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Topics: Summary: Classroom Application: Questions:
Compensation Policy
One thing that is often engrained in young workers is that they should negotiate their salary as part of accepting a new job. Women in particular are socialized to believe that they should negotiate base salary as a way to close the wage gap with men. Workers' ability to negotiate base salary appears to be changing. Companies are being more transparent about salary starting in the early stages of the recruitment process, leaving little room for candidates to negotiate a higher salary once a job offer is made. Applicants should be aware of how much, if any, wiggle room companies have to increase wages during the pandemic. Rather than focusing solely on base salary as part of the job-offer negotiation process, applicants should negotiate about all the things that can make their workday better, such as work hours, amount of travel, etc. When negotiating a job offer, candidates should do their research, convey enthusiasm, use mirroring techniques, and ask for a deferred raise.
his article to discuss how firms can develop effective compensation policies.
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