Salary Negotiations—Comparing Apples to Apples

Last week we held a class on finding and interviewing for the right job. We promoted it to students at the local physical therapy programs. The students who attended were sharp and had great questions. We also received very good feedback on the class.

One of the questions we addressed was asking for and negotiating salary. Most advice to business owners is to have the candidate tell you what they think is fair for the position. That's also the same advice given to the candidates. Neither side wants to show their hand. But that is not really where I think most people make their first mistake. I believe they get into trouble before ever even getting to that step by not really knowing what they want and not understanding all the components of an offer.

So, we ran a couple scenarios with our soon to be job seekers. One scenario had a starting salary of $60,000.00 and a very good benefits package. The other had a salary of $65,000.00 and the usual health and standard continuing education benefits. Of course, our clinics offer great benefits, so you know where this is going. The cost to the employer in the higher salary scenario was greater by $3,894.50, and the employee actually got to keep $95.50 less in the higher salary scenario.

When assessing job offers or negotiating pay, make sure you are comparing apples to apples. And, if you are the one offering the salary, educating your candidates in dollars and cents may make very good sense.

Want to see the comparison? It's available on the JDSM website. Whether you are the prospective employer or employee, you won't get a better return on investment.