SALARY NEGOTIATIONS
by
Cindy Bishop
When should you
prepare for salary negotiation?
You should start laying the groundwork for your salary negotiation
even before the first interview - for some jobs at the point of
application. Many companies require you
to complete an application and will ask you salary requirements right up
front.
It's the question many
job applicants dread - What are your salary requirements?
You dread answering this question because, if you ask for too
much, you'll take yourself out of the running. But ask for too little, and you
could doom yourself to a salary that's too low. The key is to respond to the
question without being overly specific.
And if they don't ask about your salary at the beginning, don't bring it up.
How do you
respond?
Offer
a salary range. Instead of giving a
specific number, provide a salary range. It is okay to say to the recruiter that you
might need to know more details about the job's duties and employee benefits
before you can discuss a number. A lot
of factors have to be considered, such as
healthcare coverage, the commute, 401k, other company perks.
You can explain this to the prospective employer while still
providing a general idea of what you're expecting in a simple sentence like
this: "My salary requirement is in the $xx to $xx range, based on the job
responsibilities and total compensation package." That way, you still have
plenty of room for negotiation after you learn more about the job.
Your bottom end should be slightly higher than your absolute
minimum. That gives you some more negotiating power and flexibility. And be reasonable on your top end. Some
companies may put that question in because they want to see honest and reasoned
responses.
Your answer is very important and should
not be taken lightly. This conversation can get you the interview or exclude
you from going to the next step.
You might also respond by telling the recruiter/employer:
1. What you currently earn and perhaps are
seeking an increase.
2. What you made in your last couple of
positions.
3. Or, based on the job description you believe the job
will be compensated accordingly. You
can talk industry and industry-standard ranges (because you’ve done your
research)
Do your research to provide some realistic numbers. See how much
similar jobs with your level of experience are paying in that city or town.
Don’t respond to an ad without doing your homework and knowing
roughly what the position pays and what you could reasonably expect in terms of
compensation. It’s getting caught
unaware that can get you into trouble.
The Salary Wizard can provide helpful data at http://www.salary.com/
Keep in mind there are many factors in the salary: job duties,
degree/non-degree, years of experience, market/city. Example: A job with the same
title can pay $28k or $84k. Be sure you are looking at the correct level,
job description, years of experience, etc. when researching the salary for your
potential job.
Research the company
and the position.
Learn about the company’s salary ranges (if possible) and benefits
as well as industry salary ranges before the first interview. (If you know
people who work at the company – ask them)
1
Research/learn about the company, its competition and the
industry.
2
Check the company website to learn about benefits.
3
Check job boards to see if salaries are posted (often they are
not, but sometimes they are)
Know the position and responsibilities
- Review the job posting for job description,
responsibilities, years experience and other requirements. Make notes on the areas that you match
directly and areas where your background and experience might bring more than
listed in the job specification.
- Re-check salary websites to get an idea of
what the position pays.
Think about what you want from the job, both in terms of salary
and benefits, 401k match, employee stock purchase, tuition reimbursement and
time off. This information will become
valuable during the interview and salary negotiation.
Don’t be the first to
bring up salary.
You never win by talking about money early on. The time to talk about money is when they've
fallen in love with you. When you make them realize you are the best candidate
and will be a great asset to the company.
Once the employer has decided you're right for the job, it becomes an
issue of how are we going to make this happen?
[It’s funny – You’ll see different opinions here. Some say, “Be the first to put the number on the table; you’ll be
in control of the starting point.”
Others say, “Never be the one to put the number on the table; you can
set the bar too low or too high and either may cost you the opportunity.”]
You may be asked again at the offer stage for salary
requirements/expectations. (You were
probably asked this at the first pre-screen or during the application process –
not always, but often) You may receive an offer based on what you told the
recruiter day one.
Don't commit too quickly.
The employer often offers the job and salary simultaneously. Prepare for this moment. This is your opportunity to ask details
about the components of the offer. List
your questions ahead of time.
1
Is the job paid hourly/salary?
Is there overtime pay? Is there
a bonus plan? Is there employer match
to the 401k? How much? What vacation is included? List the items that are important to you.
2
Ask them if you can have some time (if required) to think about
the offer. Tell them you'll give them
an answer within a certain time frame.
If you have another offer – let the prospective employer know
right away. It is interesting that
often this drives the offer up a notch and generates a faster process. If you don’t have an offer – don’t say you
do.
1
When it's time to answer the first employer, mention the other
employers' interest to help boost your value.
2
But don't make up imaginary offers. It's easy to check and you
don’t want to ruin your reputation.
Responding to the
Offer.
Articulate your expectations. Tell the employer what you want from
the job, both in terms of salary as well as benefits and opportunity. It may be
time off, flexibility about where you work autonomy or ownership over a
particular area, it may be your title -- whatever has a perceived value to you.
Negotiate extras if needed. If the employer can't
offer you the salary you want, think about other valuable options such as:
- Sign on bonus
- Relocation services/reimbursement
- Bonus plan
- Stock options
- Additional vacation time
- Title
You also can add a few contingencies showing your confidence in
your performance. You could ask the employer to give you a salary review after
six months rather than a year or for a year-end bonus if you make a certain
performance goals. It shows that you
believe in yourself and are committed to bringing what you say you can do.
Everything counts.
Consider the offer as a total compensation package. When calculating your salary, remember to
include the value of benefits, such as bonuses, commissions, health insurance,
flexible spending accounts, profit sharing, paid vacation and stock
offerings. Also remember, it may not
be all about the money – what about other company perks?
Know when to fold.
Assess for yourself if the employer is paying fairly what the job
is worth. Don’t be greedy in trying to
get all you can – the employer can fold or rescind the offer at any time. Don’t feel you always have to negotiate; the
first offer may be exactly what you are looking for.
Don't underestimate
the value of happiness.
If you're happy in your job and the only thing you can't get is
more money, maybe it's not time to leave. There's no way to put a price tag on
having a job you enjoy.