When negotiating salary with a small company, it’s important to remember that the owner will probably have a lot less experience in the negotiation process than you do. This can make things a little more challenging, but it doesn’t mean you shouldn’t try. Here are some tips for negotiating your salary with a small company:
- Make sure you’re asking for what you deserve. The best way to ensure that is by doing your research ahead of time. Check out Glassdoor’s salary calculators and use them as an initial benchmark for what you should be earning. You can also ask friends and family for advice about what they made when they first started working at similar companies.
- Be prepared to walk away if the offer isn’t good enough! This can help give you leverage during the negotiation process and may help persuade your employer to come up with something better than their initial offer.
- Be prepared with other offers in case they don’t come up with anything better than their initial offer! This will show them how valuable you are—and how many other companies might be interested in hiring someone like you!
How To Negotiate Salary With A Small Company
Negotiating a job offer with a small company is a lot like negotiating with a big one, with one important twist: Te person with whom you are negotiating probably has a lot more authority and flexibility than a Human Resources professional or a department head in a larger firm. The key is to demonstrate the same flexibility. Be sure to consider the whole compensation package rather than just the salary.
Do Your Homework First
Before you step out the door for an interview with a small firm, make sure you know what you’re worth and what the company can afford. Research median salaries for people in your profession with your level of experience and in your geographic area. Salaries can vary widely in different regions. In addition to online resources such as the Bureau of Labor Statistics, ask friends and relatives who work in the same field to describe their compensation packages. If you can find out anything about the company, such as recent expansion efforts, this can also help you determine how much leeway you might have to negotiate a higher salary than what it initially offers.
Salary
Big companies tend to have a fixed structure with a pay range for each job category. Smaller companies are typically more flexible and provide more room for negotiation. Be careful, however, not to start the salary discussion too soon. Wait until you have a job offer, or at least you’re in the final round. Focus first on impressing the company with your credentials and showing interest in the firm. Once they determine that you are qualified and motivated, they will be more willing to up the ante to win your services. You’ll gain the advantage if you let the interviewer raise the question of salary first.
Total Compensation
There is more to compensation than just your paycheck. Ask about other benefits, such as health care coverage, vacation days, sick days, 401K matching funds, tuition assistance and bonuses. Calculate the dollar value of these benefits and add them to the proposed salary to get a better idea of the total compensation package. Small companies are often harder pressed to provide medical benefits and matching funds than big companies, but they might be more amenable to providing stock options and profit sharing.
Other Negotiating Ploys
If the company can’t meet the salary want, ask if management will move up your salary review date, which usually comes after 12 months. You might be able to negotiate a review in six months, with a possible salary increase at that time. If a permanent pay increase isn’t possible, consider asking for a signing bonus or a performance bonus at the six-month mark. You can also ask that the usual 90-day waiting period for benefits be waived so that your health coverage and vacation time start immediately. Throughout the negotiations, show the interviewer that you are creative and flexible. Don’t let her forget how much you will do for the company once you’re on board.
