The Compensation Game

 

While there is always an element of risk in salary negotiation, particularly with a new employer, this game plan typically minimizes this risk, while encouraging a higher reward. Consider this action plan as you navigate through the process of seeking, interviewing and impressing a new employer.

While you cannot usually “name your own price”, this can help you increase an initial offer or influence a prospective salary offer. In his excellent article, “How to Get the Salary You Want” (Wall Street Journal, June 2010), Joe Light, makes suggestions that have worked over time for many candidates.

• Perform diligent compensation research. Not many years ago, you were operating in a vacuum when trying to anticipate what a particular job might pay. You either had to guess or visit your library to search for some published statistics, all of which were probably out of date. However, now you can perform a thorough Internet search of Web sites that publish compensation ranges for similar jobs, including the geographical differences in pay scales.
  
  
• Resist vocalizing your “salary requirement”. Prospective employers typically try to ask you to disclose a compensation level that is acceptable to you. They’ll ask questions relating to your “salary requirement,” your preferred “salary range,” or even “What are you making now?” queries. If you can no longer escape giving an answer, be sure to tell the employer about your total compensation package, including benefits, bonuses, vacation, sick days, and any other perks your current job offers.
  
  
• Be honest about former compensation. If you do divulge your current compensation, be totally honest. Do not fabricate an answer. This information can easily be confirmed by their HR department.
  
  
• Politely reject the initial offer. In most cases, the employer’s initial offer is not a bottom line number. While there may be little flexibility for entry-level jobs, most employers assume their preferred candidate will attempt to negotiate their offer. Even in a down market, consider using this simple rule of thumb: After telling the employer how flattered and pleased you are to receive their offer, politely request their consideration of a 10 percent higher figure. Unless their budget is fixed, your “modest” request may be granted.
  
  
• When convinced you’ve received the maximum dollar offer, negotiate benefits. When you’re convinced the employer has made their best salary offer, try to discuss the benefits offered. Depending on the plans and agreements currently in force, the employer may or may not be able to make changes for you. Don’t assume that you’ll receive a better package, but you should not damage your candidacy by asking for consideration.

If you are still planning to accept the final negotiated offer, but it remains lower than you had hoped, politely ask the employer if they would agree to a compensation review in about six months. You can confidently state that, while you understand their position, this period will give you the opportunity to display your value to the company.

This article is, in part, sourced from:
http://online.wsj.com/article/SB10001424052748704895204575320881220191998.html?mod=WSJ_WSJ_Careers_CareerManagement_4

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