Career Management - Salary Negotiating

Salary Negotiating

Salary Negotiation, An Important Part of Employment
By Ingrid Murro Botero

Salary negotiation is an important part of employment, whether it's during the hiring process, an annual review or a promotion. Jack Milligan, Murro vice president and senior consultant, has developed effective salary negotiation techniques that espouse the theory of "requestive channel negotiations", which is the art of requesting specific items for negotiation, rather than demanding them.

Negotiations begin when an employer makes contact with a potential employee. Everything that is said from that moment on is part of the salary negotiation process. As a potential employee, you must know two things: your limit and your value.

Your limit is the minimum salary you are willing to accept. Ask yourself if you will accept the job if you are offered $1 less than your limit. The answer must be "no", or else you haven't found your true limit.

Discovering your value is a more complicated process. Research your area of expertise by contacting competitors, studying relevant employment ads and talking to executives search firms and Professional associations. Use the library for magazines and newspaper articles and the latest federal wage and salary surveys. Ironically, your value, greater or lesser, differs by industry. Accountants might be paid more in high tech electronics than in hospitality. You need to know your value within your industry.

The company representative may ask you during the initial stages of the negotiation what salary you are expecting. Your goal as a potential employee is to postpone negotiation of salary until the job is offered. Meanwhile, the interviewer's goal is to find out what you expect as soon as possible.

If you are asked what your last salary was, it is appropriate to say something such as, "I was with XYZ Company for some time and they paid me quite well. But, I really don't want salary to be a deciding factor for this job. Do you have a range that your are trying to hire within?" If you are pressed, give a range or estimate of your desired salary: "As I understand the responsibilities of this position, I would expect that you're offering a salary in the (low, mid, high ____'s), is that correct?

The next stage is when an employer makes an offer to a potential employee. At this moment, the power transfers from the company to the job seeker. The employer is now obligated to the potential employee until this issue is resolved. It is an awkward position for an employer to be in and they will want to reduce the ambiguity of the situation as soon as possible. Remember, employer offers are generally based upon two considerations: the first is what they have customarily paid for the job, the second is what the applicant has made.

Never, under any circumstances, accept an offer on the spot. The objective is to buy a little time once an offer is given. You must validate the employer's choice of offering you the job by showing enthusiasm and a sincere desire to work for the company.

Use this time to your advantage and create a short list of negotiable items. At the previously agreed upon time, call the employer back to again validate their choice, show some enthusiasm. If you have any questions, say something such as, "I can hit the ground running with XYZ Company, but I have a couple of questions. Do you have time to chat?" This is the time to clarify any ambiguities. Ask if the employer has 'any room to move" on the salary or benefit in question. Asking that way generally warrants one of two answers: yes or no.

Be prepared if the answer is "yes". Know what your value is and have an idea about answering the company response "well, what did you have in mind?"

When a promotion or annual review comes with a salary increase, thank your employer for the offer and ask if they have any room to negotiate. An existing employee within the company has less leverage to negotiate a salary increase during a promotion or an annual review than when they were originally hired, but still try.

Be assertive when asking for a raise. This is not the time to confuse assertiveness with aggressiveness. Never toss around "or else" threats. It will be embarrassing to have to take back the threats if your raise is denied.

You may not even get the chance. The essence of "requestive channel negotiations" is asking, not demanding. Keep a file to document your level of performance for the past six months to one year. Performance-based raises are becoming the norm. Bring documentation of what you've done to the meeting. Negotiating for additional benefits is often overlooked. Try to get permission to attend conferences and seminars that are in areas outside of your present job description. Be constantly moving toward creating added value in your employment in your career.

"Requestive channel negotiation" is an art not a science. Practice will enhance your skill and remember to be prepared for the "yes" answer.