Money, Money, Money, Money: Discussing Compensation as a First Gen Professional
Navigating your professional compensation is a foundational aspect of professional life. Compensation isn’t just about salary—it encompasses benefits, bonuses, and other perks that contribute to your overall job satisfaction. In this Article, we will discuss how to approach compensation research, how to bring compensation up in conversation (and when), and how negotiating your compensation now can impact the rest of your career.
Why is negotiation important?
As you begin your career, you will likely research customary industry salary ranges, or at least notice the posted salary range for the position for which you are applying. After all, very few of us are interested in working for free for the next 40 years. Some employee-friendly states have enacted laws that require employers to post the salary ranges for jobs they are looking to fill. Some employers try to skirt this by posting a large range, which makes it even more important for you to research customary salary in your state, or even city if the cost of living in your area is high.
Negotiating your salary, even in entry level roles, is important because of the long-term effect even just a small adjustment can make. Asking for an extra thousand dollars in your first role can compound into extra tens of thousands of dollars over time as you climb the corporate ladder, or move from employer to employer. Your end number at one job is your starting number at your next. Negotiating, or even asking for, a one-time bonus can provide a little buffer for your daily expenses, or provide seed money for investments that will pad your retirement savings. Speaking of retirement, additional salary will allow you to contribute more to a 401k (for example), which can result in earlier retirement.
Negotiating compensation each time the opportunity arises is also a skill to be developed as a young professional. It may feel awkward at first but remember that nobody will advocate for you better than you will. It is rare that an employer at your third or fourth job will simply give you extra money, unless a bonus structure is baked into your hiring package (also negotiable!). Be bold, the worst that your employer can say is no and you will still have gained valuable experience.
When to discuss salary
Before your first role, or a new role, research industry standard salary for the role, location, and experience level. Websites like Glassdoor, PayScale, and LinkedIn Salary Insights can provide valuable benchmarks. Practice how you will structure your sentence: “I see that salary for this position is a range of [$X]and [$Y]. Where would this position fall on that scale?” or “Thank you for that offer. Based on my [educational background or skillset], would the company be willing to offer an additional [$Z].” Have a package in mind. You will be tempted to jump at the opportunity for gainful employment no matter the compensation - resist that urge! Have confidence in your value, you would not be in the interview process or at the final stages of interviews if the employer did not see quantifiable value in your employment with their company.
During the interview process, timing is everything when it comes to discussing compensation. It’s generally best to avoid bringing up salary in the initial stages of an interview unless the employer raises the topic. Instead, focus first on showcasing your skills, experience, and enthusiasm for the role. Once the employer expresses serious interest (usually around the third interview or conversation) or extends an offer, it’s appropriate to discuss compensation: “Is this an appropriate time to discuss compensation for this role?”. Be prepared to articulate your expectations clearly and back them up with data. For example, you might say, “Based on my research and the responsibilities of this role, I was expecting a salary in the range of $X to $Y.” This approach demonstrates professionalism and preparedness. If this is your first role, a simple “Thank you for this offer, I am excited to bring my skills to your organization. Would the company be willing to add an additional [$X]?” can go a long way.
comp other than salary
Beyond salary, there are many other aspects of compensation that are negotiable. Benefits such as extra retirement plan contributions from your company, issuances of stock if your company is publicly traded (or has a parent company that is public), and extra paid time off can significantly impact your overall satisfaction, work-life balance, and long term financial planning. Additionally, consider negotiating for flexible work hours, remote work options, or professional development opportunities like tuition reimbursement or conference attendance. Sign-on bonuses, performance bonuses, and stock options are also common negotiation points. Most companies will pay for any professional licenses, state registrations, insurance, or professional organization memberships that are required for you to do your job, so be sure to ask about that before signing your offer letter. If none of those apply to you, one good idea could be to negotiate your birthday as a company-paid day off, without using a vacation day.
Remember, the goal is to create a compensation package that aligns with your needs and career goals, so don’t hesitate to ask for what matters most to you.
when to re-evaluate your compensation
Discussing, and renegotiating, compensation are regular aspects of career life. As you develop new skills, take on leadership projects, or earn new accreditations, your contributions and value to the company will increase and it will be appropriate to increase your compensation accordingly. Regularly reassess your compensation to ensure it remains competitive with market standards. Your company may even have pre-determined timing for compensation increases, usually annually, or every two years at higher levels. Your company may also tie compensation increases (including faster accrual of vacation days, bonuses, or the ability to participate in stock purchase programs) to years of service or meeting performance metrics. Be sure you understand this cadence or know who to go to to get this information (usually HR).
If you feel underpaid or undervalued, schedule a conversation with your manager (or HR) to discuss your concerns. Approach the discussion with a collaborative mindset, emphasizing your commitment to the company, and your desire to grow. However, don’t be afraid to make asks and don’t underestimate your value, even as a young professional. You are contributing to your company’s success and deserve to be paid accordingly. Also note: It is less expensive for your company to increase your compensation than hire a new person into your role; you have more leverage than you think. And finally, if you don’t believe your company is valuing you at a level that is quantifiably reasonable with market level, consider looking elsewhere.
comp-clusion
Discussing compensation is a normal and expected part of professional life. While it may feel uncomfortable at first, advocating for yourself is a skill that will serve you throughout your career and pay (literal) dividends in the long run. By doing your research, understanding your priorities, and communicating effectively, you can secure a compensation package that reflects your value and supports your goals. Embrace these conversations as opportunities to grow and establish yourself as a confident, capable professional.
Editorial Note: ChatGPT assisted our editors in drafting this Article.
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