Negotiating your salary while joining a new job or even within your existing organization might be a daunting challenge, no matter which profiles you are in. However, it becomes more complicated when you are in an executive rank as you might already be drawing a relatively high salary. The benefits and perks are often equally or even more attractive than the salary package at the executive level. So, though getting the highest possible package might be what you are looking for, it is often a good idea to discuss other benefits and perks.
We all aim to achieve higher salary packages as we grow in our careers. Professionals might ponder why it is essential to negotiate salary even at an executive level. After all, it is one of the parameters by which the industry will measure your value. It is also a way to realize how much the company appreciates your worth and values your contribution. Measuring your development over the years is good, and then brushing up on your negotiation skills.
Now that we know that negotiating your salary is a crucial part of your career advancement, here are some helpful tips for executive salary negotiation:
- Conduct your research – Before going for salary negotiation, always do your little research on the compensation structure and range in the industry for someone with the same experience level, skillsets, and job profile. Determine where you fall in that structure based on your credentials. Check sites like Glassdoor or Payscale’s Salary Calculator, as it always helps to be well equipped with data.
- Be well prepared and confident – One of the crucial factors before negotiating a salary is preparing a strategy. Research the company’s requirements for the position well and the reasons behind your predecessor leaving the job. It would be best if you were sure of your worth and the unique value you can offer. Being confident always helps your case.
- Present your case – When you negotiate your salary, it’s not enough to demand a specific compensation. It would help if you convinced the recruiters how the company’s investment in you will be worthwhile compared to the value you will bring to the company. It always works when you build your case and justify your demand.
- Be flexible yet firm – While negotiating your compensation, you must have an open mind. Don’t immediately walk off if the company does not come up with the number you demand. Hear them out on their offer, and then discuss all the details until they make an offer acceptable for you and the recruiter. Keep a range in mind, and that’s where your negotiation skill comes forth.
- Choose your perquisites – Along with the salary, the perks, and benefits that come with it, complete your total compensation, otherwise known as the Cost to the Company. The perquisites are essential to your entire package, including pay, incentives, bonus, other benefits, and gratuity. Make sure that you include these components also while doing your salary negotiation.
- Be calm while negotiating – In a negotiation, it is unlikely that the discussion will always be amicable without any resistance. When you ask for higher compensation than the company offers, expect to face some resistance and push-back. Be prepared and calmly answer the most critical question: why do you deserve the salary you quote.
- Don’t name a price first – Most experienced HR professionals advise you to refrain from naming the price when negotiating your salary. Tammy Kabell, a career resume consulting professional, explains a cognitive bias called ‘Anchoring’ that is an essential factor while negotiating your salary.
- Ask follow-up – After negotiating your salary calmly and being flexible with your asking compensation, ask for feedback if it doesn’t come to a positive outcome. You can summarize the discussion and lay out all the crucial points of your salary negotiation in a follow-up email explaining your points and justifying yourself.
- Be open to walking away – It is never easy to walk away from an offer due to salary negotiation not working out. Remember that you should respect your self-worth; there is a certain number beyond which you will not entertain any negotiation. Negotiation should always end with a win-win solution. If not, then don’t hesitate to walk away from the offer.
- Show appreciation – All negotiations necessarily may not result in a positive outcome. There are some points beyond which the discussions may not work out. However, it would help if you were courteous, understanding, and appreciated the opportunity received despite the outcome. It would be best if you remembered to be at your professional best and thank the recruiters for their time.
To sum it up, executives might feel it challenging to negotiate salary while receiving a promotion in the same company or joining a new company. Remember that it is also hard for the companies to come up with really high payouts and extra perks for executive candidates than what they might be getting currently. Making salary negotiations with executives can be equally challenging for the hiring managers. After all, these professionals will be in the leadership team and steer the company to its growth and expansion. Negotiate confidently, show your value proposition, and ‘walk away’ if necessary.