#JobSearch #Friday Effective Salary Negotiation
As a Talent Attraction expert with over 39 years of experience – and 25 years also coaching professionals in their job search, there is one common theme – most candidates have never been taught how to effectively negotiate compensation (It’s the compensation package, not just salary).
Through my coaching, speaking, and my books, I have assisted thousands of people to learn how to become an improved negotiator for their skills and experience. Since March 15, during the lockdown, so far I have coached 10 professionals who accepted offers.
Of those 10 professionals, seven received offers well into six figures with increases in compensation. Two had two offers. Two received nice promotions. One person I coached was offered a base compensation that is 30% higher than her current base. If the bonus is paid (certainly not guaranteed this year), she will earn 40% more.
When Does Salary Negotiation Informally Begin?
Most people give the wrong response to that question. From a company perspective, Salary negotiation informally begins when they open a new or replacement position and assign a targeted salary range (not cast in stone for Top Talent). From your perspective, it begins NOW.
This will help you when the time comes to consider an offer. Create a spreadsheet. The left column is a list of elements of a compensation package – Salary, company bonus, performance bonus, profit sharing, health benefits, 401 (k)/ 403 (b), pension, company car, cell phone, etc.
The second column is your current/last salary/benefits. The third column is Minimum acceptable (Thank you, Pat Mencimer).
The other columns head with the name of the company extending you an offer – and list the values of their package.
This practice enables you to make an educated decision when an offer is extended and gives you a base for negotiation.
What Is The Base Tenet For Negotiation?
In any negotiation, the party who puts a number on the table first loses leverage. Companies do not want you to know this fact. Has even one company taught you how to successfully negotiate a higher salary? Of course not. Did you learn salary negotiation in college? Probably not. Academics, unless they are a renowned researcher/author/speaker do not negotiate their compensation – particularly at state colleges or universities. Therefore, they are teaching based on reading books “how to” (For your sake, hopefully, Mine!).
When Does Compensation Negotiation Formally Begin?
Generally when you complete an application or on the first call from the company. In 8 states, companies are no longer allowed to ask your current compensation. This is legitimate because over the years research demonstrated that women were paid less than their male counterparts. As a result, if two candidates – one male and one female – are given a 5 percent increase in compensation in their offer, the male’s increase will be larger than the female’s increase. This increases the disparity in compensation. Enlightened companies do not need laws (Remember, I am a male).
Therefore, my third question is, “From a compensation perspective, what do you seek?” If you tell me, and most candidates do tell me, you just lost salary negotiation leverage. When the offer comes, it is difficult to negotiate more if my client offers what you sought. Make sense?
Some years ago, I recruited a Director of Human Resources for my client. In my conversations with the CFO before our interviews, she agreed to pay up to $145,000 for the right candidate.
We interviewed candidates and selected the best fit for my client. She told me that she wanted $125,000 for her base compensation. The CFO told me to offer her what she desired. I did ask if we could offer a little more. The CFO replied, “The candidate told us what would make her happy. This will make her happy.” Lesson Learned.
How Do I Handle the Compensation Question?
My recommendation is to dodge the question by replying, “In my experience, job postings and job descriptions do a poor job describing the position. I tailored my resume to your job description. Therefore, my resume does not necessarily discuss all of my skills and experience. Would you not agree if you like me and I like you, we will find some middle ground?” Isn’t that a true statement? Of course! Remember, I am RecruiterGuy – now don’t use this on me if you find me on the other side of the conversation. Only kidding. I kick myself when candidates give me back what I coached. Dang! And understand I DO Not coach candidates on salary negotiation when on a recruiting contract. You are on your own!
Never give a salary number first. You need to see how highly the company views the position – and how highly they value your experience. If the offer is too low, negotiate a higher compensation. If the offer is way too low, do not accept it. They will not allow you to make the positive, measurable impacts you seek. Then you will be frustrated.
Always treat salary negotiation professionally. Some candidates were offended by my client’s offer – probably way too low. Do not be offended. The company offered what they felt is your worth TO THEM. Other companies may choose to offer more money. Simply thank them for their offer. If you like the company and manager, tell them if they create a higher-level position to let you know.
My book has an entire chapter on Salary Negotiation with stories if you would like to learn more.
If you want or need to accelerate your #Jobsearch, please immediately click on this link to my recent book, Employee 5.0: Secrets Of A Successful Job Search In The New World Order – http://amzn.to/2D9w39f My book contains the 12 Steps to find a new position in a nice, orderly fashion. It also has the stories of people who did well – and some who did not. You may learn from both sides.
See you on Fridays!
Coming Soon, my third book on Finding A Job! Expect Success! The Art Of The Over 50 Job Search!
Bill Humbert is available for Speaking, Talent Attraction Consulting, Career Transition Consulting, and Training contracts.
RecruiterGuy@msn.com 435-714-4425
https://www.espeakers.com/marketplace/speaker/profile/23767/Bill-Humbert
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