The story I’m sharing today is unfortunately a real problem that a job seeker client of mine is going through.  I’m positive he’s not the first to experience an issue like this, and while I’m focusing this here blog post on new grads, the challenge he’s up against is one that hat any level job seeker could battle with.

And the problem is…

He just might be making too much money…

Hold the bananas, what the monkey are you talking about Cornz?!  Yes, I know… that’s exactly what you just said out loud.  Just relax for a second and I’ll explain our situation.

For the sake of our story, let’s just call my client Nicholas Cage.

So, Nicholas Cage graduated from college in May 2010, with a degree in Finance.  Nicholas is a smart kid, interviews well, and is generally what many companies are looking for, so he receives an offer with a way above average starting salary for new grads.

Great, right?  Hmmm…

Not long into his job (3-4 months), Mr. Cage starts to realize the company and specific job isn’t exactly the right fit.  However, he’s doing well, makes great money (which pays for fun stuff and bills), and receives a promotion just over a year into the job, so he decides to stick it out while looking looking for a new employer.

Here’s The Problem

As mentioned, Nicholas Cage wants to leave his current job (even with the high salary and promotion).  The career path isn’t exactly where he wants to be, so the search is on.  Initially, a major problem is that many companies might not want someone that is essentially starting over, even though it may be a position that’s closely related to their previous experience.  So yes, that’s one problem, but here’s the big stinky current issue…

Nicholas had a phone screen last week that went fantastic.  He told me that everything felt absolutely perfect until they asked about his current salary.  They told him that his current salary was significantly higher than what the job would pay, and they wouldn’t feel comfortable with him in that role, taking that large of a pay cut.

What Nicholas is going through may very well happen again.  Most companies don’t want to see someone take a huge pay cut for their openings.  Here are a couple reasons why:

• It’s a risk for the new company.  When people take large pay cuts, almost all of the time they miss their larger salaries (obviously).  The work satisfaction may be higher than their previous job, but you may still find them looking for a new job way too soon.

• New company may question the job seeker’s motivation.  Sure, maybe they aren’t happy with their current position, job, and company, but what else is making them start over in skill set, salary, and employer?

Potential Problems With Absurdly High New Grad Salaries

These next three points won’t always be an issue, just something you should consider when receiving an offer that makes your jaw drop:

• Companies typically expect much more from new grad hires that make higher than average salaries.  The jobs are more involved and sometimes have higher stress/pressure than a strictly entry level job.

• Because those jobs may be more involved, stressful, and challenging, the higher salary is used to keep that person around longer, when maybe with a lower pay out that person is looking to leave after a few months.

• When the new employee finally gets tired of the work or realizes it’s not for them, it’s harder for them to find a company and position that will pay close to what they are currently making.

What Should New Grads In This Situation Do?

The very first thing someone should do is make sure the new area of interest is absolutely going to make them happy.  Imagine hating your job, but loving your high salary, and then taking a job that end up hating both the work and the lower salary.  Yikes.

It’s also important to understand that you may be starting your next job at 10-15K lower than your current salary.  I know that is awful, but be prepared for this situation.  Most companies won’t even consider someone that wants to take a 10K cut as mentioned earlier.

Network your face off.  If you have a referral in or actually know the person hiring, you’re more likely to get a job that comes with a pay cut if the company feels like they know you.

 Final Thoughts from COTJ

Nicholas Cage is going to come out on top of this situation.  He received a high salary for a reason:  he’s smart as hell, interviews well, and is what a company wants.  He’ll work his way into another company and will hopefully be happy in his new role.

Have you been through a situation like this or are you going through it right now?  What advice do you have for Nicholas?

This guest post is contributed by Brenda Harris, who writes on the topic of executive mba programs. She can be reached at her email id: brenda.harris91@gmail.com.

Some people do it timidly and with hesitation; others are brasher and more open about demanding it as their right; and yet others threaten to quit if they’re not paid more. While we all feel the jitters when we want to ask for an increase in our salaries, we adopt different methods to go about this act because there are no fixed rules or regulations to follow. But no matter how you ask for a pay hike, you must keep a few things in mind before you talk to your boss or put in a request in some other way because if you don’t, things could backfire on you in a bad way. So if you’re mulling over a salary increase, think over these things before you go ahead with the idea:

• The current market scenario: If the world in general or your company is going through a lean period and your co-workers are getting fired or laid off by the dozen, then it’s definitely not the time to bring up the issue of a pay hike. You would think that this is pure common sense and that people will know that they’re lucky they get to keep their jobs in such a scenario, but there are times when people get ahead of themselves and convince themselves that they are indispensable to the company and that they should ask for and receive a raise.

• Your present standing at work: If you’re in the doghouse with your boss, then it’s sure not the time to bring up the issue of your salary hike. You must wait for the dust to settle and work on getting back into your superior’s good books before you can broach the subject. This does not mean that you must toady up to them; rather, let your work do the talking and your salary hike request cannot be denied without adequate consideration.

• The probability of you getting the raise: If you’ve just received a raise in the recent past, then your current request is probably going to be denied, unless there are extenuating circumstances. Also, your status within the company counts a lot when the issue of a raise comes up. Your boss may feel that you don’t merit a pay hike because you’re just not that valuable to the company. They’re not worried that you may quit if your request is denied, so there is no compulsion for them to cater to your demands. So holding the threat to leave over their heads may not be a good idea unless you are relatively confident that they will cave in or you have an alternative position lined up.

Salary negotiation is a tricky minefield that could end up hurting you badly if you’re not careful. So tread carefully, like you would on eggshells, read the situation well, and use the right opportunity and time to ask for your pay hike, preferably when your work is receiving rave reviews from your superiors.

Asking for a raise in normal economic conditions can be a bit hairy, but doing so in our current economic state just stinks.  During tough times, some believe it’s career suicide to have a discussion about salary with a supervisor.  That may be the case, but if you truly are underpaid, as well as a top performer in the company, then you certainly need to give it a shot.  So, how do you do it?

4 Tips on how to ask for a raise in a recession:

1. Know your company - If your organization is struggling to stay in business, or is filing for bankruptcy, now isn’t the time.  Print this article out, bookmark Corn on the Job, or subscribe to my RSS feed and just come back to me later.  Those working in a financially stable, or somewhat financially stable company should begin to research their company financials, goals, and any challenges the organization faces in dealing with the economy.  During a recession it’s not uncommon for companies to put a temporary halt to raises and promotions.  Take this into consideration when debating on asking for a raise.  If you truly feel you are a top performer, than you still have a shot.
   
2. Know your market value – Check a few online salary calculators.  Click here to see a few.  Make friends with some HR folk and see if they can share some salary data with you.  HR at your company won’t share that information with you, so hop on LinkedIn, and see if you can connect with a compensation specialist.
3. Know your accomplishments – What have you done well?  Write it all down.  Positive experiences with customers (internal and external), projects you’ve lead, money that you’ve saved the company.  If you can show any form of Return on Investment (ROI) in projects, than you are golden.  Showing your supervisor where you’ve saved money is always your best bet, especially in a poor economy.
4. Set up a Plan B – OK, so you prepared yourself well, but it looks like you need a Plan B.  Maybe the company just doesn’t have the money, or it could be that you haven’t showed your supervisor that you’re the cats pajamas.  You need to be prepared for to hear, “No.”  Set up a meeting in 6 months, and set up goals and expectations with your supervisor.  Find out what needs to be done in order to warrant a raise.  Focus the next 6 months  (or whatever time frame is decided) of your life on completing the goals and objectives set by your manager/supervisor.  When time passes by and you meet with your supervisor again you’ll be able to show you’ve completed each objective.  If you don’t receive your raise at that point, then maybe it’s time to start looking elsewhere.

If you think you’re underpaid and deserve a raise make sure to do your homework.  The last thing you want is to go into that conversation with your supervisor unprepared.  Along with utilizing your outstanding performance reviews, make sure to check out the below links to salary calculators to help prove you deserve a raise/promotion.

Check next week to read how to go about asking for your promotion!

http://www.payscale.com/salary-calculator/

http://www.salary.com/personal/layoutscripts/psnl_default.asp

http://about.salary.com/

http://www.salaryexpert.com/

Found a very interesting article today that does a nice job in showing us which schools bring the most dough to new grads.  You’ll see a nice bar graph which compares both the Starting Median Salary as well as the Mid-Career Median Salary for each school on the list.

It will come as no surprise for local Philadelphia area residents to see University of Pennsylvania on the list, but Lehigh University also shows up to represent the area well on the list.  Also, make sure to check out the Top 10 College Majors That Lead to High Salaries.

CLICK HERE TO VIEW ARTICLE

Many of those still lucky enough to be working these days have seen their company slash raises and bonuses this year.  I’ve come accross some hopeful news for those of you feeling like your hard work should earn you a thicker wallet.  Please see the link below from ResumeBear, which discusses a 2010 salary survey report completed by Watson Wyatt, a leading global consultant firm.

Check out the article then stop back to leave your opinion.  Feel free to also share some of your salary/bonus horror stories from 2009 as well, keeping it annonymous if you’d like.

Click here to read article