Getting What You’re Worth: The Fine Art of Negotiation

By Carol Johnson

Salaries generally depend on two things: the type of job and the geographical area. Personnel departments have detailed information about current salaries for the work their employees perform, so they will know within a pretty narrow range how much your job is worth. Before entering into salary negotiations, you must determine what that range is—but luckily, the task is not difficult. Government offices, professional organizations, and universities regularly publish information about salary trends across the country. Much of this information is readily available at the public library or on the Internet.

For example, every two years the U.S. Bureau of Labor Statistics publishes a nationally recognized source of career information called the Occupational Outlook Handbook. The Handbook describes job responsibilities, working conditions, required training, earnings, and expected prospects for over 250 occupations. The National Association of Colleges and Employers conducts regular studies to determine which jobs are most in demand and how salaries fluctuate from year to year in certain jobs. Professional groups are an excellent source of salary information, and many of them have Web sites or trade magazines where they publish summary articles. Sources such as these can help you determine what salary figure is reasonable and fair for the job you are considering, in the area where you live. Before entering the negotiating arena, you must decide how much you are willing to deviate from that figure.

Negotiating is not a mysterious, complicated process that only certain people are good at. Anyone can negotiate salary, but a more true statement is that everyone should negotiate. You should never feel intimidated or uncertain about discussing salary—you usually get only one opportunity, and you should take it, if you are really interested in the job. David Jensen of Search Masters International offers a valuable tip to keep in mind as you walk into the negotiating room. "Remember that your negotiation is taking place in the developing relationship with a new employer. Put yourself in the position of the person on the other side of the desk, and you’ll realize that he or she is probably just as uncomfortable as you are." If you focus on the fact that both you and the employer stand to benefit from a satisfactory offer, it is easier to relax and avoid the barriers of discomfort that often make negotiations tense.

Make certain the employer knows you are excited about the prospect of the new job, and ask relevant questions about the work: inquire about benefits, stock options, bonuses, and other peripheral issues. Questions about aspects of the offer other than salary not only help lessen stress on both sides; they also provide you with information for "comparing apples to apples" between the new job and your existing job. Although a better insurance plan will never offset a $10,000 difference in salary, it could sway your decision if all the other issues are close. Be sure that you understand all the components of the offer before zeroing in on any issue that you consider unacceptable.

Your greatest opportunity to discuss salary comes after the peripheral issues have been decided and you are at the point of discussing remaining areas that could be negotiable. Because you have focused on the job first and salary last, you have distinguished yourself from the majority of candidates who begin negotiations by talking about money. Don’t worry that the employer will change his mind about hiring you just because you ask for more money. As Jack Chapman, author of Negotiating Your Salary: How to Make $1000 a Minute, points out: "If you’ve interviewed well (and you must have done that or you wouldn’t be getting an offer!), you’re the front runner already." When you hear the employer offer a figure or range, repeat the figure or the top of the range, and then be quiet for a moment. Chapman advises, "Even if you’re so excited about the offer that you’re ready to dance a jig, make your first response a flinch!" If you then respond with a question such as "Is there any flexibility in that offer?" or "Is that the best you can do?" the employer will most likely offer a bit more to sweeten the pot.

Explain to the employer your reasons for negotiating, such as certifications you have acquired, years of experience, challenges you have met in your current job that are relevant to the new job, or changes in cost of living if you are relocating. The employer may ask you what figure you had in mind, or he might suggest that he may be able to do something about the figure he has proposed. Either response indicates that he is willing to consider raising the offer. He may instead be willing to offer some latitude in other areas like vacation days or stock options. David Jensen suggests, "Make creative suggestions when you find yourself with no flexibility in the area of salary. Can the total expense the company budgets for relocation be converted to a hiring bonus, thus not costing them anything—but allowing you to pack and move yourself while pocketing the savings?"

Be flexible in your approach, and you are more likely to walk away from the table with a satisfactory offer. Paradoxically, when an employer has to raise an offer to secure your acceptance, you don’t just get more money; the employer may actually feel better about the end result. If you accept an offer right off the bat, the employer may wonder if his offer was too high to begin with. Making a better offer, no matter how slight, gives the employer the feeling of having won the negotiations, because he was able to adjust his offer enough for you to accept it. And you have the satisfaction of winning by sticking to your price and getting an offer you’re happy with.

Some job seekers have the misconception that job offers are easy for a company to extend, so they solicit offers just to determine their market worth or to boost counter offers from other companies. In actuality, most businesses must go through a complicated and sometimes exhausting effort prior to making a job offer. Don’t waste an employer’s time and yours by soliciting a job offer you don’t plan to consider; you could risk developing a negative reputation that may never wear off in a closely networked industry. But if you are lucky enough to nab the attention of an employer you would really like to work for, be sure that you acquire the necessary skills to negotiate a good offer. No matter what level the job is, proven strategies exist for haggling with a prospective employer to finagle exactly the salary that you believe you are worth. Negotiating a good salary to begin with is much easier than trying to get hefty pay raises later. And after the negotiations are over and you’ve accepted the offer you’ve been dreaming of, be sure to get it in writing.