Let’s talk about salary negotiation. “What!?”, you may ask. Isn’t this a terrible time to even think of raising a negotiation about salary, especially if you’re so fortunate to have made it far enough along in an interview process to be even having this conversation?
Well, conventional wisdom would seem to suggest that a potential employee is in quite a weak negotiating position during these recessionary times. With so many bodies trying to fill a decreasing number of positions it makes a certain sense that the most talented cream will rise naturally to the top taking the top dollar spots that are available. Meaning that leaves the rest of us to take the crumbs that are left and for that we’d better be grateful, right?
But look, even down economic times should not mean we have to demean ourselves. If we have the gumption, experience, and talent to find that we are being offered a job we can still owe it to our professional selves to trade our quality services for reasonable, if not optimal compensation.
So, unless you’ve got the bargaining capability of a Moroccan merchant, which most of us don’t have, then it’s helpful to follow a set of recommended negotiation tips that have been shown to work over time. Among the most important is knowing the “internal equity” of the position you are considering. In these times, knowing what the standard salary range is for the type of position, in that type of company, and in that industry is research that needs to have been done before any such discussion. The dollar amount of that range probably has come down some in the past year, so timely research is necessary.
Practically speaking, you are limited to negotiating within that internal equity range. Internal equity can be found through working your network of knowledgeable contacts; going to salary reporting sites such as http://salary.com, the Riley Guide http://rileyguide.com/salguides.html, and the Labor Department’s Bureau of Labor Statistics http://www.bls.gov . Also look at industry-related sites and of course find out as much as you can from the organization’s or company’s web site. (Regarding the organization, try to find out as much as you can about its culture and values while you’re at it.)
Also important is knowing what your bottom-line deal-breaking salary limit is. Keep in mind that money isn’t everything. Think about what else you might want from this job besides money. If the offer made to you is in the neighborhood of your deal-breaking figure, then be prepared to counter with alternative compensations. For example, see if the deal can be sweetened with other financial or career development goodies such as three or four-day work weeks, increased comp time, a tele-commuting option, tuition reimbursement for college classes, increased opportunities for supplemental pay, stock options, and 401K contributions.
Let the organization make the first offer and then try to stick to your money and alternative compensation strategy, which may have to include some quick improvisation. Sounds a bit daunting, doesn’t it? Well, I’m certainly not suggesting salary negotiating is easy, but rather that it requires preparation.
Finally, it is perfectly reasonable to give yourself twenty-four hours before signing off on any deal. You need time to reflect on what went on, so that you can either feel comfortable with what was discussed or so that you can return to covering any left-out considerations. There’s never a bad time to position yourself in whatever is for you the most advantageous way, even in a down economy.
