| Many people fail to understand
the process of salary negotiation. It is not
simply demanding more money for your services.
Communication, preparation, trust, a mutual
understanding of each party's position and
willingness to compromise are the key ingredients
of successful negotiations. In the end both
parties must believe they have reached an
agreement that serves their mutual interests. "What
salary range are you interested in?"
"What are your current earnings?"
"The salary for this position is
$35,000.00. Are you interested?"
Most job seekers, when asked these questions,
fail to respond adequately and, consequently,
either leave money on the table or worse, fail to
receive an offer. In no other area is there as
much timidity, equivocation or hesitation. To
overcome this, you need to develop a negotiation
strategy just as you develop a strategy for
handling standard interview questions about your
professional skills. To do this, you must make a
clear distinction between the negotiation of a
position and discussions about your salary
requirements or earnings history. It will help if
you keep in mind the first principle of
successful negotiation.
Never Negotiate Without an Offer
The only appropriate time to negotiate a
salary is when an employer has extended an offer
or will extend an offer if a compensation package
is mutually agreeable. Obvious? Perhaps, but many
job seekers frequently negotiate, though they may
not know it, without receiving an offer. You need
to keep in mind a number of related principles of
negotiation. They are:
- Don't be the first to mention money. Your
interviewer may be considering a better
offer than what you had in mind.
- Never give a salary range. Giving a
salary range can short-circuit the
process and leave money on the table.
- Be careful not to overshoot on your
requests. Unreasonable demands can break
down the negotiating process.
- Use your previous compensation plan as a
point of reference - not your salary.
This includes any bonuses, commissions or
other forms of payment you may have
earned.
- Coordinating the timing of several job
offers can increase the perception that
your services are in demand.
You have undoubtedly noted the requests should
not to be forced. We mean that literally. You
should not volunteer your current earnings or
your income goals unless the interviewer forces
the issue or you feel that further avoidance is
pointless.
Look for the Buy Signs
In the sales world buy signs are anything
a buyer would do to suggest they have an interest
in your product or service.
Here are some obvious Interview buy signs:
1. The interview runs longer than planned.
2. You receive a callback for a second or
third interview.
3. The interviewer starts to sell you on the
company.
4. The decision-maker starts to ask questions
about salary or benefits.
5. They send you for an exam or start to
contact your references.
These are all good signs the company is
interested in your services. Strong buy signs
often suggest you will have some leverage in the
salary negotiation process.
Do Your Homework
Preparation is a key element of
successful salary negotiation. If you are asking
for more money you need to be prepared to justify
your position. During the interview process you
can aid your cause by uncovering some
information.
- Is there an event driving the need?
- Does your interviewer have a key project
deadline that must be met?
- Does this position need to be filled to
satisfy a major client's request?
- Are their regulatory issues that demand
the position be filled?
- Does this position play a vital role in
achieving the company's strategic goals?
- How many other candidates have they
interviewed? Do any of the other
candidates have comparable
qualifications?
- Do you have some special expertise that
very few other people possess?
If you have an ideal salary in mind you need
to be prepared to defend it. A breakdown of
average wages on national and regional scales can
be found on the Internet or at your local
library. This information can be used to justify
your compensation request.
Negotiating Upward
Negotiating compensation packages
requires a positive approach and some planning.
If you received an offer you feel is a little on
low side you have two options:
A. Buy time buy asking if you can have a few
days to consider the offer. This will give you an
opportunity to evaluate the offer and submit a
counter offer.
B. Put all the issues on the table in a
positive tone and present your case for more
money.
"Your widget company has an excellent
reputation and I am excited about the prospects
of coming to work for you. In situations like
this I like to do my homework. The average salary
for someone with my skills and experience is
$50,000 according to the latest industry surveys
published in XYZ trade journal. Given the
increased cost of living for this area, my
additional experiences and my willingness to
accept two weeks of annual vacation instead of
three weeks -$55,000 is a figure I had in
mind."
The decision-maker may agree to the figure or
counter-offer with a figure of $53,000. The most
that can happen is the decision-maker rejects
both offers and you'll walk away from the table
knowing you received the best and final offer.
Put Your Agreement in Writing
In the passion of spirited debate details
can often be overlooked. In all fairness to
yourself and your employer your agreement should
be put in writing. Don't assume this is the
employer's responsibility. Take the initiative to
present the employer with a letter that spells
out the points of your agreement. This will
diminish the chances for misunderstandings that
may occur down the road.
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