11 Commandments For Smart
Salary Negotiating
Use these simple but highly effective
tips to boost your salary at your current job or when obtaining
a new job! It works.
1 - BE PREPARED.
The more information you have about your
market value and the prospective employer, the greater your
likelihood of success. This is the first commandment because
it's the most important. There's a wealth of information available
on the Internet, at the public library and through professional
associations and networking groups. Time spent learning how
to negotiate and preparing for negotiations may be the best
investment you'll ever make.
2 - RECOGNIZE THAT EMPLOYMENT NEGOTIATIONS
ARE DIFFERENT
When the negotiations are over, you'll
have to work with the person with whom you're negotiating.
Moreover, your future success may depend on that person. So,
while you want to negotiate the best possible deal, you need
to do so in a way that doesn't damage your image. At the same
time, the employer's primary concern isn't negotiating the
least expensive compensation package it can get away with.
Rather, their focus will be on getting you to accept the job.
3 - UNDERSTAND YOUR NEEDS AND THOSE OF
THE EMPLOYER
To be successful in this type of negotiation,
you need to examine your priorities. What do you really want?
Are you comfortable with a low salary and a large equity stake?
Are you able to handle dramatic swings in income from year
to year? Understanding your needs will also help you determine
the type of company you want to work for. For example, a family-owned
company may be able to offer a competitive salary and a large
bonus based on results, but may not be willing to offer significant
equity to a non-family member. A start-up company, on the
other hand, may not be able to offer market salary, but will
typically offer stock options. By recognizing what an employer
can and can't do, you'll be able to determine what issues
you should press.
4 - UNDERSTAND THE DYNAMICS OF THE PARTICULAR
NEGOTIATIONS.
Sometimes you'll have skills that are
in great demand. And sometimes, you may be one of several
qualified candidates the company would be happy to hire. Sizing
up the situation and understanding the relative position of
each party will help you determine when to press your advantage
and when to back off.
5 - NEVER LIE, BUT USE THE TRUTH TO YOUR
ADVANTAGE.
It's not only wrong to lie, but in employment
negotiations, it's ineffective. If you lie during negotiations,
sooner or later you're likely to be caught. Once you are,
even if you don't lose the offer, you'll be at a tremendous
disadvantage, and your credibility will always be suspect.
On the other hand, total candor wont be rewarded. You're under
no obligation to blurt out everything you know. You can determine
what you want to say and how you want to say it, and try to
put everything in its most positive light. One key element
of your preparation should be to recognize areas of concern
so you can rehearse how to handle them when they inevitably
come up.
6 - UNDERSTAND THE ROLE FAIRNESS PLAYS
IN THE PROCESS.
The guiding principle for most employers
when negotiating is fairness. Within the constraints of their
budget and organizational structure, employers usually will
agree to anything that's fair and reasonable to hire someone
they want. Appeals to fairness are your most powerful weapon.
Thus, you should be able to justify every request you make
in terms of fairness. For example, if other computer programmers
in similar companies are being given sign-on bonuses, you
should expect to be treated no differently. Your prospective
employer will want you to accept it's offer and feel that
you've been treated fairly. Understanding the importance of
fairness as a negotiating principle can make the difference
between success and failure.
7 - USE UNCERTAINTY TO YOUR ADVANTAGE.
The more information you convey to a potential
employer about your bottom line, the more likely it will limit
what you get. Before making an offer, a company typically
tries to determine what it will take for you to accept the
position. With that information, the prospective employer
will be able to determine the minimum package it needs to
offer. While they may not offer you as little as they can
get away with, if you've divulged too much information, they
likely wont offer you as much as they might have otherwise.
By not disclosing exactly what your current compensation is
or exactly what it would take to get you to leave your job,
you'll force a potential employer to make it's best offer.
8 - BE CREATIVE.
Consider the value of the total package.
Look for different ways to achieve your objectives. Be willing
to make tradeoffs to increase the total value of the deal.
If you're creative, you can package what you want in ways
that will be acceptable to the company. You'll also be able
to find creative "trades" that allow you to withdraw
requests that might be problematic to the company in return
for improvements in areas where the company has more flexibility.
That way, you can maximize the value of the package you negotiate.
9 - FOCUS ON YOUR GOALS, NOT WINNING.
Too often in negotiations, the act of
winning becomes more important than achieving your goals.
And it's also important not to make your future boss feel
as if he's lost in the negotiations. You'll have gained little
by negotiating a good deal if you alienate your future boss
in the process.
10 - KNOW WHEN TO QUIT BARGAINING.
The one sure way to lose everything you've
obtained is to be greedy. There comes a point in every negotiation
when you've achieved everything you could have reasonably
expected to gain. While most companies will want to treat
you fairly and make you happy, few companies want a to hire
a prima donna. Being perceived as greedy or unreasonable may
cause the deal to fall apart. Even if it doesn't, you'll have
done immeasurable harm to your career. This brings us to the
11th and most important commandment:
11 - NEVER FORGET THAT EMPLOYMENT IS AN
ONGOING RELATIONSHIP.
Job negotiations are the starting point
for your career with a company. Get too little and you're
disadvantaged throughout your career there; push too hard
and you can sour the relationship before it begins.
Understanding these principles will allow
you to effectively negotiate the terms of your new job. Then
do your job well and continually seek out new challenges.
As you take on added responsibilities and learn new skills,
there will be opportunities to negotiate further improvements.
This article can also be read online at:
http://www.worktree.com/newsletter/salary-negotiation-tips.html
Sincerely,
Nathan Newberger,
Managing Editor
WorkTree.com
"Helping You Find More Jobs Faster"
About The Author
Nathan Newberger is
the job and career expert at http://www.WorkTree.com
Nathan has over 10 years experience in staffing and human
resources. He has worked both as a recruiter and career counselor.
Mr. Newberger has been the Managing Editor at http://www.WorkTree.com
for the past 5 years and his articles have helped thousands
of job seekers.
Permission is granted to reproduce this
article but credit must be given to the author and also a
link back to http://www.WorkTree.com.
No part of the article content can be modified.
nathan@worktree.com
|
bravenet.com