Salary and Benefits Negotiation

Adapted from: Reile DM and Nickols JL. Survival Strategies for Your New Career. 2002; 81–82.

 

When evaluating a job offer, it is important to remember that almost everything is negotiable: salary, benefits, start date, vacation time, etc. The following are a few guidelines to make your negotiation more successful:

Timing. There is an old saying, “The person who mentions money first, loses.” When interviewing for a job, you should try to deflect questions about your salary and benefits expectations until the potential employer commits to you. Once you are offered the position, you have leverage. Until then, you are just another applicant.
If possible, when you are asked about salary, ask the interviewers what amount has been budgeted for the position. Most of the time they won’t tell you, but if they do, you have the upper hand. Usually, any figure they give you has some room to move up.

Understand the Offer. The next step in effective negotiation is to understand the offer. Are there any contingencies? When do you have to make a decision by? Are you being offered a one-year contract or an open-ended one? What does the offer include (e.g., salary, leave time, health insurance, a signing bonus)? Once you know what is being offered and when you need to respond, you will be in a better position to evaluate the offer.

Know Your Market Value. A March 2001,article in USAToday reported that starting salaries for new pharmacy graduates ranged from $67,000 to $75,000. According to the article, some employers are offering signing bonuses and expensive cars.
Through networking, informational interviewing, association salary surveys, online searches, and job offers, you will begin to discover what the market says your skills and knowledge are worth. This is vitalso that when an offer is made, you will know whether it is higher or lower than average or on target.

Know Your Bottom Line. Regardless of what is being offered or what the typical level of compensation is, you need to know what you will accept. Sometimes an employer has no flexibility on salary and benefits. However, if pushed, the employer may be able to grant a flexible work schedule, more leave time, paid conference participation, or any number of non-monetary perks.

Know When to Walk Away. Without this ability, you cannot negotiate. If you have done your homework, know what you are worth, know what you want, and are offered a job that you want but at a level of compensation below what you expect, then you have two choices: accept or negotiate.

If you attempt to negotiate, it is possible that the employer will say that there is no flexibility. It is also possible that the offer will be withdrawn (although the employer is more likely to say, “We will be in touch” and then not call you until someone else has accepted the offer).

If you walk away, the employer may call you back to negotiate or find someone else. Often the employer will look for someone else. If that were to occur, you must keep in mind that you would not have been satisfied if you had accepted an offer below what you know to be legitimate for someone in your field., living and working in your area, and with your level of skills and education.