Salary Negotiation
The negotiation process actually begins in the interview. In the interview is where you tell the company about yourself, your accomplishments and what you can do for them. All of these points increase your value when the time to offer you a job comes. There is a process when conducting salary negotiation. It takes strength, flexibility, determination, and finesse. Salary negotiation is only as effective as one's preparation and style. The art of negotiation is based upon mutual agreement of issues,not confrontation.
Prepare
It is important to properly prepare before you receive the job offer.
- Research salary ranges for the job function that either the employer and/or the industry have established.
- Research the cost of living in the region in which you would be working.
- Establish your criteria before you meet to discuss/negotiate the terms of the job offer so you know how best to respond.
Establish your criterion
Negotiation is not merely saying "I want more money." It is getting a better understanding of what the company has to offer and comparing that to your needs and what you have to offer the employer. Some criteria to evaluate ahead of time include:
- What is the lowest salary you would consider?
- What do you need to do your job?
- What benefits does the employer offer?
- What makes you worth a higher salary? Create a list of the benefits you would bring to the organization.
Possible negotiation points
There are many different aspects of a job offer than can be considered in the negotiation process. Be sure you evaluate what your needs are so you are better prepared to react to an offer. Things you may possibly negotiate are:
- Retirement benefits/pensions/profit sharing
- Bonuses/pay increases
- Travel/auto/cell phone
- Child/dependent care
- Memberships
- Education and training
- Salary
- Work schedule/vacations
- Work location
- Office/staff
- Life and health insurance
- Relocation assistance/housing
- Termination programs
Receiving the offer
When you receive an offer, be certain to express a strong interest and enthusiasm for the job. Ask for a period of time to evaluate the offer. An appropriate evaluation time should be approximately 48 hours. Asking for time gives you the opportunity to:
- Fully understand the whole package
- Decide how to deal with the situation if the salary offer is lower than you expected
- Discuss the offer with family, network contacts, professors, etc.
- Prepare and execute a successful negotiation
- Be more level-headed at negotiation time
- See if you get another offer so as not to limit your options
Analyzing and Evaluating the offer
There are a couple aspects of an offer which you need to consider.
- Work content: do you know all the responsibilities involved in the position?
- Total compensation package: this includes salary, benefits, and other perks
As you go into negotiation, begin with the mindset that everything is negotiable. Think about the offer you have received. . .
- Are there issues that need to be clarified?
- Does this job match your ideal work preferences?
- Would you take the offer if they are not able to negotiate on any item?
The Negotiation
Remember, the art of negotiation is not based on confrontation, but rather discussion and mutual agreement. It is all about your value (worth) to the employer. You must prove it.
- Discuss packages as a whole, not individual items
- Determine the aspects of the offer in which you agree, then move to areas of discussion
- Know with whom you are dealing
- HR Representative- aggressive and risky negotiations are ok.
- Future supervisor- use caution and tact.
- FACT: offers are RARELY withdrawn because of overzealous negotiations.
- Enable the employer to make a "small" decision. For example, an increase of $400 per month equals out to $5000 a year.
Be prepared to have your offer accepted. If it is, take the offer and STOP your job search.
In the end. . .
Negotiation is expected from most employers. Don't be intimidated or pressured by early decision dates. Those, too, are negotiable. Do your negotiation in good faith and never play one offer against another. Always be truthful, detailed, and able to provide proof of your statements. Make sure you do your homework. Know whether the employer is able to satisfy your needs and demands. Be humble. If you win, someone loses.