Featured Article
Salary Negotiation: Determining Your Worth
Mon, Apr 21, 2008
Whether you’re a senior who’s on the verge of accepting a job offer or an underclassman who’s thinking about that first job out of college, knowing the ins and outs of negotiating salary will be useful. This article will introduce you to the process of salary negotiation and equip you with the knowledge you need when you are faced with a job offer.Some people may ask why it is important to negotiate. Why take the risk? The short answer is you want to earn what you deserve. The long answer is if you don’t, then two people performing the same tasks may be getting paid different amounts. This difference may seem miniscule in the beginning, but keep in mind that bonuses, raises, and retirement funds are all based on the starting salary. The longer you work, the bigger that initially small difference gets. Many people, especially women, accept the initial salary named by the employer. As a result, statistics have shown that on average, women make about $0.71 to every dollar that a man makes.
Now that we realize how important it is to negotiate salary, when is an appropriate time for initiate this process? Only start discussing salary and benefits after you have been offered the job. Being offered the job is an indication that the employer is interested in hiring you and may be willing to negotiate on your terms.
Before you start discussion of your ideal salary, it’s important to be prepared and to have an ideal figure in mind. Do some research on what the average person with the same job title gets paid and get an idea of the salary range. Where your expected salary falls in that range depends on a number of marketplace factors including the geographical region, your previous work experience, and size of your potential employer. Part of the negotiation process will also pertain to the benefit package, which could comprise of bonuses, social security, retirement plans, health and dental insurance, and sick/personal days. Total compensation for your work equals to both base salary and the benefit package. While you’re thinking about your income, it’s also important to consider your necessary expenses. Estimate how much you would need to spend on things like rent, utility (electric, car, and phone), food, travel expenses, entertainment, and student loans. Don’t forget to set aside some money as part of savings. Adjust the base salary accordingly, and you are now ready to start the negotiation process. Here are some do’s and don’ts:
Be prepared.
Use websites like www.salary.com or www.payscale.com to determine salary range information for your particular job title.
Never be the first to name a salary figure.
You want the employer to give you the most that they can offer. Refer to what you have researched and ask employer for what they think is reasonable.
Sell yourself.
Focus on what you can contribute to the organization and reiterate skills or experiences that attracted the employer to hire you.
Don’t get too personal.
Employers don’t want to hear about your expenses like student loans or family issues. Don’t present your budget plan.
So with all this information in mind, the next time you are offered a job don’t jump to accept the job right away. Consider the offered compensation first. As usual, the counselors in the CDO are available to guide you and answer your questions. Feel free to stop by for a drop-in or send us an email. Good luck!
