The Art of Salary Negotiation
Annual reviews are vital to career development. Too many professionals ignore the opportunity the annual review offers to improve their job. While the current economy might make salary changes difficult to come by, you can still win concessions in other important areas like training and new projects.
The Art of Salary Negotiation
Are salaries really negotiable? Yes and no. The degree to which a salary is negotiable depends on the position, the manager, the organization, and your perceived value. Most entry-level positions have set salaries that leave room for little negotiation. Mid-level positions typically have salary ranges of between 10 and 20 percent (i.e., a job paying $30,000 a year might have a salary range between $27,000 and $33,000.) Employers will negotiate within the range, but will rarely exceed it unless you are an exceptional candidate.Now, more than ever, successful negotiation requires careful planning and tactful skills to help you create a win-win situation for your prospective boss, as well as for yourself. The following tips will help ensure you don’t leave anything on the table.
Be ready.
Learn all you can about your prospective employer’s goals. Then try to determine--as specifically as possible--the results you can produce. Remember, your new employer is seeking opportunities through a suitable match. By being able to clearly articulate the value you can offer, you put yourself in the best possible position for negotiations.Know your value; know what you want.
Your interviewer may have the discretion to sweeten the deal. He certainly will have the answers to questions about sign-on bonuses, relocation costs, tuition reimbursement, increased vacation time and more. Prior to sitting down at the bargaining table, know your value and know what you want. Before negotiating, define your goals at two levels: your ideal target and your minimum requirements for accepting the offer.Is it money only?
Today’s two-earner and single-parent families bring other compensation issues to the table besides money. For many, quality-of-life benefits outweigh monetary compensation. If this is the case, ask about the availability of flextime, childcare, or telecommuting. Define exactly what you want, remembering that your prospective employer can be very creative in meeting your needs.Plan and rehearse.
There’s an adage in negotiating that the person who speaks first loses. When asked about your salary requirements, do not specify a single-salary figure. Instead summarize the needs of the position as you understand them, and then ask the interviewer for the normal salary range in the company for that type of position. Should you be presented with a range, remember that while this sets salary boundaries, it does not preclude bargaining on quality-of-life benefits.Speak up.
When entering the office of your interviewer, pick out something unusual and comment on it. It makes a good icebreaker. A positive comment from you will build goodwill and help overcome any adverse negotiation circumstances.Write it down.
As you reach agreements on terms of employment, put them in writing so there isn’t any backtracking later in the process. If an agreement is on paper, neither party should be able to contest it.Bite your tongue.
Never let yourself become angry or frustrated. It’s better to excuse yourself from the interview for a few moments than to get hostile and alienate a potential boss. Playing "hardball" with a new boss won’t score points. Negotiations that go negative will damage a relationship before you begin the job.Focus on Issues.
If your interviewer has come as far as making a job offer, and you reach an impasse in negotiations, stick to the issue important to you. You obviously have perceived value. One divisive issue will most likely not keep the negotiation from resulting in a mutual agreement. Remember, a negotiation is a series of give-and-take issues. Your prospective employer doesn’t expect to win every one.Sit on it.
Don’t prematurely discuss salary before acquiring information about the job or before communicating your qualifications. When the time comes and you are presented with a first offer, use timing effectively as part of establishing your value in the eyes of your prospective boss. Don’t be too quick to accept the first offer and don't worry that the employer will change his or her mind because you ask for more. If you’ve interviewed well, you’re already the front runner.Win-Win.
One key point to remember about successful salary negotiation: the deal must be a win-win situation for you and for your employer. Think in terms of the whole pie, not just your slice of the pie. The bigger the pie, the more everyone gets. And isn’t that the best way to start a new job?The ‘Wet Feet’ Guide for Mastering the Art of Negotiation
· Determine the salary-range data for the position in your prospective employer’s industry. (See below.)· Be honest. Honesty fosters credibility and is a critical first step in any successful negotiation.
· Be prepared. Decide before you go into an interview what salary you want and what you will be willing to settle for.
· Be realistic. Entry-level salaries are less negotiable than salaries for mid-level or executive positions.
· Document your skills and accomplishments and be ready to talk about them.
· Don’t be the first to mention salary during the interview.
· Practice your salary negotiating skills with a friend, or video-tape a mock interview with a professional.
· Once you have accepted a job offer and salary level, be sure to get it in writing.
· Stay focused on win-win outcomes. Look for the best deal for both parties.
· Relax, it’s natural to feel uneasy discussing salary.
--Excerpts from The Career Services Center Guide to Negotiating Salary and Benefits.
Sources of Salary-Range Data
· American Almanac of Jobs and Salaries· National Association of College & Employers: Salary Survey
· Executive search and consulting firms job-vacancy listings
· Trade and professional association surveys
· www.Salary.com
· http://jobsmart.org
· http://stats.bls.gov/ocohome.htm