There’s no doubt about it. We’re in a TOUGH job market. If you’re in the process of looking for a job, or have one but need a raise, it is your best interest to take the time, before discussing your compensation, to learn the basics of salary negotiation:
1. Do Your Homework!
The very first thing you need to do before approaching any negotiation situation is your research. Cliché as is sounds, when you fail to plan, you plan to fail. You have absolutely no excuse to skip this crucial step. In this internet era, all the information you need is at your fingertips!
2. Stand Out From the Crowd
What catches the gleam in a potential, or current, employer’s eye? Those that make them take a second look, leave a lasting impression, make them want more… If you plan to ask for more than what is offered, you need to show them you will earn it. They will not regret their decision, not even for a second! How can you do this?
· Always Dress to Impress
· Arrive 10 Minutes Early and Stay 10 Minutes Late
· Constructively Contribute to Meetings
· Volunteer to Help Others with Projects
· Be Respectful and Polite to Everyone (Even the Custodian)
· Get a Higher Education
· Take Continuing Education Classes to Further Your Knowledge
· Be a Step Ahead of the Rest
· Work Your Butt Off!
3. Avoid Boxes
If the job you are applying for asks what your last salary was or what you expect to receive at your next job, do not comply! Instead, write N/A (Not Applicable) into these boxes. Leaving this box incomplete will not be a make or break factor when deciding who to interview. If the potential employer really wants to know your range, they will ask during the interview.
When you do comply and complete the form, it almost always affects your position negatively. Either you did not make enough at your previous place of employment, and thus are not worth much. Or they may assume that they can’t afford to hire you because your prior salary was too high. In either case, your best bet is to avoid disclosing this information until absolutely necessary.
4. Don’t Ask Until Offered
If you are on the job hunt, remember to avoid taking numbers until you receive a formal offer. In our culture it is generally considered taboo to ask a potential employer what you will be making before they have even offered you the job. Employer’s can be put off by the question of “What will I be making,” and that could hurt your chance of even being hired. Furthermore, asking them to state the salary range will set the anchor, in their favor, if compensation negotiations take place down the road.
5. Identify Your BATNA
Knowing your BATNA (Best Alternative to No Agreement) is important when entering into any negotiation. Having your BATNA clearly defined before a salary negotiation is absolutely necessary. Your livelihood depends upon the decisions you will need to make.
For example, if you are making $60,000 at your current job, all other considerations being equal, your BATNA would be to not accept any offer lower than that amount.
Another example may be that you have been out of a job for three months, the prospects are looking dim, but the unemployment check of $1500/month covers the bare essentials. Your BATNA would then be to accept any job paying more than $1500/month.
6. Leverage Opportunities
When defining your BATNA, don’t forget to consider the leveraging power of other opportunities. If negotiating with a current employer for a raise, you can tactfully mention that you have received many other offers from competing companies (only if true, of course). Simialrly, when working out the details of an offer with a potential employer, reveal that you have already received offers for employment from respected firms. This shows them you are a high demand asset of human capital.
7. Never Accept the First Offer
What is the number one rule of negotiation? Never accept the first offer! If the employer is the one who sets the anchor point, always assume that they have offered you less than they are authorized to give. You can bet that they’ll want to give themselves a little wiggle room and therefore will suggest a number in the low range. They may do this to see what they can get away with, while saving the company or themselves some major cashola.
8. The Benefits Bonus
So many people focus on the final cash income they receive that they forget to consider the value of benefits. Health and Life Insurance, PTO, 401K’s, Retirement Planning, Wellness Programs, along with many others are important assets to remember when negotiating your compensation package.
9. Get it in Writing
No matter how successful the company you will be working for, or already work with, get your compensation agreement in writing! No if’s, and’s, or but’s! Even those with the best reputation can justify going back on their word if there isn’t evidence to back-up what was said.
10. Why Win-Win Works
Principled negotiation, more widely known as the win-win strategy, is not always the right direction to take when negotiating. BUT, when you are in the midst of finalizing a contract for employment with a potential or current employer it is in your best interest to utilize this strategy. Ensure that your conduct is fair, honest, and collaborative. Work with your employer to find a compensation package that meets your needs and falls within their budget.
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