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Salary Negotiation Strategies |
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by Laura DeCarlo, CPRW, JCTC |
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As Published in the Florida Today Newspaper, 8/23/1998 |
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Ever wanted something so bad you were willing to pay just about anything to get it? You probably saved, scrimped and manipulated funds to make sure you could have it. You wanted it so badly because it served some kind of purpose that would improve the quality of your life... In the interview process, an employer is looking at products to decide which one to buy. They want the one with the most "added value", that is, the one that will make the company more than they cost. To convince a potential employer that you're worth the extra dollars, you need to enter the process prepared to discuss how you can meet the goals of the company and solve their problems. However, while you are busy dazzling the employer with the quality you can provide, watch out for one little snag: salary questions! If you answer specific salary questions or ask about salary before you have a job offer, do not pass go, do not collect $200. You will end up doing one of three things: getting paid less than you are worth, getting screened out for wanting too much money or not looking qualified enough by asking for too little. At this point, your focus should be on selling yourself as the best candidate for the position. If you aren't "the" candidate, then you are expendable. To get it right, follow these two rules: 1. Never discuss salary until you have a job offer. If an employer asks, try to postpone the question by stating that you are sure you can come to an agreement once you have both made sure you are the right person for the job. If the issue is pressed, ask them if they have a range allotted for the position and be prepared with your own range. 2. Know the going salary range for the position and your personal financial needs before the interview. The most valuable salary resources are state employment offices, professional associations for your industry, annual salary reports, direct contact with the company or its competition and Internet career sites. The issue of compensation includes many possibilities besides just salary. These include basic compensation, benefits and prerequisites. Basic compensation may include base salary, sales commission, and bonuses. Benefits are typically vacation time, sick days, personal days and insurance. Perks are all those little extras you will want to consider negotiating for. Some perks you may be interested in negotiating are: signing bonus, relocation expenses, company purchase of your home, profit sharing stock options, tuition reimbursement, pension plans, country club membership, executive dining room privileges, company car, mileage, severance pay and outplacement fees after termination, future salary reviews, 401K, starting date, trade association memberships and health club memberships. You should also consider the various types of basic compensation available, especially if you are in sales. These include: straight commission, variable commission, draw against commission, advance against commission, base plus commission, salary plus commission, salary and bonus, salary and residuals. Once you know what you want and what is realistic for your position level, you still have to have an offer before you can negotiate. Offer not to your liking? The employer most likely will not make his or her first offer at the top of their range. If you have done your research and know that this type of position typically pays higher, then you will want to negotiate. Respect the employer and be sure you tell them that you want to join their company before asking what they can offer you within the range you are aware exists for this type of position. You can also try to add value to what you are offering to a company. By continuing to talk and strategize with the employer, you may be able to determine other benefits you can contribute to the company to make you worth the extra investment. By not committing or saying "no" to a specific salary offer, but continuing to probe, you will not put yourself out of an offer or look desperate should negotiation be impossible. If the employer simply refuses to negotiate the salary, you should try for additional compensation through benefits and perks. Finally, never accept an offer on the spot. In the midst of an offer, emotions run high and can lead to inappropriate decisions. It is best to let the employer know you are extremely interested but would like to take some time to reflect and make sure you have not neglected anything important. In most situations, taking extra time is acceptable, just be sure to build the employer's faith in your acceptance and ask when they must have your final answer. If all goes well, you will find yourself profitably employed in your new position. With a little practice, planning, research and preparation you can get an honest day's pay for an honest day's work. |
| Copyright 2004, A Competitive Edge ©, All rights reserved. |
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