Career Information Online

I had a friend who was changing jobs.  The new job had everything she wanted – a good career path, challenging work, flexible schedules and a shorter commute.  She would not be required to be “on call” or work overtime hours on a regular basis (just once in a while, if absolutely necessary).  The salary offered, however, was less than she had hoped to see. 

We talked it out and after some long conversations we determined that while on paper it was a lateral move, it in fact was a good financial decision.  Here’s why:

• Her commute was shortened from twenty-five minutes to five minutes, saving on gas and car maintenance.
• She’d be working at least ten hours less a week, because of no overtime and no “on call” hours.
• She now had the ability to work from home, cutting back on time taken due to the weather or illness.
• She can work a flexible schedule.
• She would have a lot less stress.

My point is this – there are a lot of factors to consider when weighing a job offer.  Don’t get hung up on the salary offered to you.  When you look at the big picture you might be saving money by taking this new job, or you might be losing money.  Carefully consider all the factors involved before saying yes or no to a job offer.

There’s a financial cost associated with every job.  Many people don’t consider this fact when they accept a new position.  It’s important you know how much money you will need to make in order to bring home your desired salary in this new position.

So what kind of expenses do you have with a job?  The most obvious one is health care.  Depending on the plan and the size of the company there can be a significant difference in out of pocket expenses.  And don’t forget things like office visit and prescription copays – they play a role in the cost of health insurance.  Other factors to consider include:  commuting expenses, paid training, tuition reimbursement, and health club memberships.

Before accepting a new job, compare the costs that you will be required to pay out of pocket.  You might just find out that the salary offered to you is a raise on paper but in fact a step backwards in what you bring home every two weeks.

The salary a person makes is important.  It’s how you pay your bills and support your family.  When looking into a new employment opportunity the salary offered is going to play a role in your decision to accept or reject an offer.  However, your first interview with a company is not the time to ask about salary.

You’ll probably find many web sites and experts who will disagree with me and tell you that it’s fine to talk salary during an interview.  Of course it’s your decision to make.  I’d just like to present a few reasons why you might not want to bring up salary during an interview.

• You will seem to be motivated by money only.  The hiring manager is trying to sell you on an opportunity.  He/she might think the only reason you’d take a job is because it paid more than your previous position.
• You might price yourself out of the position.  Many companies have strict salary ranges for positions.  No matter what, they can’t go over the top figure in the range for any candidate.  You might exclude yourself from a position based on a few dollars.
• You might “lowball” yourself.  What I mean is this – the hiring manager might be planning to pay you more than the salary you stated in the interview.  You could deprive yourself from money in your pocket.
• You don’t know how much it costs to work for the new company.  Hiring managers don’t usually bring up specific information on the cost of benefits until the offer stage.  The cost of benefits for the new company might be higher or lower than the cost at your current company (maybe their health insurance is a lot more expensive than what you pay now).  A lateral salary move would actually end up costing you money out of pocket.

Given this, what do you say in an interview when someone asks “what do you want to make”?  I would suggest you say something along these lines:

I currently make $47,500 a year.  I would want to look at the entire package before making a decision.

If pressed you can mention that you’d like to compare the cost of benefits and that the opportunity is what is most important, not salary.

Of course it’s up to you whether or not you bring up salary in an interview.  I merely wanted to present a few arguments why you might not want to do this.