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What are your tips for negotiating a salary when taking a new role?
When you're offered a new position, there's often room to negotiate on compensation. What are your tips for negotiating salary for a new position? Is it smart to say that your current salary is higher than it actually is?
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2 Answers
1. Let the employer go first. Let them make an offer. Before you respond, have them justify the compensation. For example, after they make the offer, you reply "So you think this position is worth . . . . " See what they say. Draw them out to understand if there's any room to negotiate or not.
2. Have data. Know how much people like you are paid in current positions in your particular geography. Don't be afraid to use that information in your negotiation.
3. Understand the supply and demand dynamics. Sometimes you're in the catbird seat and sometimes you're not. This depends not only on the general economy but also whether the employer have "other options" for your position. Do you have unique skills that are scare? Etc. If you do, then you have more room to negotiate.
4. Negotiate from a mindset of collaboration vs. antagonism. You can be confident without being antagonistic. Don't be afraid to let people know what you want but communicate it from a perspective that you are already part of the team. "Thanks for the offer and I'm looking forward to working here. However, I have a few questions about the offer itself . . . . "
I agree with what Michael says above and would like to offer some specific tips for negotiation - 4 Dos and 2 Donts
1. Be creative with what you negotiate. Your compensation is much more than just salary. There is also signing bonus, performance bonus, moving expenses, car stipend (if you have to drive far for work), 401K matching, title, vacation time, or pay grade. For example, even if the company can’t pay you a good salary now because of caps set in place due to the economy, if you have a higher pay grade setting, then your future salary and increase could be higher.
2. Be specific and reasonable - tell the company what you actually want (a 10% increase, a guaranteed 5% bonus based on performance, a VP title, etc…) and make sure it’s not ridiculous. I was hiring someone who actually asked for 30% more in her salary when I know she was already getting a 15% increase from her last salary. We almost rescinded her offer.
3. Tell them at least one and preferable two plausible reasons why you are negotiating for more. It’s no good and could even be offensive if you just said you want more money and can’t say why. Some good reasons are: 1. you have a better offer (whether you want to bluff about this is up to you as just like Poker, there is a chance they won’t call you on it); 2. your market rate is higher (meaning the average paying rate right now for this level is X% higher than your offer); 3. your current offer is a big step down from past compensation; 4. sometimes the sympathy card could even work and say “I have a new baby and I am just trying to make sure I can get by and 10% more could really help!” You would be surprised at what you can leave on the table if you don’t ask
4. Express your enthusiasm to work for the company when negotiating. No employers wants to give you more unless they know that you are almost certain to take it if they agreed. Also, it doesn’t hurt to convey that you have very good reasons (other than compensation) why you want to work for the company.
Two things to avoid during salary negotiation
1. Don’t ever give an ultimatum - or anything that could be construed as an ultimatum. Salary negotiation is an art form and takes practice. Don’t ever back yourself into a corner because you most likely still want to take the job if they said no.
2. Don’t be arrogant or an A__ when negotiating: Remember the person you are negotiating with is mostly likely your future boss or someone who can influence your future boss’ opinion of you. This salary negotiation should be a good experience for both sides.
see more articles on salary negotiation tips on my career advice blog at http://bemycareercoach.com/professional-skills/career-advice/job-searching-ti.... I am always in your corner
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