Bob Stanley asked:

Almost half of the jobseekers and employees are embarrassed to be the first to raise the pay issue even though in reality they are unhappy with the salary they are offered or salary they are currently receiving. But, negotiating your salary is not that difficult as long as you tackle it professionally. Nowadays, salary negotiation is generally discussed during job interviews.

Ideally, the first person to raise this sensitive issue is the employer (interviewer). Before laying your cards on the table of what you are willing to accept, ask the employer how much he/she is willing to offer. But, if that is not the case, do your homework. Ask around for the salary range of employees with the same position and industry you are applying to. You should be familiar with how much employees carrying out similar roles and responsibilities are being paid. The culture and attitude of different employers vary, but at least you have an idea of the prevailing market rates so in the end you will never feel like you are the injured party.

It is also essential to find out as much information as you can about the company’s financial situation and capabilities. Of course, if you are applying in major companies, you can demand or ask for a higher salary. But, if you are thinking of applying to positions in charitable institutions or small and medium enterprises, then your chances of getting a higher compensation is not that great.

If asked about how much you are currently earning, politely avoid answering the question. I always believed I was paid fairly and I was happy with my compensation, but at this point in my career I’m looking for new challenges.  It is a good idea to be honest, but no need to limit yourself by telling the interviewee your existing one.

In many cases, if you will be asked what sort of salary you are looking for, you could tell your prospective employer that you need more detail of the role you are going to engage in the company. If pressed with time, it is fine to tell the interviewer that you need time to think about the ideal salary range, and then move the conversation along.

Most importantly, when you negotiate about the pay, negotiate for a win-win situation with your employer. A good negotiation is a discussion in which both parties understand and respect each other’s position and responsibilities. It ends when all parties feel that their concerns are heard and their needs have been addressed well.

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Michael Lee asked:

“Who needs to know salary negotiation tips?” you might ask. Every deserving employee does! If there comes a point in your career when you feel deprived of the greater opportunities your job has to offer, then you need to know and apply effective salary negotiation tips to stay ahead. When you invest a lot of time, energy and skills into something, it is only fair that you are rewarded the full benefits of your labor.

What do you do when you realize that you don’t get as much pay as your colleagues? Or that no matter how hard you try, you still end up short of budget and unable to make ends meet?

Now I know you might end up feeling too awkward or ashamed to face your boss and ask the question of wanting a raise. Breathe. Relax. You deserve more! This is what this article is all about. Below are some remarkable salary negotiation tips that will keep you smiling all the way home!

1. Do background checking. It takes a little bit of chitchat from your co-workers to do this. Talk with people from your department, especially those with the same position or job descriptions as yourself, and find out how much salary they are getting. This way, you have a clear picture of what you are aiming for.

2. Be prepared, physically and emotionally. Hold the urge to just barge into the office voicing your “disgust over the injustice you’re dealing with”. No need for drama here. Be as levelheaded as possible when you apply this salary negotiation tip. Approach the problem calmly. If you feel too “emotional” at the moment, then postpone it until your temper simmers down.

3. Sell yourself effectively. Why should they give you a raise? Why are you an asset to the company? Come up with concrete examples. Include this during your talk. Remind the boss about the successful projects you’ve accomplished or have been a part of. Enumerate your special skills (the ones that not most of your colleagues have, such as knowing how to speak Chinese or having a background in Software Engineering). This salary negotiation tip is not about tooting your own horn just for vanity’s sake, but also for the advancement of your career.

These are just the basic steps in reasonably ensuring that you get the raise you deserve. In this list of salary negotiation tips, it’s up to you to serve the facts to your boss. Once you have convinced him that you need to be given that extra “credit” for a job well done, you’ll be enjoying a big fat check come salary time!

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Steven French asked:

Getting selected in a job interview is only half the job done; the other half is salary negotiation. When negotiating a salary, timing is important. Asking the salary amount right in the first instance would be imprudent. It is important to get the job offer or reach the final interview first before negotiating the salary. This article gives some tips on salary negotiation, helping you in negotiating your salary with a prospective employer.

There are many different situations that one would face regarding the salary that he or she is offered depending on the type of job and the type of organization. In some jobs there may not be any room for negotiations, you simply have to accept or reject what is offered. If you don’t like what is offered, you have to look for another job.

Looking from an employer’s perspective, if you have fixed X amount as the salary for a particular job and if somebody is willing to work for X-Y amount, you would have saved Y amount for the company. Hence you may initially offer X-Y amount to see if the prospective employee accepts it and give yourself room for negotiation if required. Remembering this strategy, when the employer asks your last pay drawn, you must disclose the true amount and also explain why you are worth more like you were responsible for increase in sales by Z% or you have saved Z amount for the company and so on.

If in an interview you are offered X amount as salary and asked for your opinion, there are some options for you:

1) You can remain silent in which case the employer may think that you feel it is too low and might raise the offer

2) Explain to them the last salary that you were drawing and that you expect a raise by Y amount and the reasons for the same. The Y amount should be a few thousand dollars more than what you are willing to settle; this would give you room to negotiate in case the employer wants to bring it down

3) Accept the offer on the condition you expect the salary to be revised after a few months on the basis of your performance. This offer is most likely to be accepted by the employer but you are taking a risk in that you should demonstrate tangible benefits to the employer within the agreed time.

Depending on the position you may also ask for a share of the profit or benefit that has accrued to the company because of your efforts. Like if you are in sales department, a share of the X% increase in sales that you have brought to the company or if it is production department, a share of the X amount of saving because of your efforts etc.

Whatever be the case, it is important to negotiate your salary at the time of interview or later in order to get what you are worth.

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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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Kelli Smith asked:

The idea of recruiters seems fairly straightforward. On the most fundamental level, they’re hired by companies to identify the best potential employees and “recruit” them. For some, this may bring to mind visions of champagne receptions and ball game box seats, but recruiters can bring up feelings of suspicion for many potential employees, especially when it comes to the salary negotiation.

Recruiters work for the company, after all, so isn’t their goal to save the company money rather than get you the best pay possible? If you are in doubt about working with a recruiter, here are 7 secrets about recruiters and how to work with one to get your desired position and salary.

#1. Recruiters Have the Inside Scoop

For many positions, salary is somewhat negotiable, but recruiters usually have the inside scoop. So let’s say a company lists the salary range for a position, but you suspect you can get them to go higher. The recruiter actually knows if they will or won’t budge, so the end effect is that working with recruiters can make the job search process easier for everyone since they can pre-negotiate. If you know you won’t take less than $100,000, and the recruiter knows the company won’t go above $85,000 for the position, everyone knows early on that the fit isn’t right, and you and the company both save time.

#2. Recruiters Can Sometimes Get You a Higher Salary

Not every company hires recruiters, and recruiters don’t recruit for every position. Recruiters often work on identifying candidates for hard-to-fill positions. It may be that the qualifications for the job are very specific and appropriate candidates hard to track down, or it may be that the position is in some far-flung location that doesn’t draw lots of applicants. Whatever the reason, the company wants and needs to fill the position, enough to pay a recruiter to help them do it, and in many cases, enough to sweeten the financial package for the potential employee. So it’s not a given that a recruiter can get you a higher salary, but a company hiring a recruiter signals that the position may offer a higher salary to begin with.

#3. Honesty is Critical

This one’s less a secret and more a mantra for job seekers everywhere. Being up front with recruiters about your qualifications, your salary requirements, and your interest in various positions will take you a long way. They won’t spend weeks advancing your candidacy for Job A just to find out that you’re only really interested in Job B or only really qualified for Job C. In the end, your honesty saves recruiters time, helps you earn their trust and respect, and means that they’ll root for you and be happy to work with you again in the future.

#4. Honesty is a Two-Way Street

Recruiters can do a lot to help you in your job search, and one of the most useful services they can provide is honest reflection of your candidacy. You may think you’re exceptionally qualified and that you deserve a salary at the top of the pay range for a position. A recruiter, especially one you have a good relationship with, can tell you whether or not that’s true. This is one of the points where some candidates become most suspicious of recruiters – since they work for the company of course they’ll tell you you’re worth less than you think you’re worth. Chances are that’s just not the case, especially if they’re doing their jobs right and trying to find great candidates for hard-to-fill positions.

#5. Skirting Doesn’t Pay

It may occur to you that the best way to work with a recruiter is to work around a recruiter – use them to help you identify a position and then skirt the recruiter and go directly to the company to work out the job and the salary on your own. Unfortunately, this clever plan almost universally backfires. The company knows they hired a recruiter, and they know you’re attempting to go behind their back, which is patently unethical behavior. Most companies see dishonesty as a major warning sign. What’s more, the company is no more inclined to give you a higher salary than a recruiter would be. Think about it: If a recruiter works for the company, someone at the company works?for the company.

#6. Recruiters Often Have Long Lead Times

Recruiters offer up a whole new avenue for finding jobs, and they’re unlikely to do anything to hinder your ability to command the salary you deserve, but they’re not necessarily your best bet if you’re in a hurry. Companies often put recruiters to work months before a position opens up. If you’re already working and simply looking to move up or change companies, a recruiters’ pace may work just fine. If you’re not working and need a salary ASAP, more active searching is probably a better match.

#7. Not Just This Job, But the Next One

You can get the most out of your relationship with a recruiter (and a higher salary) by being a great performer on the job after you’re hired. If you do well, you make the recruiter look good, and they’re much more likely to keep you in mind for future, higher-level positions.

Once you know the secrets, working with a recruiter to land the job and the salary of your dreams gets that much easier.

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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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