Salary Negotiation...Deal or No Deal?

When evaluating job offers, many candidates focus on base compensation and neglect to review the offer in terms of the total compensation package on the table. What looks like a similar or better salary compared to what the job seeker previously earned, might actually be inferior when the total package is considered. For example, if you are transitioning from a company with a generous benefits package to a start-up, you may end up paying significantly more for your coverage which translates into less money in your pocket. If you are switching from a position with overtime pay to a salaried position, a higher base salary might still be less than your previous total earnings. If you are considering employment with a company that offers half the amount of paid vacation time as that offered by your previous employer, you may end up working more for less.

As with all salary negotiation conversations, it's critical to position your requests for additional compensation in terms of what's fair and reasonable. For example, if a prospective employer offers a  benefits package with more out of pocket expenses than your previous paid, you might try to negotiate additional salary to compensate for the additional expense. If a hiring manager of a start-up firm can't offer you the starting salary that you were hoping for due to budgetary constraints, you can try to negotiate additional stock options in lieu of base salary.

The concept of total compensation becomes extremely important when recruiters and hiring managers are trying to use your past salary as a benchmark for what  they plan to offer you for their open position. Many benefits packages are valued at 30% of an employee's salary, so be sure to take this into account when discussing salary expectations.

Don't leave your negotiations to chance. Base your conversations on total compensation and take benefits, bonuses, stock options, vacation time, and any other perks into account before you decide to take the deal.

Posted by Barbara Safani

Comments

[John Y.]

What are the best resources to use to figure out how to quantify your 'total compensation' and make sure I'm not forgetting to include anything?

For example, how do you quantify health, dental and vision insurance?

[Ann Bares]

Great post with helpful advice. Another good source with information on typical benefits packages/practices, to use in assessing what is offered by a potential employer, is a free national benefits survey conducted by the Bureau of Labor Statistics. Learn more here -
http://compforce.typepad.com/compensation_force/2006/09/free_resource_n.html

[Barbara Safani]

Ann,

This is an excellent source of information. Thanks for sharing!

[C]

Hi all,
My company is the process of looking at "alternatives" which include a sale. As you can imagine a lot of team members are jumping ship. My peer was asked to back fill a position and took it. Higher title and more pay for how long who knows, until we are sold or whatever. I was asked to take on that position and still do my old one without any compensation increase. Plus ask ask some of my reports to take on more.
I trained the other person for over two years on how to do that job now I have to take it on and still do my job.
Easy fix, quit. But does loyalty count anymore. I have a lot invested in the company , 25 years, what can I do to make it fair to all, my reports and I besides throwing in this career?

(Small town, taking care of ailing father,moving not a current option)

[Rerto Jordans]

The blog article very surprised to me! Your writing is good. In this I learned a lot! Thank you!

[Swiss Replica Watches]

uselectronicsupplies.com is site thats sells reasonably-priced link:http://www.uselectronicsupplies.com/.
many Lithium Ion link:http://www.freelaptopbattery.com/ are simply battery packs that hold previously manufactured round 18650 rechargeable Li Ion batteries.
laptopaccessoriesstore.org sells batteries at discounted prices. We offer a wide range of quality link:http://www.laptopaccessoriesstore.org/ for most major brands including Asus, Dell, Lenovo/IBM, Compaq/HP, Apple, Sony, Toshiba,…
The best thing for you to do is probably just hold on to the family sterling and inherited antique link:http://www.goldswatches.com/, while paying off the mortgage and getting to know farmers and craftsmen and having something to trade with them.

[Jacob]

I think your blog need a new wordpress template. Downalod it from http://templates.wordpressguru.in, The site has nice and unique wordpress templates.

[nike dunk high]

Thank you for the information I agree with you I became fan of you and would love to visit your blog regularly.

[Kamagra Gel]

Knowledge is power!
It is awful to ignore this kind of tips, which you are sharing, because there are times which will mark your life forever, and it is a need to know how to take advantage of them, instead loosing chances.

[Natalie Loopbaanadvies]

Thank you for sharing this information. I would definitely take this tips into consideration when I face this kind of situation. But speaking of salary, what if I had two job offers, one would be willing to give me a high salary but with less benefits and the other one would give me the low salary but high (or more) benefits? How should I choose between the two?

[Cat Boots]

CAT Footwear is the world's leading footwear companies in the rankings. They are an experienced, when it comes to make Cat Shoes and Cat Boots, they are proud of the Caterpillar brand owners and their mission is to provide the market with the latest developments in the shoe department of a comfortable, durable shoes. Their area of expertise in their shoes, Caterpillar Boots with special features is just to make sure every footwear will be comfortable to wear as the first priority. Some models have steel toes, and some do not, they have given, to some extent, the inner surface can easily be removed, put back some of the special archs orthopedic support, not slippery. Surprising to know that these features bootshave to prevent electric shock, and thermal insulation of the action.

There are Ladies Caterpillar Boots, while other prominent women's shoes, Caterpillar will be moving within the raised floor, allowed the wearer to replace the floor the other Mens Cat Boots. Orthotics are custom. These boots will provide comfort and protection, women were not the case. Whether you want to put your shoes when working or when you are climbing, this is the best choice, you can. Women's Caterpillar Shoes in different designs, and provide price will vary depending on your choice. ...

[Canada Goose]

Prefer Canada Goose Jackets in Canada Goose Jacket online store, more experience for winter life ! With winter coming, the Goose Down Jacket Canada and Women Canada Goose Chiliwack Parka BLACK with authentic quality will be the best choice for you.
Winter coming, everyone is starting to shop around for a warm winter coat. But the big question is: which one will keep you the warmest without making you look like an abominable snowman? Today´s article highlights for you two coats that meet these important criteria: Canada Goose Men's Yorkville Bomber and Canada Goose Outlet Trillium by Canadian Goose.
From Canada Goose Sale, Canada Goose Parka inspired by the label´s iconic Canada Goose Women Expedition design. It´s fitted with plenty of internal and external pockets as well as a versatile removable down filled hood, secure Velcro collar and storm flap protection over the front zipper. The cut is a bit slimmer than we´re used to seeing on vests and outerwear pieces alike, which definitely works in your favor when traveling from work to play and vice versa.