For all members of the workforce, salary is an important factor that influences the decision to apply for or accept a job offer. Some roles are advertised as DOE Pay, which means that the salary of the employee will “Depend on Experience”. This article will explain what DOE pay is, its pros and cons, and other relevant factors that you should consider when applying for or accepting a job with this pay structure. 

What is DOE Pay?

DOE pay stands for “depends on experience”. This means that the salary you will receive for the role will depend on the extent of your experience. DOE pay allows employers to omit specific salary information on job listings. This can make the decision to apply for a position difficult for graduates. 

This method of calculating an employee’s salary is becoming more popular. While it can be tricky for graduates to navigate this due to their limited experience in the workforce, you can employ tips to negotiate an appropriate sum with potential employers. 

What are the Advantages of DOE Pay?

DOE pay can be an advantageous pay model for graduates. Here are the benefits associated with DOE pay:

Increased Negotiation Capacity

You may be able to negotiate a higher salary for a role advertised as DOE pay. This is likely if you already have an extensive work history despite your position as a graduate. For instance, you may have worked throughout university in part-time or even full-time roles. This means that you will be able to negotiate a higher salary package than one they may receive for a graduate position at a company that does not employ DOE pay. 

Increased Interest

Applying for a job that advertises DOE pay may demonstrate to the employer your genuine interest in the role and the company. Removing salary information from a job listing will likely leave the impression that the applicant is passionate about the role, company, or industry. This will impress the employer. 

Reduce Competition

As salary and pay are naturally significant parts of a graduate’s attraction to a role, removing this information may detract other potential candidates from applying for the role. This reduction in competition will make you more likely to be successful in attaining the position. 

What Are the Disadvantages of DOE Pay?

DOE pay may not be right for everyone. Here are the most pressing disadvantages of DOE pay that you should consider before applying for a role that advertises this system of salary pay.

Limited Experience

As a DOE salary hinges on a candidate’s experience, it is an especially difficult pay structure for graduates to navigate. This is because they tend to have limited experience. This means that the salary on offer may be lower than what you might receive for a similar role at a different company that nonetheless reflects your education and skills. 

Limited Negotiation Capacity

It may also be difficult for graduates to negotiate a higher salary on a DOE framework due to their limited experience. In fact, some companies may choose to strategically implement DOE pay to spend less on employee salaries. This limited negotiation potential may mean that you have an unfair standing when being paid a DOE salary for a graduate position. 

Limited Understanding of Fair Salary 

Graduates with limited experience in the workforce may have a limited understanding of what a fair salary is for the demands of a role in relation to their skills, experience, and education. In this way, you may unknowingly enter into employment with a company and receive a salary package that is below the standard rate for your role and industry. 

How to Discuss DOE Pay with Employers?

It is important for graduates to have the skills to negotiate DOE pay with potential employers to ensure that they receive a salary attached to the job offer that reflects the extent of their abilities. Here are some advice to follow when discussing DOE pay during the negotiation stage with a prospective employer:

Determine A Salary Range

Before entering into negotiations with a potential employer about DOE pay, you should determine a salary range that considers your necessary expenses and additional disposable income. Your salary should be able to provide you with the means of paying your bills, insurance, living expenses, and for food and transport. It is also desirable to have access to additional funds in case of an emergency or unexpected payment, as well as to cater to leisure and personal expenses. This salary range should be realistic in its reflection of your education, experience, and skills as a graduate who is new (or relatively new) to the workforce. 

Compose A Pitch

When applying for a DOE salary position, you are required to not only demonstrate to the employer why you are suitable for the role, but also why you are entitled to a certain salary amount. This requires you to compose a ‘pitch’ that justifies why you are entitled to your preferred salary. You should familiarise yourself with information about the skills, qualifications, experience, and other strengths or knowledge you possess. This information should then be invoked when the employer presents offers or counter-offers to you. By demonstrating what you will bring to the company, the employer may be more likely to negotiate a higher salary. 

Be Willing to Compromise

As a graduate, it is natural for you to have limited negotiating capacity. A DOE salary structure that hinges on experience will naturally reflect the limited experience that is the norm of graduates. You should therefore be willing to compromise if you feel like you are unlikely to receive a better offer from the employer or even elsewhere. This way, you will have a job and steady income so that you can start making your mark in the company and the industry. At times, a company may be unable to acquiesce to your desired salary package due to their financial capacity. If you are determined to work at the company regardless, then you should be willing to compromise. 

Be Willing to Walk Away

At times, an employer may invoke a DOE pay model so that they can ‘low-ball’ potential employees. If you recognise that your qualifications entitle you to a higher salary than what is being offered, you should be willing to walk away. This will not only save the company’s time in filling the position, but also allow you to seek out more appropriate employment elsewhere. 

Formalise the Agreement

Once the negotiations are complete and you have settled on a salary amount with the employer, it is important that you formalise the agreement. This is by requesting it in writing to ensure that no changes are made to the salary amount at the last minute. Formalising the agreement will protect you legally and will ensure that you receive the amount that has been agreed to. 

Find out more about the average salary for your industry here.