3 ms·
Companies may not want to people who are only after the money, but they also do not ant to pay more than the absolute minimum for the workforce, they can get aw
by SecurityMinded 6y ago
Companies may not want to people who are only after the money, but they also do not ant to pay more than the absolute minimum for the workforce, they can get away with.
Say you are working at company A for $100K/yr for position X. Along comes company B, which needs to fill a Position A which you perfectly fit in. And assume they can pay $150K/yr to fill this position. But if you are like any average employee, a 10-15% increase in your salary can and will make you jump ship.
So, if they announce $150K/yr compensation on the kb listing, your brain will switch to 50% increase mode and knowing that you can get this much from them, you will most probably not settle for something less. On the other hand, let's assume the salary is not in the job listing and you get to the interview and asked the dreaded question, "What is your expectation of a yearly compensation for this position?" I am sure you will dance around a bit saying things like "Market rate" or "I am sure you will pay me in accordance with industry norms" etc. but when the push comes to the shove, you will give them a figure like $120K, a 20% increase if you will, on your current salary, to give yourself a wiggle room. And if they are like any average employer, they will low-ball you a bit to see what you are amenable to and come back with something like $116K. You are happy that you've got 16% raise while 10% would suffice you to jump ship. The new employer saved $34K/yr on you. Only you by the way and this practice can be multiplied many, many times, ending up with a huge chunk of change.
On the flip side, let's assume you were making $160K at your current position and you came to the interview to wrangle say, a $175K salary. When you say that, first they will dismiss your candidacy and look for someone cheaper. Failing to find this person, they know they can come back to you and say, yes we are willing to pay you $170K/yr, knowing your price. All they have lost is a few days or weeks in the process.
It is like the prostitute story: The guy sees a pretty woman at the bar.He approaches her and says,
"I will pay you a million dollars if you have sex with me tonight"
Woman thinks for a moment and says "yes".
The man turns around thinks for a minute and says
"How about $100?"
Woman frowns and feels insulted. Comes back saying
"what are you thinking? I am a whore or something?"
The guy answers.
"We established that fact that you are a whore. I am just trying to figure out your price"
Negotiating for a job is just that and as a company you do not want to trap yourself in a corner.