How To Negotiate Compensation



Posted: Friday, September 03, 2004

by Rick Pflugradt
WORK FORCE - Career Strategies

How To Negotiate Compensation

I wish I had a nickel for every time someone has "shot themselves in the foot" during salary negotiationsfor a new job.  I'd be sipping Pina Coladas underneath a palm tree on some exotic isle.

 Leaving money on the table is the most common mistake potential employees make when confronted with the question, "How much are you looking to make?"  Every good interviewer will ask.  Many candidates dread having to answer.

 So, let's take the stigma out of compensation negotiations!

 First, you obviously know what you currently make.  Normally, a change in employment comes with a bump in salary.  You've toiled for a while and have received the gratuitous 3% to 5% annual raises.  Expect more when taking a new position!  This will put you in a position of strength when that fateful moment arrives.

 Secondly, DO YOUR HOMEWORK!  Find out what other people with your skills and experience are making in your industry and locale.  There is plenty of information available from compensation web sites to people you know within your industry with similar time in.  Also, if you're working with a recruiter, ask them.  They will at least be able to give you a range for what the position is paying.

 Third, believe in yourself!  You bring value to the table.  If you've gotten to the point where money enters the interview conversation, you've arrived at the juncture where managers and/or supervisors are interested in you enough to ask.

 Fourth, and most important, DON"T JUST BLURT OUT A NUMBER!  The gun is loaded.  It's pointed at your foot but it's still your choice whether to pull the trigger.  When asked, "What are you looking for in terms of compensation?", take a deep breath and say, "I'm here today because I'm very interested in your company and the position you have to offer.  I will gladly entertain your best offer."

 Now, the shoe is on the other foot.  Respectfully, you have deflected the question, you haven't left money on the table by undercutting yourself and you have left the door open to having the interviewer determine what you're worth.

 It could be that they still "low ball" you in which case you'll have to decide whether or not this opportunity is worth it.  But in most instances, they'll come back with a number that is in line with your expectations.

 Keep in mind that most good recruiters will help you negotiate.  The higher the compensation figure you receive, the larger their fee.  It's in their best interest to get you as much as they can.

 So, stay strong, stay informed and utilize the information and resources around you in order to keep that gun from firing.  Your feet will thank you for it!

 Come back to this page periodically for more stories about Life In The Claims Lane.  You'll always read some good stories and also some "horror stories", as we are all fond of telling.

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