How to get the compensation you want from a new job

The main reason people are looking for or thinking about looking for new jobs is money. LinkedIn found in December 2021 that more than a third (36%) of American workers who fall into those categories said they were motivated by finding better pay. Achieving a better work-life balance came in second at 28%.

Despite the importance people place on money and benefits, such as flexible work schedules, many say they fail to negotiate for what they want. In fact, it’s the most common mistake people mentioned when I asked about compensation negotiation failures.

“[The] biggest mistake I ever made, and it's one I've made even after becoming a recruiter, was not to negotiate,” wrote Ed Han, who is a self-described talent acquisition geek.

Other mistakes people mentioned regarding compensation negotiations include signing an offer letter on the spot, not researching the company or their salary ranges beforehand, and many others.

If you have regrets tied to past compensation decisions, I completely understand. Conversations involving money can be difficult to navigate. Also, many of us carry a lot of cultural baggage when it comes to discussions about money. I know so many people who were raised to never discuss finances. Or, in some cases, they were taught not to push back against offers.

We can’t change what happened in the past, but we can prepare ourselves to avoid those missteps in the future.

I reached out to Kwame Christian, who is the founder and managing director of the American Negotiation Institute, to learn some best practices about getting the compensation package you deserve during the hiring process.

One of the most important points to keep in mind is that your compensation package needs to be something that you think about from the start of your job search. After all, if you’re like most workers, your compensation package is ther key to paying your bills and leading your life. You need to choose jobs that will cover your lifestyle.

“It's a waste of your time and their time if you are looking for jobs and going through the process, and there's just no alignment,” said Christian, who is also the host of the Negotiate Anything podcast. “Try to figure out what are realistic ranges.”

What ranges and numbers should you determine before going after jobs? Christian said you should know what your worth is as an employee and what you need to survive. You should also have a walk-away point that is the limit for accepting or rejecting a job.

“You want to understand what are your need-to-haves,” he said. “What are your want-to-haves? Those types of things need to be clear because you're not going to be taken very seriously in a negotiation if they're asking these questions and you don't have answers. You need to be prepared.”

Christian emphasized that these questions go beyond just money because compensation is much broader. The discussion can include benefits, growth opportunities and more.

Once you do your research, come up with your answers to those questions and apply to roles, you may get a generous offer. Should you still negotiate? Christian says it’s worth a shot.

“The worst thing that can happen is they say no, but if there's more money to be had – get that money,” he said. “The thing is that the benefits compound. So, if you negotiate $5,000 extra, that's not just $5,000 extra over the course of four years. That's $20,000.”

Additionally, Christian said it’s important to remember that every ceiling is a new floor. The $5,000 extra could mean that your new salary floor is $105,000 instead of $100,000. “It pays dividends for the entirety of your career. You should always negotiate your compensation — especially if you're in a transactional role.”

When it comes to the actual negotiation, he said the back-and-forth process usually depends on the position. A senior executive may be in a weeks-long negotiation that has a lot of offers and proposals flying back and forth. Companies will likely have less patience for a long negotiation process for lower-level roles.

“Usually, it's an offer from the company, a counteroffer from you, a final offer from the company, maybe a fourth… So three, maybe four times,” said Christian.

As we talked about above, some people may be hesitant to negotiate at all. Some people say they fear that the offer will be rescinded if they try to ask for more money or different benefits. Christian said that it’s important to remember that negotiating compensation is a completely normal part of the hiring process.

“People who are in HR, they negotiate more than anybody else,” he said. “They do hundreds of negotiations during the year. They're used to it. You're not going to hurt their feelings.”

If a company and its recruiters aren’t willing to engage in a negotiation, Christian suggests that it may be a sign that you should rethink joining the organization.?

“If a company has a problem with your self-advocacy, then that might be a sign of a problem within the company,” he said. “This is a standard thing in society where people negotiate their salary. If that's frowned upon, then that's a problem.”

Christian said you can find more negotiation resources from the American Negotiation Institute’s guide, which covers several topics including salary negotiation.?

What has been your experience with compensation and salary negotiations? Join the conversation.

? Coming up on #GetHired Live

Join me every Friday at noon ET for #GetHired Live, which tackles the job search and career topics you need to know to succeed. Kamara Toffolo, who is a resume writer and job search strategist, will join me on Friday, February 11 at noon ET to discuss the dos and don’ts of resumes, including how they should/shouldn’t overlap with your LinkedIn profile. Of course, we’ll also take your job search and career questions LIVE on the broadcast. RSVP to join us by clicking here or the image below.

? Other news to help you #GetHired:

• Do your values align with those of a potential employer? One of the suggestions I often make to job seekers is to see if their values align with the place they want to work. If they do, the odds are probably higher that it will be a good match. Harvard Business Review recently tackled this subject. You can see what people are saying about it here.
• Have the rules of job hunting changed? How we look for work changes with the times. For example, think of what people had to do before the digital revolution, which is when job ads moved online. The Wall Street Journal recently took a look at the latest rules for finding work. You can see what people are saying about the rules here.
• Are there hidden messages in job ads? Entire companies have been built around the practice of writing job ads. Many companies are committed to recruiting candidates regardless of age, race, sexual orientation, gender identity and other statuses. Yet, a piece in inews.co.uk takes a look at how some job ads may try to attract certain candidates by using specific words. You can see what people are saying about it here.?

? Lessons learned:

Staying positive during a job search can be a tough challenge. After all, most people will face rejection at some point during the process. However, a positive mindset can really help propel a person toward the finish line. This LinkedIn Learning course offers a lesson on staying positive in the face of negativity. You can watch the course below or by clicking here.

? Up next:

Need a job? Join the club — literally. Job search clubs are one way people can feel less lonely while looking for work. We’ll take a look at these groups in the next edition of #GetHired!