Know - and get paid - what you're worth
The current state of the U.S. economy is "casting a shadow on
the psyches of job candidates," according to a recent Jobfox
report: Top 25 Most Wanted U.S. Job Candidates.
That’s not a big surprise. On the panic meter, being out
of a job right now is second only to having just retired.
What is surprising is that job candidates have already stepped
back from salary negotiations for new positions, even in the 25
most in-demand professions, the report said. Since March 2008, job
seekers salary expectations in those fields have remained flat or
have decreased.
Of those 25 professions analyzed by Jobfox
(www.jobfox.com):
·
No profession had increasing median salary range
expectations.
·
Sixteen (64 percent) had flat salary range expectations.
·
Nine professions (36 percent) had decreasing salary
expectations.
Employer’s market
“It’s an employer’s market right now when it
comes to salaries,” said Jobfox CEO Rob McGovern.
Knowing that, employers are controlling costs more tightly by
relying on bonus programs and other pay-for-performance
compensation models, the report said.
Even a rapid Wall Street recovery may not prompt salaries to
make proportionate jumps.
That means job candidates must plan their salary negotiations
strategy ever so carefully. If we worry that an employer will pass
us over because of a salary negotiation, it’s tempting to
take the offer as a sure thing. If what you really need is a
regular salary, regardless of how much it is, that’s a good
strategy. If you’re not in emergency mode, consider that a
negotiation that adds $5,000 to your annual salary will bring you
$100,000 over 10 years, counting raises, bonuses and interest. Over
20 years, that same $5,000 will grow to more than $300,000! You may
consider that worth some effort.
These days, it may be a bit more difficult to get that $5,000.
So, remember, particularly when your financial needs or desires and
the hiring company’s offer are far apart, you will need to
persuade them to invest in something that is more than they want to
pay or can afford to pay. Your job is to make them a “counter
offer they can’t refuse.” Here are 10 tips that
will help with that effort:
- Know your strategy. For every strategy, there is an axiom: Haste makes waste. She who hesitates is lost. Just make sure before you enter negotiations that you know what you want. If you need a job and are offered a fair salary – take it! If you need time to think it over – take it! If you want to negotiate a better deal – do it!
- Negotiate from truth. Don’t oversell or undersell your value. Know thyself and thy marketplace. Do your homework on the company with which you’re negotiating. What did they pay the last person in your position? Do they pay more than their competitors, in general?
- Know the polarities. This means you know the top end of the salary scale and the lowest salary you are prepared to accept. Then, emotionally distance yourself from the numbers. It’s just money. Be willing to walk away if it’s below the lowest number.
- Start high. You can always come down, but it’s almost impossible to go up.
- Negotiate from strength – not greed. In other words, it’s not what you want that matters, it’s the value you bring to the employer. Don’t hesitate to mention those strengths when you’re negotiating. If you can point to a million-dollar contract you brought your last employer, don’t miss the chance to use it as leverage.
- Use the low profile approach. Being confident in your value doesn’t mean being arrogant. Soft and gentle works in many situations. Even admitting discomfort because you don’t negotiate positions every day is fine. It’s like playing good cop/bad cop: You’ll get more information and cooperation from being kind and thoughtful rather than mean and rough.
- Learn to play poker. OK, not with cards, but with a poker face. Show little emotion – other than gratitude for the offer – regardless of where the offer lands on your expectation scale. (Remember the emotional distance.) Then, begin to negotiate.
- Silence is golden. A moment of silence (15 to 30 seconds) can be a powerful negotiating tool as well as an opportunity to collect your thoughts without losing your concentration. It can make the other side nervous or at least impatient, possibly giving you an edge.
- Not now doesn’t always mean no. If you have an opportunity that does not look like it will pay what you want but has the potential to pay you what you’re worth, attempt to negotiate a review period where you can discuss a raise based on performance. Or seek to incorporate a bonus or an incentive clause in your agreement. Perhaps this year’s bonus can become next year’s raise. Think long-term if your situation allows it.
