Flexibility in Salary Negotiations
Negotiating a salary is tricky business, for long-term employees and for those who are accepting a new job with another company. Oftentimes, there are constraints an employer must work under that do not allow them to exceed certain ceilings for new employees or for specific positions. There are several factors that may go into salary negotiations and there may be trade-offs to be considered as well.
Research the industry
One of the most important things to understand when negotiating a salary is what the average wages are. Keep in mind, each state has different levels regardless of the industry. Employees can review theBureau of Labor Statistics(BLS) reports on average salaries for a wide variety of professions. Having the information for a specific position or industry can help make the negotiation process much smoother.
Research the company
Salary ranges are often different in large companies versus small companies. For those who are seeking employment in a small firm, it is important to understand the pay ranges may be slightly smaller. In many cases, small firms do not have the flexibility offered by larger firms and this may impact benefits packages as well.One study(page 17) suggests the larger the firm, the higher the pay. For those who work at a company already, knowing the limitations imposed by the company can be helpful as well.
Weighing benefits as part of salary
One option for negotiating a salary may be a willingness to negotiate benefits. Some employers may have more flexibility by negotiating some benefits. These often include personal days, paid vacation days or may include an option to have amore flexible work schedule.
Reviews and bonuses
There may also be an option to suggest reviews or bonuses to make up the difference between what an employer is willing to offer and a potential employee is willing to accept. For example, if a company has an annual review policy, it may be possible to ask for a review at the six-month period instead. This allows an employee to show an employer what they are capable of doing and prove why they are worth the extra money. Bonuses for signing, reaching certain milestones or for going back to school are also possible areas of negotiation.
Most people hate the idea of fighting with an employer about salary. Unfortunately, when the job market is soft and a company has the option of hiring someone with fewer demands, negotiating a salary may be even more challenging. By avoiding some of thecommon mistakes in negotiating a salaryand offering an employer some easy ways to satisfy salary requirements, most people can succeed in getting nearly what they want.
