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9 Tips for Negotiating Your Salary
1. It Never Hurts to Ask
Women are much more likely than men to accept the first offer a potential
employer makes. Cathleen Black, president of Hearst Magazines, says,
"Women have a terminal case of gratitude." Although it is normal to
appreciate being given an opportunity, you have a right to be compensated
appropriately. But you should expect to have to ask. If you do not, you
probably won't be paid what you deserve. Employers expect new hires to
negotiate and, therefore, almost never start with their best offer. So if
you do not negotiate, you will probably be accepting less than the
employer was prepared to pay. Many women think they will accept a job,
prove themselves and then ask for a raise. But by not negotiating at the
outset, you are not only forgoing the money you could have gotten but
you're also reducing the amount of the raise you will get after you prove
yourself.
2. Know Your Own Worth
When it comes to negotiating compensation, information is power. Your
current salary will normally weigh heavily in determining the amount you
receive. For this reason, it is important to base salary discussions on
market value rather than on your current salary. To do that, you must know
the range of salaries being paid to others with similar skills and
experience. A number of Websites provide salary information, and employees
or ex-employees are also an excellent resource for researching the salary
structure of a particular company. When you change jobs or ask for a
raise, information about what other companies are paying for similar
positions will help you highlight the value of your job.
3. Discussing Your Current Compensation
Most prospective employers will try to find out what you are currently
earning and offer just enough more to make it worth your while to change
jobs. However, if they do not know this information, they will have to
base their offer on the market value for someone with your skills and
experience. You should, therefore, avoid the topic or be as vague as
possible. If you are asked, say something like, "It's too early in the
process to talk about compensation," or, "Let's talk about the job. If
it's the right job for me and I'm the right person for the job, salary
won't be an issue." Never tell employers what it will take to hire you.
Let them make an offer. If they ask you what you are looking for in
compensation, you might respond by asking, "What do you have budgeted for
the position?" Or give a vague answer, such as, "It depends. I want to
look at the total package. What did you have in mind?" The key is to
prepare your answers in advance.
4. How You Ask Matters
People almost never lose a job offer because of what they ask for. When
they do, it usually is because of how they ask for it. If you provide
reasons to justify your requests, you may not get everything you want, but
you will usually get something, and you will also gain respect for how you
go about asking. Treat compensation discussions as a collaborative effort.
You might say, "Here are the problems with the offer. What can we do to
overcome them?" Or, "I have another offer, but I really
want to work here. Is there any way you could make
your offer more competitive?" Never threaten or make demands.
5. Be Enthusiastic about the Job
Whether you are dealing with a new employer or seeking a raise from your
current employer, you want to let them know that you really like the
company and the job. Enthusiasm is the single most important quality
employers seek in their employees. Be sure to let prospective employers
know -- repeatedly -- how excited you are about the job opportunity.
Similarly, when seeking a raise from your current employer, emphasize that
you love your job. At the same time, however, whenever you discuss
compensation, make it clear that even though you want the job, or want to
continue working in your current company, it has to make sense
financially. Then work with the employer to improve the offer.
6. It's Not Only about the Money
Negotiating about other things besides money can sometimes have an even
greater impact on your professional success. When women accept jobs, they
typically fail to secure the resources that are necessary for them to
succeed in the job. Many women have been brought up to believe that if
they do a good job, they will be given the resources they need and will be
rewarded for their efforts. It's much easier to get commitments for
resources such as additional staff, an increased budget, a larger expense
account or additional training before you accept a position.
7. Be Careful about Having Someone Negotiate for You
When you let someone else negotiate on your behalf, you lose a major
advantage: the ability to use your relationship with your boss or your
prospective boss. Employment negotiations are different from other
negotiations, especially when you are talking to a new employer. The
company is trying to recruit you. They want you to accept their offer and
they want you to feel good about it. The minute you bring in a third
party, though, you lose that advantage. You should negotiate yourself and,
if possible, do it directly with your future boss. Make her your ally in
the negotiating process and she will work hard to make sure that you are
happy with the offer. If you decide to use a third party, it is generally
best to do so only after you have already negotiated as much of the
package as possible yourself.
8. An Auction Is a Type of Negotiation: Taking Advantage of Another Offer
When you are negotiating with a prospective employer, it helps to have
another offer to use as leverage. It creates an environment similar to an
auction. In other words, if more than one person wants something, people
tend to be willing to pay more than they would otherwise. One way to use
two competing offers is to negotiate with both at the same time and simply
accept the best one. Without diminishing your enthusiasm for either
opportunity, let them both know that you are talking with someone else. A
statement such as, "I am really excited about the possibility of working
here, but I wanted you to know that I am also talking to another company
that is interested in me," can be very effective.
If you prefer one company, use your second offer to get them to improve
theirs. Once you have negotiated the best offer possible with the company
you like least, go to the preferred one and truthfully say, "I have this
very generous offer from another company, but the truth is I'd much rather
work for you. I can't just ignore the difference in what they're offering,
but if you could put together a package that's in the same ballpark, I
would start tomorrow." Even if you don't have a second offer, you can
improve your bargaining position simply by talking to another employer
while you're negotiating. Just having other possibilities will give you
the confidence to insist on getting what you are worth. Plus, the fact
that someone else may enter into the bidding will put pressure on the
company to complete the negotiations quickly and to make you the best
possible offer. You can say something like, "Although you are clearly my
first choice, I want you to know that I am also talking with X company,
and I didn't want you to hear that on the street." This approach can work
even if there is no actual job currently available
9. Getting the Promotion or Raise You Deserve
It Is Not Enough to Just Do Good Work; People Need to Know about Your
Accomplishments
You should market yourself internally all year long, not just at review
time. Make sure that your boss and other key people in the company know
what you are doing. Build a case throughout the year for increasing your
salary. Keep a record of your achievements and get them in front of your
boss a few months before you are actually scheduled for your annual
review. Send copies of relevant memos to your boss and other key
individuals. Share credit for your successes with your boss and your
subordinates.
Make Your Boss's Priorities Your Priorities
The better you make your boss look to her superiors and peers, the more
valuable you will be and the harder your boss will work to make sure you
are happy with your compensation.
Accept Additional Responsibilities and Make Your Interest in Being
Promoted Known
Salary increases usually bring with them more work and responsibility. So
learn new skills and seek additional responsibilities whenever you can,
even if you are not in a position to get a raise or promotion immediately.
After you have shown you can do the job, ask for the raise or promotion.
Often the deciding factor in who gets a promotion is who wants it most. So
let your boss know you are interested in being promoted. One of the best
ways to do that is to ask for advice and help. When you ask your boss,
"What must I do to get promoted?" you are in effect asking for both. If
you follow the advice you receive and check periodically to see how you
are coming along, you boss will normally do everything possible to see
that you get the promotion you are seeking.
Periodically Test Your Market Value If you are paid well below market
value, some employers will feel constrained as to how much they feel they
can increase your salary. You might have to use another offer to convince
your employer to raise your salary sufficiently. In fact, it is useful for
your boss to know that from time to time other employers approach you. To
make this happen, develop relationships with recruiters in your industry
and be helpful to them when they call, even if you are not interested in
the position they are filling. Become active in professional
organizations. If all else fails, you have to be prepared to walk away and
accept a position with another company.
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