Here are some key salary negotiation strategies to keep in mind in order to
be successful in the salary negotiation process:
- Prepare thoroughly for salary negotiations, including conducting
research on the salary you should expect for the specific type of position you
are seeking.
- Try to market yourself to more than one employer to compare offers
and career opportunities.
- Delay salary and benefit negotiations for as long as possible in the
interview process. You'll have more power to negotiate when the field of
candidates has been reduced to just you -- when the employer is completely
sold on you as the best candidate for the position.
- Remember that you'll have your greatest negotiation leverage between
the time the employer makes the original offer and the time you accept the
final offer. Once you accept an offer, you have little to no room to
negotiate.
- Don't negotiate at the time the initial job offer is made. Thank the
employer for the offer and express your strong interest and enthusiasm in the
job, but state that you'll need time to evaluate the entire compensation
package. Most employers are willing to give you a fair amount of time to
review -- and if you run across an employer, who wants a decision immediately,
consider long and hard whether you want to work for such a company.
- Do your research. The greatest tool in any negotiation is
information. Make sure you have done a thorough job of determining your fair
market value for the job you are seeking, the salary range of the job for this
specific employer, and geographic, economic, industry, and company-specific
factors that might affect the given salary. Also try to obtain information on
bonus potential, Paid Time Off, 401K/pension, cost of health benefits, and
other perks so that you have information beyond base salary.
- Just do it. While a large percentage of corporate recruiters are
willing to negotiate compensation, only a small percentage of job-seekers
actually do so. You don't have to be an expert negotiator to get a sweeter
deal; you just need to know the rules and strategies of negotiation. Keep in
mind, however, that you may not always need to negotiate. If the offer is
fair, comparable to market, and no supportable reason to negotiate, then
forcing a negotiation can have a negative effect on the future relationship
with the employer. Think about this � is it really important to negotiate an
extra few dollars if the offer is actually competitive?
- Negotiate to your strength. If you are a smooth talker (an
extravert), call the employer and ask for a follow-up meeting to discuss a
counter proposal.
- Always ask for a higher salary (within acceptable limits) than you
are willing to accept so that when the employer counters your proposal, the
salary should be near your original goal. And when possible, try and show how
your actions (once on board) will recoup the extra amount (or more) that you
are seeking -- through cost savings or increased sales revenue, productivity,
efficiencies.
- If the salary you're offered is on the low end -- and the employer
has stated that salary is not negotiable (probably due to corporate salary
ranges or pay grade levels), consider negotiating for a signing bonus, higher
performance bonuses, or a shorter time frame for a performance review and
raise.
- When presenting a counter proposal to the employer, be sure to
include a few benefits that are expendable so that you can drop them in a
concession to the employer as negotiations continue.
- Remember that even if all salary issues are "off the table," there
are still numerous other benefits you can negotiate, such as moving expenses,
paid vacation or personal days, professional training, and more.
- Never stop selling yourself throughout the negotiation process. Keep
reminding the employer of the impact you will make, the problems you will
solve, the revenue you will generate. And continue expressing interest and
enthusiasm for the job and the company.
- If you have no intention of accepting the company's offer, don't
waste your time or the company's by entering into negotiation. Negotiation is
a process designed to find common ground between two or more parties. If,
however, you put out a counter-offer and the employer meets your request, you
need to be ready to accept the offer. Not accepting an offer with an employer
who agrees to your terms can have a tremendous negative effect on you..
- If you have multiple job offers, don't put the companies into a
bidding war for your services; it rarely works out.
- Don't enter negotiations with the wrong attitude. Always have in the
back of your mind that your goal with these negotiations is a win-win
situation. You want to get a better deal, but you also need to let the
employer feel as though they got a good deal as well. Again, as mentioned in
#7 above, it may not always be necessary to negotiate.
- Given a number of factors, such as the strength of the economy, the
size and vitality of the company, and the supply of job candidates with
similar qualifications, some employers simply will not negotiate.
- Never make demands. Instead, raise questions and make requests
during negotiations. Keep the tone conversational, not confrontational.
- Be prepared for any of a number of possible reactions to your
counter proposal, from complete acceptance to agreeing to some concessions to
refusal to negotiate.
- You have to be willing to walk away from negotiations. If you don't
have a strong position (i.e. a good current job or one or more current or
potential job offers), it will be harder for you to negotiate. If you really
need or want the job, be more careful in your negotiations.
- Once the employer agrees to your compensation requests, the
negotiations are over. You cannot ask for anything more -- or risk appearing
immature or greedy and having the employer's offer withdrawn or rescinded.
- Always be sure to get the final offer in writing. Be extremely wary
of companies that are not willing to do so.
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