Starved for time and content, I decided I would share some notes I took after hearing salary negotiation specialist, Jim Dixey speak at an event.
- It’s not about you, but the employer
- The recruiting process is the most discriminatory part of business
- You’re not the most important person to the recruiter
- You have to be the best
- The employer environment is extremely competitive
- You can throw the concept of a level playing field out the window
- They will hire the person they like the most virtually every time
- A paper candidate doesn’t matter
- Don’t waste your time comparing yourself to someone else
- Compensation is a lot of things; salary is just one of those
- A signing bonus locks you in; it’s the least important thing you should worry about
- Re-location - you won’t get much unless you’re a big wig, or have a family
- Always focus on salary
- Your raise is based on your salary
- Your bonus is based on your base salary
- Your benefits package is based on salary level
- Always counter or negotiate the offer; you’re foolish not to
- Until it is in writing it does not matter
NEGOTIATING AN OFFER:
- Know yourself
- Know what you bring to the table
- Know the range you can negotiate within
- Always negotiate over the phone or face to face, never via email
- Ask three questions
- Ask two innocuous questions you would like clarified and bring up salary on the third
- Start with something like this: “I am following up on the offer. I had a chance to look over it and I have a few questions I would like to ask you.”
- An example –>
- Ask about relocation (i.e. fees such as deposits - first and last, cost to turn on electric, etc.)
- Ask about the bonus, is it paid in the first or second paycheck or separately?
- Finally, ask about salary — “The last point I want to discuss is base-salary. I would like to ask you to consider…”
- Always give a range (i.e. mid-to high $60s), NEVER a firm number
- This gives them something to ponder, to go and ask about rather than just a firm number to quickly dismiss.
What do you think? What strategies have you implemented in the past? Were they successful? Please leave a comment and let me know what has (or has not) worked for you in your own salary negotiation situations.
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5 RESPONSES TO "31 THINGS YOU SHOULD KNOW ABOUT SALARY NEGOTIATION"
Great tips, Ryan. The best advice on here seems the most simple, to know yourself and to know what you bring to the table. You cannot effectively negotiate if you cannot give specific examples of what you bring to the table, why they need you and how you will benefit the company. Once you prove to them that they need you for specific reasons, a few thousand dollars up or down will not matter to the employer. But definitely never give a number first.
Great suggestions! As a former internal and external recruiter, I can assure you that EVERYTHING is negotiable.
I would like to add the following:
1) When asked about your salary expectations, I agree you should give a range, but also be clear about what benefits you want.
2) When given the offer by the recruiter, don’t show your cards! Keep a poker face, and say hmmm….
Use silence to your advantage. Nothing makes an extroverted recruiter more nervous than silence. There is a good chance a rookie recruiter or nervous expert will fill in that silence with either more information or will give you cues that the offer is negotiable.
3) Always take 24 hours to think over an offer. Say you need to talk things over with your spouse if you need to give a reason for the delay…but either way it will make the recruiter nervous and ready for your counter-offer.
4) As a recruiter, I never offered the absolute highest possible salary I could give the candidate. I did this because I knew they would (or should) counter-offer and I wanted to be able to increase the offer to make the candidate feel like they had some power.
5) When the salary itself is NOT negotiable (this is rare, but happens due to salary caps for certain job titles in big organizations) ALWAYS negotiate benefits. Ask for an extra week of vacation or guaranteed tuition reimbursement, etc. These are easy ways for you to get more for your money and the manager could care less about giving these things away.
I second Anna's comment - never give the first number, no matter what. The company ALWAYS knows their range, otherwise they wouldn't be hiring, so they are playing games to try to make you offer a figure first.
When I worked in a university, I saw comparable graduates walk away with different compensation for the same job because one negotiated and the other did not. I agree with you - always negotiate!
Yes, salary is the most important, but once that is set, don't forget to negotiate down to flexibility, extra vacation time and equipment (company car, computer, cell phone, etc.)
Negotiations can include when your performance will be evaluated and when you will be eligible for a performance-based raise. (Although this is no guarantee.)
It's also key to mention that you should be prepared to know what you are worth - never go into a negotiation before you've done your research and are ready to rumble :-)
Thanks for the great reminders!
Miriam Salpeter
Keppie Careers
I wouldn't ever, ever, ever give a number first, even if it is a range.
There's lots of delicate ways to say you don't want to give a number. You could also just say, "Hey, I know how this works, and I'm not going first." It's alot less evasive and (hopefully) more refreshing for the person on the other side of the desk to hear.
From a candidate perspective, I understand never giving a number...but from a recruiter perspective, I NEVER worked with someone who didn't trust me enough to give me a number. I don't waste my time playing games. This is business.
When someone gave me a hard time about defining a number I said, what is the number that I shouldn't call you about. In other words, if the job is less than $75k, don't tell me about it because it's not worth my time.
GOT SOMETHING TO SAY?