When is Compensation Negotiable?
Large and Mid-size Law Firms and Government Agencies. Not every salary is negotiable in the legal job market. Most large and mid-size law firms and government agencies traditionally have structured compensation systems with little or no room for negotiation of the base salary or other benefits. This is particularly true of compensation for summer positions, which very rarely is negotiable.
Smaller Legal Employers. Smaller employers often are more receptive to negotiating salaries for both law clerk positions and full-time associate positions. Law students should remember; however, the experience gained from serving as a law clerk has value far greater than the pay received. Do not negotiate yourself out of an offer for a law clerk position.
Ten Tips for Successfully Negotiating Compensation
If you find yourself in a position where it is appropriate to negotiate a compensation package, the following tips will assist you in making the negotiations both pleasant and successful:
1. Think compensation package not salary. Compensation comes in many forms beyond the base salary. Be creative in terms of negotiating incentive or performance-based bonuses, costs of parking, health care benefits, employer contributions to retirement plans, moving expenses, bar examination fees, bar association membership fees, reimbursement for continuing legal education credits, etc. If the base salary is critical to you, consider negotiating away some of the other provided benefits.
2. Know your market value. Research what other employers similar in location, size and practice are paying new associates/summer clerks. Smaller firms that do not regularly hire may be unaware of current market values. These employers may be more open to negotiate if you legitimize your salary request by establishing that it is consistent with the local market. If you accept a position in an alternative career path, legal salaries likely are not the proper touchstone. Good sources of information on legal salaries include the CPC staff, employer NALP forms, students/alumni who work/worked for the employer, and even some salary websites such as PayScale.com.
3. Develop a strategy and be realistic. Develop a strategy that includes setting the proper tone and knowing your personal breaking points. Also, be cognizant of the employer's position and remain realistic in your requests. If you are interviewing with a public interest organization, for example, you are not going to secure a six-figure salary irrespective of your negotiating abilities.
4. Be confident and sell (but don't oversell) yourself. Maximize your past experiences and the unique knowledge or skills you bring to the table and which are of value to the specific employer. The fact that you were a special education teacher will appeal more to a firm with a strong school law practice than to a firm with a corporate transactional focus. You carry the burden of convincing the employer that you are worth your asking price. Remember, though, you need to be the star you promised once you begin working so do not inflate your worth!
5. Avoid making your compensation requests personal. An employer is more likely to consider negotiating your salary when it is presented in terms of "Here is what I can do for you as an employee and this is why you should pay me X," then in terms of "Do you know how much I had to take out in student loans to get this degree?" Employers feel no obligation to your personal finances and may be inclined to fear a candidate with serious financial issues.
6. Present your compensation requests in a win/win proposal. It is your responsibility to educate the employer on the tangible and intangible benefits of compensating you accordingly. The employer should always feel as though they are getting the benefit of the bargain.
7. Choose your battles wisely given the present legal market. Do not negotiate yourself out of the employer's good graces. Other candidates who are willing to work for less are waiting in line for the job. This is particularly true when negotiating salary for a summer clerk position. The real value to a summer clerk is the legal experience; not the compensation.
8. Do not provide an employer with your salary expectations/requirements PRIOR to being offered the position. When an employer requests your salary requirements or salary expectation, you should wait until the employer has expressed serious interest in you before discussing compensation, ideally not until you have a formal offer. Absent intimate knowledge of what that specific employer considers reasonable, discussing salary earlier creates the very real risk that you will overestimate your worth or undersell your value. If you overestimate your worth, your response could be used to screen you out because the employer does not want to pay what you are seeking or because the employer is concerned you will not be happy working for less money. If you do get the job and you undersold yourself you will find out soon enough and you will not be pleased.
If asked to include salary expectations in a cover letter, you should not ignore the request. Options include stating that your salary requirements are negotiable based upon the position, employer requirements and the overall compensation package, including benefits or that you are seeking fair market value based on the position and its responsibilities. Regardless of the approach you take, note that your salary requirements are flexible. For example, "My salary requirement is negotiable based upon the job responsibilities and the total compensation package." If asked to state salary expectations in an interview, appropriate responses may include, "I feel uncomfortable discussing salary until I am formally offered the position," or, "I am interested in learning more about your entire compensation package, what do you typically offer your attorneys?" If the employer does not respect your position, you may have to provide a figure or a range. Make sure the numbers you present are based on research (see #2) and realistic (see #3).
9. Do determine salary PRIOR to accepting the position. Once you accept the job offer, your bargaining position is greatly diminished with respect to compensation. Compensation should be part of the offer.
10. Encourage the employer to state the first salary figure or range. Once you have the job offer, you want to position yourself to react to a figure, not to establish a figure. If asked directly what your salary expectations are, you can respond in a manner similar to the following: "I'm open to the discussion of salary and compensation. Historically, what have you offered young associates?", or, "I think this is the first time we have discussed salary, I would like to learn more about your salary range for someone with my qualifications."