Ford R. Myers asked:

Most job-seekers get into a “locked mindset” about compensation negotiation, with all sorts of assumptions, pre-formed notions and “myths.” The truth is that everything is negotiable. Yes, EVERYTHING! There are four things I know about salary negotiation, from all my years of experience in career consulting:

1. The first salary offer the employer makes is usually the LOWEST offer they can mention without feeling embarrassed.

2. The employer is fully expecting candidates to negotiate the offer, and will think twice about making you an offer if you DON’T know how to “play the game” of negotiation.

3. 80% of the outcome of your negotiation will be determined by your attitude and assumptions about this subject.

4. Anyone can learn to negotiate compensation effectively! You just need to learn a specific set of behaviors and phrases.

Items You Can Negotiate:

SALARY (always finalize this one first!)

Job Title

Job Responsibilities

Insurance (life, medical, dental, disability)

Vacation Time

Office Location

Retirement Plans

Parking

Relocation Assistance

Training Allowances

Work Space

Bonuses (sign-on and performance)

Commission Rates

Expense Accounts

Memberships and Dues

Accelerated Reviews

Stock Options

Profit Sharing

Company Car or Auto Allowance

Home Purchase or Mortgage Assistance

Tuition Reimbursement

Non-Compete agreements

Outplacement Assistance

Consultant vs. Employee Status

Flex-Time

Commuting

Job-Sharing

Free Lunches (meals)

Company-Sponsored Child Care

Severance Settlement Package

Legal, Tax, or Financial Assistance

Discount on Purchases

Computer Equipment, Laptop, etc.

On-premises Health Club

And whatever else is important to YOU!

Obviously, you would not attempt to negotiate ALL these items – only the ones that are of most importance to you! Most candidates will select 3 to 5 items to negotiate.

The Real Value of an Offer

Before you can begin negotiating the elements of any offer, you must first determine the REAL VALUE of that offer. To make an accurate assessment, don’t forget to factor-in the non-salary dollars that go into a compensation package! For example:

Base Salary – $50,000

-plus-

Health Plan, Vacation, Retirement Plan, Training & Development,

and Auto Allowance – $17,500 (35%)

-plus -

Bonuses, Commissions, etc. – $7,500 (15%).

Total Compensation = $75,000

At first, the offer above seems to simply be a $50,000 base salary. But when you incorporate all the “extras,” you quickly see that it’s actually a much more attractive offer, totaling $75,000!

Remember to get the whole story before you judge the compensation! There may be much more to the offer than meets the eye.

Once you understand the scope of the entire offer, you can go back to the hiring manager and negotiate those items that are most important to you. Enjoy the process!

Copyright 2008, Career Potential, LLC. All Rights Reserved.

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