This is an excerpt from our series “The Ultimate Executive Career Guide Part 5: Compensation Negotiation”
You must be prepared to answer compensation-related questions before you start interviewing. Unfortunately, these are not always easy questions to answer. You should be able to come up with a salary range and a list of needs and wants for your compensation package when asked. These are going to be useful when brought up during an interview, during the negotiation process, or when asking for a raise.
Figure out the total monetary value of your current compensation and benefits, and of any payments, you will lose by leaving your employer (such as this year’s bonuses). Then, consider how this differs from the compensation increase you want or need. You’ll also want to consider which benefits and perks (medical insurance, dental coverage, etc) are necessary or desired.
New Role Responsibilities
If your role is a step up, rather than a lateral move, you will have a higher value to the hiring organization. Will you have more responsibility? Will you manage a larger team? Will you have P&L responsibility?
Consider the added responsibilities and requirements of your new role when creating your target compensation range
Industry, Function, and Geographic Area
Your compensation level can be highly impacted by the industry, function, and geographic area you work in. When considering compensation based on your geographic location, you should ask yourself:
- Am I in the top location for my industry?
- What commute am I willing to make?
- Do I want to move to a new location?
- What location is most suitable for my personal/family life?
- Would I prefer to telecommute?
When considering compensation base on your industry and function, your country’s government might have useful labor statistics relate to trends by industry. For example, in the USA, the Bureau of Labor Statistics publishes information on unemployment rates, employment by occupation, salaries, and more. Ask yourself:
- Are executives in my industry and functions in high demand?
- Am I in a developing or shrinking industry?
Online Resources and Salary Benchmarking Tools
As you research your compensation, you’ll find it useful to look into various types of online resources as a guide to benchmark your desired range. Some of these include trade or professional associations, executive-level websites, or magazines, several of which publish annual salary surveys.
In addition, public filings, such as proxy statements, and sites like Equilar.com, Salary.com, SalaryExpert.com, and Glassdoor.com, will provide compensation data for specific companies, functions, locations, etc.
The current economic market not only impacts the availability of executive positions, but it also can influence the compensation range you’ll be able to earn. When the job market is crowded, you may have difficulty obtaining a position if your compensation requirements are too high. Other challenges that could impact your compensation include very specific location requirements or a recent reorganization at your company. Both of these scenarios could cause you to have a lower perceived value in comparison to other executives vying for the same position.
Are there any unique factors that give you an edge over your competition for the role? If so, these could help bump your salary range up from the employer’s perspective. Some of these can include:
- Unique experiences that go beyond what other executive sin similar roles my have
- A well-developed network that could help you perform your job better than others
- Specialized knowledge or skills that could give the employer a competitive advantage
Download the full guide “The Ultimate Executive Career Guide Part 5: Compensation Negotiation” here