Every job offer has a negotiable component including salary and benefits.
The key to negotiating a total compensation package is knowing what you are worth in the job and understanding what your employer’s priorities and needs are.
During negotiations it is important that you make it clear that you understand what you are worth.
Salary Negotiation: Preparing to Negotiate a Compensation Package
These negotiation tips and tricks will help you be prepared to properly negotiate a total compensation package for a promotion, performance review, or new job.
Know Your Salary Baseline
Before you start negotiating your salary, i.e. the compensation package, you need to understand the base pay for that type of job, in a specific geographic area where you work, and in the current market.
You need to learn how much you are worth in that particular job. Don’t forget about the additional financial factors over and above the base salary.
Identify Salary Components in the Salary offer: Determine What Your Needs Are
Consider what’s important to you.
Is it vacation time, health care benefits, annual/quarterly bonuses, salary, or maybe stock options?
Whatever it is when you have identified it prior to negotiating you will put you energy into the areas that are most important to you.
How much am I worth and what salary should I ask for?
Information is power.
Especially when it comes to the salary negotiation stage when you are dealing your total compensation and measuring/comparing salary elements.
To make sure you’re compensated fairly for the work you are going to do, start a web research and learn how much you’re worth. Type in Google:
- “Salary Calculator”: Log in to salary-calculator websites. When calculating salaries, measure and compare salary packages of professionals with skills/experience similar to yours in your location.
- “Salary survey”: Read some salary surveys and research web resources. Find the average compensation for your job in your industry and gather information on employee benefits.
- “Salaries for Most Popular Companies” or “Company Salaries”: If you’re going to work for a popular company in your area, join jobs and career communities (for example – glassdoor dot com) where people share salary information and workplace insights. You can have an in-depth look at the company’s average salaries.
How to Negotiate a Total Compensation Package
Once you start your negotiations the employer will generally counteroffer or in some cases the offer of employment may even be rescinded if the employer feels you are being unrealistic in your demands.
To make sure this doesn’t happen to you, make sure you have shown the employer what you can do for the company and why you will benefit them.
Make sure to mention your education, certification, skills, and experience, and how what you are asking for directly correlates.
Guidelines for Negotiating Successfully
- Salary Requirements Should Not be Specified – let the employer define the base salary, then start negotiating from that figure. This is advantageous to you.
- Never Fear Negotiating – Negotiations are a powerful tool you have at your disposal and it will make an impression with the employer as to your behavior once an employee. Research the base salary for this type of job in this geographical area before the interview. Always be discreet and never take an offer right away. Ask for a couple of days.
- Show Proper Interest – During the interview regularly stress your interest in the industry, the position being hired for, and the company.
- Tell the Truth – Never lie about you previous salary or your benefits in hopes of settling a larger compensation package. This information is easy to verify and it will not look good for you if the employer finds out you’ve been lying.
- Never Give Up – If an employer is unable to meet one or more of your demands don’t give up. Instead attempt to negotiate for long-term benefits or wage increase after your annual review.
- Always Get it in Writing – Once a compensation package has been negotiated make sure you get it in writing.
Negotiating a compensation package is the first step in your affiliation with the company. When you’ve done your research on salary baselines, know your priorities, and follow these steps, you’ll negotiation a total compensation package that you are happy with.