During the negotiation process, your goal as a job seeker will likely be different from the goals of your would-be employer. The company often focuses on base salary. For you, the vital component may be total earning potential.
Below are my top 10 tips on salary negotiation for 2019.
1. The most important thing to remember about salary negotiation is that most salaries are negotiable.
2. If you’re asked about your salary history and you feel you must name a figure, give a salary range instead of your most recent salary. And don’t forget to add “that doesn’t include the value of insurance or other benefits.”
3. Benefits can make a huge difference in your compensation package, so don’t overlook them. Benefits that can contribute to your compensation include life, dental, and disability insurance, bonus structures or profit-sharing plans, pension plans, vacation days, sick days, company car, tuition reimbursement, and signing bonuses.
4. Never include salary information on your résumé.
5. Conduct salary research. Check out websites like Salary.com that allow you to find out salary information for your job or industry, plus compare benefits, and calculate your cost of living in other cities.
6. Do your homework about the company. Websites like Glassdoor can give you insight into the company’s specific compensation structure.
7. Don’t bring up money until the interviewer brings up money if you can help it. You don’t want to price yourself out of the running, nor do you want to settle for less than you are worth.
8. Consider alternative compensation packages. In lieu of cash, consider stock options, performance bonuses, incentives, equity positions, telecommuting or other alternative work options, or a more comprehensive benefits package.
9. Recognize that you may make less money in your next position, at least at the beginning. Forty percent of workers will make the same amount as in their last job, and 20 percent will make more. The remaining 40 percent will make less.
10. If your salary isn’t the one you dreamed about, but the job offers the opportunity for learning and/or growth, consider taking the job with the goal of making yourself invaluable to the organization … or positioning yourself for your next job.
During your interview(s) you should have been able to gather all the important information about the job and what it will take for you to be successful. Understanding the complexity of the role and the marketplace will support your negotiations.
Questions to ask:
- Do I have a full understanding of what will be expected of me?
- How long will it take me to ramp up?
- Do I have all the skills the company is looking for? If no, what skills am I deficient in? How important are they to be successful?
- Do I bring extra value to the company? If so, what is the value of the extra skills?
- How much do they really want or need you?
- Has the position been open for a long time?
- What time commitment will be required of me to be successful?
- Are the skills I bring in high demand in the marketplace?
- Are there many candidates with my skills?
- Do I know the value of the job in the marketplace?
Despite your best efforts, there may simply not be enough money in the budget to increase your salary or compensation package offer. The company may also not want to create inequities by paying one person more than others in a similar position.