This is an anonymous post from an Elpha member.

Negotiating salary: from PT contract work to FT

Valorie31·May 19, 2022

Posted in:Navigating Career Transitions Advice Compensation Early Career Startups Tech

Hi Elphas!

I was in e-comm for 5 years before making the shift to a SaaS company. 3 months ago, I started a role in client outreach/ admin as a part-time contractor (making $30/hr) in BC, Canada.

Does moving from that to $45,000 annually (2 weeks vacay, no benefits; works out to be $23/hr) seem fair? It's over the published livable wage but I'd like to make more than that. I'd like to believe I provide more value than that but the more I think about it, the more imposter syndrome sets in.

It should be all business but I understand that money is tight in the company right now and my boss seems like a genuine person. I think I'd like to be making at least $50,000 annually (with benefits) to start.

How would you recommend negotiating this?

Thanks in advance!

Jannay·May 20, 2022

Did you review salary ranges on indeed or Glassdoor? That’s the best way to negotiate, if there’s published salary ranges. LinkedIn also has salary estimates. I would also provide a salary range, that will give the company flexibility. So you could state, according to Xx, the salary range is between $50,000 to 70,000 per year. Something like that. Good luck!

MichelleFuentes·May 24, 2022

First and foremost, your feelings are completely valid! I know the feeling of wanting to negotiate comp but feeling uncertain about it knowing that the company's budget might be tightWith that, a few things to think about when approaching the convo on comp: If you'll be working with the company at a FT capacity but without benefits, you should still be paid (at least) the same amount you're paid as a contractor. The reason people often see a decrease in cash comp when converting to FT is because the company is paying more money in benefits and other non-cash comp. Since you won't be receiving benefits, they can't use that reason as a justification for the decrease. While there's an argument that they're giving you PTO that you wouldn't get as a contractor, it still doesn't add up to the amount paid in benefits or an amount close enough to that to argue that it's worth decreasing your rate. Another point to consider: since you're converting to FT, this means the time you would have spent working on other projects or with other companies is decreasing significantly, so you should be compensated for this trade off / opportunity cost. Clearly the company appreciates the work you're doing (otherwise they wouldn't want to bring you on FT 😊), so they show that appreciate you thru paying you as much as their budget allows! Since it seems you have a good relationship with your boss, I recommend being candid about where you're at thinking about this comp conversion, explaining that you enjoy working with them and working with the company, and ultimately want to find a solution that benefits all parties :)