly surprised. After all, I can’t force you to take a job…

I hope this information helps you. If you have any questions or concerns I would like to hear them. My email address is george.habrecht@charter.net.