If you’re employed and looking for a raise or trying to figure out the best way to negotiate the compensation of a job offer, there are some key things you should do to make sure you optimize the opportunity.
The most important thing is to BE PREPARED. In either scenario, having the right facts and figures will help reduce the anxiety and increase the success ratio.
NEGOTIATING A RAISE
Look at comparable salaries in the marketplace for your current role. Good places to start are www.salary.com or www.payscale.com. For information on cost of living comparisons, try www.bankrate.com. Detail what others are being paid for the same experience and job role so that you can discuss with your supervisor or manager.
Substantiate your monetary worth to your current employer. Detail all of the areas where you may have increased revenues, saved expenses or increased productivity for the organization. If you are in a billable role, how have your billable hours compared to others? If you’ve suggested ways to increase productivity, elaborate on the benefit. Even if you’ve simply found a way to purchase supplies cheaper, remind them that you’ve provided a dollar value.
Substantiating your non-monetary value is also important. It’s time to think a little like an egotist. How is your employer better off for having you work for them? Where do you go above and beyond the call of duty? Do you take the difficult cases when others won’t? Have you been commended for something you’ve done? Are you considered a mentor to others and, if so, in what ways. All of these add up to the benefits of having you as an employee.
NEGOTIATING A SALARY PACKAGE
Do your comparable salary analysis described above before applying for any positions.
If you are asked what your current compensation is, always tell the truth. More than one candidate has been removed from consideration when determined that they were not telling the truth and, in some instances, barred from applying with the organization in the future. Most employers will ask for a copy of last year’s W2 before finalizing a job offer, so they’ll find out. However, it is alright to indicate that your current compensation is below market or that you believe you are underpaid based on experience.
When asked what your compensation requirement is either at application or interview stage, it is acceptable to say, “Based on my research of comparable salaries and the description of the position as described, my base salary range would be $x amount to $x amount but I’m willing to consider the total compensation package including bonus and benefits.” It shows that you’ve done your research and aren’t afraid to discuss or negotiate.
Once an offer is made, indicate that you’d like to think it over and ask if you can have 24-48 hours to get back to them. Any longer will diminish your negotiating capability as employers are looking for prompt responses and the ability to make a decision. Dissect the offer into salary, bonus, incentives and benefits (including intangible benefits such as working remotely part-time, deferring start date, earlier salary review etc.) Determine which are acceptable and which you would like to negotiate.
Most people are not comfortable with the negotiation phase and are afraid that they may lose the offer. It’s important to remember that you need to be happy with the compensation package beginning a new role.
Within the agreed timeframe, call and indicate that you are excited about the opportunity but have considered the offer and would like them to consider specific changes, if necessary. Be sure to rank the importance of those items to determine what you’re willing to give up in the negotiating phase. Like most negotiations, chances are you’ll win on some and have to compromise on others.
It’s ironic that almost all employers want their employees to negotiate on their behalf. If you’re an attorney or claims person, you’re expected to negotiate settlements. Support staff are expected to negotiate with vendors and clients in some aspects. However, while most employers would prefer not to have to deal with salary negotiations, it’s always important to remember that it will enable them to see your skills and methods of achieving a good result.
If you know of other salary comparison sites, please share them.
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