Overcoming the Dreaded Compensation Conversation

Compensation conversations are uncomfortable for many, but they don’t have to be. Compensation is one of the most important factors in accepting a new career role. I certainly wouldn’t leave the position I’m in to take another position that pays less, and I wouldn’t expect anyone else to either.

When I entered the job market, I was advised by a mentor to never bring up compensation during an interview. She told me that the person who brings up compensation first loses. That was the worst advice I ever received and caused me to be underpaid for years.

When to Talk About Compensation

As a candidate, compensation is one of the first items I address. As a recruiter, compensation is one of the first items I address. I suggest the same to every candidate and every recruiter. Why would we wait until the end of the interview process to discuss the number one reason offers fall apart? It is a colossal waste of everyone’s time to go through the interview process when we are not in alignment with compensation and negotiating at the end can be very disappointing for all parties involved.

Candidates that are actively seeking a career change are typically more prepared for this conversation than passive candidates. Most applications ask what your base salary expectations are and my employer goes one step further to ask what your total compensation expectations are, including base pay, bonus, commissions, etc. I would advise everyone to think about and be prepared to discuss compensation during their initial conversation with a recruiter.

Preparing to Talk About Compensation

Before you share your salary expectations, there is much to consider. It is important to know your worth and determine which forms of compensation matter most to you, You can determine this by referencing your current compensation package, using salary resources, studying certain trends and by asking questions within your network.

If you are changing career tracks or interviewing for a position with a company structured differently than your current employer, be prepared to articulate what you are losing or gaining by leaving your current role and employer and what you need to make that happen.

Questions to Consider

When discussing the details of the total compensation package the potential employer will provide, be sure to ask questions beyond “What is the base pay?” Consider the following questions:

• Is there commission or a bonus included in the offer; if so, what and when is the payout?
• If you are applying for a sales position, is there a ramp period; if so, how long is the ramp period and what is the percentage?
• What benefits are included in the compensation package, how soon do they go into effect and what are the costs associated with them?
• Does the company offer a 401k, company stock or profit sharing?
• Does the company offer ongoing training and/or tuition reimbursement?
• How much paid time off is offered? What paid holidays are observed?
• Does the company offer any additional perks? (Company Discounts, Paid Parental Leave, etc.)
• Are there advancement opportunities and if so, how long do you have to wait to advance?

Once you have the answers you need, then you can confidently make your decision to accept or reject the offer presented.

Final Thoughts

There is much to consider about total compensation before sharing your salary expectations with a prospective employer. Be sure to consider the following:

• Don’t wait until you have a formal job offer to negotiate salary, discuss compensation during your initial conversation with the recruiter.
• Know your value and what compensation range fits your needs.
• Use salary resources to study current trends for your career role in the city in which you reside and have conversations within your network to learn more about competitive salaries.
• Be confident when discussing your total compensation needs and provide a salary range instead of a specific dollar amount.

If you have any questions about compensation conversations, feel free to reach out to me directly. I am always happy to help.?