NEGOTIATING A SALARY

By Kimberly Robinson Williams

 Negotiating a salary and benefits may be the most difficult aspect of the job search process.  There are many unspoken rules that keep us all very cautious about having the discussion with prospective employers.  Yet, an unwillingness or inability to have this discussion may impact not just your present, but also your future earning potential.

 The salary negotiation process actually begins well before your first interview.  To be prepared to negotiate for the “best” compensation package (which usually includes salary, benefits and other perks), you must determine what you’re worth.  You must also determine how much others in your geographic area, or the geographic area you’re seeking to be in, are making for doing the same or a similar position.  Finally, you need to determine what most companies in the industry offer in terms of benefits. 

What are you worth?

You begin to determine what you’re worth by looking at what you were most recently paid and what you are or were likely to be paid over the next three to five years.  You want to make sure you are at least “made whole” when taking a new position.  That means that you are not taking a step back in salary or sacrificing future earning potential unless there are good reasons for doing so (i.e., changing careers; moving from private to public industry; moving to a part of the country that has a lower cost of living). 

If you’re leaving a company that pays a bonus before you have actually received it, you should consider asking your new employer for a “sign on” bonus to make up some or all of the difference.  If you are being paid at the top of your salary range, you may be forced to make a base salary concession.  You might seek to make up the difference with a one-time bonus.

What does the position demand?

Similar to determining your personal worth, you should find out how much others in your industry with similar education and experience level are making.  Most companies seek to match salaries of similar positions in other companies.  If you are part of a union or professional association, that organization should be able to provide that information.  If not, there are several free salary surveys available on the Internet.  If you’re a psychologist, do a search for “psychologist and salary survey.”  This should give you a number of sites to query.

Be aware that the same position may be valued differently across industries.  For example, an accountant may make more money working in the financial services industry than if she worked in the retail industry.  Make sure you’re comparing apples to apples.

Once you know what you’re worth and what the position will likely pay, you are in a good position to ask for the salary and benefits package you truly deserve.  The following are some other tips that will help ensure your success:

Ø      Do not be the first to bring up salary and benefits.  Often this discussion will not happen until the later stages of the interview process.

Ø      Don’t be dishonest about your past or present compensation package.  Getting caught in a lie will certainly be a kiss of death.  Also be honest about your desired compensation--with yourself--as well as a prospective employer.  If you can’t live on $30,000 per year, do not accept a position that is advertised below that range.

Ø      If asked what your salary requirements are early in the interview process, try providing a range that you know to be acceptable based on your research.

Ø      Understand that some salaries are simply not negotiable.  It is well within your rights to ask whether it is or not once it’s been offered to you.  In fact, asking the question may save you time and heart ache.

Ø      Even if you can’t negotiate your base salary--that amount that is paid to you annually--you may be able to negotiate bonus, vacation days or other benefits.

 As you consider this process, keep one thing in mind:  If you don’t look out for your own best interest, no one else will either.