10 Recommended Strategies for Compensation Negotiation
By
Theodore “The Wisdom Man” Henderson
Best Selling Author, Certified Career & Business Adviser, Entrepreneur
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Money is not the only issue but certainly the most critical financial matter in the entire hiring process. Compensation negotiation frequently causes stress and anxiety for both the worker and company. Listed here are 7 ways to make the process of negotiation run smoother with less stress.
1) Do your homework: Before the meeting or interview with any company you should be in touch with, or a part of, a professional organization that represents the targeted industry. Once you have industry and occupation salary information you can determine how best to move forward based upon your needs and experience.
2) Determine your capabilities: If you have followed my program you have done a thorough self-evaluation before beginning your job hunt. As soon as you have actually established what your capabilities are and exactly what they are worth to the existing job market, you would know the parameters of your potential deal.
The easiest place for the average person to get general salary by industry information is at the U.S. Department of Labor’s website. You can search on line for other types of targeted info but I would start there, as you may not need to go any further.
If you are a professional interviewing for work I suggest asking for a minimum of 10% more than you were previously making. You should tell the truth about your past salary and when asked make it clear you are looking to move up in compensation and not just get paid the same.
3) Evaluate the company’s total compensation package: To determine your proper market value for a particular job, you need to consider the financial, geographic, and sector variables of the job offer. Examine the perks, promotions, insurance, time off and retirement plan to ensure you are getting what your experience and skills demand.
4) Market yourself professionally: If you know exactly what you can offer the company requires a larger compensation package or offer, never state it directly. Be subtle, the interviewer will get it and will know that the proposed wage is not appropriate for your background.
5) Have a positive mindset: In negotiating don’t be contentious. Go for the win-win for both parties. Understand your requirements versus those of the firm.
6) Recognize the final offer: Realize when the negotiation is done. Driving further when a package has been established might just blow you out of a deal.
7) Know it’s only just the beginning: The accepted job offer is the beginning of a new journey. Hopefully you have done the right research and are joining the right company where you can prosper. Now you are working towards a brighter more profitable future.
8 Let the employer make the first offer: Lets be honest employers want to know your most recent salary for one main reason, which is to screen you out. Wait until you know they’re serious about hiring you. If they are serious they will make you an offer. That way you lock in an offer and you’ve got the job. Now you can negotiate from that place of strength and security. Let them offer you the position and then raise question of salary.
If you are a seasoned and shrewd negotiator then you may want to provide momentum to the salary offer. You give your number first and it can act like a magnet, pulling up the employer’s offer. Don’t attempt this strategy unless you are sure they will offer you a job, but if you are this method will put you in a strong position. Remember it is easier to reduce from a high number than to push up from a low number.
9) Win-win and compromise: There is a time and a place for win-win and it most likely is not over your salary. Remember the employer’s goal is ultimately to pay you as little as possible. This is not a vendor client scenario when win-win is more appropriate.
The old advice on salary negotiation was to be reasonable and flexible. Unfortunately both these strategies place too much weight on what is best for your employer (i.e. paying you less than they have to). If you compromise and accommodate the result will be simple and costly which is you’ll end up with less money.
10) You’re worth it: A common hurdle in salary negotiations is thinking you’re not worth what you really want. So it’s imperative to get your mind together and convince yourself that you are indeed worth it.
Try to find out what other people are getting paid for doing the same job and don’t forget to utilize sites such as s www.payscale.com and www.salary.com. If it’s more, then you are worth more. If it’s not more, then think of why you should earn more! With this and the other strategies in mind you are well armed to enter into your salary negotiation with a compensation point in mind and prepared to work to get it.
Negotiation is a part of corporate and business life. At some point whether you are seeking to join a firm or seeking a raise from your current employer always understand what your skills bring to the table, the company’s needs, and what the industry standards are.
