There Is Room For Negotiation in a Competitive Job Market

Although most employees say they are comfortable negotiating salary, bonuses and/or benefits with human-resource professionals, they might have better success if they knew which aspects of the compensation package are the most negotiable, according to a new Society for Human Resource Management (SHRM)/CareerJournal.com survey of 418 human-resource professionals and 352 executive employees and job seekers.

In the survey, 90% of human-resource professionals say salaries are negotiable, while 78% of employees report negotiating salary. But human-resource professionals say they donít have as much flexibility as job seekers think when it comes to offering more generous bonus or benefits plans. Instead, candidates would be better off asking for an early salary review, payment of relocation costs, flexible work schedules or extra paid time off.

ìKnowing whatís negotiable and whatís not can make a big difference in a candidateís ability to negotiate successfully,î says Tony Lee, editor in chief of CareerJournal.com, The Wall Street Journalís executive career site. ìYouíre shortchanging yourself if you donít attempt to identify where a company has greater flexibility.î

While younger employees report rarely trying to negotiate perks or severance packages, survey respondents age 56 or older say that negotiating for such items, as well as retirement benefits, bonuses and paid time off, are high on their lists. Not surprisingly, the survey results suggest that executives have the best chance of negotiating an array of benefits, including bonuses/incentives, perks, retirement benefits, severance packages, sign-on bonuses and stock grants or option programs.

ìOne of the most important roles that HR professionals play within their organizations is effectively negotiating compensation and benefits packages that will attract the best talent,î says SHRM President and CEO Susan R. Meisinger, SPHR. ìThe better understanding that a potential new hire has about the negotiating process up front, the more satisfied and invested theyíll be in their new position and in the organization.î

While employers are concerned with offering competitive incentives that will retain their top talent, many applicants are worried about what will happen if theyíre fired. One quarter of all new hires attempt to negotiate severance packages before they accept job offers, according to human-resource professionals who responded to the survey. Recruiters and compensation consultants say severance packages often are an area of contention during negotiations.

ìThere is more concern among executives about severance packages, especially among candidates who see these agreements as a way to manage the risk they take when leaving a secure job,î Mr. Lee says.

Half of employees responding to the survey report being either somewhat or very comfortable with the negotiation process. However, there are differences between what men and women negotiate for in the hiring process. Women and men report attempting to negotiate equally as often, but women say they are less comfortable than men with compensation discussions. Women are more likely than men to attempt to negotiate family friendly benefits, such as flexible work schedules and number of work hours per week. Men are more prone to negotiate items with monetary value, such as bonuses/incentives, perks, relocation costs, severance packages and stocks.

The top three aspects of compensation that are negotiable, according to HR professionals are:
Salary
Relocation Costs
Flexible Work Schedules

The least negotiable are:
Retirement Benefits
Health Care Coverage
Severance Packages

Source: Society for Human Resource Management/CareerJournal.com survey