Andrew Morris asked:

If you have a job offer, then negotiating a salary and compensation package should be the next thing on board. If a company has spent time and effort interviewing you for a job and has decided to secure your services as employee, they will want to ensure that you remain in the company paying you just enough to ensure that you don’t get snapped up by the competition. However despite all this, negotiating a compensation package is a tricky issue, you don’t want to ask for too much and make yourself seem unreasonable and on the other hand you don’t want to ask for too little and feel shortchanged. So how exactly do you go about the whole thing?

Some people are excited when given the opportunity to negotiate their salary and a compensation package; others on the other hand tend to be perturbed when faced with such a task. Whatever your state of mind, make sure you do the following:

Determine Your Worth

The person at the other end of the table knows how much they feel you are worth, you on the other hand should have an idea about how much you feel the career package is worth. When you start negotiating, you should be aware of all the facts concerning your particular job description. The Internet is a great resource and you can use it to your advantage to get informed about salaries and compensation packages for someone in your shoes. You should make sure that the informational resource you are using factors in the cost of living in the area your employer wants you to work. Having a standpoint in terms of determining your worth means you know what you are negotiating for.

Have a Goal

Just as you can’t get into battle without a battle plan in hand and you don’t get into a football match without laying out a plan to win, you have to define your goal in the salary negotiation proceedings; you can’t get into negotiations without a goal. Shoot a little beyond your mark, if you feel the job is worth around $70,000 in total; ask for a bit more but not that much more. The reason being that the negotiators want to leave the table feeling they have gained something, if you give them the exact figure you have in mind, they’ll aim to beat it down.

Know When to Walk

You’re not up for a charitable cause, it’s your career that’s at stake and you have responsibilities and bills to pay. If you absolutely know you cannot take anything below a particular amount, then walk away and seek alternative options. Deciding to make do with what is below your expectations and which does not cover the level of your financial responsibilities can land you in a quandary, if you know you have better more financially beneficial options elsewhere, then you can drop the offer and move on.

Be Fair

Make sure you use standards that are reasonable for someone in your shoes, the company that’s giving you the offer knows how much the industry pays and you should as well, everyone is trying to win something in the deal. Failure to stick to fair expectations may lead to resentment and comfort with your future job if you accept something below par only to find out later on that fellow employees on the same level as you are, are raking in more than you are.

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Cecile Peterkin asked:

I was recently speaking with a client interested in improving her negotiation skills for her upcoming salary review. She has been in her new position for just over four months. She has exceeded expectations, and feeling confident in her job. However, she is unhappy with her salary. Afraid to negotiate and risk losing the job offer, and grateful for the paycheck, she accepted the job offer without negotiating her salary or compensation package.

Salary negotiation is the most sensitive part of a job interview. We emotionalize it because we are uncomfortable talking about money. You needn’t be afraid or feel at the mercy of your employer. They expect you to negotiate. In fact, in virtually all instances an interviewer has the power to negotiate a higher salary. However, you must prepare for your job interview including salary negotiation in the same manner you prepare your resume, cover letter, etc.

Starting a new job or position is the best time to get the salary or compensation package you want. After you are hired it becomes a bit more difficult to make up your salary.

Salary Negotiations Research Results

Research Question#1: Do you expect candidates to negotiate regarding their salary, benefits, and work schedules once you’ve made an offer?

Results:

82% reported that they did expect a candidate to negotiate.

18% reported they did not expect a candidate to negotiate.

Research Question #2: On average, how much of a range do you have to negotiate a higher salary with a professional candidate (not hourly personnel)?

Results:

64% reported they can negotiate up to 10% higher salary.

20% reported they can negotiate up to 20% higher salary.

18% reported they have no limit on salary negotiations.

0% reported they have no authorization to negotiate higher salary.

Salary negotiation is about what you think you are worth. Therefore, before entering into a salary negotiation you need to know the following:

-Know the market; research salaries

-Understand your value – what are you worth based on your skills and experiences?

-Be clear on the skills and qualifications required for the position

-Don’t overlook the overall compensation package

-Know what you want

How do you go about negotiating your salary?

You should never bring up salary during the interview. Always let the employer bring it up. If a salary amount is offered take your time to consider it before accepting – 1-2 days is acceptable before approaching the negotiation process.

If you are asked your salary expectations, give a range based on your research or tell the employer you are open based on the position and the overall compensation package. Again the negotiation starts after the employer has made the offer.

During the negotiation process, you should consider the entire remuneration package, not just salary, including job related benefits, and working conditions like time off, location and other factors. If it’s a job you want but the package is not ideal, be ready to try to influence the employer to improve the offer by pointing out your skill sets and ways in which you can add value to the company. If all else fails, be prepared to say ‘No’ if your bottom line needs are not being met.

Copyright 2007, Cecile Peterkin.

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