The number one question from both clients and candidates in social media recruiting is "what should I be paying/making?"
It's an interesting question, and the person on the other line is always asking me to give them a definitive answer on what they're worth. The answer is always "depends," followed by some questions and then a hard number that tends to fall in the target of what they thought they should pay or make.
That expertise on my part comes from years of estimating salaries and positions, but if people already know the answer, why do they ask? And what would they do if I gave numbers much higher of lower than they expected?
If watching comedies in the last five years has taught me anything, it's that all negotiation situations can be brought back to some kind of poker metaphor that usually boils down to "play the man and not the cards." For those of you a bit more erudite and mathematically inclined, we'll say "play the man and not the board (it's a chess thing), but it does come down to understanding that salaries not tasked to specific earnings targets are inherently subjective, and dependent more on what other people think they should make than on their actual, literal value. While the sheer sample size of salaries across the economy tends to create a mean value that represents a good starting point for negotiation in established skillsets, it is instead the mode value for salaries that drives acceptable compensations in newer positions.
Take note that none of these numbers has any relation to the actual value of the job. They are instead rationalizations for why a salary is acceptable. To the savvy recruiter, they are key to understanding the starting point for negotiation.
To understand this, we're going to have to go back to grade school math.
The mean of a series of numbers is the sum of those numbers divided by their number. Take 100 salaries for 5, add them up, and divide by 100, and you'll get a good sense of what the market thinks is the correct salary for a position title.
The median number is simply the middle number for a series of numbers. Take 99 salaries, line them up from smallest to largest, and pick number 50. This is a terrible way to pick a salary, as the number trends to the low side when compared to internal positions, and to the high side when compared to outside positions.
The mode number isn't a fair number either, but it's the number you're most likely to pick. The mode or modal value in a series of numbers is simply the most common number. Take 100 salaries and the salary that is most commonly stated is the mode. It has no mathematical reason to be the right number, but it does have a compelling psychological reason to be your benchmark.
Marketing experts know that you have to hear something six to seven times before you believe it. Constant repetition, especially if seen through multiple mediums tends to convince human beings that something is true. If a manager is looking around for social media salaries, and the same number comes up, you'll assume the number has to be the correct one. And that mode of the salaries is how you'll judge both recruiters and candidates in their salary requests. If your salary range is higher or lower, you'll adjust the responsibilities to fit the mode salary, assuming it must be the correct one.
In an established skill set, the mean of the salaries has a lot of power. Time has proven the market value of the salary, and you can base your negotiations on the market average. In an established company, the median has value. When salaries are evaluated throughout the corporation, the relative value of each skillset based on its importance to the company has been established over time. Starting at the middle of pack allows you to negotiate your importance in comparison to the rest of the company. For most people, the comparison of what you make relative to another is all you need to be happy.
So what does it mean to say play the man, not the cards?
In salary negotiations, its important to know which of these values is the starting point for the manager and the candidate. Are they working off a comparison to other skillsets, the company structure, or are they working off a number they heard several times in researching the position?
During a recruiting call, I know right away which value to start from. It's all in the response to the salary I give. If they compare it to other positions, it's a mean. If it's compared to what they or other employees make, it's the median. And if they cite other sources, it's the mode. Based on clues they give me in the call, I can determine the approach to explaining the salary I choose. Do I emphasize skills sets in relation to other positions? Do I talk about experience? Do I demonstrate the importance of the role? Or do I bring in past placements with the right salary? In each case, the goal is to suggest a salary range they already have in their head. It gives them the confidence that we are on the same page.
Keep in mind the goal of a recruiter is to identify the salary range that is most likely to result in a placement. If I'm working with a client with too low numbers, I won't be successful, and will waste a lot of time with candidates who refuse offers. If the number is too high, I might make the placement, but the candidate will fail miserably, and I will lose credibility and possibly the fee when the candidate is fired. In searching for a suitable salary range, I'm trying to determine if the company and the candidate have enough common ground to bring them together successfully.
Some of you are asking what this possibly has to do with your salary evaluation. The answer lies in understanding 1) your value to the company, 2) your relative influence in the company, and 3) your happiness in comparing your compensation to the work you perform.
Salary negotiation is very important in establishing a healthy business relationship with your employer. Undervalued employees jump ship or find ways to work less. Overvalued employees turn to political games to protect their tenuous position. In looking at your salary, try to understand the why of your salary, and that will help you better understand how much.
