Negotiating Ones Salary and Benefits - Essay Example

Running Head: NEGOTIATING ONE’S SALARY AND BENEFITS Negotiating One’s Salary and Benefits of the of the Negotiating One’s Salary and Benefits Now that you have graduated, it is time to step out into the real world and put the skills you have learned in the classroom to work. It is time to get a job and get gainfully employed. The very thought of this, I know, gets some excited while others are down in the dumps. After all, is there no end to having to prove yourself? Sure, you studied hard or partied hard and might have just scraped through or, on the other hand, passed with flying colors. But here is where the mood and mettle of one and all is tested on how to handle the real world and the tests it throws at you. Getting selected for a job is at the same time exhilarating, as well as contentious, as it brings forth new fears and apprehensions. Writing out applications and covering letters, attaching resumes and visiting job interviews till one is selected is a laborious process but one does ultimately learn what works and what doesn’t in the real world. The proof is that one, finally, gets the job - now what comes next? The question of salary and benefits during the selection process has brought out varying reactions from a number of different candidates. While some people embrace it as a way of proving their net worth in the market place, others fear and label it as unpleasant because it is likely to intervene in negotiations and could keep them back from joining a company. Thus, negotiating salary and benefits refers to the ability to know what the worth of your skills is on the marketplace. This is a tremendously essential requirement for job seekers who want to be shown the career paths available in an organization. Salary negotiation typically starts after the candidate has proved of some value or purpose to an employer or even on the basis of his or her job profile, career path adopted so far and prospects and potential for the future that an employer sees in them. Sometimes a candidate can overvalue himself or herself and, thus, disqualify oneself out of the reckoning for the final selection. In an employer’s market especially during a downturn this can leave many worthy, experienced and capable candidates feeling undervalued or not being required. If the candidate relents and joins the organization at a lower salary than he is worth, no doubt the employer will get excited and eager to welcome the candidate but this euphoria will typically be short-lived since the candidate is liable to switch in the event of a better position available elsewhere at a later juncture. It is clear that the salary and benefits issue remains paramount in the job market, as well as opportunities for promotion and growth in employment because it has been seen that management is already intent about taking the best of value from an employee but hesitates to pay him or her what they are really worth. What organizations don’t realize are that it takes a lot of time and effort to advertise, recruit, interview, select, orient and train every employee and there are a lot of resources involved in training and development of an individual. It is customary for both prospective employer and job seekers to engage in these activities. So if the rewards and promotions are not commensurate with the efforts that the employees are putting in, ultimately they will leave and join other organizations, primarily competitors in the same industry. Looking at salary and benefits as part of the total compensation package is a much better prospect. As long as the emoluments are enough to keep the home fires burning, the inexperienced candidates should understand that their qualifications will be undervalued until they can attach some relevance to it in terms of earned experience or projects handled and completed so that they get some feeling of the real world in action. After spending at least 2 to 3 years in their first job they can claim to have learned the ropes and begin to hold their own in understanding how things are done and can be negotiated and accomplished (Fowles, 2008). The purpose of the first job is to get the feel of the real world and how it works in their chosen profession, the ups and downs of the job and the things they like and dislike and yet have to endure. This gives them a sense of professionalism and maturity. It is also quite likely that some have picked their mentors or influencers in the organization and wish to follow them in their way up the organization. That said, the purpose of getting gainful employment is to learn how to contribute to the goals of an organization, to get and hone the skills and tactics used to influence and outshine others, to make the best use of time by being productive and to appear eager and willing to accomplish all reasonable and worthy goals that have been put forth by one’s superiors. Monetary rewards are only one side or the equation- building yourself a position of power and respect is the other side that must be concentrated upon if you want to be considered a worthy prospect for a career with the organization (DeLuca & Nanette, 2006). Let us say that the organization in question is facing a multitude of problems, leading to an impasse between organization and management. However a closer inspection has indicated that most of these have been caused due to incorrect HR policies that restrict the freedom and productivity of employees, cause interdepartmental friction and lead to problems in cohesion and understanding. There is increasing frustration and a lot of good employees have left. At the same time, the organization is understaffed so the work burdens are increasing. There is no work-life balance, with some employees having to work weekends or beyond office hours with no extra compensation. Employee morale is at an all time low and the HR manager has regained, so I have been given an offer to take his place. It is clear that both employees and management will be affected by the revamping of HR policies, so an open door policy in Human Resources department may be needed here. At the same time, confidentiality must be ensured at all times regarding employee and managerial complaints, so that each case is properly investigated and a solution found. The issues of recruiting and maintaining staff or proper, efficient and effective personnel throughout the organization has been one of the key concerns of human resource managers and HR Department Heads wherever they are, and in whatever organization they are part of. Ever since it was realized that man is a key resource to getting things done in organizations and helping accomplish their goals, so that success and profitability follow, it has been the keen desire of every business owner and HR manager to recruit and maintain the best possible staff for the longest possible time so that the objectives of the enterprise could be attained using their labor and expertise. Achieving the satisfaction of the business owners would mean that the best performers are rewarded for their efforts, and management efforts are appreciated as well. This is unfortunately, easier said than done. An organization has to compete with others in the marketplace and in the same or different industry, in order to attract, retain and keep the best employees on their payroll. At the same time, achieving the best fit for positions in different departments and at different levels of the organization is important. A good employee must not only have the proper skills and attributes for the job, he must be able and willing to perform his duties with responsibility and confidence, whether individually or as a member of a team. He must be a self starter but also willing to follow the instructions, dictates and policies of the organization. Where problems arise, he must be able to approach his supervisors and take their advice. In fact an open culture and collaborative friendly approach to problem solving have been the hallmarks of the best organizations (Peters & Waterman, 2004). Management by objectives and providing valuable feedback and guidance during interim and annual performance reviews can help the willing and able employee succeed and earn the respect of his peers as well as his superiors (Crosby, 1992). In the present recessionary environment, organizations are cautious about hiring too many employees. Business has dwindled and consumer confidence is scarce. College and university graduates are having an increasingly difficult time finding and keeping jobs. It seems that the workplace is full of doom and gloom too, with a lot of directives to follow if one is to hold onto his or her job and make it up the career ladder. More and more of the work population are disenchanted with this state of affairs and the result is that the national unemployment rate of 10 percent in the USA is almost constant. The combination of consumer inertia and loss of confidence in the system means that it will be some time before we overcome this crisis. But by far one of the best ways to retain employees is for organizations to offer career advancement opportunities. Workplaces failing to offer employees career opportunities, room for advancement and enhancement of skills and knowledge may find it difficult to retain qualified employees (Phillips & O’Connell, 2003). Ulrich and Brockback (1995) confirm this by pointing out that promoting from within is one of the proven methods of employee retention. Promoting from within also shows that there is room for advancement and growth within the organization. The literature reiterates that employee involvement, recognition, importance of work, and career advancement opportunities are all important when dealing with employee retention and reducing worker turnover. In a research report by Fowles (2008), two questions were addressed for guiding the research. First, what would affect the needed salary range for a certain job in an industry? Second, would one determine before going into an interview, what pay one wants to make, what one needed to live on, and what one will be glad to settle for? The focus of the study was on entry level salaries which are less negotiable with salaries for mid-level or executive level semi structured interview help to identify. It is hypothesized that entry level would be paid at entry level salary minimal benefits, mid-level employees would be better paid plus benefits, and executive level employees would be highly paid including all benefits and profit sharing, and their benefit too will be high. When attending an interview one need not initiate the idea of salary unless the employer comes up with it. Thus, there are times one will look for basic information concerning the negotiating salaries and benefits. This study shows what one needs in order to negotiate salaries and benefits. The job seeker has to determine the market salary range for that position. Preparation of a budget will determine the financial needs of an individual. This will help take a decision on what one wants to earn, live on, and what to settle for. Being sincere about the position one is seeking, if it is an entry level salary it becomes less negotiable than mid level and executive level. Documentation of skills and accomplishments help to negotiate higher salaries and benefits. Obviously, preparedness is particularly beneficial as it puts candidates on top of negotiating salary and benefits to your advantage because one wishes never to be underpaid or over paid. Underpay and over pay can spoil the chances of getting employed. To find the market value for a position one can call up friends, classmates, colleagues, career advisors, recruiters and even use the internet to find information in that industry. It also helps to research the institution one is seeking a job in as to what are their financial status and future prospects. If they are flourishing financially ask for a higher salary and benefits. Deviate from discussing salary until it is assured that they want to hire. When they talk about it use tactics of putting a range of your expectations, rather than just one figure. Salary and benefits need to be addressed by being commanding rather than demanding whereas to win the negotiation, inquiry about professional benefits and advancement is necessary at this stage. This will show them that if one is short changed and do not get them trying to trade off then better salary will be the option. Salary is remuneration received by an individual for service rendered (Weltman, 2011). According to the Income Tax Act there are some conditions to consider when dealing with remuneration. As a candidate, one key factor to consider when discussing salary and benefits with a prospective employer is current worth and expectations. Another consideration is how badly the perspective employer wants to fill the position and your skill to make a match. All this issues should be addressed during the interview with the employer. If the offer is given wait for 24 hours to think over before accepting the offer. Consider the value of the benefits like research time, incentive bonuses, travels and promotion as the whole package. Benefits are incentives offered to employee apart from the salary. The benefits considered are medical, life insurance, disability, retirement benefit, paid time off, and fringe benefits. These are quite valuable to an employee and needed to be negotiated. Where one get sick or a family member medical benefit becomes extraordinarily crucial. This if not factored in the perk it can cost several hundred dollars to cover alone (Beam & McFad, 2001). Most employers require an applicant to include salary history or salary requirement when applying for a job. Applicants should give the correct remuneration and submit a range for their requirement. At this time, one needs to mention expected benefit that will be negotiated later during the interview time. The salary information required by employers to screen out if your salary is unusually high, match if your salary is at their range and not consider when your salary is too low. Sometimes they may offer the job if your current salary is lower than what they are planning. This helps to speed up the selection criteria by identifying a potential candidate fast enough. Many research studies have revealed mistakes undertaken by job seekers while negotiating for salaries. Never lie while negotiating because reference checks might expose the candidate. Becoming acutely aggressive in negotiation limits chances of selection one need to remain good mannered. Always look for long term gains not relying on short term goals which might jeopardize being selected. Focus on the responsibilities and duties not the perks. Consider stating at a low level as negotiate your way to the top. Be open to explore all the possibility of getting a better perk and the job itself (Buss & Joiner, 2008). Over promising is to not good because it might be difficult to deliver the over expectations. It is sometimes beneficial to listen to other people’s opinions before putting forward your priorities and pressures to them. A better mutual understanding between the parties makes it a win-win resolution. References Beam B.T., & McFad, J. J. (2001). Employee benefits. London: Dearborn Trade Publishing. Busse, M., & Joiner, S. (2008). The Idealist guide to nonprofit careers for sector switchers. Idealist.org. Crosby, P. (1992). The eternally successful organization. Signet Books. DeLuca, M. J., & Nanette, F. (2006). Perfect phrases for negotiating salary and job offers: hundreds of ready-to-use phrases to help you get the best possible salary, perks, or promotion. New York, NY: McGraw-Hill Professional. Fowles, D. (2008). Everything personal, finance in your 20s and 30s: Erase your debt, personalize your budget, and plan now to secure your future everything series (Business & personal finance). Michigan, Everything Books. Harwood, L. (2012). Your career: How to make it happen. Chicago, Cengage Learning. Peters, T. & Waterman, R. (2004). In search of excellence: Lessons from America’s best run companies. Harper Paperbacks. Phillips, J., & O’Connell, A. (2003). Managing employee retention: A strategic accountability approach. Butterworth-Heinemann. Ulrich, D, & Brockbank, W. (2005). The HR value proposition, 1st ed. Harvard Business Press. Weltman, B. (2011). Lassers small business taxes 2010: Your complete guide to a better bottom line. Chicago: John Wiley & Sons. Read More