What Else in My Offer is Negotiable?
Salary negotiations can sometimes kill an otherwise great opportunity. Traversing the nuances of negotiating a compensation package can be a tricky process, but it’s essential to get right. You may work in procurement because you love it, but you deserve to be fairly compensated. The key here is fair.
Salary negotiations are not about squeezing every penny you can out of your potential employer or showing off your negotiating skills because that is what you feel is expected from a Procurement professional. It is, however, about fair compensation for the work, for your experience and expertise, as well as for changing alliances.
Let’s review what can and can’t usually be negotiated outside of your base salary.
5 Extra Extras
In today’s corporations, many non-salary compensation items are set by a company policy that leaves little wiggle room for negotiations. There are, however, a few items you may not have thought of that we want to bring to mind.
Regardless of what you are asking for, always ensure that all requests are justified with supportive, fact-based arguments. “Because I want it” just doesn’t cut it, or make sense longterm.
Job title
Your job title matters. It’s not only a reflection of your current professional standing, but it may open doors and bring you more significant opportunities down the road. Many procurement practitioners that I've spoken with also believe it matters when it comes to engaging with stakeholders and external suppliers. Depending on the existing organizational structure, you may be able to negotiate a job title that helps position you in a more advantageous position to reach your ultimate goal. Here are a few things to consider:
Provide a few title options by doing your research, check out other positions in similar corporations for ideas
Be mindful of the company’s structure and culture and make sure your options are suitable
Don’t forget the title needs to reflect your responsibilities as well as your level of experience
Signing bonus
A 2016 survey from the human resources association WorldatWork, which surveyed respondents from the finance, manufacturing, consulting, and IT sectors, found that 76% of organizations had a signing bonus program. Bonuses typically ranged from $10,000 to $50,000 for managers and executives.
So make the ask, and then try and negotiate your way to the cap. Here’s your leverage:
Competitive environment, consider the job market as well as any specialized, high demand skills or experience that you possess
Any loss of income or costs that you would experience from making the move. Examples include walking away from a year-end bonus or a 401k account that hasn't fully vested. Also, if the company you're moving to doesn't provide health benefits until your 90 day anniversary and you have to pay for COBRA.
Salary disparity, but remember, this is a one-time payout so try and renegotiate and offer to take a slight cut in the signing bonus if they add some of it onto the salary. Do the math on how long it would take you to earn it back
Guaranteed first-year bonus
As it’s hard to predict how realistic the defined goals are prior to starting, and you’ll need time to get on your feet, make sure to negotiate a guaranteed first-year bonus. If you are currently in a position that includes a bonus and are hitting your targets, make sure to use this in the negotiations.
Vacation
Go in armed and know the market, and your worth by researching what other employers in your industry are offering their employees. Don’t expect to double your vacation time, but you may be able to negotiate an extra week. At the very least, you should be fighting to match what you already get, regardless of what the company handbook says you're offered as a new starter.
Work from home flexibility
Working from home can be a win/win scenario. Employees are much more productive without all the interruptions of the workplace environment and even negotiating just a day or two per week can make all the difference when evaluating a job offer. But employers want to know that your time at home is well spent, let them know that you are set up for success with a desk, and all of the necessities for a full, productive workday and that you will be available by phone or email.
Professional dues, educational reimbursement, health benefits, and retirement savings are other areas that are likely covered by the company policy, but it’s worth asking to see if there’s any wiggle room.
Lastly, before negotiating, make it clear that you will accept the offer if it meets your requirements so those that need to, will go to bat for you. Show a willingness to compromise and understand their constraints; again, this is not the time to be flexing your negotiating muscles just to impress. Keep everything in perspective, and fight for what it is you deserve.