It is really exciting to have a job offer on the table. When the job offer includes a pay negotiation it is time to stop and think about these negotiation tips.
1. Your Salary Looks Very Different After Taxes and Fees
This is so very important to remember when you enter a pay negotiation. Factor in the cost of taxes, direct deposit, and other bank transaction fees. These fees add up. You may be happy with the sound of what you will earn in gross salary, but after everyone takes their cut, what are you really left with?
A negotiation tip here is to remember the city you live in, your bank fees, bills, and taxes. You may have a higher cost of living.
Do the math for yourself or use a cost of living calculator. Figure out your net income before becoming too impressed with the gross income offer.
2. Consider Your Own Needs
Think about your personal needs that could require extra money. Medical insurance and commuting all come with a cost. Your pay negotiation will not involve a company proactively taking your needs into consideration. You must let them know.
Using a real example, a Senior VP has to relocate to England to work directly with a department. She has to relocate to another country for a job, which means her needs include time to see family, travel costs, traveling back home for emergencies, food, rent, and the cost of business clothes in the area.
Negotiation tip: Try and think long-term when it comes to your salary. How far will it get you and will you be able to do your job or live paycheck to paycheck?
3. Prepare for the Unexpected
We see it every day on the news. The reality of life is that unexpected things happen. Loved ones get hurt, sick, or pass away. Our homes suffer damage in storms. On the brighter side, we also need vacations and travel costs for special events in the family.
Companies generally do not see why they should pay for anything other than the tasks you perform. The problem is, when you are vital to a company’s success, you need time away and still want to stay productive. That costs money. You may find with the right pay negotiation that you can spend time working remotely, and they will cover it.
Negotiation tip with a real-life example: During Hurricane Sandy in 2012, a website manager loses his electricity and car. The manager works from a hotel for the next week and the company does not pay for it. This is something that should have been worked out during a pay negotiation.
4. Your Industry Has a Salary Range
Unfortunately, it always seems like the people who sweat less, get paid more. People in the food service industry work very hard, but they are not paid as well as CEOs of investment firms.
The point here is not to go into a pay negotiation and ask for too much. Be aware of your industry averages.
Try and avoid answering the question about your last salary. Some cities have laws preventing employers from demanding salary history. It is an unfair request. Your previous salary was the result of the company’s profit, your last negotiation, or the industry you worked in.
5. Get Paid for All You Bring to the Table
The fact is a resume is only a snippet of what you bring to the table. We all have skills we picked up throughout life. They will come into play when thinking outside the box is required at work.
Examine the job carefully and its description before a pay negotiation. You may have a hidden skill not worthy of your resume that can make you more money.
You should use it, especially if it means increasing your value within a company!