While you should certainly use your persuasion skills to make sure you receive the pay you deserve, negotiations should also reinforce the employer's decision to hire you.
There are a few times in your career when you can negotiate your salary and compensation packages: on your way in to a job, on your way out, and when you're asking for a raise or a promotion. Obviously, you have the most leverage on the way in and the least on the way out. So it's important to take an especially thoughtful approach to the negotiation process after you have received a new job offer.
Negotiating a salary and compensation package is not like negotiating the price of a car or house. While you should certainly use your persuasion skills to make sure you receive the pay you deserve, negotiations should also reinforce the employer's decision to hire you. Negotiations should be conducted in a constructive and positive atmosphere, with an emphasis on both parties finding a way to make it work. Here are a few tips on how to take that positive approach.
Getting started
Don't be too quick to discuss specifics when it comes to salary negotiations. The only time you should discuss your salary needs is when the company indicates that it would like to make you an offer.
If you are asked about your salary expectations during the interview process, you should just say that you are looking for a reasonable increase from your current salary with potential for growth. Refrain from giving a fixed number that you would accept unless you truly would be willing to start at that salary. And recognize that if you say you would be interested in a salary between US $110,000 and $120,000, you probably will end up with $110,000.
By the time you reach the negotiations stage, both the candidate and the company need to be serious about making a commitment. If you are not interested in a position or company, you should never let things get to this point.
For professionals in supply chain management, negotiations occur directly between the company and you, the candidate. If you have been working with a recruiter on a position, the recruiter's main role at this point is to assist with negotiations and help both parties come to an agreement that is reasonable.
The numbers game
When it comes to negotiating your compensation package, the size of the company can have a big influence. For large corporations, salary ranges and benefits are determined as part of the approval process for specific positions, so there is limited flexibility. Companies try to ensure that compensation is consistent with similar positions in the department, the corporation, and to some degree, competitors. They employ consultants and use salary surveys to correlate compensation levels.
To change a salary range during the hiring
and interviewing process requires approval at many levels, and it lengthens the search process considerably. Rather than go through the procedures required to upgrade a position's salary range, companies tend to reduce the screening requirements for the position. Smaller and/or private companies, on the other hand, have more flexibility to interview candidates without a specific hiring number and can adjust the salary offer within reason when they interview a candidate they like.
It's typical today for new hires to get an offer for 7 percent to 12 percent above their previous salaries. If you will be relocating, be sure to take into consideration any differences in the cost of living when you state your desired salary. Your new company, however, is not obligated to make up for your past low salary, but it will want to be sure your offer is on parity with similar positions in your department. In other words, even if your present salary is significantly below the starting range of the position, the company can't offer you less than the lowest point of the pay range.
Your current employment status will have a big effect on the strength of your negotiating position. Individuals who are happy where they are and see a future with their present company can often count on receiving larger increases. This is because the hiring company understands that the offer needs to be high enough to warrant a candidate's making a career change.
If you are not currently working, you have less leverage for negotiating. Similarly, candidates who show concerns about their present job or company, a takeover or merger, or a corporate move, tend to have fewer bargaining chips. For that reason, do not mention such concerns as the reason why you are looking for a new job, even if the interviewer might already know this information. At the same time, the hiring company should not take unfair advantage of a candidate who is unemployed. Companies that follow this path risk quickly losing new hires to a company that offers them a better package.
While salary may receive the most attention, it's important to also consider the whole compensation package. If you have negotiated the salary to the maximum and it is not quite at the level you deem sufficient, there are other ways to increase your total compensation: a signing bonus, adding stock, an early review, replacing a portion of your lost bonuses (if it is almost time to receive one in your current job), and vacation time.
Additionally, make sure you understand company policies regarding such areas as eligibility for bonuses, company profit sharing, stock options, retirement plans, saving plans, life and health insurance, vacation, and compensation for relocation costs. Speak to those people in Human Resources who have up-to-date knowledge of these benefits. There is nothing wrong with asking for a written explanation of benefits after an offer has been made. You don't want to find out after you've been hired that the benefits changed and the hiring manager was not aware of it.
There are some things that you should not expect the hiring company to offer. Compensation for your spouse's loss of income, for instance, cannot be a factor in negotiations, and you should consider this before you interview.
An employment contract normally will be offered only at the vice president level or above. In essence, employment contracts are really unemployment contracts, as they guarantee you a payout if you are let go without cause during the term of your contract.
Be sure to employ a lawyer who specializes in this area—not a friend or relative who is doing you a favor—to review the contract. At this point, you should worry more about ensuring that the contract provides you with adequate protection rather than about saving money on legal fees.
Finally, if a company makes you a great offer, don't try to squeeze it for more. Some companies do make their best offer up front.
Nothing personal
One of the problems we have when it comes to employment negotiations is that we tend to personalize them. Remember that your objective isn't to "win" or prove a point—it's to receive an offer that fits your financial and career needs. If this cannot be accomplished, then you want to walk away from the deal leaving the company feeling that you were a great find but the position was the wrong one for you. Be sure to leave the door open for renegotiation and perhaps other opportunities in the future.
Organizations are working to make their supply chains more resilient to disruptions and responsive to abrupt market changes, the firm said in its “2024 ISG Provider Lens Supply Chain Services” report for the U.S. In the wake of major geopolitical events that have affected supply chains, including international conflicts and the COVID-19 pandemic, companies are seeking to prevent or quickly bounce back from supply or demand shocks.
U.S. companies in particular have been especially fast to adopt digital supply chains, due to lighter regulation in the country and a higher willingness to take technology risks, ISG says. Many U.S. firms are also undertaking digital transformation as they shift from global to regional or local supply chains to reduce the risk of future disruptions.
A top goal for U.S. enterprises is aiming for more real-time insights and data-driven decision-making, prompting them to clean up and integrate data from throughout their supply chains, including from both internal systems and external suppliers, ISG says. End-to-end visibility and process orchestration could improve supply and demand forecasts, order fulfilment and profitability. Providers are helping clients carry out this major transition, usually in one part of the supply chain at a time.
“Cost is still a concern for supply chains, but capability is gaining importance,” Bob Krohn, partner, manufacturing, for ISG, said in a release. “Service providers are stepping up to help enterprises implement systems that meet their unique requirements.”
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Gulf Coast businesses in Louisiana and Texas are keeping a watchful eye on the latest storm to emerge from the Gulf Of Mexico this week, as Hurricane Rafael nears Cuba.
The category 2 storm’s edges could also brush Florida as it heads northwest, causing tropical storm force winds in the lower and middle Florida keys. However, the weather agency said it is too soon to forecast Rafael’s impact on the U.S. western Gulf Coast.
In the face of campaign pledges by Donald Trump to boost tariffs on imports, many U.S. business interests are pushing back on that policy plan following Trump’s election yesterday as president-elect.
U.S. firms are already rushing to import goods before the promised tariff increases take effect, to avoid potential cost increases. That’s because tariffs are paid by the domestic companies that order the goods, not by the foreign nation that makes them.
That dynamic would likely increase prices for U.S. consumers as importers pass along the extra cost in the form of price hikes, according to an analysis by the National Retail Federation (NRF). Specifically, Trump’s tariff plan would boost prices in six consumer product categories: apparel, toys, furniture, household appliances, footwear, and travel goods. “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said in a release. “A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
The rush to avoid those swollen costs can already be measured in the form of rising rates for transporting ocean freight, as companies start buffering their inventories before the new administration officially announces tariff hikes. Transpacific rates are still $1,000/FEU or more above their April lows, showing increased ocean volumes and climbing rates generated by shippers’ concerns about supply chain disruptions including port strikes and the Trump tariff increases, supply chain visibility provider Freightos said in an analysis. "The Trump win may start shaking up supply chains even before he takes office. Just the anticipation of higher tariffs may lead importers to pull forward shipments, creating a preemptive freight frenzy," Judah Levine, Head of Research at Freightos, said in a release. “Frontloading will cause freight rates to feel the heat as importers race to dodge the extra costs, similar to what took place with Trump’s tariffs on Chinese goods in 2018 and 2019."
Another group sounding a note of caution about international trade developments was the Global Cold Chain Alliance (GCCA), a trade group which represents some 1,500 member companies in more than 90 countries that provide temperature-controlled warehousing, logistics, and transportation. “We congratulate President Trump on his election. We also congratulate all those who have been elected to the U.S. Senate and House of Representatives,” GCCA President and CEO Sara Stickler said in a statement. “We are also committed to promoting the growth of exports from U.S.-based food production and broader manufacturing sectors. We will engage constructively in the policy discussion about future trade policy and continue to make the case for the importance of maintaining balanced and resilient trade routes for food and other temperature-controlled products across the world.”
Businesses in the European Union (EU) were likewise wary of tariff plans, judging by a statement from the VDMA, a trade group representing 3,600 German and European machinery and equipment manufacturing companies. "Donald Trump's second term will be a greater challenge for German and European industry than his first presidency. We must take his tariff announcements seriously, in particular. This will once again put a noticeable strain on transatlantic trade and investment relations," VDMA Executive Director Thilo Brodtmann said in a statement. “The USA is and will remain the most important export market outside the EU for mechanical and plant engineering from Germany. Our companies offer the products required to implement the re-industrialization of the USA that Donald Trump is striving for. The VDMA's overall outlook for the American market therefore remains positive."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."