Salary Negotiation Essay Sample
Negotiating a salary is one of the main aspects of recruitment. Consequently, it is crucial to predict all possible benefits and fulfil them. The peculiarities of benefit package depend on both sides: an employer and employee. The negotiation process consists of the initial offer, negotiating the offer and concluding negotiations. Current essay identifies possible compensations and describes the process of negotiating salary. In addition, it focuses on revealing the peculiarities of the market value of the employee and his rights on the compensation and benefit package. It shows the power of salary negotiation and its possible consequences. The paper is devoted to the negotiating principles that are crucial while discussing the salary. It proves that for being more demanding an employee should know his strengths and reveal them during the negotiation. That is why the peculiarities of the negotiating principles will be discussed as well.
Compensation: Negotiating Salary & Benefit Package
Any salary, compensation or benefit package presupposes negotiating. When receiving a new job a person should be sure that his/her work will be fairly evaluated. Before signing a contract, one should stand the process of negotiation that will be beneficial for both sides. Moreover, it is crucial to pay attention to the fact that the potential employers avoid the conversation about benefits and salary. The experts suppose that negotiating the compensation package is the main part of a successful job search process. Current essay aims to explain the peculiarities of the process of negotiation for receiving a good salary, compensation or benefit package.
The Peculiarities of the Process of Negotiating the Compensation
The process of negotiating the compensation has its peculiarities that should be taken into consideration by both sides. First of all, it includes the aspect of delay talking. It means that the salary should be in time. Moreover, one should not broach the topic of salary too early as it may scare the potential employer. The initial interview presupposes working conditions and corporate culture but not the interest to the payment details. However, it does not mean that one should forget about personal benefits. Consequently, the employee should know his/her true value (Kiraly, 2010).
Before asking the salary question, one should be conscious of the tendencies in the market. Moreover, the potential employee should present himself/herself as a valuable and beneficial for the company. It is important not to fail the negotiation of the starting salary, benefits package and the value of the full compensation. Not without reason, negotiating the compensation is considered to be like playing the chess. It is crucial to know the employer’s intentions and name the approximate salary. One should not be very specific not to scare the employer. Moreover, negotiating the compensation presupposes the preparation and argumentation (Goodman, 2009).
The benefit package should include vacation time, retirement savings, potential life insurance and health care conditions. Moreover, the compensation should be paid for health and safety working conditions. Talking about compensation plus benefits presupposes salary and workplace perquisites. The employee should take into consideration the fact that there are such employers that can provide the original salary offer. Moreover, there are those who can negotiate the benefits terms. Consequently, every employee can break the negotiation process because of the unsuitable conditions related to the compensation package (Beardwell, 2001).
The public and private sector presupposes different benefits and compensation. Tax funds finance the public sector. Consequently, their compensation structure is more limited comparing with the private sector. The negotiation process also includes the salary review. It takes some time to analyze and compare the situation in the market to make the compensation negotiation objective and justified. One recommends choosing the work with the better software and equipment to provide the easy working conditions and simplify the work. Moreover, it is better to negotiate for the job that suggests telecommuting and flexible schedule (Kaye & Jordan-Evans, 2003).
Negotiation process presupposes the awareness of salary range from the both sides. During the negotiation, an employer evaluates knowledge, special expertise and experience of an applicant and only then makes a decision on his/her salary. As to the employee, he/she takes care of his/her interests related to the benefits and compensation. Salary negotiation is the process that consists of talking and reaching an agreement on the payment for experience, knowledge and skills. It is important to negotiate for compensation to receive fair market value for the personal and professional strengths. Moreover, the starting salary will determine the future earnings (Dawson 2006).
The experts believe that it is unreasonable to negotiate for the sake of negotiation. It is crucial revealing the professional achievements for which an employer is ready to pay. Getting a fair deal is the main strategy of both sides. The HR managers offer such incentives related to the compensation. First of all, it is an extra vacation time. Few additional vacation days will benefit employees and prove the respect and care from the employer’s side. One should negotiate about an extra vacation only if the skills and knowledge of the applicant deserve attention and will be valuable for the organization (Dawson, 2006).
Secondly, there is a possibility of providing bonuses that can include from 10 to 20 percent of the salary. However, bonuses should be an offer from an employer but not from the employee. Moreover, the role of the employee is to accept, reject and ask for other benefits. Negotiating a better compensation package presupposes knowledge of the market value.
The market value depends on the following aspects:
- 1) Relevant work experience. Such factor is crucial when it comes to providing or not providing bonuses. Summer jobs and internships can help win the attention of an employer. Such experience benefits the ability to perform any job.
- 2) A technical expertise. It is in a high demand; therefore, it is important to fulfill this aspect.
- 3) Advanced degree in a specific area. It is considered the basement for promotion and receiving additional bonuses.
- 4) Recommendation from another company. It can be the characteristics or a written offer from another company (Armstrong & Baron, 2002).
It is also essential to be aware of the market value without the evaluation by an employer. Only then, the company will estimate an employer offering him the benefits program. One needs also to be ready for compromises as they can provide the additional packages of compensation that include extras (child care, computer, car and company), relocation costs, education reimbursement, sabbaticals, vacation time, profit sharing, performance bonuses, signing bonuses, disability benefits, life insurance, vision, dental and medical benefits, retirement type plans, base salary and stock options. Such variety of options of benefit package proves that any company has its compensations. Consequently, the process of negotiation can result in the positive outcome (Armstrong, 2001).
However, one should not think that the applicant will receive all these benefits immediately. It takes time and efforts to receive this benefit package. It is important to know the job and its peculiarities before starting negotiating the salary. Salary negotiation is not a simple talk for increasing the payment. It is a way of the establishing of relationship between thw employer and employees. Moreover, it is an agreement of the complete package of compensation (Armstrong, 2001).
The power of salary negotiation is obvious despite most people feel nervous while discussing salary. However, when one manages salary negotiation in a proper way, it can bring positive outcomes. Moreover, it is the opportunity of fulfilling the business and professional relationships between the employer and employees.
Salary negotiation should be based on the negotiating principles:
- First of all, one should discuss his salary after the offer made by an employer. When an employer knows that the employee is the best person for the job, then it is the right time to discuss the compensation (Dawson, 2006).
- Secondly, one should consider other employment issues while talking about salary. Salary is only a piece of compensation. Consequently, an employee should receive the opportunities for the professional development, advancement, bonuses, loan forgiveness, flexible hours, time off and health issues.
- Thirdly, the employees should know their values and apply them as their strengths. Even if the employer offers the low salary figures the employee should insist on his position.
- Fourthly, the applicant should know that any offer can be negotiated. The last principle states that it is normal to ask what one needs.
The negotiation process for salary and benefits is a real art which demands not only rhetoric abilities, communication strategies but the skills of the negotiator. One needs to have the salary history with other application materials. Moreover, it is important to have personal salary requirements. The negotiation process consists of the initial offer, negotiating the offer and concluding negotiations. The initial offer presupposes expressing employee’s excitement, requesting time necessary for the decision making, discussing the compensation package and continuation of selling the skills (Dawson, 2006).
Negotiating the offer includes defining the objectives, expressing the interest, supporting the proposal with the skills and knowledge, prioritizing the most important aspects. Finally, concluding negotiations presupposes accepting the proposition and expressing appreciation for the opportunities.
In conclusion, one should say that the negotiating salary and benefit package are necessary for the fulfillment of employees’ and employer’s interests. The employees can receive the compensation for the relevant work experience, technical expertise, advanced degree in a specific area and recommendation from another company.
Additional packages of compensation that include extras, relocation costs, education reimbursement, sabbaticals, vacation time, profit sharing, performance bonuses, signing bonuses, disability benefits, life insurance, vision, dental and medical benefits, retirement type plans, base salary and stock options belong to the package of compensation. Such variety of benefits proves the individual approach of every employer to his/her employees. Moreover, they encourage the employees to better work as well as develop skills and knowledge. Negotiating the salary is a way of receiving these compensations. Benefit package depends on the additional organizational spendings. However, it is a driving force of the productivity, performance and efficiency.
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