One of the more difficult issues facing job seekers is how to negotiate a compensation package after a position has been offered. There is little room for discussion with some employers, while others are open to some give and take. Understanding negotiations can prevent the process from becoming a barrier between you and the job you want.
Negotiations can become a barrier in three ways. First, improperly handing them can result in an offer being withdrawn by the employer. Second, they can bar you from getting the top compensation you are entitled to receiving. And finally, by not pursuing a package you would accept, you may foolishly turn down a promising position.
Because situations vary, there is no one methodology that always works. However, there are some things you can do to prepare yourself for discussions if the employer is open for negotiations.
The topic of compensation can come up at anytime during the employment process, before or after an interview, before and after an offer. The best approach is to be prepared.
Research in advance how much similar positions in the region are compensated. Consider all benefits, including salary, health insurance and disability insurance and life insurance. What type of retirement programs are typical? Do they typically pay bonuses and, if so, how much?
Other benefits to be concerned with are vacation time, sick leave, deferred compensation, relocation expenses, stock options, organizational car, car allowance and memberships.
Some higher-level positions have a contract for a length of time. Make sure you know the common time period if you are in this situation.
Information on compensation can be found at Internet sites, state labor departments, chamber of commerce organizations and industry associations. If the job is with a government agency, the compensation range is generally a set amount that is available to the public.
Contact the human resource department of the prospective employer and request any compensation package information, including salary ranges. Some employers will provide it to you and some will have a policy to not make it available.
If you know employees at the organization, ask them what the compensation package includes and if they know what the salary ranges are for the position of interest. They may not know everything right off the top of their head, but may be willing to find out and tell you later.
Compare the offer to the typical compensation package for the level of responsibility of the position and your own qualifications. If it is a fair offer you can accept, don’t waste time haggling. If it is not what you want, make a counter offer. If you can’t get what you want in salary, take a look at benefits and request adjustments. Different employers have different policies, and hiring mangers can request adjustments in certain benefits.
After an offer is made, you can request a couple of days to consider it. Do so if you are uncertain it is an acceptable amount or feel pressured. Most often it is better to think about offers than to react on the spot.
Everyone’s circumstances are different. If the offer is too low and you are certain there are better opportunities available, turn it down politely. On the other hand, if you need the job and there are few other prospects and they won’t budge, maybe your best move is to take the position.
M.B. Owens is a Nashville-based columnist and journalist with a decade of experience writing on employment topics and business. He can be reached at [email protected].