Job Searching -- Salary Requirements

[righteousjen]

Some questions for you wise smithies:

I'm applying for a new job in a different city, and I've got all of my application materials ready...except for the cover letter.
I have it mostly done, but the Application Requirements section of the job posting says this: "Please submit cover letter in English with salary requirements, résumé, references and two unedited writing samples."

I've never put salary requirements into a cover letter before, and I'm not sure how to include them in a tactful way or where to include it. First paragraph? Last? Bury it in the middle somehow? Include it as a P.S.? (no, i wouldn't actually do that.) And how do I structure that sentence?

Also, is it ok to still say "negotiable"? In my field, the salaries are all pretty low (yay social justice work - feel-good work, ugly-sad bank account), and I know what the general range is in that city (thanks, salary.com!), but I'm not sure where this particular organization usually falls on that range. If I name a number and go too high, will they just drop my application to the side as unreasonable? Is it better to err on the side of high or low?



Oh, and I did check the lovely CDO handouts on cover letters, but I couldn't find a sample that included salary requirements or any guidance on how to include it.

[Miranda]

I would place it towards the middle or end of the letter. You could also say, "My salary range is from X to X, negotiable" (ie, $35k-$40k--- I have no clue what's normal for your field). Right now, they're just weeding out those who won't accept the job for less than a certain amount (ie, you're demanding $60k, the most they can offer is $45k-- they're not going to bother if you are drastically out of their salary range.). Put a range, be flexible, to get yourself in the door.

Once they give you the offer and want you bad, then play some hardball. If they want to hire you, you're probably an outstanding candidate and they'll pay for it. I even did this at a non-profit once and negotiated up for my salary (and afterwards, found out I was far more qualified than other applicants and could have demanded more!) If they can't give you more $$$, ask for additional vacation days. Obviously, we're still emerging from a recession, so don't go crazy, but I would definitely try to see if you can negotiate because there is often a salary range allotted for hiring, and you should snag the high end.

Also, try looking at Guidestar.org to get a glimpse of what their top 5 highest paid employees earn-- this will give you an excellent idea of the pay stucture of the organization. Nothing sucks more than realizing you lowballed yourself at a new job.

[upsidown]

I disagree with Miranda. I would avoid as much as possible. I would say something like "My salary requirements are negotiable" and say that you're focusing on finding a job where you can share your awesome skillz of x y z.

[mapgirl]

i agree with miranda - if they ASK you for it, you need to give it to them. otherwise, right off the bat you're already not following their instructions. i also think a "range and is negotiable" should be it. this question and the way you answer it can be interpreted for many things about you in the potential employers mind. how much does he/she value themself? do they expect too much? can the put on a # on their worth? etc... for both job offers that got to the point of offer (well one was offer was on the table but funding wasn't) they both asked, i gave a hard number and the one i did get, they offered me much less, i played hardball and they met me more than half way (and i'm recently finding out that i make a lot more than my peers - same dept, same job). this was right before the market crashed, i would not suggest playing such hardball in this economic/unemployment climate, but simply, if they as for a number, give them a number. if they don't ask however, do not give it to them. ALWAYS let them make that first move/request/offer.

good luck!!

[righteousjen]

Thanks for your responses!

I also asked an older and wiser friend for advice, and despite having 20 more years in the real world and both job searching and hiring, she had never been asked for salary requirements before. It's such an awkward thing to include in a cover letter.

I wanted to get the application off to them quickly, so I ended up sending it before I got the use-numbers advice from you all. I took my friend's advice and included this sentence in the 2nd-to-last paragraph: "I am seeking a position that would allow me to further my skills while rewarding me with a salary commensurate with my experience."

Not a number, but kind of in the direction of a number?

I've also narrowed it down to a range that I'll ask for if they press for a number later.

Now I just cross my fingers & toes and wait for them to call me....

[upsidown]

I still stand my ground. The salary negotiation piece is like a game. The loser is the party who says a number first. In getting my last job, the HR recruiter kept asking me about salary requirements, and I kept saying, "You know, I'd prefer to discuss salary once we have an offer on the table." At the end of our talk, she said, "So I'm really not going to get a number out of you?" "Nope!" And she laughed-- it was like she was congratulating me on playing the game well. Then, when numbers were on the table, she said, we're offering X. To which I replied, I was looking for more like X+$5000. And then we went from there.

[guest]

I have a related question...
In a few months, when my contract is up, I will be moving and searching for a new job. My current job is my first out of grad school, and I don't have a lot of experience with this sort of thing (looking for jobs, salary negotiation).

Anyway, I'll cross that bridge when I come to it- but I am poking around on the internet and seeing that a lot of applications ask you to list your previous salary. What is the purpose of this, beyond helping them determine how little they have to pay you? IE- Are you really obligated to do this?

I'm currently working in a somewhat atypical work environment for my field on a special project. My current salary is fine for my lifestyle, but is nowhere near what peers in my field are receiving. At the moment this is ok with me, because I'm working for someone who was one of the collaborators on my graduate thesis and I find my current project very fulfilling. Also, because of my location at a startup research station, I have a number of untaxed/undeclared benefits (room & partial board) in addition to my salary. I wouldn't really be able to survive financially in this location without these benefits. The total "package" I am receiving is much more in line with what peers with my degree & experience are paid.

When it comes time to apply for jobs-
A) Should I list my current salary at all (even if asked)?
B) If I am forced to disclose salary information- can I include a reasonable annual cost for the in-kind benefits in my stated salary?
C) Do I need to discuss this figure with my current employer (will prospective employers check up on this)?
D) Prospective employers can't access things like my tax records, can they? I have heard that HR depts are known to do credit history checks... which seems pretty invasive to me, but that doesn't include salary info, right?

[SpringFlowers]

The purpose of listing previous salary is so that they can determine how little they can pay you, or if you are out of their range.

You don't have to disclose anything, but they don't have to hire, either. That said, there are reasonable and unreasonable requests.

HR Depts can and will do a credit check. They can and will contact your former employer, who can and will (most likely) disclose your dates of service and ending salary. It is becoming increasingly rare for former employers to discuss anything else beyond these documented numerical facts. You have to give sufficient information and permission for these checks to be performed, but they are considered routine.

The IRS will not disclose or discuss any information whatsoever with a third party who does not have signed power of attorney (on an specific IRS form). It is quite questionable for a employer to request federal tax returns and they cannot independently verify any information within them. Unless you're looking at a job with the CIA or some such requiring extensive security clearance, I would refuse and offer alternative means of providing specifics requested.*

Your "compensation" includes your room and board. You are certainly free to list or discuss your "compensation package" in addition to your salary. You should; clarifying as you need to on the form or in a letter. Salary: $xx,xxx Benefits, including housing stipend: $xx,xxx. You can very easily say "Yes, they gave you my salary, they didn't include the housing stipend when they confirmed amount $xx,xxx."

This article provides interesting insight into background checks, the why and what:

http://articles.moneycentral.msn.com/Ba ... cover.aspx


On a side note, and I am aware that you did not ask, your complete compensation is taxable, and the fair market value of your room and board should be reflected on your W-2. This law is frequently misunderstood or simply ignored, but I would tread lightly. It's your employer who is breaking the law by not including this amount on your W-2, but you are breaking the law by not including this amount on your tax return, regardless. Now, there is no way for anyone to verify that you are or aren't including your room and board as "other income" on your tax return, but you want to be careful not to tell HR personnel that you're receiving non-taxable or untaxed benefits. You're not, you're just not paying your taxes. HR may understand this. I'm not trying to make you think you're in deep with IRS, it is very difficult to impossible for them to pursue taxation of this type of compensation (hence the common ignoring of the letter of the law), but you just want to be careful of your phrasing that may be interpreted as "I'm a tax-evader" by those who understand compensation.


*I had tax records requested, once, and was told that by the requester the IRS would verify the information. After several respectful attempts to find alternate methods of providing information, and informing the requester that I was aware that IRS would not independently verify, I called the Fraud Investigator of this same company, told him what HR was doing, and that particular HR employee was fired. I also rescinded my application with that organization, including the statement that an ethical and honest HR Dept was an important job aspect.

[Miranda]

Definitely be clear about your salary, because employers do background checks. There are several firms that do these, for example, Kroll. If they insist on asking, be truthful ($X amt), but add that additional factors, such as housing, etc., made a larger overall compensation. Just be clear, "$Xm Salary, plus housing & board."

Yes, it sucks that they can use this to see how little you make, but you can absolutely negotiate and you don't have to take the job if you think they lowballed you. Besides, isn't it fairly common that your salary would make a jump after grad school (in your situation)?

[guest]

Thanks for your feedback. I am aware that total compensation (even non-monetary compensation) is taxable. But when I make this little in salary, I don't feel bad (and don't feel bad saying that I don't feel bad!) about not reporting an estimation of my room and board to the IRS. Also, the "fair market value" of my in-kind compensation has never been discussed with my employer. Not that that makes things better in the legal tax world or in the future employment negotiation world. But it's a fib i'm willing to live with. I am glad to hear that it would be exceedingly difficult (illegal) for potential employers to get their hands on my IRS info without my consent.

When it comes time, I am thinking of discussing this issue with my employer. I'm thinking of going on craigslist and finding a price for comparable accommodation in my area, and asking her to include that figure in any salary she reports to a potential employer. I'm almost certain she will be ok with this. If I get my employer on board, is there any other source of information about my salary I should worry about? I've seen my credit report (at least the part of it that I can see as a consumer), and there is nothing on it that indicates anything close to salary information. My credit score is tip-top, though I have a wicked load of student loans. It seems like a violation of privacy for a potential employer to be able to see all of that information about me.

Thanks again.