Congratualtions, you've been offered your first job! And now the tricky part begins: Salary Negotiations. How do you ensure you are starting out with a fair salary without pricing yourself out of the ballpark? Negotiating is a fine line you must learn to walk if you want to succeed in the working world. Career expert Sue Ross gives her advice on how to make sure you are not selling yourself short.
Ross warns that some students make the mistake of pricing themselves out of the market because they rely too much on the advice of other students about what they are making - and people exaggerate! She recommends, “Your Career Services office on campus can help you with valuable links to industry specific info and may keep statistics on new grad salaries.”
So when do you start bargaining - and should you ever accept the first offer? “It depends on the company. Research will tell you if the company negotiates and if the market can bear a higher rate of pay based on your specific skill set,” says Ross. Most companies have set starting rates for students and graduates and will be happy to let you know when these rates are modified or reviewed. Some companies will start you at a set rate but will re-evaluate you after a specified period of time, usually within three to six months. This is important information to consider.
If you are unhappy with the employer’s offer ask if there is any room to negotiate - but be prepared to hear NO. Still, this is as good a time as any to ask. If monetary compensation cannot be considered ask for other options like more vacation time, benefits immediately rather than after 90 days, or being considered for a pay for performance compensation plan. Many companies are moving towards this option to reward high achieving employees.
Knowledge is power, so arm yourself with the tools you need to know what you're talking about. “Industry info and research, other offers if you have them, skills that are in high demand, flexibility in assignments and availability to work overtime are all essential,” says Ross.
How hard you should bargain depends on whether you are willing to walk away from the opportunity. You should consider your first few years of full-time employment as a springboard to get experience. “If you are only considering the money evaluate the experience. Will it help you in the future? Can you accept less now and get the experience you need to get a better salary later?” suggests Ross.
Research will tell you what the bottom line for the position you seek is but also factor into your decision what you need to live, especially if you need to move or buy a car. Ross warns, “Sometimes you may need to also factor in if the position is in a bigger city like Toronto or Vancouver. You should suggest a higher start rate due to the higher cost of living- but be realistic!” And remember: compensation isn't always (only) about money. jp