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Salary Negotiation: The
Art of the Deal
By being well prepared and confident, you
will easily be able to master the art of salary
negotiation --by James Powell
While negotiation has become a common part of
today's business, most of us are uncomfortable
negotiating our salaries. But today's employer
expects some type of negotiation, and we must be
ready. The tips below prepare you for the art of
negotiation.
Avoid the question of salary, until you have an
offer: On job applications under salary
requirements, put "open," "negotiable," or
"competitive." If a salary requirement must be
given, then give ranges (usually begin your
range at 10% higher than your last salary and
add $10K to get your range).
If asked directly how much you would like to
make, try to avoid providing a number, but
answer in vague terms: "What would a person with
my background and qualifications typically earn
in this position with your company?" Or: "I'd
rather discuss salary when we are both confident
that I am a good match for the position."
Research your market value: Before you go into
an interview, make sure you are armed with the
most recent information on the salary ranges for
the position that you want. Call directly into
Human Resources and ask their salary ranges for
the job you are seeking. It's also helpful to
compare specific salary ranges from
CareerBuilder.com job listings.
Do not take an offer on the spot: How valuable
and in demand will you seem if you accept an
offer the moment it's presented? Instead, either
take home the written offer or take notes on the
details of the offer. Tell the employer that you
would like to go over everything very carefully,
and set up a meeting for the next day.
Examine the entire compensation package: Be sure
to consider insurance, stock options, 401(k)
plans, pension and profit sharing plans, salary
progression, vacation days, paid holiday, and
sick/personal days.
Enter negotiations with understanding of your
skills and their worth: Know your strengths in
your field. For example, say you were a keen
negotiator for large corporate contracts that
brought $1 million in revenue to the company.
Explain to potential employers how you generally
brought x-times your annual salary package to
the company in terms of corporate profitability
within your first year.
Negotiation is expected: If you are going into
sales and do not even try to negotiate, this
could be the last test of your interview. If you
will not negotiate your salary, how can you be
expected to negotiate multi-million dollar
contracts for the company? Even if you are not
applying for a sales position, employers may be
wary of a deal that is made too quickly.
Make sure the negotiation stays win-win: When a
company offers you an exact figure, it is
usually safe to expect that the number is its
mid-range. This is not the time to play
hardball; you will be working with these people
if you accept the position. Use real-life
examples rather that trumped up negotiation
tactics that sound like "ME, ME, ME!" Think
team.
If you have an okay offer: "After looking over
your offer fully, even though I'm sure it's very
competitive, the actual salary figure is lower
on a monthly basis by 10% than what I am
currently making. Though the bonuses will help
improve the situation, those are subject to
change. Is there flexibility on the salary
portion of the offer?"
If you have a good offer: "We are certainly very
close. I was hoping for something more in the
range of $X to $Y. How much room do we have for
negotiation on the salary?
If you have a low offer: "I really like you, the
job seems to be a good match, and the goals of
management and the company's organizational
strategy all seem good. The only area that we
need to talk about –- and the only area holding
me back -– is the initial compensation offer.
Quite frankly, the salary is less than I
expected. I am truly interested in the position
and from my research, $X is the approximate
level for the salary. The other companies I am
speaking with are in that range. What can you do
in this area?"
Examine alternatives: If efforts are exhausted
in the salary negotiation, and the company has
not offered a salary acceptable to you, but you
still want the job, shift the conversation to
the future. Discuss a 60-, 90-, or 120-day
performance review, year-end bonus, or a
lump-sum signing bonus.
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