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Personal Finance

How to Negotiate Your Salary and Benefits Package

April 13, 2023

After getting past all stages of the application process, you’ve received a job offer. As you and your employer are discussing the specifics of the opportunity, you might realize that the salary and benefits they’re offering fall short of your expectations. Like many professionals, you may find it hard to raise concerns about your compensation package for fear of losing the offer.

As awkward as these discussions might make you feel, negotiating your salary and benefits is a perfectly normal part of the hiring process. It may be tempting to just sign your contract from the get-go, but this could also mean missing the chance to negotiate a better salary, more attractive benefits, and more agreeable conditions that would entice you to stay for the long run.

While only a few people have a natural talent for negotiation, anyone can make a solid case for a great compensation package. This article will discuss a few best practices that may help you become a better negotiator and give you the confidence to improve the terms of your employment.

Look Beyond the Basic Pay

A lot of professionals believe that the negotiation stage is merely about the money you’ll be taking home. When it’s time to seal the deal, make sure that you analyze the entire offer. While benefits such as government-mandated provisions and health insurance plans are often set in stone, there may be other perks that your employer would want to consider.

For example, you could negotiate for more paid time off (PTO), reimbursements for work-related travel, stock options, educational support, or hybrid arrangements in lieu of a higher basic salary. For work from home jobs, you could look into flexible work hours, equipment provision, and allowances for internet and other telecommuting expenses. Some people have even been able to secure gym memberships and wellness days during their negotiations. Overall, it pays to learn what a company may be able to offer in exchange for your invaluable skills and experience.

Consider Appraisals and Increments

One of the biggest things you need to look into during the negotiation phase is the possibility of salary hikes in the company. Some employers offer pay that may not align with your baseline but will eventually increase to meet your desired amount. Other companies are heavy on performance appraisals and would gladly reward new hires for meeting key performance indicators (KPIs). So when discussing your compensation package with the employer, it’s best to ask for potential increases past the probationary period. Who knows, it could take less than a year for your pay to drastically increase from your previous earnings.

Research the Market Average

Having a clear idea of what others in your field are earning is essential to building your case for an ideal salary and benefits package. Before agreeing to the job, make sure to do your research on the market average for your position and industry-specific skills. You can do so by scouring job boards and online

forums or asking your personal contacts. Once you identify your salary range, you can determine the highest, middle, and lowest points you’re willing to negotiate.

You’re free to ask for an amount on the high end of the scale, but make sure that your skills and expertise can justify your rate. Some employers also have set budgets for certain positions and thus their own salary caps, so you may want to ask about the negotiability factor for your salary as well.

Factor in Other Economic Aspects

In addition to the typical salary range for your position, you may also need to consider outside factors relevant to your compensation. These may include economic conditions beyond your control, such as the state of inflation and the cost of living in the area you’re based in. The negotiation phase is a great time to bring these concerns to the table, and quite often, employers are keen to accommodate the requests of employees who bring in additional value. So when it’s salary discussion time, you should consider bringing up economic factors that have a direct impact on your financial stability.

Politely and Directly Communicate Your Proposal

When discussing salary terms with a prospective employer, it’s best to be clear and direct with the conditions you prefer. Don’t beat around the bush, but be polite and tactful enough when discussing your terms. No matter how skilled or talented you are, you’re still less likely to get the pay and benefits that you want when you’re being unpleasant. Remember, there’s a huge difference between assertiveness and arrogance.

You need to make it known that you are willing to foster a working relationship with the company, provided that your conditions can be met. If not, let them know that you are open to discussing potential compromises that could convince you to decline other offers you may have. If the terms remain unacceptable to you, you can always politely decline and thank the employer for considering your application. But should the employer agree to everything you requested without any qualms, make sure to put everything in writing to have sufficient legal documentation.

Look Forward to the Best, but Prepare for the Worst

Lastly, you need to remember that there’s no harm in taking your shot. You’ll never really know until you try, and you’ve got nothing to lose by asking for your ideal compensation and benefits. Of course, you also need to prepare sufficiently for the task. You may need to go through some tough questions, which could keep you from asking for a higher salary in the first place. It might help to practice with a friend, preferably one who has been through the same discussions before.

Still, it pays to be prepared. Stand your ground and look at all the factors that would support or hinder your case for an attractive compensation package. In the end, what matters is that you dared to ask for what you deserve and did so with grace.

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