What You Need to Know About Salary Negotiations
How to Come out of Your Interview with the Right Compensation, by Brian Alden
What You Need to Know About Salary Negotiations
Many people think that salary negotiations are more stressful than the interview process. Well it doesn’t have to be. By following these simple tips you will move into the salary negotiation process with confidence and who knows…maybe even make more money to boot!
Don't Be First Bringing It Up
Never bring up compensation and benefit issues during the first interview unless asked by the interviewer. The main goal of any first interview is to make them want to bring you back for a second interview. Making them want you allows you to negotiate more from a position of strength later on in the process.
Clarifying the Interviewer's Expectations
By knowing what the interviewer expects of you in the position you will have a much better understanding of what you will be doing, therefore giving you a much better handle on what types of compensation to seek. For example if the employer sees your position leading to director down the road and you are interviewing for the manager level, you can ask for more salary up front, since you'll probably being doing the work of a director from the beginning.
Responding to the Question, "What are you making now?"
What you make now includes many different facets of compensation such as; base salary, bonus potential, paid vacations, tuition reimbursements, car allowances, differing health plan costs, stock options and much more. Do your homework!! Know what your true compensation is before the interview.
Address What You Are Leaving Behind
Are you leaving a bonus on the table? What about 401k matches? Are they the same or do they differ? Frequently a company will make up these items or part of them with a sign-on bonus, or guaranteed performance bonus of some sort or other provisions to "make you whole."
Negotiating Your Exit Clause
Depending on your level in the company you may be able to negotiate a severance package up front. While this may be harder for an individual contributor than someone in management, it is still a point to address. And yes it is hard to discuss you leaving the company before you have even started, so don't dwell on this point in the negotiation process.
Making Win-Win Negotiations
The best compensation negotiations are when it's a win-win for both parties, when each side feels they're getting what they want. The company gets a great new employee who will provide solutions to existing issues, and you get a new job where you can contribute and where you are compensated fairly and correctly. If you are working with a third party recruiter let them do the salary and compensation negotiations for you, as they can broach subjects for you that you can't, and can help keep the negotiations on a pleasant and even keel. After all you have to begin working with the employer come some Monday morning in the future.
Make a List of What You Want Most
What is it that you really want and what is most important to you? Would you trade a $1000 in base salary or so for an extra week paid vacation? Are you looking for stock options and a 75-hour workweek or the comfort of 9-5 hours and 15 minute commute? Would you trade $5000 in base salary for an additional $10,000 in commission potential? Knowing what is most important to you in advance of an interview will help you along both the interview process and salary negotiating process.
Knowing Your Deal Maker / Deal Breaker
Realize in most cases you can only go back with one-maybe two counter proposals. So know what your "deal maker" is. Know what that one item is that you have to have in order to work for this company.
Find Out What You're Worth Before Going for the Interview
A good way to find out the going rates for someone in your position would be to do a search on the major jobboards for similar positions and see what other employers are offering. There are also dozens of Websites that now list salary and compensation data, Job.com offers a free salary report that can tell you what you’re worth in the city you live in or the city you’re moving to.
Get It In Writing
Typically known as an offer letter or letter of intent, most all companies will provide one if you ask. All this is a confirmation of the deal that the two parties have struck laying out all the points in writing so there are no disagreements down the road. An officer of the company should sign the document and include all the details: base salary, bonus potential, options, vacation, relocation package, severance agreements if any, etc.