Negotiating your first corporate salary
It's that time of year again where I must send my accomplishments of the year to the Big B in hopes of a raise and bonus. This brought me to remember my first salary negotiation all of two years ago. I can’t stress enough how important it is that you negotiate for a higher first corporate salary. Sure you are grateful that they are actually going to hire you, but you also have to think about your future salary and annual raises.
If you start at $35,000 annual salary, then with annual raises of about 3% you will still be making under $40,000 in 5 years. If you start at $40,000 with the same raises you’ll be over $45,000. That’s almost $10,000 difference between where you would have started to where you could be in five years.
Do your research first. Go to salary.com or industry journals to find out the average salary for that job. Also do research on the company and take into consideration the benefits that the company might consider compensation as part of the offer. Some employers offer up to 30% of the salary in benefits and most salary calculators don't take this into consideration.
Ask for a day to think about it. If your employer won’t let you take at least a day to think about the offer, then they are not worth your time. This gives you time to sleep on it and refer back to your research. After all this is a big decision for you and even if you’re really excited, you still need to sleep on it.
I had an experience once where I was offered a part-time job and I asked the manager if I could get back to her within 24 hours so I could think about it and make sure I wouldn’t have any conflicts with the hours, but she said that I had to tell her right then and there. Well I said I couldn’t accept it and the hiring manager was upset that I had “wasted” her time. Then lo and behold two weeks later she couldn’t find anyone else with my qualifications and asked me if I was still available, but unfortunately for her I had already taken a job with someone else. I hope she learned a valuable lesson.
Give yourself a confidence boost. Before you go in to negotiate do whatever you need to do to get that extra boost. Penelope Trunk tells about what boosters work for her, such as dressing up for work. It might be a special caffeine drink, wearing your “power” tie, or getting up early to eat breakfast (early to bed and early to rise makes a man healthy, wealthy, and wise!). The extra boost will go a long way.
Remember the least they can do is say no. My mom always said that. When you go in to negotiate remember that they have given you an offer and they want you to work for them. Fusco recommends saying something like "Based on my understanding of the job, the company's needs, and the skills and experience I bring, I feel I'm worth $5,000 more than what you're offering me." Usually they will meet you somewhere in the middle. At the very least, they would say no and you will still have the original offer. You might be able to negotiate other things than just the salary, such as vacation days, flexible schedules, or a hiring bonus.It may be nerve-wracking, but you will be proud of yourself that you negotiated well and were professional about it. Your manager will be impressed (and usually expect) that you will negotiate. Your wallet will thank you, too.
