Many Filipinos, especially when starting their job hunt, accidentally ask for too little salary. This article is here to help you figure out how much you should really be earning, so you don’t leave money on the table. We’ll cover everything, from figuring out your worth to negotiating like a pro.
Why Do Filipinos Undervalue Themselves?
There are a few reasons why many of us, ‘kabayan,’ tend to underestimate our value in the job market. Let’s break them down:
“Bahala na” Mentality: Sometimes, we have a “bahala na” attitude, meaning we leave things to fate. We might think “anything is better than nothing,” especially if we’re unemployed or really need a job. This can lead us to accept the first offer we get, without really thinking if it’s fair.
Fear of Rejection: Nobody likes being turned down. Some of us might ask for a lower salary because we’re afraid the company will say no if we ask for more. We think it’s better to have a job that pays less than no job at all.
Limited Information: It’s tough to know what the going rate is for a certain job in the Philippines. We might not have access to information about average salaries, especially for niche roles. Relying on outdated salary information or word-of-mouth can also lead to underestimation.
Respect for Authority: In Filipino culture, we’re often taught to respect our elders and those in positions of authority. This can make it difficult to negotiate with a hiring manager, especially if they’re older or more experienced. We might hesitate to argue for a higher salary, even if we deserve it.
Company Culture: Some companies in the Philippines might try to get away with paying lower salaries, especially to fresh graduates or those with limited experience. They might pressure you to accept a lower offer by saying things like, “This is just the starting salary,” or “You’ll get a raise after six months.” Promises can be broken, so it is better to negotiate right away.
Lack of Negotiation Skills: Most people aren’t born knowing how to negotiate. If you haven’t learned how to negotiate effectively, you might not know how to argue for a higher salary or counter an offer that’s too low.
The Impact of Undervaluing Yourself
Accepting a lower salary than you deserve affects you in more ways than you might think:
Lower Lifetime Earnings: Starting with a lower salary can impact your future earnings. Raises are often based on your current salary, so if you start low, your raises will likely be lower as well. Over time, this can add up to a significant amount of money.
Reduced Financial Security: A lower salary means less money for your needs, like saving for the future, investing, or even covering unexpected expenses. It can also make it harder to achieve your financial goals, like buying a house or sending your kids to college.
Decreased Job Satisfaction: Feeling undervalued can lead to dissatisfaction and burnout. If you know you’re being paid less than you’re worth, you might feel resentful and less motivated to do your best work. This study by Workable, for example, discusses the effects of low compensation on employee wellbeing and productivity.
Limited Career Growth: Sometimes, being underpaid can signal to your employer that you’re not as valuable as other employees. This can affect your chances of getting promoted or assigned to important projects. It’s a sad reality, but perception plays a role in career advancement.
How to Know Your Worth
Okay, so how do you actually figure out what you should be earning? Here’s a step-by-step guide:
1. Research, Research, Research! This is the most important step. Don’t just guess or rely on what your friends are earning. Use online resources to get a realistic idea of average salaries for your job title and experience level in the Philippines.
Salary Websites: Websites like JobStreet Philippines, Kalibrr, and Glassdoor have salary comparison tools that you can use. These tools let you search for salaries based on job title, location, and experience level. Remember that these are just averages, so take them with a grain of salt.
Professional Associations: If you belong to a professional association related to your field (e.g., engineers, accountants, IT professionals), they might have salary surveys or reports available to members. These reports can provide more specific and accurate salary information.
Recruiters: Talk to recruiters who specialize in your field. They often have a good understanding of current salary trends and can give you insights into what companies are willing to pay.
2. Consider Your Skills and Experience: Salary isn’t just based on your job title. It also depends on your specific skills, years of experience, certifications, and any other qualifications you bring to the table.
Skills Audit: Make a list of all your skills, both hard skills (e.g., programming languages, software proficiency) and soft skills (e.g., communication, teamwork, problem-solving).
Quantify Your Accomplishments: Don’t just say you’re “good at marketing.” Instead, say “Increased website traffic by 20% in six months through SEO optimization.” Use numbers to show the impact you’ve made in your previous roles.
Highlight Relevant Experience: Focus on the experience that’s most relevant to the job you’re applying for. If you have years of experience in a different field, it might not be as valuable to the employer.
3. Factor in Location: Salaries can vary significantly depending on where you’re working. Metro Manila generally has higher salaries than other parts of the Philippines due to the higher cost of living. A job in a province, while it might offer the same job title, might have significantly lower pay.
4. Think About the Company: Large multinational corporations often pay higher salaries than smaller local companies. Also, companies in certain industries (e.g., finance, technology) tend to pay more than companies in other industries. Consider the company’s size, industry, and financial performance when determining your salary expectations.
5. Don’t Forget Benefits: Salary isn’t the only thing that matters. Also consider the benefits package. Health insurance, retirement plans (like SSS and Pag-IBIG, but also private retirement funds), paid time off, and other perks can add significant value to your overall compensation. Try to estimate the monetary value of these benefits to get a clearer picture of the total compensation package.
Setting Your Salary Expectations: A Realistic Range
Once you’ve done your research, it’s time to set a realistic salary range. Here’s how:
Identify the Average: Find the average salary for your job title and experience level in your location.
Determine Your Minimum Acceptable Salary: This is the lowest salary you’re willing to accept, considering your skills, experience, and the cost of living. Be realistic; you can’t live on air.
Set Your Target Salary: This is the salary you ideally want to earn. It should be higher than the average but still within a reasonable range.
Create a Salary Range: Your salary range should be between your minimum acceptable salary and your target salary. For example, if your minimum acceptable salary is PHP 30,000 and your target salary is PHP 40,000, your salary range would be PHP 30,000 – PHP 40,000. This gives you some flexibility in negotiations.
Example Scenario
Let’s say you’re applying for a Marketing Specialist position in Metro Manila with 3 years of experience. After doing your research, you find that the average salary for this position is PHP 35,000 – PHP 45,000.
Considering your skills and experience, you decide that your minimum acceptable salary is PHP 38,000, and your target salary is PHP 48,000. Therefore, your salary range would be PHP 38,000 – PHP 48,000. This means that when asked about your salary expectations, you could say, “I’m looking for a salary in the range of PHP 38,000 to PHP 48,000, depending on the overall compensation package.”
Talking About Salary in the Interview
Talking about salary can be nerve-wracking, but here are some tips to help you navigate the conversation:
Delay the Discussion: If possible, try to delay the salary discussion until after you’ve had a chance to learn more about the job and the company. This gives you more leverage in negotiations. You can say something like, “I’d like to learn more about the responsibilities of the role and the company culture before discussing salary. Would that be okay?”
Answer the Question Strategically: When you are asked about your salary expectations, don’t give a specific number right away. Instead, provide your salary range. This shows that you’re flexible but also have a clear idea of what you’re worth.
Focus on Value: When discussing salary, focus on the value you can bring to the company. Highlight your skills, accomplishments, and how you can contribute to their success. Don’t just talk about your needs; talk about how you can solve their problems.
Be Confident: Speak confidently and assertively about your salary expectations. Don’t apologize or sound unsure of yourself. Remember, you’re valuable and deserve to be compensated fairly.
Negotiating Your Salary: Getting the Best Deal
Negotiation is a crucial part of the job search process. Don’t be afraid to negotiate for a higher salary. Here are some tips to help you:
Don’t Accept the First Offer: Unless the first offer is exactly what you wanted, don’t accept it right away. Take some time to consider the offer and then counter with a higher number. Even if you’re happy with the offer, it’s always worth negotiating to see if you can get a little more.
Know Your Walkaway Point: Before you start negotiating, decide on your walkaway point or the lowest salary you’re willing to accept. If the company can’t meet your walkaway point, be prepared to walk away from the offer. It’s better to keep looking for a job that pays fairly than to accept a job that will leave you feeling undervalued.
Justify Your Counteroffer: When you counteroffer, explain why you’re asking for a higher salary. Point to your skills, experience, and accomplishments. Also, mention any relevant salary data you’ve found online. For example, you could say, “Based on my research, the average salary for this position in Metro Manila is PHP 45,000 – PHP 55,000. Given my skills and experience, I believe a salary of PHP 50,000 would be appropriate.”
Be Willing to Compromise: Negotiation is about finding a mutually acceptable agreement. Be willing to compromise on certain aspects of the compensation package, such as benefits or start date, in order to get a higher salary. For example, you could say, “I’m flexible on the start date if you can increase the salary to PHP 52,000.”
Get It in Writing: Once you’ve reached an agreement on salary and benefits, make sure to get it in writing. A formal offer letter should clearly outline your salary, benefits, start date, and other terms of employment. Don’t rely on verbal promises.
What if They Ask About Your Previous Salary?
In some cases, companies might ask about your previous salary to determine your salary expectations. You don’t have to answer this question. You can politely decline to answer and instead focus on your current market value. You can say something like, “I’m not comfortable sharing my previous salary. I’m focused on finding a position that compensates me fairly for my skills and experience in today’s market.” Some regions even bar employers from asking about salary history to prevent perpetuating pay gaps. This is not yet widely implemented in the Philippines, but you may still politely decline to disclose such information.
Additional Tips for Job Hunting in the Philippines
Here are some extra tips to help you succeed in your job search in the Philippines:
Network, Network, Network: Networking is crucial in the Philippines. Attend industry events, join professional organizations, and connect with people on LinkedIn. Let your friends, family, and former colleagues know you’re looking for a job. You never know who might have a lead.
Tailor Your Resume and Cover Letter: Don’t just send the same resume and cover letter to every job. Tailor your resume and cover letter to each specific job you apply for. Highlight the skills and experience that are most relevant to the job requirements.
Practice Your Interview Skills: Practice answering common interview questions. Prepare examples of situations where you demonstrated key skills, such as problem-solving, teamwork, and leadership. Consider doing mock interviews with friends or family members to get feedback on your performance.
Follow Up After the Interview: Send a thank-you note to the interviewer within 24 hours of the interview. This shows that you’re grateful for their time and interested in the position. You can also reiterate your interest in the job and highlight your key qualifications.
Red Flags to Watch Out For
Not all companies are created equal. Here are some red flags to watch out for during the job search process:
Vague Job Descriptions: If the job description is vague or doesn’t clearly outline the responsibilities of the role, it could be a sign that the company isn’t well-organized or doesn’t have a clear idea of what they’re looking for.
High Turnover Rate: A high turnover rate could indicate that employees aren’t happy with the company or the job. Try to find out why employees are leaving and whether there are any underlying problems.
Negative Company Reviews: Read online reviews of the company on sites like Glassdoor or JobStreet. Pay attention to any recurring themes, such as low pay, poor management, or a toxic work environment.
Unprofessional Behavior: If the interviewer is late, unprepared, or acts unprofessionally during the interview, it could be a sign that the company doesn’t value its employees or candidates.
Promises That Seem Too Good to Be True: Be wary of companies that make promises that seem too good to be true, such as unrealistic salary increases or promotions. It’s always a good idea to do your research and verify any claims they make.
FAQ Section
Q: How do I answer the question, “What are your salary expectations?”
A: Provide a salary range rather than a specific number. This shows flexibility while still indicating your desired compensation. Base your range on research, your skills, and experience. For example, “Based on my research of similar roles in Metro Manila and considering my skills and years of experience, I’m looking for a salary in the range of PHP 40,000 to PHP 50,000.”
Q: Is it okay to negotiate salary for an entry-level position?
A: Yes, it’s always okay to negotiate, even for entry-level positions. While there might be less room for negotiation compared to more experienced roles, you can still try to negotiate for a slightly higher salary or better benefits.
Q: What if the company can’t meet my salary expectations?
A: If the company can’t meet your salary expectations, consider negotiating other aspects of the compensation package, such as benefits, paid time off, or opportunities for professional development. If those are not viable, you need to decide if the offered salary is still worth it for you. Sometimes, accepting a slightly lower salary for a job that offers great growth opportunities can be a good investment in your future career.
Q: How do I handle the situation when a recruiter asks for my expected salary on the application form?
A: If possible, leave the salary field blank or enter “negotiable.” If the form requires a number, provide a wide salary range that reflects your research and expectations. This allows you to proceed with the application process without locking yourself into a specific number too early. You can also indicate that you are open to discussing compensation further during the interview process.
Q: Should I accept a job that pays less than what I’m worth if I really need the job?
A: This is a difficult decision that depends on your individual circumstances. If you really need the job to cover your basic expenses, you might have to accept a lower salary in the short term. However, it’s important to continue looking for better-paying opportunities and to negotiate a raise with your current employer as soon as possible. Remember that accepting a lower salary can impact your future earnings, so it’s important to have a plan to improve your situation.
References List
Workable. Employee Compensation: What it is and Why it Matters. Workable.
JobStreet Philippines.
Kalibrr.
Glassdoor.
You’ve learned a lot, kabayan! Now it’s time to put that knowledge into action. Don’t let fear or lack of information hold you back from earning what you deserve. Start your research today, practice your negotiation skills, and go out there and land your dream job with the salary you deserve! Remember, you’re worth it!
