Chapter 67. Salary Negotiation Made Simple: What to Say and How to Say It

I am often asked by clients, "What do I do when the help-wanted ad or Internet job posting I'm responding to demands that I include my salary history?" Another typical statement is, " I got a call about an interesting opportunity, but they wanted to know right away what salary I was looking for!" As we discussed earlier in the section on recruiters and search firms, you'll need to determine right away if the person is an external recruiter or an internal recruiter (employee of the company). Your strategy will be different depending on the answer.

If it's an external recruiter, you should share your salary expectations. After all, external recruiters have a vested financial interest in getting you the largest possible salary, because most of their compensation comes as a percentage of their successful candidate's salary.

On the other hand, when you're dealing with an internal employee, such as a human resources representative, any premature mention of your compensation requirements or your salary history will only hurt you later, when you're dealing with the ultimate decision maker during your real negotiations.

Note

You don't have to play by the rules of the employer or recruiter when it comes to discussions about compensation.

Remember, one of our main goals is for you to take charge of your career, and this includes mastering the entire negotiation process. You need to learn how to deflect and defer these up-front questions about compensation. You don't have to play by the rules of the employer or recruiter when it comes to discussions about compensation. The reason most people get into trouble at this juncture is that they simply don't know how to respond. They've never learned what to say or how to say it when they get confronted by these salary questions.

Well, there is away out of this dilemma. There are specific words, phrases, and behaviors you can use to turn the tide of your compensation discussions, so that you'll be more in charge of the process and produce the negotiation results you really want. Take the time to study all of the following examples, and practice this dialogue before you step into any negotiations. If you're like most of my career coaching clients, you'll be amazed at the results. And remember, you're learning these negotiation strategies not just to get a better salary in your next job, but also to maximize your compensation for the rest of your working life.

Note

There are specific words, phrases, and behaviors you can use to turn the tide of your compensation discussions.

How to Handle First-Round Negotiations (Before the Offer)

"What Salary Would You Require?" or "What Were You Making at Your Last Job?"

"I think compensation is a very important topic, and I would be more than happy to discuss it once a mutual interest has been established."

(Get back to discussing your accomplishments)

Other responses you could use include...

"Your company has a very good reputation, and I'm sure the compensation package will be fair enough to keep me motivated and productive. (By the way, what is the salary range for this position?")

"Based on my accomplishments, I would like to be paid at the same level as other employees of my caliber. (What is the salary range for a person of my caliber?)"

"Regarding compensation, my needs are flexible and negotiable, and I'd be happy to discuss this once a mutual interest has been established." (Get back to discussing your accomplishments)

"If we decide that I'm the right person for this job, I'm sure we'll be able to come to an agreement on compensation." (Get back to discussing your accomplishments)

"At this time, I'm most interested in determining if I am the right candidate for this job. If there's a fit, I'm sure salary won't be an issue." (Get back to discussing your accomplishments)

"Are you making me an offer? (If so, what salary range did you have in mind?)" Note: only use this response later in the negotiation process, after several discussions.

How to Handle First-Round Negotiations (After the Offer)

When the issue of a specific salary number or range comes up, and the employer states a number or range, do your best to maintain a poker face (no reaction or expression). Write down all the details. You may repeat theoffer back to the interviewer, just to be sure you have all the details right. Then ask, "Do I have all the information about the offer now? Is there anything I omitted?"

At this point, you'll want to move into a sort of play-acting role to produce the results you want. One effective technique is to break eye contact with the interviewer — act slightly disappointed and perplexed. You might look down at the floor, exhale audibly and shake your head slightly, while mentally projecting the thought, "This is far less than what I was expecting. How could they offer me such a low amount, after everything I've told them about my qualifications and accomplishments?"

Do not say anything. Remain silent until the interviewer responds. Nobody likes silence in a business meeting, so he or she will probably respond after a moment, offering one of these three comments:

  1. "You don't seem too happy with our offer; what number did you have in mind?"

  2. " I might be able to do a little better, but I'll need to discuss it with my manager."

  3. "That's the absolute best we can do; I'm sorry."

Of course, the fourth option is that the interviewer could just sit there and remain silent too (for a very long time), in which case you may need to break the ice by saying something like...

"Based on the level of contribution I offer and the commitment that I am prepared to make" — pause — " I believe that your offer is on the conservative side."

(OR)

"In view of the accomplishments that I've shared with you and my 15 years of related experience" — pause — "Frankly, your offer is not at all what I was expecting."

Note: The important thing is that you have succeeded in getting the employer to state the salary or range first. Now you're ideally positioned to negotiate for a stronger package.

Then you might add a percentage (perhaps 15 to 20 percent), or state the higher dollar figure you have in mind, whichever seems appropriate. Then just wait again, in silence. As I hope you have learned by now, silence is one of your most powerful negotiation tactics!

Note

Silence is one of your most powerful negotiation tactics.

How to Handle Second-Round Negotiations

Never accept or reject an offer on the spot — ask for 24 hours to one week (depending on the position and the employer's situation) to consider the offer.

Meet again (in person, if possible) with the hiring manager (not Human Resources), and say:

"This is a great opportunity and I'm very excited about working with you (or) joining your company. I am inclined to accept your offer, however there are three (or more) items I want to discuss (negotiate) with you. If we can reach agreement on these items, I'll be prepared to accept your offer today." (Of course, you should use this approach only if you are serious about accepting their offer, if they can meet your terms.)

In your own mind, you may really only need the employer to enhance the offer in two categories (say, salary and vacation days) — but you should ask for improvements in three or four areas (you could also ask for a better bonus or a laptop computer, for example). Always ask for more than what you really want, because in most cases you won't get everything you ask for. Then, you'll be able to settle for what you actually wanted in the first place.

Note

Always ask for more than what you really want, because in most cases you won't get everything you ask for.

Know Exactly What You Need and Exactly What You Want

Savvy negotiators have two sets of criteria for evaluating offers. They know:

  • What they need to accept an offer (bottom-line minimum, or they walk away)

  • What they want in an ideal offer (for the perfect deal)

You also need to look at all the dimensions of your ideal job and ideal employer. You should review what your bare minimum acceptable terms would be, and also review what perfect would mean to you. The exercises and work you did early on in this book should come in very handy here.

Sample: Need/Want Chart (Downloadable)

Know Exactly What You Need and Exactly What You Want

After you make your own need/want chart, think about what you're willing to trade andwhat you're not. Make your own list.

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