Evelyn Davis asked:

It’s time to buy a new car. You know exactly what you want. You do your research, formulate what you think is a fair counter offer to the sticker price. You stride into the dealership, make your offer, and the salesman enthusiastically accepts. You are surprised. Why?

The salesman did not follow the rules of negotiation. When he leapt on your offer, you were doomed to wonder what you really should have paid. At the very least, the salesman should have concealed his delight at your offer, and put on a show of reluctance to accept it.

Unnatural behavior

Negotiation is not inherent in our culture. The only times Americans understand it is acceptable to negotiate is when buying homes and cars. Thus, we are not very good at negotiation because, unlike other cultures that negotiate daily for many purchases, we don’t practice. When was the last time you asked the waiter to take half price for a steak dinner?

Another realm where negotiations are fairly common is an employment offer at the executive level. Emotion and ego play a role in executive level negotiations and using a third party executive recruiter keeps the exchanges on a fact-based playing field. While most executive applicants understand they can negotiate on salary, fewer understand the wide range of negotiable points on the table.

As the hiring decision-maker, it is vital that you understand the negotiable components of your offer, and learn which have value to the candidate. Most companies have a salary range for a given position. Typically, the goal is to hire the best candidate at the midpoint of the salary range. Let’s say the midpoint of the range is $150,000 but your candidate asks for $175,000. The smart move is to invite that candidate to view the job offer n in the context of an overall total compensation package.

What’s on the table?

As you know, a number of items are negotiable. Every company has a different list of negotiable provisos that constitute its employment package. The well-prepared decision-maker knows exactly what is in his or her arsenal to offer prospective executives:

• First year guaranteed bonus

• Equity or ownership

• Stock options

• Frequent performance reviews

• Company car or car allowance

• Time off

• Cell phone

• Company product discounts

• Travel modes and accommodations

• Personal chauffeur

• Country club, athletic club and trade association memberships.

Generally speaking, larger companies tend to have fewer negotiable points than smaller companies. Smaller organizations may have more leeway to modify policy to attract top talent.

It is important for each hiring manager to understand those areas that have the potential to be negotiable chips in the quest for executive talent.

Each negotiation is personalized. What resonates with one candidate may have no value to the next. That’s one reason many companies choose to use a third-party executive recruiter for hiring executives and conducting the negotiations. The executive recruiter not only understands the nuances of the process; he or she assures the negotiation proceeds in an appropriate manner and deflects emotional responses that might harm the working relationship moving forward.

Who has the power?

Negotiation at executive levels is not for the faint of heart. It is key to understand the nuances of the negotiation process and apply them at the right moments. It’s important not to dread the process. Top candidates who are well-suited for your executive-level position are not going to fly out the door at the suggestion of a compromise. And, at the conclusion of the negotiation, both parties must be satisfied with the final outcome. The burden for assuring mutual satisfaction with the result of the negotiation is squarely on the shoulders of the hiring party, with the possible help of an executive recruiter.

After all, it is the company that defines the environment and the parameters of the negotiation. It is the recruiter’s responsibility to facilitate the communication of these parameters.

At the executive levels of hiring, the candidate must join the company feeling wanted, valued and welcomed. The negotiation must not leave the new executive feeling resentful or under-appreciated.

Likewise, it is not ideal for a company to overextend itself to hire a candidate. This creates that uncomfortable atmosphere of, “O.K., hotshot, now you better deliver above our expectations because we’re paying you more than we expected.” Executive recruiters offer expertise during the negotiation process. The purpose of the negotiation is for the search consultant to bring the two parties together.

Watch your toes

At executive levels, it is imperative to understand and execute the negotiation process with finesse. The process enables each side to measure the other, learn about styles and issues. For example, if the negotiation comes down to future terms, such as a three-month review or a six-month incentive bonus, make sure you follow through on these – and don’t wait to see if the executive reminds you. He or she will be pleased if you follow through on your promises.

Time is on everybody’s side

As authentic executive talent becomes rarer, negotiating the offer for an executive position becomes an effective triangulation among company, executive recruiter and candidate. Highly talented candidates are interviewing you as much as you are interviewing them.

Good negotiation generally takes time. So adjust your clock, slow down your timetable and allow time for an executive recruiter to lead your candidate and you through the negotiation process.

Caffeinated Content

Bryan Burbank asked:

It is important when you are negotiating a salary that you have in your mind what that perfect number will be. Usually there is a lot of mind games when you are in the process of negotiating because the employer wants to get you for the lowest price they think you will work for. It is easy to also get into the trap of the interviewer asking you what you would like to make. This is probably one of the worst traps you can fall into because it is a loose – loose situation. The company will know exactly what they can have you for and you may sell yourself short to get the job.

Learn How To: Get the Perfect Job

Build a Good Relationships

It is always good to try to build a good relationship with the new company that you applying to. Sometimes the job that you are trying to get pays more than your current job, most people try to get a higher paying job, but the interviewer may want to know why your pay is low and it is always good to let then know that you are up to the new salary and that you are worth every dime because of your worth to the new company

Learn About: Positive Work Habits

Important Factors to Negotiation

Your negotiating a salary will depend on a few important factors such as the level of experience you have for the job you are applying for, also any unique skills that would make you stand out will also be helpful to obtain a new position at the best salary. It is always better to discuss salary with the person who makes the actual decision of how much you will make and perks. Usually a Human Resource person will not be the decision maker for a higher paying salary job.

Finally it is always best to be truthful and not lie about your current salary because the new employer can confirm if the numbers are accurate and you do not want to be in a situation were you get caught in a lie.

salary negotiation