Maximize your Salary Negotiation
by Determining Your Worth
by
John Gates
I’ve received many letters recently about how to maximize salary negotiation, compensation package, and job offers. Many are concerned that they are being low-balled or short changed in some way at the negotiating table, and they don’t know how to take the high ground at job offer time. Here are a few do’s and don’ts of job offer salary negotiation that may help you.
Salary Negotiation Mistake #1:
Most candidates allow the employer to tell them what the value of the job is. Before you accept any offer, it’s incredibly important to know the value of the job IN THE MARKET, not just in the target company.
How to determine the market value of the job
The best sources of information (and leverage during a negotiation) are ranked below:
1. Competitive job offers.
These are always the best source of information. If you have a competitive offer in-hand for a very similar job, it can be quite powerful.
Say: "I really appreciate the offer, and I must admit I really like the job, the company, and the people, but I have received an offer from another company for a similar job, and your financial offer just isn’t as competitive. Is there anything you can do to improve the offer to make my decision easier?"
If you say this, please be ready to offer a specific and reasoned proposal on how to make the numbers work. I suggest you be as flexible as possible since you don’t really know what parts of the package might be negotiable within the culture of the company you are interviewing with.
See my article here on negotiable aspects of your offer.
2. Salary Survey Information from a reputable source.
If you don’t have a competitive job offer for leverage, the next best information is a reliable salary survey. The very best source for this information I have found is a
personal salary report
(prices starting at just $29), which provides wonderfully grounded information, along with advice on how to make use of the information in your salary negotiation (what to do with it, what NOT to do with it).
I have used a
Personal Salary Report
in my own salary negotiations (with candidates and for myself) with outstanding results! My own story? How about a $12,000 increase in salary over my previous job in Corporate HR? Not a bad return on investment.
If you don’t have the awesome leverage of a competitive offer,
GET YOUR PERSONAL SALARY REPORT!
Once you have the report, SAY: "According to my research, the value of this position in Seattle should be somewhere between X and Y. I’ve always been a very strong performer, so I would hope to be at least at the 50th percentile in the marketplace. If you like, I can show you how I reached these conclusions about the market."
This approach will give the HR person some ammo to go back to the budget holders and hiring managers and fight for a better offer if necessary. It is especially effective if you were undercompensated in your old job, and it refocuses the conversation on the competitive marketplace, not your old salary.
3. Information from networking contacts.
This is rumor or result of conversation with friends and colleagues working in similar roles with other companies in your area. This information is not as useful in a negotiation as the
Personal Salary Report
because it does not carry the same credibility. It also doesn’t help the HR Person or hiring manager to go to bat for you. It is useful to give you a ballpark, however, so you should gather this information as well. Where possible, compare this info to the results of your
Personal Salary Survey
, and this data can add credibility to the Survey.
Knowing what the product is worth in the marketplace is key to any sales endeavor. A salary negotiation is a rare opportunity for you to garner some real value for you and your family. Make the very most of that opportunity! Once you negotiate your opening salary, your annual increases may be small or even non-existent. Therefore, the greatest impact you can make in the near future on your lifestyle is to manage your offer negotiation very seriously.
Back to Salary Negotiation Home
Back to Free Resume Help Home
|
