You Pay Peanuts, You Get Monkeys!
The expression “You pay peanuts, you get monkeys” dates back to the 1940s in the United Kingdom, and is said to mean that if an employer pays low wages, they cannot expect to find good staff. Peanuts was always a term used for something small or paltry (since 1840, in fact), but only came to be used as a financial term in the 1940s.
The origin of this idiom which means to work for little wage, is credited to a Harry Mozley Stevens, who is often called the father of sports food service. An immigrant from England, Stevens began selling peanuts in 1895, when a peanut company called Cavanaros paid for advertising in the New York Giants game programs with peanuts, which Stevens would then sell to hungry fans. He liked to jokingly state that he was “working for peanuts”.
Who are Monkeys and what are Peanuts in business?
This typical discussion pops up every time when a good candidate is shortlisted and recruiters try to hire him/her. They tend to negotiate salary offer to the lowest for some strange reasons. It’s HR that usually sets the salary-bands for that role and is responsible for making sure that employees are paid equitably, legally, and based on justifiable factors.
Second, it removes the negotiation from the hiring manager, giving them some more independence from the process. Sometimes negotiations can be difficult and creates bad taste when recruiters become “penny wise and pound foolish” and strive saving some “rupees” for the company and get the undue credit. Here the importance of proper headcount budgeting comes into play and recruiters and the line managers must work together to induct quality HR.
In this article, we shall discuss some pointers first for the candidates as how to intelligently what to expect while joining an organisation and then some takeaways for the employers:
1. Be Market Intelligent
As a candidate, is the figure or range you have in mind realistic? You’ve done your research, but are you sure you’re being honest about your expectations? For example, maybe you’ve been in the position for a while and feel you “deserve” the increase. But, are you really going above and beyond? Can you demonstrate that? Have you advanced your skills and education? Did you complete a new diploma or certification? If you really have gone above and beyond, make sure you’re pointing that out to the company and explain how your growth benefits them and not just you.
Whether you’re weighing a job offer or negotiating for a raise with a current employer, preparation is the key. Research salary levels so you have an idea of what a fair salary should be. And figure out what people in your field who work on the same position in other industries make based on similar years of experience and education level. Work on your professional networking skills to get a more accurate picture of what’s possible.
2. Stay Calm
Stay positive that you’re excited about your potential role. All candidates have a choice either to start a solid, professional working relationship with the HR and the line management or to start your new job on a sour note. Don’t be too desperate to join a new organisation on a lower salary for no good reason.
Also don’t blow things up out of proportion. Stay calm and positive when negotiating. Never make condescending remarks. And, don’t tell your current or prospect employer that you’ll not join or you will leave soon if your salary expectations are not met.
3. Know the reasoning
Before getting steamed over an unexpected offer, keep an open mind when negotiating salary. Ask the recruiter or the hiring manager how and why they came to that salary number?
It’s important to look at everything the company offers before assuming they’re lowballing you. They may have learned that providing benefits instead of large salaries is better for them and their employees. Ask for details on all the available benefits before you accept any offer.
4. Learn to negotiate
It may ease your nerves to know that when it comes to salary negotiation, employers expect candidates to negotiate. One survey found that 70% of managers expect candidates to negotiate their salary and benefits. So while the idea of the conversation may feel stressful, know that negotiations happen often and when done right, can set your lifetime earning potential on the right trajectory.
Negotiating your salary in a new job is very important. Yet, this process is cumbersome. These questions can cause anxiety, especially if you shy away from confrontation. However, avoiding negotiation can hurt you. Your existing or potential employer can take advantage of you. You could spend years being paid less than you are worth, if your company calculates annual increment as a percentage of your current pay. To take control of your compensation, you need to negotiate. You need to advocate for yourself with confidence.
5. Beyond the Pay Cheque
One fundamental rule of salary negotiation is to give the employer a slightly higher number than your goal. This way, if they negotiate down, you’ll still end up with a salary offer you feel comfortable accepting. If you provide a salary range, the employer will likely err on the lower end, so be sure the lowest number you provide is still an amount you feel is fair.
Money matters and it does help determine our lifestyle and the quality but that’s not all. The higher you move, the more you are paid and it also depends on the sector and industry one works for. Always remember that salary goes beyond your gross salary. If the company is not willing to meet your desired base salary, ask questions what else do they provide i.e., annual bonus, Life Insurance, Medical insurance, Leave Fare Assistance (LFA) relocation allowance etc.
Related reading: Passion or Perks — What to Choose?
Takeaways for the Employers
- This is where the organisations headcount budgets come in. Don’t hire from left, right and center to show off the world that your organisation has the largest workforce.
- Have fewer but the very best ones and pay them well. Always remember: “If you care for your employees, they will care for the business”.
- If you do not pay your high potential employees well, they will leave you for someone who actually recognises their hardwork, innovation and passion with a good salary and money incentives. It is surprising to see that most of the business executives who do not want to pay their employees well actually get good money themselves and expect others to work for the “common good of mankind”.
- One of the key reasons for people switching jobs is “Bad Salary”. As said earlier, “You pay peanuts, you get monkeys”. Actually, in an organisation, you are welcoming mediocrity and under-performance where you are making a compromise on quality of your HR.
- Many employers always have this view that they can replace staff. In fact, that’s wrong. You cannot. You can only find someone else to do the job but not the same brain, not the same IQ. What employers must understand is that there are no two identical brains and we all do the same thing differently. The world will never have another Jinnah, Gandhi, Nelson Mandela, Margret Thatcher or Bruce Lee ever again. You cannot replace people and not until you start caring about the people who work for you, you will not be able to rise to the top as an organisation.
About the Author
Muhammad Sajwani is the Founder and Managing Director of Evolve HR which aims at transforming, enriching and evolving Human Capital of Pakistan, Evolve HR thrives in challenging assumptions that hinder organisational aspirations, by creating innovative solutions that yield maximum impact, scalability & benefit to a wider base of stakeholders. As a Business Coach and Organisational Consultant, Sajwani knows how to combine business insights with people insights to transform organisations and put them on the path to growth.
