What Affects Salary Negotiation?

For most, the salary negotiation is the most stressful part of seeking new employment. You may be a great candidate, an exceptional interviewee and an amazing employee but when it comes time to talk money – you freeze. The first thing to know about salary negotiation is that everything is negotiable. Yes we said everything – from pay to perks, you can negotiate your way to a better package (or get taken).

Once we understand that, we can continue to look at what is truly included in the negotiation package.

• The Economic Climate & Industry Stability. At the highest level, the economy and industry growth projections can have a major impact both positively and negatively. Of course, as we have seen over the last decade, recessive economic conditions can make certain industries take a real hit and others flourish. Knowing the state of the industry and economy can help you negotiate smarter.
• Health of the Business. This is the most important – even if an industry is flourishing, the business may not be. Tight cash flow, a focus on decreasing G&A or on increasing profitability may mean that the company is less willing to give in to demands. On the flipside, this is a great point to leverage indirect options like health insurance, stock options and vacation time.
• Hiring Conditions. Are you applying for a position that needs to be filled immediately? If a company is trying to backfill a crucial position the likelihood of getting what you want is much higher than if they are making a strategic acquisition. The higher the company need, the more power in the hand of the applicant.
• Applicant Experience. This is perhaps the most obvious yet also the most important. An applicant coming from a smaller company may be willing to take less to get the big logo. On the flip side, an applicant doing the opposite may be less willing to budge. When you factor in experience, consider more than just years – young employees are tenacious and have a lot to offer and as such have often had equal or greater achievements than their more seasoned counterparts.

The hiring and negotiating processes can be exhausting, time consuming and frustrating. Looking to hit the easy button and still ensure you are getting the most bang for your buck? Employer Solutions Plus is seasoned in hiring and negotiating with employees. Contact us today to find out how we can take the burden off your back!