Knowing what others make is no guarantee that you will make the same. In fact, you may quickly discover the salary averages are nothing more than the summary of large ranges. For example, an average salary of $45,000 a year for an administrative assistant _position may mask the fact that the real range for this position is actually $17,000 to $75,000 a year. Knowing that the average is $45,000 may not help you when you are offered $21,000 a year!

In addition to knowing what others make, we also need to know what you and the job are worth as well as how to best respond to initial salary offers that may be beneath your expectations. The processes of valuing jobs and your capabilities and communicating this value to employers involves researching jobs, positions, and organizations and developing effective interview and salary negotiation skills. The linking of information to these special job search and salary negotiation skills is what this article is all about.

Most people are under-compensated not because employers exploit them. Rather, they are under-compensated because they fail to adequately deal with the salary question. Indeed, many applicants are excellent at writing resumes and conducting job inter­views, but they fidget and fumble when asked about salary. Many just take what is offered, because they believe that is all there is; the job is worth what's being offered; or they feel uncomfortable talking about money. They also believe what em­ployers tell them about salaries - they can only pay what is budgeted for the position and the "going rate."

Most job seekers and employees are unprepared to deal with the question of compensation. They lack both information and skills for clearly communicating their value to employers. Indeed, they are unprepared because they:

1. Don't know what they or their jobs are worth.

2. Fail to conduct basic salary research.

3. Know little about the employer and company, including its market value.

4. Don't know how to effectively negotiate salaries – from what to say to when and how to talk about compensation.

5. Believe what employers tell them about salaries.

6. Focus on the wrong issues relevant to compensation.

7. Confuse their needs with the employer's needs.

8. Fail to understand the needs of employers

9. Say the wrong things at the wrong time.

10. Fail to continuously communicate as well as demonstrate their value on resumes, in job interviews, and on the job.

In other words, they are prone to making numerous mistakes about what they should be paid. Repeating these mistakes many times over in their worklife, they literally lose thousands in potential earnings.

MYTH 1 – Since salaries are largely determined by employers, there is little I can do other than accept the salary figure offered me.

REALITY: Most employers work with salary ranges rather than specific figures for positions. Although they may be constrained by rigid pay systems and budgets, they do have some flexibility in determin­ing how much money they will offer for a particu­lar position. The low end of the range will be for individuals who meet the minimum requirements. The upper end of the range will be for attracting individuals with better than average experience. In some organizations the range for a position may be very wide, reflecting a difference of $10-$20,000. For other organizations the range may be only a few hundred or a thousand dollars. The initial offer you receive may be at the bottom of the employer's range. Your goal should be to identify this salary range and put yourself at the top of the range by convincing the employer that you are worth being paid top dollar. How you write your resume, conduct a j ob interview, and negotiate a compensa­tion package will largely determine where you will fall on the employer's salary range.

MYTH 2: Everything is negotiable. If I can only learn how to effectively negotiate, I'll be able to use this skill to get a much higher salary than initially offered by an employer.

REALITY: Some things are negotiable, including many salaries. Other things are non-negotiable, including many salaries. The popular notion that everything is negotiable is simply false. For a salary to be negotiable, you must first have a willing partner, one who is sufficiently motivated to engage in a haggling game. If the other party doesn't need nor wish to negotiate, then you have no one to play this game. And some people simply don't negotiate or negotiate very little at all; some are even insulted by the fact that you might even consider negotiat­ing what to them is a "done deal." Indeed, many employers have rigid pay systems that do not allow much flexibility on base pay; they may have more flexibility with benefits. Unfortunately, much of what is written about salary negotiations is most appropriate for large corporations with 1,000 or more employees and for employees who make over $100,000 a year. Since very few people ever work for such organizations or make that much money, much of the advice is inappropriate for most people (85 percent) who work for small organizations (fewer than 100 employees) that have less negotiating flexibility on salaries. In fact, many salaries are non-negotiable. The most negotiable salaries are for high-level positions in large corporations requiring a great deal of experience. Even in these organizations, most entry-level positions come with set salaries that are either non­negotiable or involve little salary flexibility. Therefore, if you are first entering the job market or moving to an entry-level position, don't expect to find many employers willing to negotiate a great deal on salary.

MYTH 3:       Higher salaries tend to go to those who know how to negotiate their salary.

REALITY: Salaries are normally assigned to specific positions - not just given to people who demonstrate good negotiating skills. Except in very small organizations, where the duties, responsibilities, and performance of positions are not well defined - jack-of­-all-trades positions - most employers assign specific salaries to specific positions. The amounts assigned are normally the going market rates - similar amounts assigned to similar positions in other organizations. Many small organizations have little flexibil­ity on salaries even in the middle to upper ranks. The same is true for government positions which are assigned ranges on a progressive salary scale. Salaries are pre-set for these positions. The only way to significantly increase your salary in this case is to negotiate the level, grade, or step of the position. You do this by demonstrating that your experience quali­fies you to enter at a higher grade level. Your most significant salary increase will come when you change positions. Consequently, you are not likely to substantially increase your present salary if you stay in your current position. If you desire a significant salary increase, it's best to concentrate on moving to other positions which have higher salaries assigned to them. Unfortunately, many small employers have a limited number of posi­tions to which you may move. You may experience long-term "job and salary lock" because of your inability to move into higher paying positions. In such cases changing positions may mean you must change employers. Compensation for most sales positions involving commissions is determined by one's job performance rather than by negotiating a salary.

MYTH 4: I should primarily concentrate on whether or not I will enjoy the job rather than be con­cerned about how much I will be paid.

REALITY: You should have no problem finding numerous jobs you will really enjoy. However, many of these jobs pay poorly. Money is important not only for your lifestyle but also as an indicator of your worth. You will do both yourself and your employer a favor if you demonstrate your value and then require the employer to adequately compensate you for your talent. If you fail to address the salary question forthrightly, you may not be respected by the employer who manages to hire you for much less than you are worth. Individuals who can demonstrate their value to employers by translating it into a respectable salary are more likely to do well on the job, because they emphasize what is most important to employers - job performance. Make sure you get paid for performance rather than the "going rate" or a cost-of-living adjustment.

MYTH 5:       The salary I will be offered will reflect what I am worth.

 REALITY: The salary you will be offered will most likely reflect a number of factors, few of which have anything to do with your skills, abilities, and potential performance. Employers normally try to pay the "going rate" for jobs and positions. Some may even try to pay as little as possible, depending on how individuals respond to their of­fers. Employers determine the going rates for salaries by surveying salaries offered for comparable jobs in similar organizations. Your task should be to clearly communicate to employers that they should factor in your value when making salary decisions. Hopefully, you will convince them that your value is well above the going rate.

MYTH 6: I'll have a better chance of getting the job if I don't ask for much money; I don't cost as much as other candidates.

REALITY: This is the "penny wise pound foolish" mentality of extreme bargain shoppers who transfer the same mentality into the job market. While some em­ployers might find hiring the cheapest candidate at­tractive, most do not since they are shopping for quality employees. And quality is not cheap. Most seasoned employers believe the old adage that "you get what you pay for" when hiring people. Their experience confirms this belief. They may pay little for inexperienced people in entry-level positions, but they do so because they don't know what they are getting until the person establishes a track record of performance. Most employers look for VALUE, and they give respect to those who price themselves accordingly. If you are too cheap, employers will not see value in you. You will not receive the initial respect you need to get started on the right foot with the employer. Ironically, within certain limits, the higher your price tag, the more value you communicate to employers.

MYTH 7:  Once I prove myself on the job, I'll be in a better position to negotiate a higher salary.

REALITY: Unless you somehow become very indispensable to the organization - the employer simply can't function without you - and threaten to quit, the initial salary you get may determine what you receive in the long-run, regardless of how well you perform on the job. Once you accept a salary, you may have little or no leverage in future salary negotiations. Beware of self-delusions and ego trips to nowhere. Most people think they are worth a lot more to others than they really are. While many feel they are indispensable to the organiza­tion, in the eyes of most employers, everyone can be replaced; and many experienced employees are replaceable at lower salaries. When push comes to shove in salary negotiations, many employees who threaten to quit unless their salary demands are met are politely shown the door!

MYTH 8: My annual salary increase will reflect my job performance. Therefore, it's important that I work hard and do well on the annual performance appraisal.

REALITY: Unless you have a written agreement that states your future salary increases will be based on per­formance - and you know the exact mechanisms that will be used to measure your performance and how they are linked to pay increases - your annual salary increases are more likely to reflect cost-of­living increments than your work efforts. How hard you work, or how well you do on a performance appraisal, may only determine whether you are retained or fired. Once you are hired, don't expect employers to carefully calculate your future salaries based upon any performance criteria. Indeed, few annual performance apprai­sals are tied to salary items. Even the concept of merit pay is not widely accepted nor prac­ticed in most organizations. To do so might create more internal political turmoil than it's worth, since many employees would feel others had unfair advantages because of their close relationship with their supervisors. Therefore, the best and safest salary strategy for most employers is to give all employees across-the-board salary increases reflecting a combination of cost-of-living increases, bonuses, and profit sharing. Employers are better off providing other forms of recognition - especially psychological strokes - to those who score high on the annual performance appraisal, such as a letter of appreciation, plaque, or an award for being the "best employee of the month."

MYTH 9:           I should never discuss the issue of salary during an interview.

REALITY: While it is always best to keep the discussion of salary to the very end - after you know more about the job and you've established your value with the employer - this is not always possible. Some employers will raise this question early on in order to screen you in or out of their salary range. When this happens, be prepared to discuss salary within the context of ranges appropriate for the type of position you are interviewing for. Do not state a spe­cific salary figure you expect since such a figure should be the very last item you agree upon as part of your job offer. At this stage, let the employer know that salary is important to you; that you have done your research on salary compara­bles; that you expect to receive a salary appropriate for your level of qualifications and experience; and that you want to be compensated on the basis of performance rather than on your past salary history or because of need or greed. What you want to do at this point is get a better idea of what qualifica­tions, experience, and performance are required for this job so you and the employer will have a better idea of what both you and the job are worth. Dis­cuss the salary question at any time in terms of information gathering, but don't finalize the dis­cussion until you have all the information neces­sary to determine what will be the best salary for you.

MYTH 10: When I receive a job offer, I'll have a job.

REALITY: You only have a job when you've agreed on a compensation package. In other words, you don't have a job until the employer agrees to give you money in exchange for your talent.

MYTH 11: If asked to state my "salary requirements" on an application or in a cover letter or resume, I should be honest and tell them what I want.

REALITY: You want to be honest, but you don't have to be stupid at the same time! By stating a salary figure, you may prematurely eliminate yourself from consideration because your salary expectations are either too high or too low! The best response to this question at this stage is that your salary require­ments are either "open" or "negotiable." If pressed for a specific salary figure, give a range that should be appropriate for the position. You should have such information based upon your research of comparable salaries.

MYTH 12: Job benefits are often more important than the gross salary figure offered.

REALITY: Maybe. While many employers mix salaries with benefits in their discussion of a "compensation package," it's to your advantage to separate salary from benefits and negotiate each starting with your salary. Indeed, some employers may emphasize their excellent benefits, but many do so in order to make their low salary offer look more appealing. Most jobs come with the same or similar package of benefits. Examine the benefits carefully, but settle on a salary figure first. After reaching a salary agreement, turn your attention to the bene­fits. Consider bene­fits as something that are expected to come with the job rather than as a part of the salary consid­eration. If the benefits offered do not meet your minimum standard of what should come with the job, be sure to cost out the missing benefits and include these figures in your salary calculations.

MYTH #13: I should concentrate on the gross salary figure rather than on benefits when discussing my compensation package.

 REALITY: Yes and no, depending on the particular employer. According to U.S. Department of Labor studies, 44 percent of total compensation for the average worker comes in forms other than base salary. While social security makes up the largest portion of "benefits," numerous other benefits can make a significant difference in one's total compensation package. For example, if an employer offers stock options and you know you are with a growing company, the value of your stock could actually exceed your annual salary. Be sure to value all of your benefits and include them in a "total com­pensation figure." In the case of many small busi­nesses that offer few benefits, you may want to concentrate on the salary figure. However, the trend amongst most employers in a boom economy is to offer more and more benefits as well as incentivize pay in order to both attract and retain top talent. Many employers may have more flexibility in increasing benefits than in raising base salaries. When considering benefits, follow this checklist:

	Bonuses
	Commissions
	Overtime
	Reimbursement accounts
	Insurance (medical, dental, life, disability)
	Employee Pension Scheme/s
	Profit sharing
	Stock options
	Vacation/holidays
	Personal leave
	Flex-time
	Child care
	Discounts
	Tuition reimbursement
	Training opportunities
	Free parking
	Travelcard loan
	Frequent flier miles

Taken together, many of these benefits can add substantially to the value of one's total compensation package, and especially if they are tax-free or tax-deferred benefits. Indeed, a $60,000 salary with one employer may be worth $75,000 with benefits, whereas another employer's $60,000 salary may be worth over $100,000 with benefits. If you add incentivized pay provisions, total compensation could be considerably more.

MYTH 14: If I am willing to accept a low starting salary, chances are I can increase my salary substan­tially within the first year by demonstrating my value to the employer.

REALITY: The most important salary you will negotiate is your starting salary. Unless you are accepting a lower salary in lieu of promising stock options and equity incentives, whatever you accept at this point is likely to live with you for a long time. Most employers are not interested in renegotiating a salary you have already accepted. While they may allude to the possibility of a substantial raise in the future, chances are they have short-term memories when you later discuss a raise. The only way you can substantially increase your salary on-the-job is to move into another job that pays more. This means convincing the employer that you should be promoted to another position that pays more. You do this by demonstrating that you will do well in a higher level position.

MYTH 15: The best companies to work for offer stock options and equity incentives to their employees.

REALITY: Over eight million Americans now receive stock options and equity incentives as part of their compensation package. However, many of these individuals accept lower salaries in exchange for such compensation schemes which may or may not eventually translate into real money. Many of these individuals also tend to work for high-risk compa­nies - those that have an uncertain future, espe­cially dot-com companies engaged in e-commerce. Most of these companies will not survive beyond the first two years of venture capital funding. But if you choose the right company that goes public and you exercise your stock options in a timely manner, you could become very wealthy. Indeed, this is the new road to wealth for many people who used to believe the only way to get rich is to own a business! On the other hand, many such companies go out of business or their stock options never amount to much. If stock options and equity incentives are important to you, make sure you thor­oughly research the company. What's the probabil­ity the company will ever go public? What is the real value of your stock options given the current value of the company? Are you willing to take a lower salary in exchange for stock options with what may be a very risky venture?

MYTH 16: The longer I work for a company, the more I will be rewarded financially. If I change em­ployers, I'm likely to make less because I'll lose my seniority and benefits.

REALITY: The longer you work for a company, the higher the probability your salary will fall behind the salaries of more recently hired personnel who enter the organization at a higher salary level. Your best salary is likely to be your starting salary. After that you will most likely receive yearly salary incre­ments figured as a percentage of your base. There­fore, your starting base salary will be a major determiner of future salary increments. The longer you stay with a company, the more likely you will fall behind others who have been hired more recently. The only ways to substantially increase your salary are to be promoted to a higher level position or leave the company and negotiate a new salary with another employer.

 MYTH 17: I should let my supervisor initiate actions relating to raises and promotions.

 REALITY: While it is always preferable to have your super­visor take such actions, you must also seek visi­bility beyond your immediate supervisor as well as amongst your co-workers. Let others know - especially your supervisor's boss - that you are a producer. Remember, supervisors do change, and personal conflicts with some can stall your career. A co-worker today could well become your super­visor tomorrow. Therefore, it's best to cultivate positive relationships at all levels within your network.

 MYTH 18: Money will not make you happy; it's best to pursue other values that will make you and those around you happy.

 REALITY: Neither will poverty. Unless you don't know how to spend it, money can bring you and those around you great happiness. This "happiness argument" is a good rationalization for not doing as well finan­cially as one could or should; it's an excuse for low achievement. And you will be especially unhappy when you learn you are being paid less than you're worth or receive less than others in the organization with comparable experience. There's a lot of truth to the saying that "Those who think money can't bring happiness don't know where to shop!"

You'll be especially happy when you get a salary commensurate with your value. While money may not make you happy, it makes life much more convenient. Better yet, it helps you keep score on your level of success in the world of work. The higher your salary, the more value you have to the employer and the better your score. Don't undersell your­self because of some beliefs about the role of money in life. It's okay for talented people to make lots of money, constantly score high, and live a convenient and comfortable lifestyle.