Discussing your own compensation in a negotiations deal is different than discussing money for a major purchase (house or car). It’s very personal and the ramifications can be long lasting. This issue is just as critical for those applying for and accepting internal moves as it is with a new hire. Most people automatically think in terms of salary which is the bulk of a compensation package. However, don’t forget to include all of the peripherals (vacation, relocation allotment, cost of living if it’s a relocation, etc.)

Some people hate negotiating or “haggling” while others see it as an adventure to be relished. Here are some practical considerations and ways to approach this subject. Even the mild mannered will find ideas that they can apply.

Determine what you’re worth

Companies do not always include salary ranges on “want ads” or postings. For internal moves within your existing employer you do have that information. Again, very few of us feel that we are over paid and therefore look for a better salary level. Sometimes a lateral move is better in the long run based on your career or life goals and acceptable to pursue.

When determining and expressing your financial worth focus on areas that will benefit that organization or hiring manager in terms of contributing to their success. Be able to express “I’m worth x number of dollars because”:

• I have good experience in...
  
• I have a degree/certification in...
  
• I have a strong track record in/of...
  
• I have abilities or capabilities in...
  
• I’ve been able to (increase/decrease/reduce/improve)...
  

Remember to use quantitative action words when describing your successes. Don’t focus on technical skills only. Business and interpersonal communication skills are just as desired and can provide leverage.

Look at all of the factors

Salary and number of hours in the work week need to be calculated. White collar overtime doesn’t exist. The counterpart concept of “comp time” is an extremely gray area and often not used to its potential. Consider the salary and find out the average work week. On this site some postings included the full time work week hours plus salary. Be mindful that the concept of a 40 hour work week for salaried professionals is a thing of the past. The average is now 45 hours. It is often the responsibility of the workforce to avoid the 55-60 hour burnout schedule. Sometimes you need to breakdown the per hour rate of a salaried position for accuracy of pay rate.

One popular area of negotiation is with benefits (vacation, continuing education, 401k start time or insurance coverage). Of these, vacation is the one that employers feel the most comfortable in providing latitude. This is very successful when you’re currently employed. As a recruiter I often suggested this tactic to professionals instead of a higher salary. Firstly, you are working one less week per year at the same salary level. Secondly, vacation time is not subject to taxes. You may come out ahead financially.

Continuing education can be negotiated as to effective date or percentage of employer contribution. Health insurance can involve staying with your previous employer’s plan (new employer picks up the COBRA costs) or effective date. Family issues may necessitate some creativity here.

Start date is another area that you can use. This may occur if you already have a vacation scheduled (nonrefundable expenses), family situations or home sale/purchase if you’re relocating. This of course needs to be reasonable. In family or home ownership situations second temporary living accommodations (Residence Inn, corporate apartment) are often options.

Never state an exact dollar amount in the interview

They already know your salary history since they’re required it. When ever possible find out the compensation range during the early stages of the interview. If it’s relocation obtain this information during the telephone interview. Make sure you’re in the middle or at most upper 2/3rds of their range. Always state your salary requirements in a “range” (mid-50’s, upper 40’s or lower 60’s). You’ll always have $2-3,000.00 for negotiating.

Keep in mind you’re next performance review date and subsequent increase. Again, as a recruiter I needed that information to calculate where I had room. If the increase was due in 90 days or sooner I added that in since I did not want any surprises. Do not talk old money during this phase. Those 30-90 days will pass by the time you receive an offer.

Cover all of your bases

The job itself is important. Is it something that you really want to do? Is the company a good organization to work for? Will you enjoy working for your new manager? Can you learn things from your co-workers? How will all of this fit into your criteria for a good quality life? We’ve all heard of the old adage; “Money isn’t everything”. I agree that it isn’t, however, you still need to feel that you’re being compensated comparable to your contributions. If you are dissatisfied with your income it will definitely show in your attitude and eventually in your performance. It will be a recipe for disaster.

Plan ahead

Have all of these scenarios and their consequences worked out ahead of time. If there is another person impacted by your decisions involve them immediately! If relocation will occur what about their job/career and how will that impact the family finances?
Write all of these down and make sure that everything is reasonable and appropriate to your level of performance and abilities. Backing out of a new employment opportunity because of no or poor planning could come back to haunt you. It will often be a situation that you can not reverse.