The Art of Negotiation

One thing that is universally agreed upon when it comes to salary is that everyone wants more of it. But one of the most important things to consider is that the actual salary is much more than just pay per period. In fact, several elements compose one's true salary, according to Deborah Payne, PhD, CLSp(MB), CLDir(NCA), University of Texas Medical Branch, Galveston, TX. Components of the benefits package, such as the retirement plan, health insurance and the extent of health insurance for dependents, discretionary funds for travel and education to maintain accreditation, are all part of the broad characterization of salary.

The complete list of elements that yield the true salary, according to Payne, includes: health benefits: out of pocket coverage, vision, dental; pension plans; paid sick days; paid personal days; paid vacation; discretionary funds for CME (travel or publications); parking/ health club benefits; take-home pay; incentive pay; and tuition support. "This is something that most people are confused about when it comes to salary," says Payne. "They always think about the cash value of salary, but they rarely consider the benefits package in with that." Determining Salary Structure While it is important to consider the other elements that make up your salary, to fully understand salary you must realize the variables that factor into salary structures. But this is extremely difficult, as these variables are complicated and rarely constant across the board. According to Payne, the first variable is the actual position or rank of the position, followed by years of experience and geographical region of the country. The geographical location of a particular facility is rarely taken into account by health care professionals when considering their own salary, Payne says. But, as she points out, it is relevant. "In the northeast region of the country the salaries are much higher, mainly because the cost of living is different," Payne says. "Also, the bigger cities are typically going to pay more than the smaller cities." There are many other variables to consider in terms of a fair salary structure, but position rank, experience and location of the facility are the most basic. Other variables that affect compensation include: additional certifications; teaching responsibility; clinical responsibility; years since hired; and performance of job. Getting Help As the variables that affect salary are complex and generally inconsistent, the task of defining one's own worth can be difficult. After all, the duty of researching and understanding elements of salary structure is burdensome but essential for employees to maintain knowledge and understanding of their facility's particular definition of salary and the variables they use to establish appropriate wages. To get such valuable knowledge, employees need not look any further than their own facility. Payne tells ADVANCE that the best way to gain an understanding of a facility's salary structure is to utilize the Human Resource (HR) department within that facility. Many experts recommend establishing a rapport with someone in HR. In doing so, employees can learn how the facility measures the salary and what to look for. This can be essential, as many times HR will have evolving definitions for various packages or how a person is compensated. "Just because you learn something one year doesn't mean it's going to be the same two or three years later," says Payne. "That's why it's important to stay in good contact with HR and find out how they determine the compensation ratio or if there are any new changes that need to be considered." Many health care professionals are undereducated in the area of managing or determining salary ranges: it is simply not part of typical training. This is why HR can be such a great asset, adds Payne. Unfortunately, many therapists are not aware that HR is so willing to help employees understand the ins and outs of salary structure. "One of the biggest challenges that we have is that we don't realize that HR can save us a lot of steps and that they are a wonderful resource to use to help us understand specific salary structures," says Payne. "HR is extremely well-versed in all the subtleties of salary." Words of Wisdom In addition to establishing a contact in HR, there are additional things to consider to better understand the components and variables of salary. While Payne stresses the importance of realizing that salary is not just take-home pay but a multitude of components such as sick and vacation time that do not readily translate into dollar values, even more variables factor into the salary equation as well. It helps to have an understanding of the financial state of the institution. If the organization is going through massive layoffs or reduction in forces, for example, the path to a desired position or salary may be slowed down. Also misunderstood is that the salary compensation issue is a dynamic process. Many times job descriptions have a tremendous amount of overlap between one class and another. "Typically, if you are a certain percentage below the midpoint of that salary range, it is easier to get money than if you are above the midpoint because it is based on a percentage formula," says Payne Therefore, reclassing an employee does not necessarily signify a major or immediate increase in salary. But because that pay grade is shifted upward, it will put the employee in a better position to receive increases in the future. Salary Negotiation If you are in the midst of interviewing for a higher paying job, play your cards right to optimize your earning potential. Describe your involvement within the professional community. Discuss your expertise and academic degrees, published papers, presentations and involvement with organizations. Explain the experience you have and how it is applicable to the job. Sell yourself. Base your salary range on your current salary and salary averages for your field and geographic area. Having a special skill will help you negotiate a higher salary. Doubling your salary, on the other hand, will give the impression that you are more concerned about salary than job performance. However you may be able to increase your salary by 30 percent in less congested areas where the supply of health care professionals is fewer. In more congested and metropolitan areas, however, you should ask for 20 percent to 25 percent more. The general rule is you should start with the high end and then negotiate down. Earning an Increase On the job, however, employees have less say in salary negotiation. Typically, a salary increase depends on performance and or annual review. Many facilities use the merit-based system, where how well you performed in a year dictates the percentage increase. Your best bet in earning the highest end possible is to go above and beyond your call of duty. Meeting or exceeding pre-established performance criteria may determine the increase of salary. For instance, if an employee's overall performance rating is categorized as exceptional, then he or she will get the high end of the salary increase range. If you discover that you are getting paid substantially less than the salary range for your geographic area, position, skills and experience, build a case for yourself and discuss it with administration. Another approach is to write a memo to the administrators and list your accomplishments, published papers or additional responsibilities. You can discuss the average in the department if you have the sense of what people make. However, comparing your salary can be a sensitive issue. In the end, the best justification for salary increase requests will be deliverables. Erin James and Todd Smith are ADVANCE contributing editors.