Salary Negotiation

[jonsnuh]

I was offered a job position at an accounting firm that will provide me will the hours needed to do my accounting designation.

 

I had two interviews, one with a senior partner and the second with the junior partner. Salary was brought up by the senior when he asked me what I was paid in my last co-op placement of 8 months. This was back in 2011. I had provided a range to the senior partner of 40000 to 45000, and asked him how much students normally were paid. He said 40000.

 

Here are some facts:

- I will be moving away from home, and thus requiring housing/commuting costs

- It is a smaller city, so the standard of living is supposed to be lower than where I am living now with my parents

- I was referred by a family friend for the interview

- I had prior, very relevant co-op experience for 12 months

- Both partners were impressed with my interview, resume, and they stated in the offer letter that they feel I am very capable

- 3 month probationary period

- Appraisal/salary review no later than June 30, 2015

- I start on June 16, 2014 if accepted

- Rent at the area can range from 500-900

- Firm is a small accounting firm of about 6 partners, and I will start at a junior position similar to what I had done before

 

How do I go about negotiating, if at all?

[jonsnuh]

I want to add, that I did a bit of research:

My co-op place states that students on average earn ~42,000 on their fourth co-op work term in 2013, ~43,000 (2012) with a range from 28,000 to 64,000.

 

According to Payscale, the median earnings for someone in my position is 39,469 with a range from 30,000 to 50,402 and bonuses and profit sharing of 0 to 3,000 for each resulting in a range of 29,507 to 51,715.

 

I am planning to save up for MBA school, accumulating work experience and studying for other professional/grad entrance exams. I am not sure how to approach tuition reimbursement down the line and if I need to prep for this by making it clear what I am planning to do to my employer.

 

Of course, the employer could throw all of this out of the water.

 

I am looking forward to asking 44,000, mentioning about benefits first for medical/dental and vacation. I would then meet him in the middle with 43,000 (ideally).

 

On the other hand, I am ready to just accept the 40,000 if it means avoiding grief on the long-run. In this case, I am wondering if it would be wise to discuss performance review pay increases on earlier dates with the employer, and if any negotiation could be used to show confidence to the employer for my commitment to performance. I would rather build on our relationship rather than risk losing the offer or souring our working relationship over a some thousand (although it is a lot to me).

 

Of course, I will continually be on the job hunt for better jobs along with my exams.

[carhill]

So I'm clear...are you considered a student? It appears you're in the midst of your education, perhaps in an associated realm, since you mentioned MBA. Are you a CPA?

 

If a student, and if your ability to work/study/live is not impinged by the student salary mentioned, I'd take a hard look at the firm as having value for future work, whether that be growing into the firm as your educational achievements occur, or as a positive point on your resume for other placements in the future. Money is important, to be sure, but so are other things in business. Can this placement assist you in getting where you want to go and be a good ROI? If it's marginal, you can always price yourself up and take the money in lieu, or price out and move on to another potential.

 

IMO, if you want to go for the money, meaning a top of the range salary, sell yourself. What can you bring to the firm that gives you value? What are your accomplishments? What about your presence benefits them other than a warm chair?

 

Good luck!

[pink_sugar]

I want to add, that I did a bit of research:

 

 

I am looking forward to asking 44,000, mentioning about benefits first for medical/dental and vacation. I would then meet him in the middle with 43,000 (ideally).

 

On the other hand, I am ready to just accept the 40,000 if it means avoiding grief on the long-run. In this case, I am wondering if it would be wise to discuss performance review pay increases on earlier dates with the employer, and if any negotiation could be used to show confidence to the employer for my commitment to performance. I would rather build on our relationship rather than risk losing the offer or souring our working relationship over a some thousand (although it is a lot to me).

 

Of course, I will continually be on the job hunt for better jobs along with my exams.

 

You will need to think of the long term. Usually you can expect slightly less pay in a less expensive area, but sometimes you can find comparable paying or even some positions that may pay more...in my own recent experience moving to a cheaper area. Don't short sell yourself. Do your research and tell them the salary range you are looking for rather than an exact amount. See what they say. When you come to negotiating, highlight your skills and experience relevant to the position. Also, perks that the company offers do weigh in to overall salary. In example:, health benefits, free food, 401k, tuition reimbursement, GYM memberships, etc etc.

[jonsnuh]

So I'm clear...are you considered a student? It appears you're in the midst of your education, perhaps in an associated realm, since you mentioned MBA. Are you a CPA?

 

If a student, and if your ability to work/study/live is not impinged by the student salary mentioned, I'd take a hard look at the firm as having value for future work, whether that be growing into the firm as your educational achievements occur, or as a positive point on your resume for other placements in the future. Money is important, to be sure, but so are other things in business. Can this placement assist you in getting where you want to go and be a good ROI? If it's marginal, you can always price yourself up and take the money in lieu, or price out and move on to another potential.

 

IMO, if you want to go for the money, meaning a top of the range salary, sell yourself. What can you bring to the firm that gives you value? What are your accomplishments? What about your presence benefits them other than a warm chair?

 

Good luck!

 

I've graduated from school and I am no longer affiliated with a school. However, I may have to take courses to meet some education requirements, so it is part of the professional accreditation process. To answer your question, I am considered a CPA candidate with my professional body until I get the CPA, but I am not a university student.

 

Rather, the 40,000 I had in my co-op placement was while I was enrolled as a student. This is considered full-time work beyond school. This placement would be valuable since it is relevant experience, but not necessarily where I want to see myself on the long run. Working at this firm would help me get my designation to move onto banking, since many analyst or associate positions value CFA, CPA designations or MBA degrees.

 

Getting CPA jobs are very competitive, to my knowledge. Many students are coming out with masters degrees and some can't secure job opportunities especially with the big firms. I can see myself staying with the firm for 1-2 years so that I can accumulate experience to apply for professional/grad programs to compensate for my non-competitive GPA, while staying financially independent and helping out my parents where I can.

 

To be realistic, this is a small firm away from a major city. I doubt they would consider going 44,000 but might scale it back to 42,000 if they really want me. As I mentioned, the firms I worked at before were very similar in size, clientele, and job description. I get the feeling that they wanted an entry-level individual due to turnover.

 

I have exemplary leadership initiatives, entrepreneurial spirit through projects I had done during school, and relevant work that make me a very good fit for the firm. I also do a very good job in making my superiors look good, and getting along with people in the office. However, these are traits and qualities that would help me keep my job and not necessarily provide added value. It is of course, driven by the firm, and it could possibly make me stand out if I were to reach out to new business. In other words, I might not have ground for my base salary to negotiate with until I deliver results.

 

You will need to think of the long term. Usually you can expect slightly less pay in a less expensive area, but sometimes you can find comparable paying or even some positions that may pay more...in my own recent experience moving to a cheaper area. Don't short sell yourself. Do your research and tell them the salary range you are looking for rather than an exact amount. See what they say. When you come to negotiating, highlight your skills and experience relevant to the position. Also, perks that the company offers do weigh in to overall salary. In example:, health benefits, free food, 401k, tuition reimbursement, GYM memberships, etc etc.

 

I get what you're saying. The junior partner who interviewed mentioned they were looking for long-term individuals, implying that they wanted people to stay with the company. I had a lot in common with him, and demonstrated my the qualities that I mentioned above that he really liked about me. I understood their business and showed I aligned my interests with the firm's vision for growth.

 

With the research, I have several sources and reasoning with why I am using those sources. They know I have the skills and experiences, so I don't know if they'd discount them by saying that these got me the job in the first place. Perks do really help, and I will try to bring them up tomorrow morning.

 

Negotiating should be best done in person (stupid question possibly)?

[carhill]

Negotiating should be best done in person (stupid question possibly)?

 

Yes, IMO, looking in eyes and shaking hands firmly. I realize this method is increasingly lost in modern business but it is a time-honored method of selling oneself and closing the deal, especially one like this. I wouldn't do it any other way, even if it involved travel.

[pink_sugar]

Yes, IMO, looking in eyes and shaking hands firmly. I realize this method is increasingly lost in modern business but it is a time-honored method of selling oneself and closing the deal, especially one like this. I wouldn't do it any other way, even if it involved travel.

 

Yes, it should be done in person...that's when an offer is made...unless the offer is over the phone. It will give you the opportunity to counteroffer.

[newmoon]

what did their initial posting/ad say? if it stated a starting salary between 40-45, then you can negotiate. look at the paperwork/application you originally saw for some guidance. can you ask the family friend for his/her opinion as well?

[jonsnuh]

There was no formal posting, nor is the family friend directly involved with it unfortunately. She doesn't work at the firm.