Salary Negotiation
Some interviewers are like sharks. When they smell fear, they know that you’re cornered and ready to accept anything they offer. Since they often need to get the best-qualified worker for the least amount of money, they intend to wear you down.
Salary Negotiating for a Better Rate of Pay
The question for you is - how do you get the most from that job without being demanding or obnoxious? Before you can begin to negotiate a salary, you have to research the market.
What is the range of salary that’s typical for your job title or skill level? What do the competitors pay? Is this company known in the industry for generous pay and benefits or for being a tightwad when it comes to pay rates?
Even if you can only find information on job board websites with national averages, at least that gives you a starting point. Perhaps the shark example is harsh. Interviewers are at the least, gate keepers and budget protectors.
They’re charged with the duty to protect the territory; letting in the better candidates and shutting the gate on those who would be short term, job hoppers. They’re also given a budget range for hiring.
Some interviewers have more decision making power than others, and you aren’t likely to know that in advance (unless you have a friend who works in the company). What you can do is to approach every interviewer as if he or she does have higher negotiating power. Even if you’re wrong, the interviewer will feel complimented that you made the assumption.
If you go in asking for more money than the advertised pay rate, you’d better have a good reason and back it up with something factual. That doesn’t include the increase in your rent or the higher rate on your credit cards. You need to show that you have enough additional training, prior accomplishments or other desirable talent that the new company could justify paying more to get.
Never compare this company to competitors when you’re trying to get hired. The interviewer is likely to think you should apply for a job at the other company since you’re so impressed with the pay. Keep your comparisons on an industry wide or regional basis.
Don’t expect an immediate answer in a serious salary negotiation. It’s like buying a house. You make an offer, they make a counter offer. You counter their counter, and on it goes until someone says “deal.”
If you’re working with a job placement agency or a headhunter, then you have someone to help in your negotiations. Be mindful that anyone who receives a commission for helping you find a job will get paid a higher commission if you get more money.
Some inexperienced or greedy headhunters can be so wrapped up in increasing their commissions that they push the negotiations too hard and you both lose. Bottom line is - it’s your future at stake, so never leave the negotiations totally up to someone else.
Smaller companies that are locally owned or locally managed may have more flexibility in salary negotiations than larger companies, especially those that are manage from a distant home office.
The larger companies may have a strict line of progression and salary caps at various levels which you’ll have to meet for each increase. And the larger the company, the longer you can wait for an answer to your salary request.
If your job is within a unionized company, then you have to navigate the rules of union negotiation when you’re seeking a higher salary. When your job is part of a “class” of employees, you may not be able to move far outside that salary range until you achieve rank in a different employee class.
If there’s no budging on salary, then negotiate on other terms. Look at the company benefits. Can you ask for additional health coverage or a higher percentage of contributions to the retirement plan? You may negotiate for a four-day workweek or the ability to telecommute part of the workweek.
Vacation time can be an easy negotiating tool in some companies. New workers may typically get one week of vacation time in the first year. But if you bring years of experience or technical expertise that is valuable to the new company, then you can negotiate for two or three weeks vacation instead of the higher salary.
Education and training are other areas where you can negotiate something more. If you want to earn or complete a college degree, persuade your employer how this will benefit the company and ask for full or partial reimbursement.
Realize that even if an educational reimbursement plan is in place for 50% of the tuition, then you can negotiate for 75% of tuition or 50% tuition plus books as an additional benefit.
The same is true for specialized training. Companies are often pleased to send you to training that makes you a more valuable employee. Don’t just say that you want to attend more training.
Bring brochures and information on specific job related training with you to the negotiation. That shows you are serious about this and willing to do the research. Even if the training helps with the present job, which makes the boss happy, you are ultimate beneficiary of the training and it goes with you.
Most importantly, know when to negotiate and when to set up the next re-negotiation. If your industry is in a huge downturn and just getting a job is a big deal, then you don’t want to go in with a list of demands.
You can accept the job and acknowledge that this is a difficult time in the company’s history so you’re willing to show what you can do for six months or one year with the mutual agreement that you can renegotiate your salary at that time based on your performance.
Once you’re inside, you’ll know much more about the company’s financial situation, the overall budget and what is customary for similar job classifications. You don’t have to accept an annual raise as presented. You can treat each salary increase as an opportunity to renegotiate.
Let your immediate supervisor know in advance of the annual increase period that you may or may not want to negotiate this. That leaves the option open for both parties to feel like this is a planned option and not a knee-jerk reaction to a raise that’s lower than desired.
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