5 Tips on Salary Negotiations
You’ve finally landed your dream job after searching for several months, or perhaps the employer found you. After several interviews, you are ready to move forward with reviewing an offer. This quick article will provide you with five tips, and you go into salary negotiations.
Establish your value first
Often job seekers who don’t know their worth will jump at the first offer presented. A failure to truly understand the going market rate for a position you are being offered along with the value you bring to the company will leave you with a salary that may be below your true worth. Remember, companies need you as much as you need them. You bring unique experiences, expertise, and savvy that organizations need to grow their company. Focus on your past achievements and how you’ve helped other organizations grow. If you do not have a ton of experience, think about the impact you’ve made volunteering or participating in school clubs and organizations. Don’t undersell yourself as it reeks desperation and shows you have not done your due diligence to understand your role's current market rate. It would be best if you were realistic with your expectations but confident in your capability.
Put the breaks on - don’t be eager to say YES.
When the employer presents an offer, take the necessary time to review it. Consult with a trusted advisor or friend on the package. Employers often have compensation ranges for roles within their organization; there are a minimum and a maximum salary range and hourly rate. If you immediately jump at the first offer, it may be at the low end, whereas someone with more confidence and less experience may be paid at the higher range. Pay close attention to how long a position has been open, which indicates the complexity of filling the role. If the position has been open for an extended period, most likely, the company has been searching for a while. This gives you some negotiation power. Finally, keep in mind that compensation ranges are based on location, location, location. For example, the cost of living in New York City is significantly higher than in Columbus, Ohio, so that the pay ranges will vary, so be realistic in your expectations.
Do your homework using salary/wage research tools
There are many online tools where you can research the current salary ranges for your position. As mentioned above, organizations have ranges for various roles. If you do your homework, you will identify a realistic range and work best for you and your family. Check out sites such as Glassdoor, Indeed, and Salary.com. These sites will give you insights into the pay ranges and, in some instances, what the organization's range may be. Remember to consider total compensation, including base pay, bonuses, overtime, and commission. Every company is different, so make sure you clearly understand what the organization is offering.
Know what you need in salary/wages and benefits
To attract the best-qualified employee, employers will create a total rewards package that includes salary/wages and benefits. Make sure to get information on benefits as you are considering an offer. The out of cost expense for benefits or lack of benefits should be considered when negotiating your salary. This can have a big effect on your pocketbook if you do not take the time to review the benefits package.
Have a conversation with your recruiter
The role of the recruiter is to fill its organization positions. A good recruiter will not only represent the company, but they will be your advocate. Have an open and honest conversation with your recruiter if the offer presented does not align with what you are looking for. If you have multiple offers, you have some negotiation power; leverage it within reason. If you are not satisfied with the recruiter or hiring manager's offer, voice your concerns immediately. They will report back to the hiring manager and advocate on your behalf. When the negotiations are complete, you should feel excellent about your offer.