[mystical guy]

There’s a company that’s going to give me a final interview this week and I have a competing offer of $45,000 base salary, with a performance based annual bonus of up to $5,000.

A recently hired associate of the company I’ll interview with this week has told me that, based on my experience and qualifications, he believes I should get up to $68k, just like some of his colleagues. The market rate for that position starts out at $53k, in that area.The job agency told me that they wanna tell the company $55k, when I had mentioned $60k.

Given all these variances in the starting salary, if I ask for $65,000 base salary would that be appropriate or will I put off the potential employer?

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[taxman89]

I hate salary negotiation. so this may only be worth what you paid for it but remember if you are going through a job agency that the company has to pay the job agency fee which is a decent chunk. so if they are looking at candidate A who wants 65K and candidate B (who might be a little better) who also wants 65K but also has a 20-30k job fee (no clue if thats accurate but i think its a sizable fee) it might be a tempting choice to save 20K and take candidate A who was almost as good. That being said…you dont want to undersell but if your alternative is 50K (sal+bonus) then you pretty much cant lose regardless.

like i said….i hate salary negotiation

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[mystical guy]

@taxman89 whoa. That's a huge fee. I heard it was $5k that the job agencies get. I guess we'll never know because of the lack of disclosure. That said, I think I'll take the $55 that the agency was pushing me to take. And you're right, that extra $10k can go a long way to helping me pay off my college debt, and the area the big company is located has very cheap housing.

Thanks for your input. I found a solution :).

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[mystical guy]

@taxman89 whoa. That's a huge fee. I heard it was $5k that the job agencies get. I guess we'll never know because of the lack of disclosure. That said, I think I'll take the $55 that the agency was pushing me to take. And you're right, that extra $10k can go a long way to helping me pay off my college debt, and the area the big company is located has very cheap housing.

By the way, I'm starting to feel as if these big companies are colluding with job agencies because the same company rejected me when I applied directly. That just doesn't make sense.

Thanks for your input. I found a solution :).

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[hvansaders]

I would stick to your 60k. If that is what you feel you are worth and the market in your area supports that pay then stick to your asking price. I'm not even sure why the job agency would want to go in less because the more you are hired in at the more they will get paid as it is based off a percentage of your salary. Just be ready to be offered less and then make the agency work to get you to the figure you want. Remember other things can be negotiated too like more vacation, health benefits starting day 1, etc. Think of the entire package being offered.

One piece of advice that has always stuck with me – get the salary up front because you will have to put too much time in to make up for it and by then you will want even more.

I'd personally find a new job agency too. They only get paid if you get placed. Still not sure why they would go in for less. Good luck!

[mystical guy]

@hvansaders thanks for your advice. I'll ask the agency to get me the 60, which would be quite reasonable, even though I'll know that other people in the same company are making at least $3k more.

You also gave me a good idea of negotiating the other benefits, especially time off. I'll do that when I get the offer letter, if I'm that lucky. All I know is that they must really want me if they're letting me do a phone interview and they're moving faster than usual (I suppose thanks a great deal to my insider in the Audit department). I'll bargain but I'll remain flexible.

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[alboreland]

In my experience, the agency's fee doesn't effect the offer because the hiring department already knows how the fee will look on their budget when they decided to use an agency. I think the fee is a percentage of the salary (usually 10-15%).

I wouldn't expect too much room on vacation though. Most companies set their vacation days on amount of years working there and usally don't waiver for new hires unless it is a manager or above position.

[rzrbkfaith]

@mystical guy

Stick to your guns if you know what you're worth. They can always counter offer. Also, in my experience, we have often deducted the agency's fee from the salary of the new hire, so the person going through the agency usually doesn't make as much, but that has just been my experience. I am sure all markets differ.

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[sillyva]

How much experience do you have? What part of the country do you live in?

Just looking at your credentials (Masters, CPA, CISA), I would push for $68K, if your source is reliable regarding the other salaries. Your credentials should warrant that salary, and I think I would find a different recruiter if they are telling you differently. You might be better off without a recruiter altogether.

If you are not pressed for a job right away (and the new firm will not pay the $68K), it might be worth it to keep looking. You don't want to get stuck in a job below your pay grade.

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FAR 73, 81

[Anonymous]

As someone mentioned before, recruiters usually get 10-15% of your negotiated salary so they are interested in negotiating your salary up. Plus there is a retention period where if you quit in less than 4 months (or 3, it depends), they won't get paid either. My recruiter actually gave me a sign in bonus, payable after 4 months of employment. Another trick to keep me employed for at least that much time.

[fuzyfro89]

10-15% commission means that for every additional $10,000 “sale”, the recruiter only get an additional $1-1.5k, but will get ZERO if the “deal” doesn't go through.

Just like real estate agents, their biggest incentive is to make a deal happen… any deal. Ideally, they will push for a bit extra, but that's not their primary concern.

It really doesn't matter what you think a company will agree to. You should always ask for a market rate… especially if you are not desperate to make a move for some other reason and are willing to work for a discount. Raises in industry are typically not substantial in between promotions.

[mystical guy]

Thanks for the input guys. I read the job description carefully and realized that they require me to have, “negotiation skills.” For that reason, I'll highlight my key competencies and try to get a fair salary. My insider in the Audit department keeps reminding me that the company is “very generous.” I think they must be paying over $10k more than Big 4, which is not unusual for industry. Let's see how it goes, but I really hope that recruiter doesn't low-ball me.

CPA - Since 2015
CISA - Smashed 2012
CIA - Passed 2015

[Author]

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