By Tom Martin
I host a twice-monthly podcast called “Mindful Mentoring.” It’s produced by the Martin Center for Mentorship at the College of Charleston. Of the 28 episodes we’ve produced so far, one of the latest ones seems to have struck a particularly responsive chord. It’s called “Show Me the Money” and it’s about how to talk about compensation with employers or potential employers. According to our listeners, that’s one of the more challenging subjects that ever comes up, especially when you’re seeking that first job, or having a performance review that includes the possibility of a pay raise.
To help me tackle the subject, I turned to two good friends who are experts in this area. Sara Whitman runs her own company that focuses on strategy, coaching and communications to help people build thriving careers and businesses to become great places to work. Prior to that she was Chief People Officer at Hot Paper Lantern. Ted Birkhahn is Managing Director at Vested, a global communications and marketing firm focused exclusively on the financial services industry.
Sara and Ted touched on some key questions that come up when the topic turns to compensation. For example, do you understand the difference between exempt and non-exempt status, and the rules that affect how you’re paid in each one? Many recent college graduates have no idea what these terms mean and how to assess a job opportunity based on which type of position is being offered.
Sara noted that it’s also important to understand the timing of when compensation decisions are made. Some companies review all employees on an annual basis, while others have different timing for each employee, based on their start date. Knowing the company’s process helps a new hire set realistic expectations.
Ted also discussed how to evaluate a job offer on more than just base compensation. In his view, you should first be assessing how much personal and professional growth the position provides, in addition to how much you will be paid. You should also be evaluating how transparent a company is regarding compensation. Does the company openly discuss pay ranges, frequency of performance and merit reviews, and how the company approaches layoffs if they must reduce the workforce.
As with any skill, the more knowledge you have about the subject of compensation, the more effective you will be in advocating for yourself when the talk turns to money. To learn more, you can listen to the podcast on Spotify.
Tom Martin is the founder of The Martin Center for Mentoring, and an Executive in Residence at the College of Charleston. He previously served as Chief Communications Officer at ITT Corporation and FedEx.