How to Negotiate a Good Pay Package
When you're looking for a new job, you're probably interested in the pay package each company has to offer you. In some cases, a company may offer a set package for new employees. Other companies may leave room for negotiation. If you are not prepared to negotiate, you may end up with lower compensation than you deserve. With a little preparation, you can go into a job interview prepared to negotiate both your salary and other parts of your potential pay package to get what you deserve for your work.
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Instructions
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Decide ahead of time what aspects of your pay package are absolute must-haves. For instance, if your wife is unemployed or has poor medical insurance at her job, you'll require good insurance, the premiums for which won't make a big dent in your take-home pay. Other options to consider include retirement contributions, pension and paid time off. Go into the negotiations knowing what you must have and what is optional for you.
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Wait for your employer to make you an offer first. Even though he is likely to offer less than what the company is willing to pay, it can help you find a good place to start your side of the negotiations.
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Start the negotiations at a higher salary than you are willing to settle for. The employer will likely come back with a lower number, so inflate your desired number to allow for negotiation.
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Throw in pieces of your pay package that you really don't need or want and use them as negotiating tools. For instance, if you ask for a pension and don't really care to have one, you can trade that for a higher contribution into your employer-based retirement account.
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Answer your employer's questions honestly, especially in terms of previous salaries at other jobs. Don't tell your boss that you made more at your last job just to get him to give you more now. Instead, be honest about how much you made, but point out how you have grown and what more you can offer now as well.
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Offer examples to show your employer why you deserve the package for which you are asking. This includes proof of your education, occupation-related experience and any awards you have been given. Prove your worth to your employer.
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Request time to think about the offer once the employer presents it. This also gives your employer time to think about the offer. If your employer feels you may be considering another offer from another company, he may increase his offer by the time you contact him. Accepting the offer on the spot leaves no room for further negotiation.
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Tips & Warnings
Unless you need the job due to unemployment, walk away if the company is not willing to offer you a pay package that reflects your worth.
Always get your offer in writing to ensure you really get what your employer promises you.
Research the field in which you are looking for a job. Gather information on the average salary for someone in the same field with the same education as you in your area. If you are informed, you can negotiate a pay package that is fair to you and your employer.
Avoid over-negotiating. When your employer stops countering your offer, it is time to stop. You may be able to pick up your negotiations at a later date, but at this point, you have reached a stalemate.
References
- Bankrate.com; How to Negotiate a Compensation Package; Steve Santiago
- Forbes.com; How to Negotiate for a Better Salary, Even Now; Tara Weiss; June 2009
- "The Wall Street Journal"; Negotiating a Good Salary at a New Job; Alexandra Levit; Aug. 9, 2009
- CareerBuilder.com: Six Steps to a Higher Starting Salary
- The Negotiation Experts; Salary Negotiations: 21 Job Pay Tips; Calum Coburn
- Photo Credit Stockbyte/Stockbyte/Getty Images
