Women's Job List

Compensation Negotiation


Most people look for some sort of guarantee when they move from one firm to another. One hundred percent guarantees are very rare because most contracts between a company and an employee are “at will.”  When negotiating compensation what you are looking for is the ability to make the same amount of money you do at your current or prior firm and have the hiring firm provide you incentives. A company would not expect you to make a move for less than what you are currently making or have made in the prior twelve months.

Before a company makes you an offer they will typically ask you or the recruiter for your W-2’s. This gives them a base line to start from. When negotiating, the idea is for you to present a case based on facts as to why you deserve to get paid a specific amount. You are rarely going to see an individual go from making 150K for one firm and get an offer for 225K.

You need to make a case as to why you deserve 225K. For example, you could tell the firm that you made 150K last year and present them with your W-2’s. You also tell them that next year your current firm is offering you a free company car along with an expanded sales territory. This expanded sales territory will boost your income by a projected 25%. The company would then have to factor in that 25% increase in their offer. Make the case as to why you deserve a specific amount of money and the hiring firm will usually exceed your expectations.

If you are out of a job, don’t be concerned with a company “low balling” you with an offer. If a company decides to provide you with an offer that is significantly lower than what you have made over the last few years, they are making a huge mistake! To hire you with an unsatisfactory pay package does them no good. You will be unmotivated and unsatisfied from the outset. Chances are you will be looking for a new job the day you start. Most companies know this, and that is why they will typically put together a competitive pay package based on your prior two years W-2’s.

-wjl