You Got the Job Offer—How Do You Get the Proper Compensation and Benefits?
Congratulations! After creating a first-rate resume, displaying professionalism and confidence in your interview, and writing a concise and considerate follow-up email, you have been offered a great opportunity at a company you are excited to join. Included in the offer letter you received is a compensation and benefits package with a proposed salary and an outline of the benefits.
While many employers offer compensation and benefits packages that meet or exceed your expectations, there are times when you may be inclined to negotiate for a more acceptable offer.
If you find yourself in this latter scenario and don’t know what to do, Elite Personnel can help. Below, we’ll demonstrate how to identify opportunities for negotiation and the proper way to arrange a job offer compensation and benefits package that is more acceptable to you.
Why Should You Negotiate for Proper Compensation and Benefits
If you receive a job offer and the proposed compensation and benefits package does not reflect the value of your experience, professional skills, education, and career progression, you do not have to immediately accept it. Instead, there may be options to negotiate the compensation and benefits package that more accurately reflects your value.
Negotiating for a higher salary or additional benefits may also be more beneficial to your professional trajectory. If you accept a compensation and benefits package that is below the average salary, it may take several years to achieve that rate. By that time, your salary will still not be reflective of the current average. Plus, it will make it more difficult to negotiate compensation with a future employer since there is a history of you settling for less than your value.
While the idea of negotiating for a salary increase or additional benefits sounds intimidating or even disrespectful to the hiring company, that is not the case. In fact, surveys show that a majority of hiring managers expect prospective employees to negotiate for higher salaries or increased benefits. It’s not a practice that is alarming or disrespectful - as long as it’s handled professionally.
When Should You Negotiate for Proper Compensation and Benefits
Typically, you want to start the negotiation process after you receive an offer. That doesn’t mean you should immediately start negotiating when you receive an offer. First, you should thank the hiring manager for the offer and remind them of your excitement to be a part of their organization. Then, you should politely ask if you could have some time to review and process the offer. If the hiring manager accepts your request for additional review time, you can use that time to do your homework to decide if a counteroffer is warranted.
You should never try to negotiate a compensation and benefits package during the interview process. Even if you are aware of the proposed salary and benefits expectations, starting the negotiations at this stage could be considered presumptive and aggressive. And those perceptions could spoil your chances as a viable candidate.
In addition to negotiating during the interview process, it’s almost impossible to negotiate after you have formally accepted the job offer. Doing so can already start the professional relationship off on the wrong foot. Not only is this practice time-consuming for the hiring manager, it’s also quite unprofessional.
How to Negotiate a Proper Compensation and Benefits Package
If you find that the employer’s offer is fair and believe it is aligned with your professional value and personal needs, then you’ve got yourself a new job!
However, if you’re unsure about its appropriateness, then you’ll want to negotiate for a package that meets your requirements.
If you have never negotiated a compensation and benefits package counteroffer, these are the steps you’ll need to take:
Know Your Value
To prove to the employer that you merit a more defined compensation and benefits package, you must demonstrate your value as an employee.
To do so, you’ll need the following evidence of your excellence:
● Education - Possessing a BA or MA may set you apart from other candidates. This educational qualification may validate your request for an increased salary.
● Experience and Skills - If the job listing stated that candidates should have a minimum of 2-4 years’ experience and you have 5+ years of experience, this difference may justify an enhanced package. To effectively communicate this information, demonstrate that your advanced experience and skill set benefits the employer. Candidates with less experience may not be able to perform the job as effectively - and you have the knowledge to help the team in other areas (coverage, special projects, etc).
● Achievements - Did you help your current employer achieve or exceed their business goals? In a previous position, did your contributions lead to an award or increased revenue? If your professional experience has examples of these accomplishments, then be sure to highlight those achievements to the prospective employer. Your skills and knowledge positively contributed to your previous employers’ success - and you can help do the same for this company.
● Location - This factor is especially important for candidates who applied for remote positions. While the package that was extended to you may be appropriate for a candidate who lives in the same area as the corporate office, it may not align with the cost of living in your location. If the cost of living is higher in your location, be sure to communicate that information to the hiring manager. With that knowledge in mind, they may be able to adjust the salary based on this information.
● Additional Certifications - Did the job description mention that “candidates with ____ certification a plus”? If you have the appropriate certifications, that is a feather in your professional cap and a benefit to the company. If the offer you received is the same one that would be extended to candidates without the respective certifications, then it may need to be adjusted to account for your advantage.
In addition to these factors above, candidates should also know the average salary for positions in the respective industry - and what similar employers are offering as compensation. Sometimes the employer is not up to date on salaries in their industry or area (as this is a rapidly changing world), and will, at your request, do their best to adjust their packages accordingly.
Prepare to Negotiate a Proper Compensation and Benefits Package
With the above knowledge in hand, it’s time to prepare your negotiation strategy. Before you reach out to the hiring manager to schedule a meeting, you’ll want to make sure you have all the necessary information outlined in a way that is easy to communicate and accurately supports your request for an enhanced package.
Develop talking points that highlight the reasons why you merit a different package than the one that was extended. These talking points will not only help support your request for a compensation package evaluation, it will also ensure that you did not miss any pertinent information that you want to communicate.
Before you schedule a call, it’s important to review these talking points so that you don’t seem ill-prepared. Review and familiarize yourself with this information to be more comfortable, convincing, and confident during your meeting with the hiring manager.
Schedule a Meeting to Negotiate a Proper Compensation and Benefits Package
Now that you have the necessary information to negotiate a new compensation package, it’s time to schedule a meeting with your hiring manager.
To ensure that the meeting proceeds smoothly, you should take the following measures:
● Express Your Gratitude - At the very start of the meeting, be sure to reiterate your gratitude for the opportunity that was extended to you. Let the hiring manager know that you understand how challenging the hiring process can be and how grateful you are to be offered the position.
● Convey Your Value - At this point of the conversation, you should make the hiring manager aware of your request to negotiate an alternate package. This is where you will support your request with the talking points you prepared.
● Answer Questions - After listening to your reasons for negotiating a new package, the hiring manager may have some questions of their own: Are you currently reviewing any offers with competitors? Do you really want to work for us or are you simply interested in making more than you are currently making?” Even if the questions seem negative, answer them honestly and professionally.
● Ask Your Own Questions - To keep the conversation going, you can ask some questions that can help you see the negotiation process from the employer’s perspective: How was the salary for this position determined? Is there any additional information you need about my experience or skills? Are there any other areas of compensation besides salary that could be enhanced such as PTO or a professional development budget?
● Aim High - If the conversation goes smoothly and the hiring manager is agreeable to negotiations, it’s always best to make an offer that is slightly higher than your goal number. The reason for this tactic is to still come to an agreeable number if the employer negotiates down.
● Don’t Be Afraid to Decline The Offer - If the hiring manager presents a new package that is acceptable to you, that’s wonderful! However, if the negotiations still result in a compensation and benefits package that you find lacking, you do not have to accept it. In those cases, it is perfectly acceptable to decline the offer, thank the hiring manager for their time and consideration, and wish them well for the future. In this way, you avoid settling for an offer that’s below your value and you can focus on your career path. Plus, this allows the hiring manager the opportunity to find a candidate who is more suited for the position and the package.
Conclusion
By knowing why, when and how to negotiate a proper compensation and benefits package, you’ll be able to enjoy a new role that truly reflects your value as an employee and your career path goals.
If you’re interested in learning how Elite Personnel can help you find and negotiate that new position, please apply today! Our team of recruiting professionals is ready to help you achieve your career goals and match you with first-rate companies ASAP!