The equal pay debate
With the election over, it will be interesting to see how the equal pay debate that produced the infamous “binders full of women” phrase from Mitt Romney will evolve. There are all sorts of opinions on this issue regarding how to make things fair, but many argue that women have to take control of their own situations and learn how to advocate for their own salaries. Meanwhile, government has to enforce equal pay laws on the books.
Posted in: Your Career, Your Compensation
Tags: better salary, binders full of women, equal pay, equal pay for women, getting more compensation, haggling for a better salary, how to haggle for a better salary, how to negotiate salary, maximize your salary, Mitt Romney, negotiating your salary, salary, salary issues
How to haggle for a better salary
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Are you afraid to ask for a raise? That’s understandable in the current economic climate, but many employees have good arguments for a pay raise, and learning how to negotiate salary is very important for new employees and for employees looking for more compensation.
This article give some helpful tips, and the most important involves getting as much information as possible.
“You shouldn’t just pull a number out of a hat,” says Ofer Sharone, assistant professor of work and employment research at MIT’s Sloan School of Management. “Tell them what you’ve researched and explain why you’re worth more than the average person.” Pynchon agrees: Don’t make the discussion about what you want, but what you can provide. “Tell them, ‘I walk on water, and I can walk on water at your company too.’ ” It helps if you request a salary before they offer you one; the first number on the table influences the rest of the negotiation.
Be smart about this. You have to know about your situation, the realities as work and the nature of the market in your field. Good luck!
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.
Posted in: Your Career, Your Compensation
Tags: continuing education, earned vacation, free or low-cost parking, how to negotiate salary, lateral career move, life and disability insurance, maximize your salary, medical and dental benefits, negotiating your salary, performance bonus, professional fees and dues, retirement benefits, salary, salary issues, subscriptions to professional journals, vacation time, yearly bonus
Tax credit for hiring might be coming soon
This was originally proposed in the first stimulus package but was then removed. It looks like there would be bi-partisan support, and given the terrible job market, it seems like a workable idea.
The idea of a tax credit for companies that create new jobs, something the federal government has not tried since the 1970s, is gaining support among economists and Washington officials grappling with the highest unemployment in a generation.
The proposal has some bipartisan appeal among politicians eager both to help their unemployed constituents and to encourage small-business development. Legislators on Capitol Hill and President Obama’s economic team have been quietly researching the policy for several weeks.
“There is a lot of traction for this kind of idea,” said Representative Eric Cantor of Virginia, the Republican whip. “If the White House will take the lead on this, I’m fairly positive it would be welcomed in a bipartisan fashion.”
The New York Times article does a good job of explaining the pros and cons. Hopefully some form of this will pass.