Salary Negotiation Tips
"Negotiation is the art of cutting a cake in a way that everyone believes they got the biggest piece"
For Employees1) Do Not Get Excited
Even if you are satisfied with the offer, stay calm and donít overreact otherwise it could hurt the possibility of a raise in the future. Always make the employer feel that you deserve more, not through asking but through hard work.
2) Donít Give a Figure
Never ask about salary in the interview and try not to be the first one to suggest a figure. If you say a number that is too low, you would lose money and the employer will think that you lack confidence. If you shoot too high, it can cost you the job. Ask them to tell you "what the previous employee was getting?" or "what is the range paid for this position?". This is a question that they canít pretend not to have an answer to. If they still insist that you provide a number first, you can instead give a range.
3) Show Your Value to the Employer
You need to show your value to the company and how you would contribute to the overall output. Talking about your success in previous jobs is good but employers want to know what change you will bring to them. If you can demonstrate how different you are and show your worth, the employer will be more inclined to submit to your salary expectations.
4) Do Your Homework
Do salary researches before you go to the interview. Find out the standard salary paid to someone with your experience. Be prepared to use this information as needed. If the employer suggests a number below the average, be ready to tell them that this is below the marketís average salary. If the discussion revolves around salary figures above the average, then you will not need this info.
5) Keep Your Financial Life Private
Donít ever request for a higher salary because you have to pay for this or that, or because you have a loan or whatever. The employer doesnít care for your personal problems. Remember, the only reason to ask for a higher salary is because you deserve it.
6) Previous Salary Does Not Matter
For you it does, but for not for the employer. Most candidates request a salary that is higher than what they used to get in their previous jobs because they have more experience now and it would be a career pitfall to earn a salary less than that. This is absolutely correct but it should not be the reason why you are demanding for the higher figure. Donít ever say that. You have the skills and qualifications necessarily for the job and that is why you deserve it.
7) Money Has Many Faces
If you reached to a dead end and felt that there is no way to push that cash figure more, ask for other benefits. Rent, transportation, mobile, school allowances, medical insurance, air line tickets are all worth money. Add them to the equation before you assess.
8) You Can Handle More
Tell the interviewer that you have the potential to handle more than the actual responsibilities. Offer extended duties and challenges as long as you can keep up with them. Extended duties mean more money and shows confidence.
9) Donít Be Desperate
Even if you are, donít show the employer that you are desperate to get the job. If you sound desperate, it will kill any hope of negotiation.
10) Control Yourself
Donít get angry or loose you temper if things are not going the way wanted. The last thing an employer wants to see is an ill-tempered employee. It could be a test. The employer wants to see how you handle pressure or how would you react in an unfavorable situation. Think about it: if you reach to the salary discussion, then most probably employer has interest in you, so stay calm.
11) Conditional Increment
If you are left with no choice, propose an increment or at least a review of your salary at the end of the probation period. Make sure the increment/review is documented in the contract. This shows the employer that you confident of yourself and that you are sure to finally get the salary you deserve.
For Employers1) Do Your Homework
Make sure you are up to date with the latest salary trends. Tell the candidate that you are willing to pay according to the marketís standard if he requests more than that.
2) Donít Give a Figure
Push the candidate to give the first number. Ask about the salary expectation in the initial application form. Ask about the latest job salary. This will form a good foundation for the negotiation process.
3) It Is Not My Problem
Make sure the candidate understands that it is not the companyís problem to take care of his/her financial problems. Spending is something up to the employee to manage. You are paying for the services. Tell the candidate that if the salary does not cover for their expenses then they should change their lifestyle rather than make the company pay for it. Put the candidate under pressure by questioning his ability to handle the job if he/she is unable to control their life.
4) Previous Salary Does Not Matter
Most candidates request that they get at least as they used to earn in the previous job. Respond that you are paying according to the market average. If the candidate is switching jobs because of lack in compensation, tell him/her that your company canít pay them the raise that their previous employer should have paid, especially that they havenít proved anything yet. Put the candidate under pressure by hinting that maybe the candidateís performance at his old job was not convincing, and that might be a reason why they did not get a raise.
5) Offer Benefits Instead of Cash
Entice the candidate with other benefits to convince them to accept a low salary. Many companies get bulk offers from travel agencies for airline tickets or reduced mobile calls from mobile providers. The employee does not know the real cost of these benefits and may weight them more than their real cost.
6) Prove Yourself First
Tell the candidate that you need to verify their abilities. Propose a salary review at the end of the probation period. Tell them that you are willing to pay if he/she can prove themselves.
Question every single detail of the candidateís resume. Find loop wholes or mistakes in their career track. Reduce their self esteem during the interview but only to an extent that guarantees a successful salary negotiation. You know that he/she is good and you want him but you should not clearly show that. You donít want to destroy the person because he will be working for you later.
Take advantage of the candidateís need for a job. Hold your ground and wait for the candidate to crack down.
© Salary Explorer 2012