Research on negotiating salary has shown that as many as 4 out of 5 companies are willing to negotiate compensation. However only a small percentage of job candidates actually enter into negotiations with a prospective employer.
Job offer negotiations are considered intimidating but you don't have to be an expert negotiator to successfully negotiate a job offer.
Simply knowing the basic rules and strategies of negotiation means you can prepare for and plan your negotiation properly and feel comfortable with the negotiation process.
Negotiating your salary is composed of two major stages.
Following each step diligently increases the chances of a successful outcome.
The preparation and planning stage involves research, gathering and analyzing information and planning your actual negotiation strategy. Take these 5 easy steps to a successful negotiation.
1. What is the average salary for similar jobs?
Determine your competitive market-value. Knowing what you are worth in the marketplace is essential to effective job offer negotiation. It provides you with a benchmark for any job offer you receive. We list a number of good resources to use for this research.
2. What is your value to the company?
Determine your company-value. Understand what you are worth to this specific company and know how much bargaining power you really have. How much does this specific company need your skills at this point in time?
3. What salary are your prepared to accept?
Calculate your acceptable salary range. You want to earn enough to support your lifestyle. Use the expenses calculator to know how much money you need to live on and how much money you would like to live on. These amounts give you your acceptable salary range.
4. Evaluate the whole compensation package
Evaluate the entire compensation package including benefits. look at both direct and indirect benefits. Compute the dollar worth of these benefits and add this figure to the base salary for a more accurate picture of the compensation amount.
5. Plan each step of your salary negotiation
Plan your actual job offer negotiations using all the information you have gathered. Know how to approach the negotiation, the techniques to use, the attitude to adopt and how to achieve a win-win outcome.
You can make use of this sample job offer negotiation letter as a start to negotiating your compensation with the employer.
These negotiating salary tips provide good advice and strategies for successful job offer negotiations.