As important as fair pay is to most of us, effective salary negotiation is a subject that is often misunderstood and avoided. Current research indicates that the average duration of a position today is 3.8 years. Throughout your career, how well you negotiate raises or starting salary will have a huge cumulative effect on the quality of your life.
So why does this skill remain elusive for many career professionals?
Most of us do extensive research and extensive preparation for a job interview. We create the perfect resume, slave over cover letter drafts, and rehearse answers to anticipated interview questions. We make sure that we are well dressed, have references and arrive on time. But too often, only cursory attention is given to thinking about how, when, and why we will end up satisfied with the terms of our salary.
One problem is that cultural taboos in our society make talking about money a no-no. Many of us consider the negotiation of money to be inherently unseemly, or feel guilty for not accepting what is so kindly offered to us. Aren’t you supposed to haggle if you’re buying handmade rugs somewhere in Turkey?
We want to believe that the first offer we hear should be the highest possible dollar figure; plus, we don’t want to “rock the boat” and potentially ruin our chances of landing that great job. That voice inside us whispers “Everything in this interview has gone very well! Don’t screw it up now!”.
However, whether you like it or not, you are a negotiator. You can’t get off this ride. Trading takes place routinely in dozens of ways in our daily lives. Given the fact that you will be making or losing several thousand dollars in the span of a few minutes, learning how to negotiate your salary respectably is vital! Notice I say respectably.
Unfortunately, I see countless candidates who are either too pushy or too meek, for their own good. This is often due to a lack of self-preparation and practice. Many candidates are also unaware of their position in the market and the position of the employer. Not good!
The good news is that salary negotiation skills can be learned or improved. Here are seven key tips for getting paid what you’re worth while maintaining a healthy respect others have for you:
o Don’t think that effectively negotiating your salary means you have to have the mindset of a used car salesman! You are not being slippery, out of line, or ungrateful by not accepting the first number that is thrown. Most employers value candidates who clearly possess self-esteem and self-confidence; These qualities are revealed through skill and balance in how you negotiate your salary; they are also revealed if you do nothing.
Think about it: doesn’t it make sense that if you demonstrate effective negotiation skills for yourself, you will in turn negotiate intelligently for your employer as well? Hiring managers realize this.
o Remember that your value is much more important than a number somewhere on a spreadsheet. Yes, this is true despite common cries that “payroll budgets are fixed, this is the best we can do” or “in this economy, you have to be realistic.” Employers in general are not looking for “cheap deals” but want value in their employees.
A common misconception is “I’ll have a better chance of getting the job if I don’t ask for a lot of money; I won’t cost as much as other candidates.” Do not go there! Focus on the value it brings, not how little it costs. By the way, if you do this correctly, the “previous salary history” question should be much less relevant. This means that you will have a better chance of jumping to higher ranks faster in your career.
o Do not (and I mean never) accept any kind of benefits before negotiating your salary. Why? Once you accept some form of compensation other than salary, the employer has leverage to justify why your salary should be lower. Always remember to reach an agreement on the starting salary first. Then negotiate non-wage benefits and special considerations afterward.
o Delay in talking about compensation; try to discuss its value and the specific benefits it can bring, for as long as possible. The employer must perceive you as a valuable and unique resource, not as a commercial commodity with a price tag.
Think of those high-end infomercials that delay the deal price reveal until the very end (if at all). The objective of the infomercial is to draw your attention to the value of the good or service and its different uses and applications.
Surely something that clearly validates a profit or cost savings of $25,000.00 would have an attractive value of $2,499.99. But would you really pay attention to an ad that immediately said it cost $2,499.99? Probably not! The same psychology applies to salary negotiation. The longer the interview process lasts, the more likely you are to be seen as a valuable resource, obviously worthy of higher-ranking pay.
o Do not accept any offer, no matter how lucrative, on the spot. Instead, he expresses his continuing interest in the position and how he clearly sees himself making contributions (specify again). So always ask for 24 hours to consider the offer. Certainly, one day will give the hiring manager time to find the necessary “wiggle room,” if needed.
Be passionate and excited, but don’t lose your objectivity: any position that will be the center of your daily professional life for years to come won’t vanish in 24 hours. Right?
o Remember the old axiom “he (or she) who speaks first loses.” Wait until an offer has been made, but don’t reply right away. Remember that, in many cases, what you are initially offered may be the lowest number the hiring manager dares to present.
This is mission-critical territory: Often even casual comments made by you constitute an implied acceptance of the offer…which can quickly turn into an explicit acceptance as the conversation progresses. Don’t let this happen! Instead, intentionally steer the conversation toward the responsibilities of the position. Who will you be supervising? What are some tangible and specific contributions you see yourself making? Where do you see yourself in the organization in the future?
The bigger the long-term picture you create, the more likely you are to trade more effectively. You can only really start trading after you have brought realistic present and future scenarios to life.
o Do not negotiate too much. How do you know when to recognize what is too much or too little? By researching your market ahead of time. Don’t just go to http://www.salary.com and think you “should” earn a certain dollar figure without taking into account the unique opportunities each employer possesses. This is not really real research.
A salary is compensation paid for services rendered. Your salary should be commensurate with your skills and experience gained yesterday, but negotiated for the work you will be doing today and tomorrow. Remember, you don’t get what you deserve in life… You get what you bargain for!
Do you want more help? Check out this month’s HireWorks Tips for great resources.
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