Commit to proving your value
Employers and your ego are constantly at odds over your value, says columnist
When considering the value of an item from a holistic perspective and through the philosophical lenses of existentialism, you realize an item has no value until someone is willing to pay for it, whether it's a Porsche 911 GT3, a 26th floor condo in Vancouver, a cup of Starbucks coffee or pair of Levi's jeans.
Ever bought an item, like a leather jacket, for $400 and then found out it was on sale for $250 a month later? The retailer reduced the price of the leather jacket because the number of customers willing to pay $400 had dwindled to the point where it stopped selling. Using this analogy further, the jackets that did not sell had no value until they were sold for $250.
Value does not simply exist. Value is assigned by supply and demand — demand being the keyword. In the job market, the value of your skills and experience is determined by how much employers are willing to pay for them.
It is no secret most employees feel underpaid. Many factors contribute to this perception, including:
How a person assesses their worth, which is highly subjective; and
The amount of money a person needs to maintain the lifestyle they created.
Neither are relevant. In general, compensation is not arbitrary. The following items determine a job's value:
Job-specific educational requirements.
Required skillset.
Level of experience required.
Responsibilities.
Location.
Additionally, those who criticize what employers offer them never think the employer may have 10 employees currently earning $65,000, whereas you want $75,000. Therefore, hiring you at your asking salary would cause turmoil.
Getting paid what you're worth has become a popular sentiment. In reality, though, the value you place on yourself and the value employers in your region are willing to pay you are two entirely different perspectives.
Recently, someone asked me if I felt underpaid.
"Nope," I replied, "I'm getting paid the amount I agreed to when I joined my employer."
I have never understood nor empathized with people who accept a job and then complain about their salary.
Your ego and sense of entitlement may have convinced you that you deserve $75,000. However, you may find that employers disagree with your value assessment. Anyone with a slight sense of business acumen understands an employee's compensation needs to correlate with the value they bring to their employer.
For the most part, hiring involves taking a candidate's words at face value, especially regarding their work ethic, past results and ability to work well with others. During interviews, gut instinct plays a significant role. Skills and aptitude can be tested, but only to a certain extent.
A hiring manager can only do so much due diligence (multiple interviews, testing, reference checks). A new hire's work ethic, ability to achieve results, skills and ability to work as a team are only proven after they start. Most of the tension between job seekers and employers results from job seekers expecting employers to pay them their value for abilities they have not yet proven.
In contrast, it is in an employer's best interest to mitigate hiring risks by starting new hires at the low end of the position's budgeted salary range.
CANDIDATES
There are two types of candidates:
1. Unemployed
2. Employed
Candidates who are employed should only accept a starting salary that is 20 per cent higher than their current salary. Unless your motivation is something other than money, starting a new job and proving yourself for your current salary is not worth the stress.
On the other hand, if you are jobless, your income is $0. As long as the compensation is not insultingly low, I do not suggest you try and negotiate for the starting salary you made up based on what you think of yourself. Most people consider having no job and no income as a worst-case scenario, both financially and emotionally.
I know you are now asking, ‘But Nick, how will I get the compensation I feel I deserve if I accept what I'm offered?’
Whether employed or not, you need to prove your worth, which requires the following:
1. Getting the job. It is impossible to prove your value without a job.
2. Negotiate and get in writing that upon achieving specific metrics, milestones, revenue targets, or whatever else you can think of, within your first six months, you will get a 15 per cent salary increase or whatever percentage you have negotiated.
I cannot stress enough the importance of ensuring that your employment offer letter includes everything you and the hiring manager discussed and agreed to.
No. 2 makes it much easier for an employer to say yes to you since they are not taking all the risks of hiring you at a salary you want and then finding out you can't deliver. Offering this option shows that you are confident in your skills and abilities and are not afraid to prove them.
When you are faced with two more-or-less equally qualified candidates and one offers you the option of proving their worth before receiving the salary they feel they deserve, who would you choose?
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers advice on searching for a job. You can send Nick your questions at artoffindingwork@gmail.com.