Salaries: how to get the best salary in your new management consulting job

 

shaking hands when the best salray has been agreed

 

So many aspects of this topic have the potential to go wrong during the job search process. It’s sometimes faintly amazing that anyone moves jobs at all.

Most people don’t move for money but when on the job market it’s certainly a key consideration for many job seekers.

Here is Prism’s guide through the salary maze:

1. Think big picture

Think long term. No one will tolerate an unpleasant job or career no matter how well paid! The starting point must be for you to decide what your goals are in your life and career. What’s important to you and what job are you aiming for in 10/15/20 years’ time? For example, there may be considerations around work life balance that will influence how much travel you will accept, the length of the commute you will accept, the hours you work, how much stress and pressure etc etc. There are many other pieces in the jigsaw. Be as honest as you can with yourself here. Some people, especially in their early careers, THINK they want the high flying career and hyper paid top management consultancy jobs. However deep down they really don’t want the shattering, life changing, compromises that can be required.

2. What does this mean for the job I should be aiming for now?

This is particularly relevant to the salary question as you may find you need to compromise or change tack to achieve your goals. You are likely to maximise your salary as a square peg in a square hole i.e. the role is a very close match for your skills and experience but that may not be the best direction for your career.

3. What am I worth? What should my salary be?

How long is a piece of string? It’s easy to get fixated on how much salary surveys say you should be earning, or the “to £xxxx” figures in tantalising job advertisements, or people bragging at work about leaving for an offer “too good to refuse” (well, no one’s going to brag about moving for “a bit more” or a lower salary are they?). Sometimes Prism are told “well I’m getting interviews for jobs paying  £x” as if that somehow means they are worth £x.

The reality is that, like other markets (the value of your house for example) you are worth what someone is prepared to offer you. No more and no less. In practice in our experience employers are often willing to increase a salary by 8-12% but rarely much more. Apart from the obvious cost consideration they want a candidate to say “yes” for reasons other than being dangled a huge salary rise.

This is not 100% set in stone: it is possible to argue a case for being underpaid and therefore a large increase. However this needs to be backed by evidence. Of course, some people are fortunate and do secure large rises but this is most definitely not the norm.

In Prism’s experience it is not at all unusual for individuals to consider a lower salary or package. There are numerous reasons why someone might do this and (if you can afford it) can be a good way of maximising the range of job opportunities available and ensure you get the best role and employer for your circumstances and career goals. However care is needed: is an employer offering you a lower salary because the role is a step back? Fine if that’s what you really want but otherwise it could leave you frustrated once the novelty has worn off. Or are they an employer that doesn’t pay market rates for some reason?  If you take, for example, a 20% pay cut think how long it might take to regain that 20% in annual salary rises or promotions.

4. Why should I tell them my current/last salary if that’s going to hold me back?

This is a contentious issue and in parts of the USA it is illegal for an applicant to be asked as it is thought to reinforce inequalities and lack of diversity. In the UK it is not an illegal question so if you decide not to tell someone your current remuneration you risk looking like a member of the Awkward Squad or that you’re trying to hide something. The best tactic is honesty: if you are concerned that revealing your salary will adversely affect your future offer or mark you down as “not at the right level” for a role you should volunteer information to counter that possibility at the earliest opportunity.

For example

“I realise my current salary is lower than advertised:  I have been operating at Senior Manager level for at least a year now but promotions are on ice, which is why I want to move”.

Or

“I realise my current salary is lower than advertised: I am seeking an increase because pay rises and promotions have been frozen in the last two years”.

Another possibility of course is that you are paid more than the role offers and people balk at either matching your package or are wary of someone considering a lower salary. If you will take a cut you need to be crystal clear with the recruiter/employer on the salary and package you WILL accept (and if that rules you out then you’ve saved a lot of time). Consider volunteering why you are willing to do so to allay any concerns they may have.

5. I haven’t even had an interview yet: why are we discussing salary?

It is a widely held misconception that salary bands are very flexible and that an employer will always be able to accommodate the salary requirements of an ideal applicant if only the candidate has the opportunity to demonstrate their worth in the recruitment process. Or alternatively that it’s down to some decent negotiating skills at the end of the process. This is absolutely, completely, not the case and huge amounts of time can be wasted by all parties if there isn’t transparent communication up front from both sides. Of course, there are considerations about the nature of the package e.g. the benefits, the travel policies, the bonus etc. All of which add a level of complexity to the discussion.

6. It’s the final interview

It’s quite likely that there will be a discussion on salary and package at this point. If not, it is legitimate to raise it especially if there are aspects which are best covered in a face to face conversation e.g. the complexities of the benefits package or the bonus element and what influences how much is paid out. This is not a time to add £10,000 to your base salary requirements. Think of it as the house buying equivalent of gazumping: no one likes it and it can cause the whole deal to fall apart. If however there is a genuine change of your situation which might include a salary rise or promotion at your current employer or another offer which you feel is a legitimate benchmark then you should say so. If the process has been drawn out and you would be imminently passing up a bonus if you joined them it’s a good time to mention it.

calculating the best salary amount

7. You’ve got the offer

If it’s what you wanted then great but if it’s not, don’t panic. The first thing is to ensure you have ALL the information: full benefits package details, full details of bonus, basis of travel expenses policy, date of next review etc. etc. Sometimes hidden in the detail is an aspect that makes a big difference. If not and the offer is either lower than you would like or unacceptable and you are keen on the job, you will have to ask for the employer to reconsider. Do not worry that they will be put out or even withdraw the offer. Many job seekers find this unpleasant and distasteful:

  • Why should I have to haggle?
  • Surely they should see my worth?
  • Why should I join a company that’s trying to get me on the cheap?
  • If I ask for more does that put me at the top of the salary band?  Or put me under more pressure to perform?
  • Are they struggling to afford me?

All are legitimate concerns but they assume a perfect knowledge from each side of the other’s position. This is rarely the case no matter how transparent and open all sides have been. As previously suggested you need to be able to present a logical and structured reason for them to improve the offer.

8. Further negotiation

Options for improving the package could include the base salary obviously. Others are a sign-on bonus, or bonus guarantee, or to bring the salary review or bonus date forward, or improve the basis of the bonus calculation (for example lowering your targets) etc. One aspect of negotiation that shouldn’t be overlooked is the “if we do x will you do y?” and this can be used by the candidate too.

For example

“thank you so much for the offer: I’m really excited by Bloggs Consulting but it’s a little lower than I was hoping for/the figures we discussed/my other offer(s). If you could stretch to £x plus £5,000 I’d be delighted to accept”.

The employer needs the certainty that you will accept to consider such a ploy.

The role of the executive recruitment consultant in salary discussions

This is an area where a trustworthy, competent and professional intermediary e.g. a recruitment agent or head-hunter can be invaluable: albeit use of those adjectives reduces the population somewhat! They can do the negotiating for you, pay hardball or softball as required, ensure that neither side feels a loss of face etc etc. More importantly, they will have the experience of the management consultancy market to manage the process effectively to ensure the best outcome and to give advice and guidance based on that experience.

Even if you suspect that the recruiter’s primary motivation is the fee then it is very much in their interest to get the best possible offer out of their client for you. Not because it’s a bigger fee but because it may make the difference between getting paid or getting nothing.

If however you have concerns regarding the professionalism or integrity of the recruiter then you should engage with the employer directly: don’t go behind their backs but politely and firmly explain that this is such an important point in the process and such an complex area that you would like to do so. If the recruiter doesn’t like it: tough. Don’t worry about what the employer might think: it’s not likely they will have a problem speaking directly with a future employee who they have already met several times.

Of course, a good recruiter will not be just looking at their fee. They will have both the client’s and candidate’s interests at heart because they will be thinking long term and keen to ensure both a successful hire and an appreciative candidate. That’s good for business and good for you.

 

 

See our latest Salary Review 2019 which is also available as a pdf: Prism Consultancy Salary Review 2019 . We have advice and guides to help you with your job search in the Candidates section of Guides.