Catch a Gideon

Do you ask for more money?

October 27th, 2006 by digerati

I’m weighing offers for my first job out of college (besides working for myself…) and I’m wondering how to evaluate the offers and decide if I should ask for more money.

I had a scholarship which requires me to work for the government for two years. I’ve finally found a position I want and they’ve made an offer (it’s in the mail as we speak!). Here’s the issue: I received both my bachlor and masters degrees from GW in May. This means I can almost automatically qualify for a higher GS level than otherwise. The GS scale has levels and steps; 10 steps within each level. Instead of placing me in a high step at the typical GS-9 (this is the “normal” level for masters holders) they have put me at a low step at a GS-11 level. Basically this means they are paying me slightly less than I expected from them, but have made it far easier for me to be promoted. Generally it is easy to move up steps (more at a manager’s discretion) but hard to move up a level.

So what to do: be happy that I’ve been moved up a level and hope I get a pay raise in 6 months or so? Or should I ask for more money saying I had expected the rate at a GS-9 step 9 or so?

Here’s some articles I’ve looked at and haven’t helped make a decision:

A High Starting Salary is Worth Almost $1 Million, from Free Money Finance. They make the point that having a 5% annual increase is much better on $50,000 than on $40,000.

One way to super-charge your career is to start off well. Get a high-paying job, one that also has lots of upside potential, then develop your career to maximize your earning potential. Why is starting out so strong important? Consider this: which would you rather have — a 5% annual increase on $40,000 or a 5% annual increase on $50,000?

This is entirely true. Also when I switch jobs in the future they are likely to offer me pay based on my previous pay. Here’s a concrete example (from the article).

• Person 1 starts a job at age 25 earning $23,000 a year.
• Person 2 starts a job at age 26 earning $30,000 a year.
• They both average 5% annual increases throughout their careers.
• They both retire at age 65.

How much does person 2 make over those 40 years? $846,000 more than person 1!!!!! Also assume that the increases in pay allowed person 2 to contribute more than person 1 over those 40 years. Hmm, is asking for more money (and whatever is preventing me from just doing it) worth over $800,000….probably.

There is always the question of whether you are worth more money. On this I’m not sure either. I know I’m worth a high GS-9. To be a little self promoting it’s because: 1, I have more education than they expected or desired for the position, bu the education is directly applicable to the job; 2, I have more experience in the variety of tasks they need me to perform than expected for the position. They expected to have a new graduate fill the job (I think) and I have far surpassed those original expectations. The question is whether I am worth more than what they are offering me.

Career Journal (a Wall Street Journal site) says, “hiring managers revealed that about 60% leave room in the first offer for salary negotiations, 30% say their first offer is final, and 10% say it depends on the candidate.” The article is titled “When it comes to job offers, it pays to ask for more money,” so i guess I know what their opinion is. However the article says you need to prove what you’re worth and demonstrate that you deserve it. They also make a suggestion of asking for an earlier performance review so that your next salary is discussed sooner rather than later.

I’ve always set my own rates, so…anyone have other ideas or suggestions?

Is it always worth asking for more?

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