A cozy office, fancy business cards, and a reserved parking space are nice perks for any job. But when it gets right down to it, they don’t matter as much as a big salary, commission rate or end of year bonus. Show me the money! The higher the number, the happier we are.
Higher salaries usually come with a higher level of responsibility and more time required on the job. When I moved from an administrative job to management, I was informed that manager’s worked a “standard nine-hour day.” The extra money was quickly diluted by the additional hours. This was before cell phones, pagers and Internet access tied a manager to the company 24/7. So, with all the extra time you’re spending on the job, what are you really making?
The standard calculation for an hourly rate is to first divide an annual salary by 2080, the number of hours annually in a standard 40-hour-a-week job. So, the hourly rate for a $60,000 annual salary would be $28.85 per hour. $1,154.00 per week. Not bad, eh? That number is good as long as you clock in at 8 a.m. and get yourself out the door at 5 p.m. (with a work-free hour for lunch) and never spend another minute of the day on work-related activities.
Let’s say you spend a couple of extra hours a day after everyone leaves to catch up on email or work on projects you never got to because of meetings and putting out fires all day. Those extra 10 hours a week just bumped you up to 50 hours per week and your hourly rate down to $23.08 per hour. If you put in another hour or two per day on the phone with the boss or working at home, checking emails, you’ve just added another 10 hours—work is now 60 hours per week, and your rate is down to $19.23 per hour.
There are other factors that dilute that great salary. Do you have to buy a certain type of clothing – business suits or other professional clothing – that you wouldn’t wear outside of work? Even though you’re not technically working, a long commute and wear and tear on your car or the cost of public transportation chips away at that hourly rate as well. After work business meetings and company required travel take away from personal time and is considered part of the job already covered by your annual salary.
When you’re negotiating salary, consider all the costs of the job. Ask questions about how much time you’re expected to be “on-call” outside the workplace. I once had a boss who went ballistic if you didn’t answer his phone calls—day or night, 24/7. A salary higher than you’ve ever made before may be tempting, but be sure you’re not giving up your life in exchange. Do the math before making a decision.
"Image from dreamstime.com"
Become a member to take advantage of more features, like commenting and voting.
Register or sign in today!