The recession is over, “they” tell us, and now might be a good time to look for a job. My husband just finished his Ph.D., and he is on the hunt. One thing that he has noticed is that many prospective employers offer a salary range for the job (which can cover a range of $20,000), and then expect him to name a salary somewhere in there.
Salary negotiations are tricky things. You hate to ask for more than the employer wants to pay you, but you also don’t want to ask for a salary that’s too low. Not only might you look desperate or unqualified, but you will probably end up with that low salary. My husband has just taken to listing his own salary range that covers about $5,000 somewhere in the area of the middle of the range listed on the job advertisement. Here are 7 tips that might help you when it comes to salary negotiations:
- Wait as long as possible before providing your number: Whenever possible, let the potential employer throw out the first number. You can go up from there. However, if the employer insists that you come up with the number first, share a range that is acceptable to you. This provides you both with room to negotiate, and keeps you from being locked in.
- Do your research: You have to know your own worth, and what sort of worth the market is likely to assign you. Do your homework. Know how much others make with your experience and with the job responsibilities you will be expected to shoulder.
- Be flexible: While you are doing your research, be sure to read up on employee benefits, perks, bonuses and other forms of compensation. Think about your compensation package as a whole, and not just your salary. One job my husband is applying for comes with an excellent health plan and a retirement plan with a generous match. If he gets this job, it’s worth it to take a little lower salary, since the benefits package is so outstanding. Consider accepting stock options or some other type of compensation. Remember that your compensation package is just that — a package. You can negotiate the whole thing, and be more flexible on your actually salary.
- Show your worth: Make sure you have concrete examples that demonstrate your ability to perform the job, and perform it well. Be clear about your past successes, and if you have numbers to show that you improved something by x%, make sure you share those. You will need to sell potential employers on the fact that you are going to be worth what they pay you.
- Employ silence: If you are negotiating, silence can be an effective tool. If you are not happy with the first offer, fall silent and show that you are deliberating. If you have done your homework, and demonstrated your worth to the employer, you might get a different offer if you just wait a minute or so, in an attitude of hesitation over the compensation package. However, be aware that in the present climate, too much silence might lose you the job. If the offer is fair, don’t hold out too long, or you might miss your chance.
- Be honest: This seems like a no-brainer, but a number of people try to lie — or stretch the truth a little — during salary negotiations. Remember that potential employers can double check information on your job performance and compensation. Make sure you are up front about your current salary and benefits package so that, if you are asked, you can answer accurately.
- Be prepared to walk: Do you have a back-up plan? Back in journalism school, one of my professors called this “F-U Money”. If you aren’t being treated fairly, do you have enough to walk away? Before you go into a salary negotiation, take stock of your emergency fund, and whether you can afford to turn down an offer that seems too low. If you are in a position where you have to take what’s offered, there’s not much you can do. But if you are in a place where you can walk, show that you mean business, and be prepared to walk away unless the potential employer comes up a little bit.
Even in these tough times, you can still get a salary that’s fair, as long as you can show that you are worth what you are asking.
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Very useful information
I disagree with the last part of the first point. If you offer a salary range you’re giving away too much. If I tell a prospective employer I’m expecting between $70k and $80k he’ll never offer more than $70k. Normally the guy who’s actually doing the hiring doesn’t have any influence on the benefits package, so the only way I could see that making sense is if you have some kind of special need, like flexible work hours, that spells the difference in the two figures.
Tell them you’re expecting $80k (or whatever), and keep the low end to yourself.
I think these are excellent tips, Miranda. You’re really give me new perspectives. My friends should know this. Thank you
Step 3 use to be a good idea, look at the benefits. But these days the benefits change over time, and are often the first cut back. So the retirement plan where I work has changed 3 times in 10 yrs. The employee medical use to be outstanding and now is just average (they actually promote it as being average). And the retiree medical plan changed and if you stay past 2012 you will retire with a significantly lesser benefit. So I would say now to emphasize current salary over future benefits. Invest the money wisely so you will have cash to make up for declining benefits.
Completely off-base with point 6. In salary negotiations for a new job you and your potential employer are deciding on your value for that job only. You aren’t negotiating your worth and a “potential pay increase” against your old job. Your potential employer has no need to know your current salary and, if they insist on asking and getting that information prior to offering a job, they aren’t giving you the proper respect. Employment negotiations isn’t all about the company deciding whether to hire you; it’s also about whether you agree to be hired by them. And part of that agreement is a fair salary for the job you are intending to do, not based on jobs you have already done.
Now having said that, don’t lie about anything during a job interview. But choose to withhold information with a reasonable answer such as, “I’m more interested in negotiating a fair salary for the job I’m going to do for you rather than have you compare my worth against my past employment”. And if they refuse to accept that kind of answer they aren’t an ethical employer.
@Eric: I think it just depends on how you feel things out. Sometimes, if you ask for $80,000, and the employer thinks it’s too high, you won’t be considered. It’s a delicate balance, especially in this market. Also, the low end doesn’t have to be that low. You could say $75,000 to $80,000, and then be willing to take $72,000. But at least with a range you’re showing you’re flexible.
@Cam: You make a good point that things can change. That is something to consider. Thanks for making that point.
.-= Miranda´s last blog ..The Never Ending Tennis Match =-.
Some great tips. Thanks!
I do want to share my own tactics, which I wrote down in my blog. This is my personal methods, which brought success and are still bringing.
Here you go
http://onecentatatime.com/convince-your-boss-to-pay-more/
Can someone tell me if I make x amout of dollars per hour and I know that switching jobs, I will not make that same amout or more and the potenial employer asks me how much I make, will that hurt my chances of getting that job????