Some things to know before negotiating salary with a new employer

There are many schools of thought on salary negotiations and it seems that many of them involve gaming, duplicity and tiptoeing around a real number. I recently read a post from a blogger who gave what I thought was pretty bad advice about forcing the hiring manager or recruiter to give a range or number before answering the question, “What salary are you looking for?” Obviously, everyone wants to get paid as much as they can, but there’s no point (to most people) in refusing to answer this question with at least one salary range because doing so may irritate the recruiter. who asked the question

Why do recruiters ask for your salary?

Let’s face it, most of us wouldn’t work for anyone else if we didn’t need the money. So money is an important part of the employment relationship. If your current salary is well below the salary range of the job you’re interviewing for, the hiring manager will want to understand why. Perhaps your current employer’s country is below market rate? However, it could mean that your skill set is not as developed as the job requires. If you are selected for a job that pays significantly more than you currently earn, an employer may make you a salary offer that is near the bottom of the salary range. The reason some employers do this is that they have more freedom to reward you for good performance with merit raises and promotions than if they had paid you at the top of the salary range. If your current salary is higher than the range for the job you’re interviewing for, you may not want to interview for a job that pays much less. On the other hand, you may be willing to take a pay cut to join an elite team. If that is the case, this topic needs to be discussed in an interview.

I have been involved in all aspects of salary negotiations: as a headhunter, as an internal recruiter, as a hiring manager, and in salary negotiations for myself. While I don’t necessarily consider myself a great negotiator, I do have a fair understanding of what goes on behind the scenes in salary negotiations and hope to offer some suggestions for candidates.

The salary negotiation depends on several things:

Your level of experience and the level of the job you are interviewing for

– the less experience you have and the less unique your skill set, the less room you have to negotiate

Who are you negotiating with? (hiring manager, HR representative, executive recruiter)

– In most companies, hiring managers make decisions about how to allocate their budgets. In general, HR representatives are couriers who report your previous salary, salary requirements, etc. to the hiring manager. In some organizations, the hiring manager negotiates on behalf of the hiring manager. Find out who makes the final decision on salary and benefits and, if possible, deal directly with that person.

Type of company (small private company, venture capital company, large corporation, public sector)

– Big companies may have more money, but they usually have more policies, procedures and bureaucracy. In many large companies, hiring managers may not have much leeway to offer new hires higher salaries. In small companies there may be more freedom but they may have fewer resources. If you think your skill set is worthy of a big salary, make a case during the hiring process. Make sure your resume sells your unique accomplishments and skills (back this up with metrics when possible) and be sure to discuss those things during the interview.

Other perks that come with the job

– Jobs that come with big benefits, big bonuses, perks (use of company plane), company cars, tuition reimbursement, sometimes have less flexible wages because the employer realizes the job will provide many other compensations.

Financial situation of the company you are interviewing with and industry trends.

– Profitable companies in growth industries are more likely to offer higher salaries, so research the company and industry before attempting to negotiate salary or benefits.

salary range

In most situations, a recruiter (intern or headhunter) will tell candidates the general salary range before they walk in for the interview. In fact, I haven’t heard of too many cases where a candidate doesn’t have an idea of ​​what the company can offer. It’s just a practical matter: if his salary or experience level is way below normal, it would be a waste of time for you to interview him.

Salary vs. Total Compensation

When asked for your salary, you can discuss total compensation or actual salary. I used to work for a company that sent us a report every year that explained our total compensation package. That was the dollar value of our benefits, vacations, tuition reimbursement, bonuses, and anything else we got from the company. Add up the total compensation you receive from your current employer and you can use that number in salary discussions, but keep in mind that you are discussing total compensation, not salary numbers. If you want to increase the total compensation number by a few thousand, you can do so without looking like a liar. Total compensation isn’t always an exact number, so it’s a number you could possibly play around with to make it look like you’re earning a higher salary. But never lie about your salary because it’s very easy to find out what it is.

Due diligence

Before you interview with a company, find out as much as you can about compensation practices, benefits, perks, and performance expectations so you know what to expect when you get a job offer. In addition, if you have this type of information, you will be able to know what is and what is not negotiable in the company.

never lie about your salary

All an HR person has to do just confirm the information) then you look like a liar. I’ve also met some companies that require potential hires to bring last year’s W2 form and others that hire background check services to check potential hires. Again, if you lie about your salary, you will probably lose your job.

Senior executives/C-level executives

If you’re a very high-level executive, salary negotiations are much more flexible than if you’re a junior player or even a mid-level manager. Most companies have a lot of flexibility in terms of salary, bonuses, option grants, and other benefits for high-level executives simply because the expectations of their jobs are so high. If you are a high-level executive, you should probably hire an attorney and/or contract search firm to negotiate your compensation package, contract, and severance agreement for you. Tell your lawyer what you want and let him negotiate with your potential employer’s lawyer. Top executives get incredible pay and benefit packages and rarely do business themselves.

Middle managers

If you’re applying to a large corporation as a middle manager, the salary they plan to offer you probably won’t be very flexible. You may be able to negotiate a signing bonus, or have the company pay any relocation or tuition assistance you owe your current employer. You may also be able to trade additional stock options or stock grants. The key to getting those things is convincing the hiring manager that he can’t live without you. Be personable and show your achievements in the interview. Don’t lie or inflate your current salary. When asked for your current salary or salary expectations, provide a range and discover the benefits and other perks that will count toward your total compensation package. Your new boss will probably want to pay you as much as he can, but he may be constrained by budget issues or corporate policies that you don’t know about.

sales jobs

Great salespeople can negotiate great compensation packages based on performance. Sales is an area where companies are willing to pay top dollar for the best because they contribute directly to the bottom line. If you’re a great salesperson with an outstanding track record, bring some metrics to the negotiating table so the potential employer can see exactly what they’re getting for their investment in you.

Entry-level or junior-level jobs or non-exempt jobs

If you’re an entry-level player or fairly young without specialized skills and experience, you simply don’t have a lot of room to trade. You may be able to get a higher salary if, for example, you have to travel farther to get to your new job or you need to buy a car to get to your new job. If that’s the case, mention it to the hiring manager and ask if they would consider additional compensation to cover your additional travel costs. If that’s not an option for them, perhaps you can negotiate a flexible work situation that includes telecommuting for part of the week. You can also negotiate extra days off or tuition reimbursement. Many companies have a dollar amount that they offer to junior employees, particularly those who join the company as members of a training program or class (i.e., first-year Big 4 auditors or consultants) and that number tends to to be quite rigid.

Liz Handlin, Ultimate Resumes LLC, © copyright 2008