Posted under Compensation on March 27th, 2008
Applying for a position that pays a lower rate or seeking one in which the candidate offers to take a lower rate of pay thinking that would give them a competitive edge is a bad idea. Acceptance of a pay cut below market suggests a loss of confidence and a willingness to make a sacrifice that raises flags. It is naïve to believe that an employer will offer a market rate after a message that salary is negotiable below the prevailing wage.Some job hunters mistakenly believe that agreeing to take a pay cut or work for less is a good strategic move. It also suggests that companies are more concerned about the salary, rather than quality. This is simply not true.
Managers that “negotiate” a lower salary tend to congratulate themselves on their negotiation skill, rather than any willingness on your part to come on board. And, it not only will not be appreciated, but doubts would be raised to the willingness to work for less.
After accepting a lower rate people quickly understand the mistake they made, especially when they realize others in the organization are making the going rate, and made no sacrifices. There is no reason to expect a lower salary. Organizations pay what they must to get the quality employees they need and desire.
Trying to second guess an offer is at best a waste of time and at worst, dangerous. Salary discussions should commence with the offer, not before. Focus exclusively on the job, capabilities, interest in the organization and the challenges in pursuing a successful tenure. Salary discussions are a test of an individual’s self esteem. Offering or agreeing to a cut or below market rate sends a clear signal that self worth is low.
Posted by Judit Price
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Mel | Executive Search on 11 Aug 2009 at 4:18 am #
I have just come across this site and have found it to be interesting and informative. I would have to agree here sometimes taking that pay cut is not a good idea yes times are tough now with the world going through a recession, but do you really think that taking that pay cut is going to help you in the long run, yes you will keep you job and have a small income, but does that not just set you back in the long run especially if yo have been wit the company for years??