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SALARY NEGOTIATION
SALARY AND BENEFIT NEGOTIATION Salary, while not the main determinant in career selection, is usually listed as one of the top ten factors affecting job choices. People often let themselves be misguided by generalizations and misconceptions regarding salary. How many times have you heard the phrases "Teaching pays poorly but is secure" or "Public employment means low pay?" A smart interviewee will look past the myths and obtain the facts regarding salary. One fact is that salary often is not predetermined. Employers usually have a range they are authorized to negotiate within. In addition, salaries are usually assigned to positions or titles rather than people. Not everyone is of equal value in performing a job, so it is your task to attempt to establish your value to prospective employers. In order to establish your worth, you must first know your fair market value. Knowing your worth is crucial for preparing to negotiate. Obtaining Salary Range Information Adequately preparing to negotiate is crucial to the negotiation process. Experts agree that the best preparation is to know what you are worth, and to also be knowledgeable of the value of the position you are seeking. If you fail to obtain this information prior to the interview process, you may end up settling for a salary far below your worth or even pricing yourself out of consideration. A good starting place is to research the salary ranges for the intended position. Accurate information can be obtained from salary surveys produced by various organizations. These surveys often contain salary information for recently hired college graduates in various areas. It is imperative to remember, though, that salary averages can change rapidly. With this in mind, always be sure that you are researching the most recent sources of information. Several resources exist that may be helpful in researching salary ranges. Click here to access a list of resources. Variables Affecting Salary Several factors affect salary ranges and final salary rates. Cost of living and geographic location are two variables affecting salary. Tools to help calculate how these two variables affect salary can be found on the web page under Career Research Information. Aside from these two factors, salary determinants usually fall into three categories:
Making Use of Your Salary Research Now that you have researched the salary rates in your field, you need to attempt to apply them to your individual situation. Simply stated, you need to calculate your monetary worth for the position for which you are applying. First, work out a minimum cash requirement for any job. This figure should be what it will cost to meet your basic needs (food, shelter, etc.). Next, establish a fair market value for your skills. This figure is realistic, and should already have been obtained during your research of comparable salaries and positions. Lastly, come up with a figure that would be your ideal salary. Remember, this figure is based on your research and needs to be within the bounds of reality! You now have three solid figures that you can use to create your acceptable salary range. Timing Waiting until the time is right is crucial for salary and benefit negotiation. It is unwise to mention salary history or compensation requirements in your cover letter or resume. If you include this information you may be screening yourself from the selection process before the interviews even begin. On occasion, some employers will request that salary and benefit requirements be included in the cover letter or resume. It is often advised that you acknowledge the request, but withhold the information. Replies such as "open" or "negotiable" are wise. If you feel you must include this information, it is probably safer to provide the employer with a range rather than exact figures. Before negotiating salary with your potential employer, you want to ensure that you have demonstrated your worth and possible value to the agency or company. If an interviewer is clear about your background and capabilities, you will have a stronger base from which to negotiate. The ideal time to broach salary talks is after you have been offered the position. It would be extremely difficult to negotiate an offer if the potential employer was not convinced that you were in the top tier of candidates. It is unwise, therefore, to initiate salary talks during the first interview. On occasion, the interviewer will bring up the salary topic prior to what is considered the appropriate time. This is sometimes a tactic used to screen out potential candidates early in the interview. There are several modes of handling the "too-early" salary question. One way is to turn the question around and ask "What kind of range did you have in mind?" Other experts recommend that you attempt to postpone answering the question by asking about the employer's expectations. Another helpful reply may be to ask "Can we come back to this question when you have a better picture of what I have to offer?" The key is to attempt to table the salary discussion until it will benefit you the most. How to Negotiate Before explaining the steps involved in negotiation, it is helpful to know what negotiation is not. Negotiation is not about giving ultimatums or demands. Winning a negotiation would be a hollow victory if it created ill-will and undermined your interpersonal skills and commitment. The very best negotiators are low-key and appear sincere, not cut-throat or calculating. It is also imperative to approach negotiations with the realization that you will probably not achieve everything that you want. Be realistic, and always keep your main objectives in mind. Obviously, a large part of successful negotiation is approaching it with the right attitude. Another crucial aspect of successful negotiation is preparation. If you have completed all of your research and created your salary range, you are now almost ready to negotiate. Prior to the presentation of the salary range requirement, you should reiterate to the employer the responsibilities and duties of the position. Seek clarification if necessary, and emphasize the level of skill required in the most positive manner possible. Also emphasize the value and worth of this position to the organization. Restating the value of the position may help support your acquiring the salary you desire. Finally, after all of your preparation and successful interviews, the topic of salary is now on the table. Your ultimate goal is to have the employer disclose the salary range first. If a potential employer asks you to state your range before he does, the question can be handled similarly to the "too early salary question." Attempt to reverse the question by using a statement such as "What is the range for this position?" Occasionally, you may find yourself in the position where you have to disclose your salary range before the potential employer. Despite your best efforts to postpone the talks or reverse the salary question, you may find that to further do so would create tension or ill-will during the negotiation. Keep in mind some specific strategies if you find yourself in the position of having to present salary requirements to the potential employer. Do not give an exact figure. Instead provide them with a salary range. This range should have your realistic salary figure at the bottom, and your ideal figure at the top. It is always easier when negotiating to decrease rather than increase your requirements. In addition to presenting your salary range, it is imperative that you justify this figure. Use statistics and comparisons from your research to support your request. It is better to provide the employer with one or two strong reasons, than to give several weak ones. Keep in mind that you may not always be able to negotiate an offer. Some companies simply will not negotiate with prospective employees. In addition, many entry level positions may have non-negotiable salaries. Also remember that if you are able to negotiate with a company, it is probably only going to be within a 5% range of the original offer. Negotiable Topics Salary is not the only topic that can be negotiated. Other potential areas include: the nature and responsibilities of the position, bonuses, health care benefits, relocation assistance, tuition assistance or reimbursement, additional equipment such as laptop computers or cellular phones, professional organization memberships and subscriptions to professional and business publications, commissions, profit sharing pension plans, stock options, retirement plans, child care assistance, wellness programs, and company cars. Negotiating items other than salary will typically serve to increase the overall value of the job. A strong benefits package could add about 30% to your compensation. If you are in a position where you are unable to negotiate either salary or any of the other numerous benefits listed, attempt to arrange for an early salary review. Consider accepting the offer (even if it does not meet your original standards) with the agreed upon expectation that at the end of a predetermined time you will receive a set raise from your employer for satisfactory performance. Accepting An Offer All of your hard work has paid off and you have just received an offer. Remember that this offer is confidential in regard to other candidates or employees of the organization. It is often considered a breach of job search ethics to violate this confidentiality. Not only would a violation undermine your credibility, it could even cause you to lose the offer. Offers generally fall into two categories, acceptable or unacceptable. If you receive an offer that you view as unacceptable, attempt to continue negotiating. Again, you are not using ultimatums here, but rather assisting the employer in seeing things "your way." If the offer is acceptable, you should first let your new manager know of your decision to accept. It is then appropriate to send a letter to the company outlining any agreements that were made during the negotiation. It is always to your benefit to have the agreement in writing. Written agreements serve to alleviate any potential confusion or miscommunication. SPECIAL NOTE: Within a year of graduation, the Office of Career Development will send a survey form to your home for you to complete. The survey will ask for information such as type of employment you secured, your salary range, and whether you utilized the services of the Office of Career Development. This information will be kept confidential and recorded only in aggregate amounts. It is important that you complete and return this survey when you receive it, so that the Office can continue to gauge its effectiveness with the services it provides.
Online Negotiation Guides: Remember that these listings are just ranges, and should be interpreted with care. The goal of this search is to determine a salary range, not a hard figure. Actual salary rates are employer and individual specific, and are affected by many variables.
Online Cost of Living Comparison Charts: Resources with Salary Information in the Career Development Office:
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Albion College ◦ Albion, Michigan
◦ 517/629-1000
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