1. Start with a strong point of
reference.
This may seem almost silly to advise; but, you'd be
surprised how many times I was approached (unsolicited, mind
you), with someone looking for a job saying "Oh yeah... here
I am and I'll work for THIS amount." That amount, being
something like 20-25% above my highest paid staff (not to
mention even more than that, my own).
Doing your own market research on what competitive
compensation packages are for your region is the first
action of respect when you're approaching the table for
negotiations. While you can certainly use websites like
Glassdoor (which is actually fairly accurate), asking around
for primary sources is the best. Nevertheless, anything is
helpful -- just get an idea where the median compensation is
per dollar and then extrapolate the totality of possible
compensation packages. Check out this
Cyber PT guest post for more info, and, this post on
related
interview tips in the same vein.
All this to say, be very mindful about the
range your dollar signs can go. Most hiring managers,
regardless of their titles, are typically paid only 5% above
the average pay grade. There's a lot of red tape, unwanted
overtime, and headaches that come with that 5%; RESPECT THAT
FACT as you approach the table.
2. Know the business structure.
Knowing the business structure is an exercise in deciphering
a department and/or firm's supply chain. This is really
important to understand because while Tip #1 lets you know a
good base of reference for negotiating a number, Tip #2
tells you the actual wiggle room you have while negotiating.
While some places can't give you anything above what they
initially offer (via company policy), some places just
won't. It's not always up to the hiring manager.
Therefore, there exists several key factors to consider; the
area, the location, and WHY they need to hire. Also, if and
when (because you should) tour the facility to which you are
a prospective candidate, take a peek and ask around as to
what the turnover has been like. This will give you a huge
clue as to why they are hiring and what the wiggle room per
dollar actually is.
A department filled with senior staff; veterans of the
department for 10+ years are very expensive to retain.
They've received 10 years worths of merits and successive
raises; it is likely they will want to hire you to lower
their cost per minute. If the department is basically all
new staff, what you are likely looking at is a shuffling
period for the department or company; there is definitely
wiggle room in this case.
Also, take a look at what the temp staffing is like. They
need to fill a position, that's why you are there; however,
they also need to have that position in the supply chain
currently manned otherwise they are losing out on precious
revenue and botching their customer service. So, take a look
at how expensive the local registry (outside agency
staffing) is, how much per diem they may be using, and
whatever travel staff might be present. These are huge hints
as to what they are spending to keep the department
floating.
The middle point between how high you can ask for versus how
much money they are wasting on temp staff represent the
wiggle room between what they can offer and what you can ask
for.
3. Consider the entire compensation package.
Some hiring managers may look at you like you're crazy when
you want more money. These managers typically represent
organizations that just don't find compensation in cash as
the "big" part of pay; they compensate you on benefits. Now,
don't take that kind of reaction personally. THEY know that
their company gives them amazing benefits. To them, the
benefits far outweighs the pay cut in cash. But, you don't
know that about their company... not yet, at least.
This is where I tell you to fully evaluate any compensation
package before you negotiate. This is also where I tell you
that typically, unless you have mad connections or
hackabilities, it is unlikely you'll have full access to the
details of any given compensation package to where you can
make counter offers right off the bat.
Take the offer home. Ask for a day or two to consider it,
nothing more. You don't want to be wasting their time, nor
yours. Examine the compensation package carefully. ALWAYS
consider the entire compensation package; retirement
accounts, pensions, matched contributions, health benefits,
PTO, con ed dollars, mentoring, fringe benefits,
work-life-balance, opportunity for upward mobility, etc.
I've mentioned in the past that some packages take from your
direct dollars so they can have some present value of their
own to grow the company. In exchange, their contribution
matching towards retirement accounts is something truly
insane. I've seen companies basically help you accrue
upwards of $10k plus a year in retirement funds for the pay
cut. So, just make sure you understand the details.
If this is your first job out of school, it's no time to be
picky. Most of you already know my stance on
what to do as a
new grad. However, if this is your 2nd job or otherwise,
it's time to get a little bit choosy and hustle depending on
the situation.
4. Value Added, Cost Alleviated.
You're probably thinking, "Alright already! I get it. When
do we get to the negotiation part?" Well, any smart
negotiation needs to map out all the tools and pathways they
have. That is why the first three tips are so important.
Without those, you can't possibly utilize Tip #4.
The soul behind negotiating salaries is most basely this:
They are trying to rip you off, and, you are trying to get
more of what you're worth.
Sorry, that's the truth of the matter. Where the middle
ground is found is when the marginal cost of adding you to
the department does not exceed the alleviating any temporary
staffing costs and/or lost revenue because of your absence.
The more value you add and the more cost you can convince
them you'll alleviate, the more wiggle room you have to push
the upper bound. Sometimes you can demonstrate how you've
already proven your productivity is far greater than par.
I've mentioned this in my post about
writing resumes. You
could also use any formal exposure to whatever additional
training to your advantage. Example: Home health companies
are always clawing for PTs already trained in OASIS.
Competency in various EHR interfaces is also a welcome plus.
Just remember, Value = Benefit / Cost. How much benefit can
you bring to this department, company, and/or organization
for the cost of compensating you for your time, work, and
presence? This is a key element in leveraging and justifying
whatever upper bounds you wish to press for.
5. The Counter Offer (aka "Who's turns is it, again?")
Whenever negotiating, it is crucially important to know
who's turn it is. Meaning, who has the control of the
conversation. Now while in most situations, it is more
common that the employer has the locus of control and
they'll pass the control to you once they make their offer.
Nevertheless, there are plenty of situations (to which I've
been a part of) where the prospective candidate is actually
in control! Just make sure when you make your move that it
is actually your turn to speak.
Now, you're probably wondering when a prospective candidate
actually has the upper hand. Well, it happens when the costs
of holding a position unfilled has been deemed
unsustainable; basically, when the position has been opened
for a long time and the market is just really shallow.
Trust, me it has happened many times before and will
continue to. You just have to have the right timing to
strike that iron while it is hot.
So then, when "they" have the control and it becomes your
turn, this is what you do:
• Asking respectfully with words like: perhaps, consider,
possibly, etc... Offer what they want , for what they are
willing to give.
o Typically, this means productivity.
o However, it can also mean work schedule flexibility (ie
weekends, 4x 10 hour days... even a 12 on a weekend to help
with supply chain challenges)
o It can also be managerial support; with operations being
ever so tight in healthcare, it could very well be that the
manager is struggling to contain the angst of their own
department. Support from YOU could be a welcome thing.
Caution, this could put you at odds with the staff at large.
But, it is a negotiation strategy if you really want
something.
• IN RETURN, you then have some room to ask for things they
are willing to give you. Surely, this could be another
dollar an hour (maybe even 2 or 3). Make sure you quantify
this; every $1/hr is $2000/year. Convince them you are both
worth this and why they would want you to benefit from this.
o Example: If feel this would better reflect the value I can
contribute (aka what they want); and, would help financially
in my circumstances (as a new grad) to which I can fully
dedicate myself to this department and to you (the manager).
o Good managers know that it can cost upwards of $20k in 2-3
months to fully train a new employee. They do NOT want to
waste such resources on turnover. The bad managers... well,
you wouldn't want to work under them anyway.
o What this does is it locks in their need with their
willingness to give. You're able to give them what they
want. And, they don't want to lose that. Since you asked so
respectfully, they like your attitude. Liking you is the
most important part of any hiring process. Therefore, since
they like you, they will want to find ways to help you. They
rather not that you hire in, find all sorts of random other
places to work per diem for better dollars, and then
eventually get offered a full time position there.
o So just remember, with the most likeable and respectful
approach, offer them what they want for what you've gathered
they are willing to give you whether in dollars, in
benefits, in scheduling (4x 10s, weekend rotations in/out,
whatever), sign on bonuses, extra CEU dollars, etc.
However! If the stars are aligned and it is YOUR turn as it
is, this is what you do:
• Asking with even more respect and grace than you would the
first situation (as to demonstrate goodwill)... Offer what
they need, for what they are able to give you.
o Now, I underlined need & able because I've had counter
offers from people I genuinely liked; but, the offers were
so unrealistic and borderline disrespectful that when I
bumped the request up to the powers at be, they got shot
down with brutality.
o So, as stated in Tip #4, most of the time any hiring
department wants value added and costs alleviated. Offer
them this. Again, many times this is productivity. Other
times, its the cost of poor scheduling conflicts due to
seniority. Yet, other times, its unwillingness to see
certain types of patients for reasons of familiarity,
comfortability, competency, whatever it may be.
o In such a situation, a hiring manager is so pressured to
fill both the need of your presence in a position AND the
additional value added need being filled, that they are
going to do everything they can to convince their own bosses
to give you the extra dime and reel you in. I've been there,
personally, in such a situation. It's an interesting dynamic
and the negotiations can be quite nerve wracking all the way
up and down the chain of command. But, the way the hiring
manager hustles on your behalf can really make for a
wonderful working relationship going forward - it's actually
quite touching!
• IN RETURN, you can now ask for more specific increases in
the compensation package that you are desiring.
o Make sure that you are very clear and REASONABLE about
what you're asking for. Avoid insulting the manager and the
other staff by asking for a dollar amount far beyond what is
actually fair, be it the pay grade or a sign on bonus.
o Also, be sure that what you ask for is specifically
communicated in relation to the need you are willing to
offer to fill.
o Example: If a department is wasting all sorts of dollars
for weekend per diem staff, offer to work a relatively
robust rotation of the weekend (if they don't already have
that in play, or, if their rotations are out of control). In
such a case, this is cost containment therefore you can ask
for a bit of the cost being contained as part of your pay.
You could probably seed in something like: "I'm sure you
know that as a new grad, finances can be quite challenging.
I like this place. I want to work here and I want to work
for you. Could we perhaps, consider a rebuffed weekend
rotation for me. For this, perhaps the powers at be would be
willing to consider giving me 10 hour days so that I can be
more of a work horse on the weekend while increasing my
compensation by $X/hr. Just remember that "X" amount must be
a reasonable recovery of the marginal value added per
marginal cost alleviated.
Some Closing Thoughts
Negotiating your salary is always a game. Sometimes you make
it; other times you break it. Sometimes what you ask for is
a deal breaker. Other times, it a reluctance. Whatever the
case, it is always a gamble. Just remember, the job market
is still an element of business. It's JUST business -- it is
nothing personal so treat it as such. Therefore, make sure
you approach it this way. Surely, be likeable and charming,
but also be sure to understand that these days, hiring
managers are attracted to humble, thankful, and gracious
applicants. Whatever you negotiate, it must benefit them as
much as it benefits you. If you can convince them of this,
they will surely do whatever they can to make the situation
mutually profitable.
Last revised: April 22, 2015
by Ben Fung, PT, DPT