Once you have been offered the job and you think it is an offer you should seriously consider, you will want to discuss your specific compensation package with the employer. During salary negotiations, you are not only talking about your monetary salary, but also your entire compensation package. This includes vacation time, sick leave, health insurance, tuition reimbursement, stock options, and other benefits the company may offer.
Your base salary and performance-based raises are probably the most negotiable parts of your compensation package. However, many companies have a cafeteria approach to benefits where you select from a number of benefit options based on a total monetary cost. In other words, the company will spend a certain amount of money on each employee for benefits, and employees have some flexibility on which benefit options they select. For example, employees with children might select child-care reimbursement benefits, while employees interested in going back to school might choose tuition reimbursement.
ASKING FOR A BETTER SALARY
As a general rule, you will have been asked about your salary requirements prior to a job offer from an employer. If you are offered a salary that seems too low, review your expectations. Does the salary offer reflect the current market for the position and for your experience?
PREPARING FOR SALARY NEGOTIATIONS
Like other parts of the job-search process, the key to salary negotiations is preparation. It is very important to do your research before you begin negotiations. In order to determine the salary you are willing to accept, investigate the salary range someone with your skills and experience can expect to receive.
If you are relocating, remember that salary is relative to the area in which you live. Cost of living, such as housing, insurance, utilities, and other expenses, affect the salaries of a given geographical area. The following sections will explain sources where you can find salary information.
Professional Associations
National and regional professional associations frequently compile salary information, and they are the best source for engineers. Associations such as the American Society for Civil Engineers and the American Society of Mechanical Engineers conduct salary surveys, asking people in the profession what compensation they are receiving. Contact your professional association and ask if they can provide you with salary information.
Some engineering societies that offer salary information are:
- American Association of Engineering Societies (AAES), 1111 19th Street N.W., Washington, D.C. 20036, (202) 296-2237 or (800) 658-8897. The AAES gives a complete listing of salaries for all engineering disciplines. The Engineer's Salaries-Special Industry Report is available through the AAES for $287.50.
- American Society of Civil Engineers (ASCE), 345 East 47th Street, New York, NY 10017, (212) 705-7496. The ASCE charges members a fee of $21 (nonmembers add $7) for civil engineering salary information.
- National Society of Professional Engineers (NSPE), 1420 King Street, Alexandria, VA 22314, (703) 684-2800. Salary surveys are available annually to members for $50 (nonmembers pay $119).
Engineering journals for every major discipline annually publish an edition detailing salary information. Contact the subscriptions department to obtain back issues with this information.
- Chemical Engineering, P.O. Box 507, Hightstown, NJ 08520-9376, (609) 426-7070.
- Chemical Engineering Progress, American Institute of Chemical Engineers (AICE), 345 East 47th Street, New York, NY 10017, (800) 242-4363.
- Civil Engineering, American Society of Civil Engineers, 345 East 47th Street, New York, NY 10017-2398, (212) 705-7496.
- IEEE Spectrum, The Institute of Electrical and Electronics Engineers, Inc., 345 East 47th Street, New York, NY 10017-2398, (212) 705-7900.
- Mechanical Engineering, The American Society of Mechanical Engineers, 345 East 47th Street, New York, NY 10017-2398, (212) 705-7722.
Your local library should have a number of references to use to find out the salary ranges for your discipline. Some reference books include:
- State and Metropolitan Area Data Book. Published by the U.S. Department of Commerce, this book compiles statistical data from many public and private agencies. It includes unemployment rates and rates of employment growth and population growth for every state. It also presents a vast amount of data on employment and income for metropolitan areas across the country.
- White Collar Pay: Private Goods-Producing Industries. Produced by the U.S. Department of Labor's Bureau of Labor Statistics, this book is a good source of salary information for white collar jobs.
- 1991 AMS Office, Professional and Data Processing Salaries Report. This report is published by the Administrative Management Society in Washington D.C. It provides salary distributions for 40 different occupations, many of which are professional. It is subdivided by company size, type of business, and region of the country, and by 41 different metropolitan areas.
- American Salaries and Wages Survey. Published by Gale Research in Detroit, this survey offers detailed information on salaries and wages for thousands of jobs. Data is subdivided geographically. The survey also gives cost-of-living data for selected areas, which is very helpful in determining what the salary differences really mean. It also provides information on numbers employed in each occupation along with projected changes.
- American Almanac of Jobs and Salaries. This book, produced by Avon Books, New York, provides information on wages for specific occupations and job groups, many of which are professional and white collar. It also presents trends in employment and wages.
Your Network
Talk to colleagues in your professional network. Although people frequently don't want to tell you what they personally are making, usually they are willing to talk about salary ranges. Ask colleagues, based on their experience, what salary range you might expect for the position.
Job-Search Centers
These centers (which can be found in schools, libraries, community centers, or as part of federal, state, or local government pro grams) frequently keep salary information on hand.
Your Past Experience
If you are applying for a job in a field in which you have experience, you probably have a good idea of what someone with your skills and abilities should be paid. Think about your past salary. Unless the job you are applying for requires dramatically different responsibilities than your former position, your previous salary is definitely a starting point for salary negotiation.
NEGOTIATING OTHER BENEFITS
When negotiating your compensation package, make sure you consider all benefits the company has to offer, not just salary.
POSTPONING THE ACCEPTANCE OF A JOB
Employers frequently send a written job offer, giving the candidate a date by which a response is required. Employers need to know whether they should continue interviewing for the position, so try to respond as quickly as possible-postponing your acceptance of a job offer could be a bad start with a new employer. Many employers are willing to wait two to three days, but usually not much longer than that. In times of economic downturn you will have less flexibility. Postponing your response when jobs are scarce could (continued)
Before you begin negotiating your compensation, decide which benefits are most important to you so you are ready to talk to the employer.
In addition to benefits commonly offered, such as vacation time, sick leave, and health insurance, you may have the option to receive other benefits. Stock options, profit-sharing, retirement plans, tuition reimbursement, and bonuses may be part of your total compensation package.
PRE-EMPLOYMENT AGREEMENTS
All companies require you to fill out some sort of pre-employment forms. Usually these will include an application, a "terms of employment" form, a nondisclosure agreement, a non competition agreement, and an acceptance of or receipt for a company rule book. Depending on your profession, you may be required to sign a patent rights agreement. Much of this paperwork may be filled with legal jargon. Read through each form before you sign.
If you have any questions, use the negotiation meeting to discuss pre-employment agreements, or arrange another meeting for this purpose.
THE NEGOTIATION MEETING
Once you know the type of salary and benefits you are willing to accept, it's time to negotiate with the company. During these negotiations, you have the opportunity to ask for the benefits you need or desire. By the time a company is ready to make you an offer, they have invested a lot of time and money in their search for a qualified employee, and they want to reach an agreement that will result in your employment.
You don't want to be overly aggressive with the employer, but you do want to receive a fair compensation package. If the employer makes you an offer that does not seem equitable, discuss your concerns with the employer. Present your concerns about the benefits package in a constructive, nonthreatening manner. Focus on the reasons why you have concerns, as opposed to making general statements about "what you deserve." For example, it won't be productive to simply state, "1 must have more money." It would be more productive to explain that the company's offer is less than you were making previously, and you would like them to match your previous salary.
In most situations, employers have some flexibility in what they can offer an applicant. They might be able to offer you more money or compensate you with additional benefits (e.g., more vacation leave). Some companies can offer a signing bonus to compensate for other "weaknesses" in their compensation package.
While you are considering the offer, make sure you are taking into account the entire benefits package. Sometimes excellent benefits can compensate for a lower salary. If you really want the job, but the offer still seems low even after negotiations, see if the employer will consider a salary review three to six months from your starting date. Usually you don't have to make a decision about the offer immediately. Ask the employer for a couple of days so you can carefully consider the position and the offer.
If you come to an agreement with the employer, find out when you can expect to receive the offer in writing. It is important to get the official offer documented. An official letter confirms that your job offer has been approved.
THE OFFER LETTER
Once you receive the job offer letter, respond in writing to formally accept the position. Your letter will confirm your understanding of the terms of the job offer. Much like the thank-you letter following an interview, you should use this opportunity to thank the employer and to kick off your new job with a positive statement. Result in a lost opportunity. If you are hoping for a response from another company, do not mislead the company who has already given you the job offer. Instead, contact the company from which you haven't received a response and let them know that you have another job offer. With a little gentle persuasion, you may be able to find out if you are still being considered for the job.
