Salary is an obvious consideration when evaluating a new job offer. But while a bigger paycheck is always welcome, it’s not the only thing that determines whether a role is worth taking.
A new position might offer a clearer path to leadership, more flexibility or benefits that make everyday life easier. And even when a prospective employer can’t budge on base salary, there may be other parts of the package worth negotiating, according to Jeff Harris, CEO of Jeff Harris & Associates.
For one thing, compensation isn’t necessarily as fixed as it might seem. “Even within an existing compensation structure, there can be different levers,” Harris says. The trick is knowing which parts of an offer to look at, and which ones are worth negotiating. Here are some tips.
Look at the whole package – and know your worth
Before getting caught up in the headline salary, it pays to understand what you’re currently earning relative to the market and what a new role could offer overall.
In Harris’s experience, employees who stay in the same role typically see annual pay increases of around 3 to 5%, while changing jobs can deliver a considerably larger increase.
“When someone is moving from one position to the next, it’s very common to see them get 10 to 20% or more additional compensation when they make a move.”
Still, base salary is only one part of the equation. Health insurance, paid leave, travel reimbursement and other allowances can all affect the overall value of an offer. It’s worth looking closely at what’s included, and whether those benefits are actually better than what you already receive.
Consider where the role could take you
Sometimes the biggest value of a new position isn’t what you’ll earn immediately, but what it could set you up to do next.
A role with greater responsibility, exposure to a larger organization, or opportunities to develop new skills could strengthen your future earning potential, even if the immediate salary increase is modest.
“All of those things can represent an increase in scope of responsibility and thus an improvement in someone’s career trajectory. That will have economic value that can be meaningful to the candidate in a way that transcends pure economic value,” Harris says.
Job title can also come into play. As Harris points out, “If you can’t elevate the compensation, sometimes being able to elevate the title can create additional incentives.”
A more senior title can help position you for future opportunities, provided it reflects genuine progression. Look beyond the wording to understand the responsibilities, decision-making power and experience the role will actually offer.
Don’t overlook the things that make life easier
Career advancement is one thing, but a job also needs to work with the rest of your life. Flexibility, time and practical support all have value, and the right benefits can sometimes make a lower salary more appealing.
Depending on your circumstances, that might mean additional paid leave, flexible hours that reduce your commute, childcare subsidies, support for further education, better health insurance or reimbursement for travel and vehicle expenses.
These benefits won’t matter equally to everyone. The key is to work out what would genuinely improve your circumstances, rather than being swayed by perks that look good on paper but won’t make much difference to your day-to-day life.
Ask what’s negotiable
If the salary on offer falls short of your expectations, it doesn’t necessarily mean the conversation is over. Harris suggests employers may be able to consider alternatives such as a sign-on bonus, an earlier salary review or a guaranteed first-year bonus.
“You might look at guaranteeing some of their annual bonus in advance as a way to keep their base where it is, but increase the likelihood that they’ll be attracted to the company,” he says.
Rather than immediately rejecting an offer that doesn’t meet your salary expectations, consider asking whether there’s flexibility elsewhere in the package. You might negotiate an earlier performance review, additional leave, professional development support or a bonus arrangement.
Ultimately, the best job offer isn’t necessarily the one with the biggest number attached to it. It’s the one that makes sense for your finances, your ambitions and the life you want outside work.