The Chronicle of Higher Education
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Monday, October 8, 2001

Beyond the Ivory Tower

Negotiating Salary in the Nonacademic World

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You've landed an interview with a promising company, the job looks interesting, and everything's going well, until the interviewer mentions a salary figure lower than you had hoped. What do you do?

If you're a recent graduate student with little work experience outside of college teaching, you're likely to agree to the first number the interviewer mentions -- and you're likely to be making a mistake, say those who have been there.

Don't be afraid to negotiate

"For the first job I took after leaving academia, as the managing editor of a magazine, I didn't dare negotiate salary," says Amy Lynn Miller, an A.B.D. in area and language studies who lives on the West Coast. "I thought it would jeopardize my chances of landing the job, as if the offer would be rescinded if I attempted to negotiate."

That's a common perception of graduate students, says Susan Basalla, who earned a Ph.D. in English from Princeton University in 1997. Ms. Basalla, who now works as a content producer for The Motley Fool, a Web site about personal finance, is a co-author of a new career guide for doctoral students, So What Are You Going to Do With That? (Farrar, Straus, and Giroux, 2001).

"Graduate students often go along with whatever salary the employer mentions during the interview in an effort to be agreeable," Ms. Basalla says. "Then, when they get an offer, they are stuck with that figure -- usually $5,000 lower than what the employer could have paid."

With a few exceptions, employers outside of academe expect to negotiate. "A friend who was involved in hiring people for years told me that she used to sit across the desk from job applicants and think, 'I've got another $8,000 to give you -- just ask for it!'" Ms. Basalla recounts.

How important is starting salary?

It may make sense to take a low-paying job to get your foot in the door of an industry that intrigues you, but do your homework and realize that you are taking a gamble.

"In my first editorial position, I accepted a low salary because I liked the job and the company, and I had no prior experience," says Kay Peterson, who earned a Ph.D. in English from Northwestern University in 1998 and now works as an editor at Digital City, a division of America Online. "Within a year, I received a substantial raise, and when I moved to a new company, my salary increased again, by more than 50 percent."

Large jumps in salary aren't unheard of, especially in growing industries, but keep in mind that raises are often given as a percentage of your current salary. If you start out earning $20,000 a year, even a large raise of 25 percent won't push your salary very high. And over the span of your career, the salary lag can add up to a lot of money.

Do your homework

To negotiate effectively, you need to understand the financial context. Obviously, salaries in consulting and high-tech industries are typically higher than those in teaching, publishing, and the nonprofit world. If an annual salary of $100,000 is important to you, don't bother looking for jobs in scholarly publishing.

You also need to understand the value of the particular job for which you've applied. The most reliable salary data are those you compile yourself by reading advertisements for similar positions and by asking around.

"People are reluctant to tell you exactly what they make, but they will tell you a range," says Ed Cahill, who just earned a Ph.D. in English from Rutgers University at New Brunswick and who works full time at a research and consulting firm in New York.

For faster but less tailored information, contact professional associations in your field to see if they conduct salary surveys. Try one of the many commercial Web sites devoted to career issues, such as http://www.wetfeet.com, http://www.salary.com, or http://www.jobstar.org. Or log on to the Web site of the Bureau of Labor Statistics, which has a wealth of information on salaries and benefits broken down by industry and region.

When should you discuss salary?

Some job ads list the salary range, others make no mention of it, and still others request that applicants send in their salary requirements with the initial application. While some employers may not mind if you ignore a request for salary requirements, others will disqualify your application immediately, especially if applications go first to a human-resources department.

Interviews can also be salary minefields. While it's widely agreed that a job applicant should never bring up salary before the interviewer does, there are several schools of thought on how to respond to salary questions once they do come up.

Ms. Basalla advises refusing to even discuss salary until the employer offers you a job. If the employer insists on salary requirements early on, she recommends giving a wide range, saying something like: "I understand that the current market value of this position is in the $45,000 to $65,000 range."

Others disagree. "If the employer's not going to offer the salary I'm looking for, there's no point in wasting both our time on hours of interviews," says Harrison Brace, an A.B.D. in comparative literature from Stanford University who currently works as a technical writer in the Bay area. He states his requirements upfront, performing what he calls "salary triage."

Prepare yourself for negotiations

If you're uncomfortable about negotiating salary, it may also be helpful to rehearse some responses.

"Employers will try to feel you out in the interview to see if you're in their standard pay range," says Ms. Basalla. If an interviewer mentions a specific number before you're ready to talk salary, she suggests deferring the question with a comment like: "Well, that figure sounds a little low, but I'm sure we can work something out."

"While it's important to work out the language you want to use in negotiating, you also have to practice the psychology of negotiating," Ms. Basalla adds. "If you don't believe yourself when you say your experience merits a higher salary, then no one else will."

Mr. Cahill, the Rutgers Ph.D., would agree: "Graduate students are sometimes at a disadvantage because they come from a context where they feel devalued, and they don't know how to present themselves confidently in the business world."

Some jobs, such as public-school teaching, have firm salary structures set through union, rather than individual, negotiations. And a few other employers have no-haggle policies. But most employers set a salary range for open positions, and the interviewer is free to negotiate within that range. "People are mistaken to think that they give a bad impression by asking for a high salary," Mr. Cahill says. "You look bad if what you ask for is out of the ballpark, but asking for the high end of your range is just professional."

It's also important to know when you will be evaluated for a possible raise or promotion. Many organizations conduct annual reviews of all employees at a set date; if you accept a job with a lower salary than you think you deserve, ask if you can be reviewed sooner.

Get it in writing

Before you accept a job, get the offer and all the details of salary and benefits in writing. An offer letter should spell out the job's primary duties, when you will be reviewed, the salary, and other terms of your employment.

Benefits are often handled by a human-resources department; make sure that the information you receive accords with what you were told in the interview, and resolve any discrepancies before accepting the job.

A successful salary negotiation is the beginning of a relationship, not an end unto itself, and it provides a window into the working style of both parties. As you negotiate, be aware of your own behavior and the employer's. A potential boss who is unwilling to make any accommodation, or who does not appear to value your skills or education, will likely prove unpleasant to work for. On your end, remain calm and friendly. You can look after your own interests and still make a good impression if you are firm (not rigid), assertive (not combative), and maintain high (not impossible) expectations.

Gwendolyn Bradley, a doctoral student in English at Rutgers University at New Brunswick, writes occasionally about alternative careers for Ph.D.'s.