Bill Coleman chat transcript

Our chat guest on Tuesday, Sept. 11, was Bill Coleman, senior vice president and chief compensation officer of Salary.com. Mr. Coleman is one of the world's leading experts on the design and administration of compensation and reward programs.

Boston_com_Monster: Today we are pleased to have with us once again Salary.com's Bill Coleman to answer your questions on salary and compensation issues. Welcome back, Bill!

Bill_Coleman: Thanks for inviting me again to join the Boston.com Big Help Week chat. I’m looking forward to talking with everyone.

Boston_com_Monster: Need a raise? Not happy with your bonus (or lack thereof)? Wonder if you might earn more at a new job?

Boston_com_Monster: These are all great questions for Bill. So let's get to it as we only have him with us for the next hour. Fire away with those questions, chatters.

Amy12: Hi Bill - I've used Salary.com to check my approrpiate salary level - sales account exec, retail - and when I talk ot my boss or HR about a raise they always say Salary.com is too high. What do I tell them? I thought it was a good independent source.

Bill_Coleman: I suggest focusing your discussion on the specific roles of your job versus the Salary.com job.

Bill_Coleman: The difference is likely that you're looking at a job description different from your boss. Remember to focus on what you are worth in your job.

Jessica2345: Hey Bill - I've had some summer internships during college (I'm a junior now) and they are great experience but all unpaid. Now I really need to work and earn money. How do I break into the ranks of getting a paid summer job, in an office (not just scooping ice cream)? Thanks for any tips.

Bill_Coleman: Start now.

Bill_Coleman: Start talking with your professors and career advisors to find potential "real" employers for summer jobs.

Bill_Coleman: Showing interest early, netowrking, and being prepared are probably the three best things you can do to get that first paying job (which will be a huge advantage when you're looking for the first full time career job.)

hospitalmanager: I am about to be promoted, and really do not know how to address the amount of a new salary.

Bill_Coleman: As obvious as it sounds, there are two perspectives: internal and external.

Bill_Coleman: FOr internal, you may or may not know what people at that next level earn. You can perhaps also infer it from your current pay plus 10-20% (assuming a normal promotion).

Bill_Coleman: For external numbers look to your network of colleagues, recruiters, job boards and Salary.com --- all will give a general sense of the external market.

ELR: Hi Bill, What do you feel is a fair annual salary raise that coincides with inflation and the cost of living? I hear different amounts from different people - some say 10%, some say 20%. Thanks.

Bill_Coleman: Those numbers sound very high. Inflation and cost of living are much closer to 3%-5%.

Bill_Coleman: That's the typical range of raises for *average* performers in the average job. Strong performers and people getting promoted will often get more---closer to your 10-20% range.

Bill_Coleman: Recently, we have seen companies increasing their salary budgets because of the more competitive job market.

undervalued: I recently left a job that woefully underpaid. They knew they underpaid me and kept promising to give me a raise. After months, it never came. I gave my resignation. They immediately offered me more money, and I said it was too late. Why does it take threatening to leave before some companies follow through with pay increases?

Bill_Coleman: Good point.

Bill_Coleman: It's not always the case, but many companies are strapped for resources and find themselves (unintenionally) in "response mode," where they are only able to act when a problem is imminent.

Bill_Coleman: It's best if you can have a senior business leader as your advocate to make the case for you---in other words, that person creates the pressure to solve the problem *now*.

smts19: Hi Bill, Can you describe the process used to determine the information on Salary.com, and how often the data is updated?

Bill_Coleman: The data on Salary.com is updated monthly.

Bill_Coleman: Salary.com's market data is based on data collected from tens of thousands of employers whose HR departments participate in compensation surveys we conduct or surveys we purchase that are conducted by HR consulting firms.

Bill_Coleman: We have a team of 60+/- Certified Compensation Professionals who review the all the data provided by all the employers and determine our overall view of the market---this is the same process that the companies' HR department uses in doing their own analyses.

SusieQ: What are appropriate benefits, above and beyond health and dental, to ask for when negotiating a salary package?

Bill_Coleman: Interesting question.

Bill_Coleman: Benefits like health and dental insurance are typically company-wide benefits that, for most of us, are not really negotaible---they are what they are, if at all.

Bill_Coleman: It is important to know what's offered and what it's value is to you.

Bill_Coleman: Some areas that are a little more negotiable with some employers are: time off, working from home, flexible hours, and equity (stock or stock options). These are often less regulated and less rigid---particularly in smaller, private companies.

GG: Hi Bill, My husband told me that when you are changing a job to advance your career that you never acccept anything less than a 20% pay increase. Do you feel this is universal?

Bill_Coleman: Good guideline; bad rule.

Bill_Coleman: It depends on several factors. One factor is economy, specifically the job market. If it's strong you're in a good postion, if it's weak, you may be happy just to find a new job.

Bill_Coleman: Also, if you're move is *not* the equivalent of a "promotion", whether it's lateral or a career-change, you should not expect a big jump. Sometimes you might take a cut for the right job... or even the right schedule or commute. It's all about the context of the move.

globey: would a company consider scaling back a commission plan for increased equity/stock options?

Bill_Coleman: A lot would go into that decision. Certainly a small start-up would likely be very open to the idea.

Bill_Coleman: As the business and sales dep't gets established, however, the question becomes one of scalability and broad application. Can the company afford to "spend" that much stock? Does the company want to give sales people the choice?

Bill_Coleman: In general, I'd expect many companies to like the idea, but to balk at the actual execution. Certianly, a mid-sized or large company would not want to do this on a one-off (exception) basis. But it's worth asking--certinly shows commitment.

BostonPE: Although I am only 2-3 years out of undergrad, I work in an unconventional role for an alternative asset management firm. What is the best way to judge whether a salary is fair and appropriate for jobs for which it is difficult to get any data on compensation?

Bill_Coleman: Good question--not too easy to answer.

Bill_Coleman: Your "unconventional role" in an "alternative" firm shows two degrees of separation from what we call a "benchmark" or standard job.

Bill_Coleman: The best way to approach it is to broaden your research to comparable jobs at more standard firms. Collect a lot of data and see what it tells you. Try to reconcile those data points with your current package.

Bill_Coleman: Think in terms of what other companies would pay you to do work as close to what you do now. When all that's done, give it the gut check.

Shween: when you're negotiating salary, and you want more than what's being offered, what's a tip you could give to someone to hang in there, and get them to bump up their offer? I recently changed jobs and got a 6% pay increase at my new employer (Do you think that's reasonable?). They held firm and wouldnt negotiate any more on their offer but I wanted more.

Bill_Coleman: Fair question.

Bill_Coleman: My first rule of negotiating is to know what you want before you start. And my second rule is to remember that salary is just one component of your total compensation.

Bill_Coleman: You will often hit a hard line with salaries because companies have standard salary ranges. If you hit the limit there, move on to bonus opportunity, signing bonus, equity, vacation, and anything else (reasonable). Most people stop with salary, when they could have gotten more.

Bill_Coleman: [Depending on the job, 6% is probably pretty reasonable.]

sfa2000: Hill Bill, how would you handle a situation where a person is in the same role as others and is paid significantly less than them due to years of experience, however the less experienced person contributes at the same if not greater level? Thanks!

Bill_Coleman: This is a tough situation.

Bill_Coleman: I would approach your boss with the question, framed as a question about how pay links to performance.

Bill_Coleman: Set up a time to meet and let him/her know what you want to talk about. (It doesn't help to catch your boss unprepared---you'll just get non-responsiveness or defensiveness).

Bill_Coleman: Be open minded though, often the people with more experience are providing more value that you may not be aware of.

Freddie: What if you are a contract employee? Does your service carry that info, too, like hourly rates? Or should I annualize it?

Bill_Coleman: Unfortunately, Salary.com covers primarily full time employees.

Bill_Coleman: As a rule of thumb, you can divide an annual salary by 2000 to get an hourly rate. If you're a contractor on your own, you would want to increase that rate to cover benefits, time off, costs of doing business, etc.

Bill_Coleman: You may also want to check with industry associations and contingent employment firms to see if they have data specific to your situation.

mj: Well, this is probably more on the compensation end, but I work in Worcester and due to an accident have found myself needing to take the train. I've found that I actually enjoy it and it cuts my commuting time and stress more than in half. My job is typically 8-5 but my train doesn't get me to the office until 8:30. How would you suggest I go about asking to take the train in. I'm willing to give up a half hour of my lunch break. Thanks.

Bill_Coleman: If an 8:30 start time is feasible with your job, that sounds like a great solution.

Bill_Coleman: Most companies will work with people to meet their commuting needs. Certainly, if your accident created a disability, the HR department would want to seriously consider any reasonably accomodation.

Bill_Coleman: I'd also be prepared to discuss taking an earlier train in the morning or a later one in the evening---at least be prepared for your boss to raise those alternatives.

Just_asking: When Negoiating my salary, should I let me boss know the conversation is coming?

Bill_Coleman: Generally, I say "yes."

Bill_Coleman: Unless your boss is the ultimate decion-maker regarding salaries, you'll find you have a more productive conversation if he or she is prepared.

Bill_Coleman: Be forewarned though, whether the boss is ready or not, you're likely to have to respond to mistakes you've made or areas where you didn't prepare up-to-expecations because that's an easy way to defend a lower-than-you'd-expect pay package.

Boston_com_Monster: Folks, Bill only has time for one or two more questions - last chance today!

salary_seeker_1: If you are to be offered a job and want a pay increase from what you are currently making how do you phrase that? As I know most HR folks base your new salary on what you had past made or what you are currently making.

Bill_Coleman: It's different if you're looking at a new job with the same employer or a different employer.

Bill_Coleman: At the same employer, you should try to focus on the pay range for the new job---focus on internal equity. Remember, however, on day 1 you won't be paid the average for the job because you're new to the role that others have been doing for a while.

Bill_Coleman: If it's a new company, you can try to avoid the question of what was your previous pay. You can also answer with a "total compensation" number, including bonuses, etc. A third approach is to keep bringing the conversation back to "being paid fairly based on your skills and the market for the job."

Shween: would extra vacation be another benefit to ask for if the money they are offering isnt what you want?

Bill_Coleman: Absolutely.

Bill_Coleman: You may have to find a way to work that out depending on the employer's vacation policy. Sometimes HR or line managers will give you an extra week (or two) formally or informally.

Bill_Coleman: You may also want to consider a truncated work week (at the same salary). Just a thought.

Boston_com_Monster: That's all we have time for today, chatters.

Boston_com_Monster: Great questions, everyone - thanks for joining us.

Boston_com_Monster: Bill, many thanks for your time and helpful tips - awesome.

Bill_Coleman: Thanks for including Salary.com. It was good chatting with you all.