For many people, the idea of negotiating your compensation with a new employer can cause feelings of anxiety and panic since it comes down to one key question:  what am I worth?

Negotiation is a skill that can be learnt, and taking control of the situation will boost your confidence to help you get what you want. Here are our top tips on how to develop a strategy to negotiate the best compensation package.

Make compensation negotiations part of the whole process – not just at the end.

• Market information is the key weapon in your armoury. What can you find out from the legal press, salary surveys etc?

• Know your sector and what others are accepting in terms of compensation. Knowledge of your market provides you with bargaining power and allows you to negotiate from a position of strength.

• Create bargaining points to make your position stronger. What/who does your target firm need and how can you fulfil that need? Show how you will enhance their team and that they need your skillset and/or existing client relationships.

• Use the skills and knowledge of your recruitment consultant. They are both your ambassador and your guide to the market – which is in a constant state of flux, ebbing with supply and demand. You need to keep abreast of the market via your recruiter before you begin any salary negotiations.

• Decide up front if you prefer to negotiate yourself, or ask your recruiter to do it on your behalf. Who is your best advocate? It’s important to start with understanding your own personality type first – be aware of your own negotiating style and limits and how you may over or under compensate for personality traits.

Having all the information at hand at the start makes the process easier and keeps you aligned to what you want throughout. By metaphorically leaving ‘breadcrumbs‘ throughout the process, you will lead a clear path to your expectations, which also makes the process easier for the interviewers and creates a more favourable impression.

Tips for partners

• Partner compensation is governed by supply and demand in the market as well as your book of business. Formulas such as the classic ‘remuneration equating to a third of practice size’ are overly simplistic. If you practice in an area which is in demand, you can command a premium compared to what your practice would ordinarily justify.

• Guarantees are still being offered. However, firms are generally reluctant to offer multi-year guarantees. Pushing hard for a guarantee also can send a message that you are not backing your ability to bring across business. Many of our clients are more amenable to the concept of shared risk where a base compensation is agreed with the prospect of additional uplift in compensation, should the partner deliver on certain revenue goals set out in the business plan.

Tips for associates

• When discussing level/PQE, speak directly to the partners as to what level you would come in at, especially if you are between PQE years or have trained in a different jurisdiction. Generally, it is best to defer to partners rather than push for a specific class year or PQE. If you go in at a lower level, you are more likely to over-perform rather than put yourself under undue pressure.

• Signing bonuses are rare now. They are usually reserved for cases where an associate is holding multiple offers or is in a practice area with significant demand.

• When asked ‘what are your salary expectations?’ push back and ask ‘what would someone at my level expect to be paid at your firm?’ Adapt your posture/dynamic as needed as this can lead you to under or over sell yourself.

At Marsden we offer advice for lawyers at all levels on the best ways to achieve the compensation package you want,  based on our decades of global market knowledge and experience. Get in touch with one of our team today to discuss your future career aspirations.