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Michelle Dumas asked:

ding the process of salary negotiations and following these five simple steps can pay you back many times over with higher compensation in your next position.

Salary Negotiations Tip #1: Know your value and be able to clearly articulate the returns that an employer can expect from hiring you. Never forget that as an employee you are investment. When a company hires you, they are making a financial investment through the compensation and benefits that they provide you (as well as many other expenses involved in hiring), and they are doing so with the expectation that their returns on that investment (ROI) will be greater than the cost. It is up to you to know what your worth is, to make sure the potential employer is clear on what that is, and to make sure that they pay you the best possible price for your contributions.

Action Step: Document 6-12 of your most impressive career achievements. Jot notes about the challenges and problems that you were facing, the actions you took to meet those challenges, and the results of those actions. Now quantify those results. Dollar figures or percentages of increase or decrease that represent dollar figures are often the most powerful way to present results. But, even if you don’t have dollar figures, there are often other quantifiable measures that you can use to express the value of your contributions and achievements in the workplace. Now, review all your success stories and practice until you have committed the details of each to memory and are comfortable discussing all aspects of them. These are the stories that you will use during your interviews with companies, to establish and illustrate your financial worth and your proven ability to deliver a strong ROI to your employers.

Salary Negotiations Tip #2: Wait until the right time to talk about salary with a potential employer. Wait until a job offer has already been made. When a potential employer brings up salary prior to a job offer, it is almost always for the purpose of screening you. Before the job offer, if you answer a salary-related question with an actual dollar amount and you give a figure lower than their range, believe it or not, you are likely to be screened out. Why? Because the employer may think that your low amount indicates that you are not capable of handling the responsibilities of the position. And sadly, even if you do make the cut and eventually win a job offer, your salary offer will be held down by the low-ball figure you mentioned too early in the process. If you mention a figure that is too high, you will also be screened out. At this early stage you have almost certainly not had the opportunity to establish your worth and value to the employer. So wait…postpone discussion of salary until you have a job offer.

Action Step: Think of ways that you might respond to questions about salary and practice saying them out loud until you are comfortable doing so. You’ll want to find your own natural words for this, but here is one suggestion for postponing when you are asked that inevitable question: “Salary? If I’m the right person for the job I’m confident that we can come to an agreement. Before we discuss salary, let’s make certain that I am the right person.” Or, “I’m sure you pay a fair salary, and I clearly understand that I need to make you more money than I cost, so I’m sure that when the time comes, we can come to a fair salary agreement.” You could soften either of these statements with a preface statement, such as “I’m very interested in this position and I’m a little concerned that a discussion of salary at this point could screen me out or box me in…”

Salary Negotiations Tip #3: When you are offered the job, and it is time to talk salary, let them talk first. If you have been offered the job and have now been asked about salary, just respond with a simple: “What range did you have in mind?” If you have accomplished what you set out to do and have clearly established your value and worth during the interview stages, you should have a fairly easy time getting the employer to state either a salary figure or range. Now, put a look of thoughtful consideration on your face, and restate the figure or the highest figure of the range with a question in your tone. In other words, say something like “Hmmm…$50,000…” – and then, just be quiet and look thoughtful.

Action Step: Prepare yourself mentally to be comfortable with silence. Know in advance that the silence is necessary and a key part of your negotiations. If you must, keep tally quietly in your head for a count of 30. The most likely outcome of your silence is that you will make the employer slightly nervous that they will lose you as an employee and all of the benefits that hiring you will bring them. Don’t be surprised if, in response to your silence and thoughtful stance, the employer proactively raises the offer before you even have a chance to say anything.

Salary Negotiations Tip #4: Be prepared with market research. With the Internet, you have numerous resources available to determine the salary ranges and all the related salary statistics for people who do the type of work you do in your geographic area. Use the resources available to you and be armed with the facts when you enter salary negotiations. The salaries that others are making are just one piece of the puzzle, but these statistics are an important piece of the puzzle. Having printed research from reliable sources that you can reference to support your desired salary during negotiations, and to help you realistically evaluate job offers that have been made to you, will be invaluable at this stage of the negotiation game.

Action Step: Go to the Internet now and Google “salary research.” Spend an hour or so researching, compiling, and printing salary research relevant to your situation. Be willing to pay for a comprehensive salary report. It will be money well spent and it will give you the ability to respond confidently to a job offer and associated salary offer with a researched response. If the offer made is just what you were hoping for or higher, go ahead and seal the deal. But, if it is a little low, you now have the researched knowledge to respond with a sincere “From my research, I estimate that positions like this for a person with my qualifications pay between X and Y. What can you do in that range?”

Salary Negotiations Tip #5: Remember that monetary compensation in the form of a salary is only part of the deal. What other benefits and perks might be important to you? Once you have come to an agreement with the employer on an actual salary figure, it is time to continue your negotiations to win an offer complete with the benefits that are most important to you.

Action Step: Take some time right now to think about the benefits that would be important to you. Take out a sheet of paper and list them so that you are prepared to discuss and negotiate them when the time comes. Examples may include sales commissions, performance bonuses, insurance, vacation time, a flexible work schedule, professional memberships, expenses for relocation, investment programs, use of a company car, special training or education benefits, and company discounts.

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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.

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Tony Jacowski asked:

Ideally, the mutually-accepted final salary structure will be the outcome of a successful interview process. However, your expectations must be realistic. A little research on deciding upon the expected salary will be helpful.

A realistic assessment should be done to calculate your worth as an employee, which should be tested against the present market or industry standards. Several factors such as type of industry, kind of work, geographic location, supply and demand, or simply the growing need for a professional workforce in a specific industry play an important part in salary considerations.

After preparing yourself in these areas, it will be helpful to follow a three-point formula for the actual salary negotiations during the interview.

Never Be the First to Bring Up the Topic of Salary

Do not rush to bring up the matter of salary in your interview. First, let the employer decide whether you are suitable for the position. Eventually, the topic will come up in the interview – but avoid starting it if possible.

You will blow your credibility if you start the discussion by asking for a particular figure. This gives the impression that salary is your major consideration in applying for the job.

Just as in a card game, it is always best to hold your trump card until it’s time to play it. Announcing your anticipated salary early in an interview may very well eliminate your chances of getting the job, especially if the figure turns out to be too high. If you have set your limit low, it eliminates the opportunity of getting a higher figure if the employer is already thinking of one.

Therefore, it is best not to include salary expectations in your resume unless salary has been specified in the job-opening announcement.

Do Your Homework

Some research is needed before you go on the interview. Explore details such as average salary for that position in the job market, and evaluate your experience, expertise and educational qualifications. Other factors to take into account are the reputation of the company, the hierarchical status of the position offered, and the geographic location.

The perks that come with the salary, if any, should also be considered. Feedback from friends working in that company or colleagues working in the same industry is helpful in getting such details.

Don’t overlook websites that deal with employment and job opportunities.

Do Not Jump At the First Salary Offered

Don’t grab the first offer instantly. Take time, a couple of days perhaps, to consider the offer. Consider some hitches that might go unnoticed. Review the offer; consider all the possible aspects as well as your chances of getting ahead in the position before accepting it.

If you find it doesn’t meet your expectations, let the employer know the salary you anticipate and justify it by pointing out the requirements of the position and your experience and expertise for earning it.

This may not always result in getting you your asking salary; it’s entirely likely that you may need to negotiate and come down a bit. Even if that happens, you will come into the position with your own self-worth established.

Like marketing, successful closing is important in an interview. If you are marketing your worth in an interview, make sure to successfully close the deal and negotiate your salary.

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Steven French asked:

When accepting a new job, salary negotiation is so important. You may have to consider many additional costs that may not be readily apparent to you, which the new job may demand and which are not there in your present job. The costs may or may not be quantifiable but it is important to be aware of them when thinking of salary negotiation. This article explains these issues in more detail.

The salary that you want to earn in the new job should not be a fixed figure but rather be in a range. This is because during salary negotiation of the new job the total cost involved may not be clear in the beginning. The expected figure should be disclosed to the prospective employer after fully understanding all the implications of the new job and may require to be calculated. One of the undisclosed expenses may be health insurance. The insurance policy of the new employer may require you to pay a higher amount from your pocket for each pay period whether it is weekly or bi weekly or monthly. Even if it is a small amount per pay period, an annual calculation may make it substantial.

If for instance the dress code of the new job requires you to wear a formal dress while you may be allowed to wear a casual dress in your present job, upgrading the wardrobe may cost you a tidy sum. Commuting to the workplace is another expense that you have to consider while negotiating a new job. If the place of work is at considerable distance away from your home, it may involve additional expense towards fuel and car maintenance or public transport.

Paid overtime hours is an important issue you have to consider. If your present job pays for your overtime hours and the new job requires you to be on call 24 hours, then you may be actually getting less if you divide the extra hours put in from your annual salary. Even if it is a few hour a week, it will become considerable amount when calculated for an entire year.

There are many other issues, which are sometimes called perks to consider like reimbursement of tuition expenses, flexible working hours, 401(k) contribution, on-site daycare and health clubs, company paid training, mobile phone and/or laptop computer provided by the company, paid professional membership to associations and institutes, vacation and personal holidays, car parking expenses, tax deductible expenses, and the possibility of working from home. Many of these factors are intangible benefits – one might not be able calculate them in dollar terms but depending on your situation they may be very important to you like for example the option of working from home for a mother having small kids to look after at home.

When you make a comparison of the above items with your present job, this would give you an idea of the additional expenses that you have to bear in the new job, giving you a more accurate actual take home figure and putting you in a better, more knowledgeable position while negotiating the salary for your new job.

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Sharon Alexander asked:

There are 7 key steps which can be used to help you in negotiating an appropriate starting salary at a

new job.

If you keep these tips in mind while discussing salary with your new employer, it will help you to attain fair payment for your work. These suggestions will not secure you an exuberant amount of money, but will simply help you to convince your boss to pay you a fair salary that you deserve.

Step 1:

Put off talking about the salary for as long as possible. If you give a definite figure too early in the process, you will be disqualified before the potential employer has a chance to see your abilities and potential for the company. If you are asked for your salary requirements, be vague. Say that you are flexible or that you expect to earn the fair market value for the position. Don’t ever say that you won’t work for less than a specific amount.

Step 2:

Don’t ever lie about your current earnings. Employers are rigorous in their examinations of candidates for positions. They will often check your W-2 forms, and if you lie about your earnings, you will be seen as less than straightforward. You will be far less desirable if employers see dishonesty.

Step 3:

Don’t ever accept an offer on the spot. As good as the amount may sound, always give yourself time to think about any salary negotiations that take place. Be sure to find out when your position will be reviewed for salary advancements. Learn your benefits, compensations, and non-monetary aspects of the position.

Step 4:

You can ask for more. Expect that you will be offered first the bottom end of what the company is willing to pay you. This gives you room to negotiate 10%-20% higher than the first number mentioned. A good manager or employer will lowball you in order to leave room to negotiate. Don’t be offended, but use this starting amount as a point to begin working toward an acceptable salary for both parties.

Step 5:

Know the limit. Don’t push beyond a reasonable amount. Early in negotiations, the employer will respond to your demands with some concessions, but not all. Ultimately, he/she will stop responding to your requests. Once this happens, it is time to stop your salary negotiations. If you push any further, you will lose the position.

Step 6:

Research your position. Do your research and determine what the going rate is for someone in the position for which you are applying. Look into the average salary for someone of your qualifications and job position. Take this number and allow for some variation higher and lower. Once you are quoted a number from the employer, use the average salary to help determine negotiations.

Step 7:

Take into account your qualifications, and don’t sell yourself short. Recognize the personal skills that distinguish you from the rest of the competition. Use your qualifications to negotiate above the starting point which is given. Make your employer realize how much they need you.

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Sharon Alexander asked:

When going into a salary negotiation with a potential employer, it is crucial that you know what people in your position are being paid. This is so important to achieving a fair starting salary.

You need to first educate yourself, so that you can make informed moves in the negotiation process. Without this knowledge, you will be forced to settle for the bottom of the barrel in terms of both money and benefits.

You may have had a stable job for a long time and are unfamiliar with current salary trends in your field. There are two different ways which can help you to re-familiarize yourself with the market.

Strategy 1: Utilize the internet to its fullest potential. Use online job classifieds to find out what kind of salary range employers in your field are offering. Often times in job listings, the employer will provide a range such as 45K-90k. This seems broad, but you can place yourself in this category with a little self examination.

What is your education level, and how many years of experience do you have? Answers to these questions will determine what end of the spectrum most applies to you as an individual candidate. Don’t feel bad or unqualified if you fall at the lower end. This works to the employer’s benefit as well. You may be less educated than candidate “B,” but if you are still qualified, you will cost less to please. At the same time, don’t sell yourself short by expecting low amounts due to something such as limited education. Your current attitude, experience, and skill set means more to an employer than an advanced degree accompanied by a sky high grade point average.

If you do yourself justice in regards to your qualifications, but maintain a reasonable attitude, you should have no troubles in achieving a salary that is fair and worthy of your work in the position.

Strategy 2: Shop around. Keep your options open and interview with a lot of different employers. Use their starting numbers as reference points. You may want to work at one company, but another offers you more as an initial figure.

You can’t use the higher offer to bait the company that you want to work for. You will lose your high offer and small offer, and offend a lot of people in the process, as it is not good business. You can however use the higher bid as a reference for how high you can push the lower offering employer. You should research the companies thoroughly and know when to quit.

You need to recognize what means more to you- the opportunity you want, or the price point that comes with another job. You might very well be able to achieve both if you play your cards correctly. Depending upon the economic conditions of the market and amount of candidates in the pool, however, you might not be able to have both. Keep your options open, and do your research to determine appropriate salary figures to aim for.

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