FINANCE/ACCOUNTING CAREERS

Accounting Salaries on the Rise – Are You Ready to Negotiate?

The demand for accountants remains strong in today’s marketplace, resulting in new opportunities and higher compensation for skilled professionals. According to the 2006 Salary Guide from Robert Half International, starting salaries for accounting and finance professionals are expected to rise an average of 3.1 percent this year with even larger increases in high-demand specialties like internal audit and forensic accounting.

Those receiving new employment offers have more leverage when negotiating the final details with hiring managers than they did in previous years. But it’s important to remain flexible and courteous during salary discussions. You want to be compensated fairly but you also want to start the new work relationship on a positive note.

Following are some tips for effective salary negotiation:

• Research the employer. Your experience and familiarity with the company’s industry, products and services, as well as your ability to identify business priorities, will make you a more attractive candidate and help you better position yourself for higher starting compensation.
• Know your value. Understand what your skills are worth before requesting a particular salary. You should be familiar with the expertise and abilities in demand in your market and be able to provide examples of your qualifications. Research trade magazines and local business journals and publications such as the Robert Half International Salary Guide. (For a more comprehensive list of compensation tools available, please see the "Salary Resources" sidebar.)
• Look beyond money. Consider other factors that are important to you, and determine your priorities. For example, what has greater value to you: higher pay or more vacation time? Does the firm’s supportive culture make up for a lower salary? Do retirement benefits outweigh other aspects of the proposal? Answering these types of questions will help provide guidance for the direction of the conversation.
• Ask for a review period. If your background is not a direct match with the job requirements, you may have to start at a lower pay level and build a track record. If this is the case, ask the hiring manager during negotiations to review your performance after a set period of time - 60 or 90 days for example - and to re-evaluate your salary then.
• Remain professional. Keep in mind that you and the employer have the same goal - for you to join the organization. Always be respectful and avoid becoming frustrated or confrontational during negotiations. If, ultimately, the opportunity isn’t the right one for you, politely decline the offer but thank the hiring manager for his or her time.

Flexibility is critical to successful salary negotiation. By assessing your value to the firm and the elements of compensation most important to you, you'll be in a better position to arrive at a final offer that pleases both you and your new employer.