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Old 10-11-2013, 06:26 PM
 
Location: Australia
432 posts, read 1,000,114 times
Reputation: 680

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Hi Everyone! I have moved back to my home city Minneapolis after living overseas for over 20 years so the working environment is very new to me as it's completely different here then in Australia.

Question; I started working for a recruitment firm 2 weeks after arriving in the country on a 3 month contract to hire with no benefits, just a flat hourly rate. I am contracted out doing administration, office, customer service type of work for a medical supply company.

The company wants to hire me permanently once the contract is up and said that I am doing a great job and bring a lot of experience.

I was hired on what I think is a low wage and I need some advice when I go into the negotiations for my hourly wage as I don't want to ask for TOO much as they may change their minds but I don't want to accept a low offer either.

I assume the recruitment/consulting firms make a % or hourly rate for finding a suitable person. how does that work?

What would be reasonable hourly increase? Shall I be expecting $1.00, 2.00, $3.00 or more? The boss mentioned to me casually if an extra $1.50 per hour is acceptable. I said that the apartments I am looking at to rent are 900-950 a month. We didn't talk more at that point as someone else interrupted our conversation.

I have no idea so any thoughts would be helpful or any websites where I could research would be good. I have an general idea of salary which seems to range for the type of job I am doing from $13.00 to 17.50 per hour.

So for instant if I am on $14.00 now what should I be expecting when a company hires me? How much would they be paying the consulting firm now? I know that the company does have some health benefits and 401k but have no details of that.

Please help with your advice and any resources that I could research. Thank you!
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Old 10-11-2013, 06:37 PM
 
Location: NJ
17,579 posts, read 38,288,152 times
Reputation: 16098
One thing to keep in mind (and you mentioned it) is benefits. The employer is not paying for that now, but will if you are permanent. They will also have additional payroll taxes to pay for you when you are permanent.

At the end of the day they are almost certainly going to have the range pre-defined. It doesn't matter if they hire someone who was a temp or someone else. So what you were making before pretty much has no bearing on what your final offer may be.

You need to talk with as many people as possible to try and figure out what the going rate is for your position.
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Old 10-11-2013, 08:07 PM
 
Location: Chicago area
8,197 posts, read 12,407,870 times
Reputation: 14768
Considering the markup the agency charges, benefits and payroll there is still room for them to increase your pay. If they pay you $14 per hour they are probably charging the company at least $20 per hour and possibly as high as $25-28 per hour.
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Old 10-11-2013, 08:26 PM
 
Location: NW Philly Burbs
2,431 posts, read 4,385,933 times
Reputation: 3320
Last time I was converted from temp-to-perm, I was ecstatic to be getting the exact same hourly wage, but as a salaried person, since they were heaping on vacation/holiday pay, 401K match, tuition reimbursement, low-cost health care benefits, sick time, personal days, disability insurance...

General rule of thumb is benefits = 1/3 your yearly salary; agency markups are also 1/3. Of course, this varies.

Have you checked out Salary.com? For an entry-level customer service rep in Minneapolis, MN, the median hourly rate is $15. Go to that site, enter your city, and find a job description that matches what you are doing and your level of experience, as a starting point. Your state employment bureau might also have some statistics. It also varies based on the size of your company.

Also, companies rarely pay based on your need. I'm wondering, though, if your boss asked you about a rate expecting you to counter with something higher.
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Old 10-11-2013, 08:36 PM
 
Location: NJ
17,579 posts, read 38,288,152 times
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You also have to keep in mind just because they were willing to pay XX amount for a three month assignment does not automatically mean they are willing to pay that on a full time basis.
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Old 10-11-2013, 08:39 PM
 
Location: The Triad (NC)
26,833 posts, read 57,830,396 times
Reputation: 29215
Quote:
Originally Posted by back2M View Post
I was hired on what I think is a low wage and I need some advice
What would be reasonable hourly increase?
the apartments I am looking at to rent are 900-950 a month.
I have an general idea of salary from $13.00 to 17.50 per hour.

Please help with your advice and any resources that I could research.
That $950 apartment will require more than $17.50/hr (x40 x 4.3) ~$3000/month *gross*
After taxes and other deductions you REALLY don't want to NET less than (950x3) $2850.
Of course if you SHARE that space as most lower skilled office people will have to...

Which brings up the Q of just how skilled you are.
Can you be reasonably expected to do more and better things?

Some objective data:
Salary in Minneapolis, MN | Indeed.com
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Old 10-11-2013, 08:54 PM
 
2,839 posts, read 4,754,848 times
Reputation: 3689
I went up about 30% when I went from temp to full hire. At the same time though I did get promoted to a higher level. That amount was about a $5/hr raise. I'm still not satisfied with the amount though
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Old 10-11-2013, 08:58 PM
 
Location: Australia
432 posts, read 1,000,114 times
Reputation: 680
I am highly skilled administrative working for federal govt for many years and my Australian wage salary was $64000. I cant use that basis though as the std of living is set up completely different. I really enjoy my co-workers and the work is stress free and easy which is a big change. I want to be able to give the boss some facts and figures when we meet next week. Any more suggestions would be very helpful!
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Old 10-11-2013, 09:14 PM
 
Location: The Triad (NC)
26,833 posts, read 57,830,396 times
Reputation: 29215
Quote:
Originally Posted by back2M View Post
I am highly skilled administrative working for federal govt for many years and
...my Australian wage salary was $64000.
I cant use that basis though as the std of living is set up completely different.
Well, maybe not completely 1:1... but it (and the 1:1.06 exchange) can get you close.

Where are the "set up completely different" differences found?
The obvious one would be health insurance that came out of your taxes there.
You should be able to fill in the blanks for the other AU vs US differences.
(Maybe check the expat forums?)

Back to the dollars.... $64,000us is NOT an unreasonable expectation.
Not on day one... and not from a smaller company vs a BIG company or gov agency...
but that salary and concomitant benefit package is a reasonable benchmark to target.
At the higher end of things the salaries can get into the 80's.

For a newbie and at a smaller business a 40% discount off that level (~$38,400us) might be
the other end of the bracket. That comes out to an $18.50 hourly rate so long as you don't let
them abuse you on the number of hours worked per week.

hth
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Old 10-11-2013, 09:27 PM
 
2,839 posts, read 4,754,848 times
Reputation: 3689
I would go off your last salary. I did, my highest salary was in a state that was cheaper to live, and when I pointed that out the did agree that cost of living did make sense. My base salary now is about 12% higher that that, though sadly cost of living where I am now is about 20% more lol. With some overtime and my raise next month it'll bring me closer to that 20%.

Using an online calculator, and picking Sydney, Australia, cost of living is lower in Minneapolis by 36%. If you were making $64,000 Australian, that's $60,596 American. Factor in cost of living and that brings your salary down to around $38,800.

Not sure what you are making now, but I'd ask for at least $45k and work my way down.
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