Negotiating your salary in a lateral move

Here are some interesting tips on how to gain maximum leverage in negotiating your salary when you are making a lateral move:

If you’re about to make a lateral move, you should list and monetize everything your employer has to pay for in order to secure your services. You may not have stock options, but you probably get a yearly bonus, vacation time, medical and dental benefits, life and disability insurance, free or low-cost parking, continuing education, professional fees and dues, subscriptions to professional journals, and the like.

To escape the strong anchor of your current salary, estimate how much each of those benefits would cost if you had to obtain them in the local market. The final number you calculate will be your “total compensation package.” That is the figure to use when your prospective employer asks you what you’re making now. And the term to use is “my total compensation package” or simply “my compensation.”

When you’re asking for more money than you’re currently making, you’ll also want to take a look at what you’re leaving behind. You might, for example, be giving up retirement benefits that haven’t yet vested, earned vacation, or a year-end performance bonus. You’ll want to ask your new employer to compensate you for the benefits you’ll be leaving at your old firm by making the transition to your new one. In Mayer’s case, that accounted for $14 million of her total compensation.

Read more about using that power and information to your advantage.

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