Salary Negotiations: The More the Merrier, Right?

 

You know what's surprising? I still haven't been asked to teach a workshop about how to make money.

At just 20 years old, I can afford six packages of Trader Joe's Fruit and Yogurt Gummies as long as I live off of a case of Ramen for the next 62 days. Last week, I even experienced the ultimate first-world problem: I couldn't close my wallet because I had too many loose pennies floating around.

As you can see, I obviously know a lot about money - especially the fact that I don't have much of it. How can I change that?

Like many millennials juggling loans, rent or weekly brunch trips, many 20-somethings are stressed out.

But building a better relationship with Benjamin Franklin and the $100 bill might not be as hard as you think. It all starts with your very first job offer.

Negotiating your first salary is an important step to accelerate your earnings, according to Tara Wyborny, national director of the G10 Associates Program at Genesis10, a program that specializes in recruiting and training millennials.

“It can set the compensation bar for your first few years of working,” Wyborny said. “Your first salary can impact your earning potential for many years.”

Yet, more than 60 percent of us millennials still aren't negotiating first salaries, according to a Time Money survey from 2015. Many respondents said they are just thankful for the job; others are terrified at the thought of asking for more money.

Not all salary negotiations have to be as awkward as this one between Michael Scott and Darryl Philbin in “The Office.”

 

• Just Do It

In the words of Shia LaBeouf, just do it.

Compensation discussions can come up at any time throughout the interview process, Wyborny said.

“If the recruiter does not ask during their initial processes, I recommend following up with them after you have completed in-person interviews and are feeling confident you are in a position to get an offer,” Wyborny said.

• Do Your Homework

Don't ask for an unrealistic salary that is not supported by market data. Before you present a counteroffer, do some research. Keep in mind that what a similar job pays in New York probably won't help you negotiate a higher salary in Topeka, Kansas, where the cost of living is much lower.

Wyborny said there are multiple resources out there that can help first-time workers formulate their salary expectations, including a college career center and websites like Glassdoor.

“Many colleges will collect salary data from employers who have hired their students and will provide you some insights specific to your school or major,” she said. “Websites like Glassdoor will give you good background on what you might expect to earn and benefit overviews.”

• Look at More Than Just the Salary

Compensation includes benefits and perks, too. You might not be thinking much about retirement yet, but a 401(k) match could bring you tens of thousands of dollars or more over the course of your career. Paid time off and flexibility are great benefits as well. Everything has value - even those pennies in my wallet that cost 1.7 cents each to make, according to an article on CNN Money. Wait a minute …

“Don't just think about the base salary,” Wyborny said.

Depending on the size of the company, these perks and benefits could also be negotiated.

“You could negotiate tuition reimbursement, parking or transit subsidies, increased flexibility to work from home, home office expenses or additional PTO days,” Wyborny said.

• Conquer Your Lack of Confidence

Remember this: The executives made you an offer because they are excited to have you as a member of the team, so asking for a little more money probably won't change their opinion of you.

 

• Like a Game of Poker, Go All in if You Think You Have a Winning Hand

Make sure you respond enthusiastically and, most importantly, professionally.

“Having research and facts to support your claim will be the most impactful way to approach the negotiations,” Wyborny said. “Always remember to reinforce your excitement for joining the team and contributing to their success.”

If you have competing offers, that's awesome. Use that to your advantage.

• Don't Go Overboard

“Pick what you want to negotiate and know what your bottom line is,” Wyborny said.

Take it from Ben Kirshner, CEO of Elite SEM, a digital marketing agency that was recently named the best workplace for millennials by the Great Place to Work Institute. Find out how you can add more value to the company than a typical starting employee - and use it to your advantage.

For example, if you are a journalist with more than 1,000 Twitter followers, tell the potential employer that you will bring in 1,000 new readers. If you were the president of a club in college, say you have access to top-notch workers who will be attracted to join the company.

“You might say because of who I am, my connections and how hard I work, I can help make the company more money,” Kirshner said.

These are some good tips. I better start taking notes.

As much as this may surprise you, if there's anyone who can learn something about salary negotiations, it's me. Trader Joe's Fruit and Yogurt Gummies probably aren't the best indicators of monetary success. And the fact that I have more pennies than any other coinage is just sad - absolutely, downright, totally sad.

Good thing I wrote this blog post.

But even though it's nice to be able to afford groceries from Trader Joe's, Wyborny said taking a job should be about more than just the paycheck.

“Make sure you are taking the position for more than the money,” Wyborny said. “In a highly competitive job market, you need to make sure you are building skills and not just earning a paycheck.”

Sarah Foster is a Workforce editorial intern. Comment below or email editors@workforce.com. Follow Workforce on Twitter at @workforcenews.

The Career Hackers is a new blog devoted to helping people start their careers and achieve their goals. Learn more about The Career Hackers on Tumblr.

Tags: Elite SEM, Glassdoor, Great Place to Work Institute, Shia LaBeouf, The Office, Trader Joe's Fruit and Yogurt Gummies

The post Salary Negotiations: The More the Merrier, Right? appeared first on Workforce Magazine.