Are You Getting Paid What You’re Worth?
As the economy improves and manufacturing revenues rise, purchasing and procurement executives may be ready to make a job change. The process involves extensive research and finely honed negotiation tactics. What are the best strategies for upper-level executive negotiations?
Research, Research, Research
Before starting the compensation negotiation process, purchasing executives need the facts.
- Which market trends are affecting executive compensation in the industry? Best practices in negotiation mean understanding those trends. Once you know what the company can realistically offer given current market conditions, you can better craft your strategy.
- As in real estate, what are the comparables? What are similar employers paying comparable people doing the same work? Combined with your skill set, the comparables help define your worth.
- Have you considered how a job change and potential relocation would affect you and your family from every angle? Both tangible and intangible impacts come into play.
- What are the typical perks and benefits associated with this particular job? Upper-level compensation packages generally include short-term compensation (base pay) and annual bonus, short-term incentives, and long-term incentives, such as equity. Benefits can include anything from transportation, memberships and extra insurance to children’s education expenses, flextime options and lump sum payments in the event of a layoff. Which are deal-breakers?
- Finally, what is the range of total compensation that would make you change jobs? What combination of base, bonus and long-term incentives would meet your expectations?
In the end, a successful compensation negotiation strategy will result in a win for you and for your new employer.