Thursday, January 27, 2011

Negotiating When You Get the Job Offer

I wanted to bring this article to you regarding salary negotiations.  It is so important to be prepared and to not just take what they offer, especially if it is obviously below market value.  I hope you enjoy Sherrie's tips.
- Lisa

Negotiation 2.0: How to Get the Job Offer You Want

Author:

Sherrie A. Madia, Ph.D.

If you made it to a job offer with an employer, chances are it\'s because the primary message you tried to instill in the minds of employers throughout your job search was your value to the company. To be successful with the offer negotiation process, you must first understand how that value translates into a monetary figure.
Research Comparable Salaries
The first step is to obtain some reliable salary figures for someone with your skill set, experience, industry, and geographic region. There are many resources available on the Web (such as salary.com), in business libraries, and through your business network that can provide you with comparable salary information. While it is unlikely that you will find an exact salary for your particular situation, the more research you conduct, the more confident you will become that the salary you quote will be realistic and present a 'fair market value' for your skills and accomplishments.
Relying on multiple sources for salary information means that you will obtain a fairly accurate picture of the range for your profession, years of experience, and current job market trends with regard to your industry.
In deciding on an appropriate salary range, don\'t forget to factor in the 'opportunity cost' of leaving your current position in terms of any commissions due, year-end bonuses, annual review, and pay raises, or stock options not yet vested.
After you analyze your findings, you will create three levels of salary:

  • Your 'Bottom Line' Number:This is the lowest salary you will accept in order to meet your financial responsibilities, while allowing you to work toward your longer range career and lifestyle goals.

  • Your 'Comfort Zone' Number:This is the salary at which you believe you will be adequately compensated in terms of the title and responsibilities of the position. This figure will also permit you to live comfortably in a manner to which you are accustomed.

  • Your 'Ideal' Number:This is the level of salary earned by top performers in your field.
Negotiating an Offer
Now that you have the three sets of numbers laid out, it\'s time to lay out a strategy for when an employment offer is actually made. When an employer offers you a given salary or quotes a salary range, your initial research will tell you if the number is too low, too high, or on target.
Many companies that offer an impressive benefit package may attempt to persuade you accept a lower salary. Only you can decide what will be best for yourself, your family, your career, and current situation. Keep in mind that if you accept a lower salary now it will affect the amount of increases you obtain as you move forward with the company since pay raises are based on a percentage of current salary.
Negotiating When the Offer is Too Low
When an offer is too low, your initial response might be to repeat the number in a non-judgmental tone and then stop talking. During this interval you will be comparing this number to your 'Bottom Line' figure. If the salary offered does not fall within even this bottom level, a possible response might be:
'Ms. Smith, thank you for the offer. I am truly appreciative that you believe I am the right person for this job and excited about getting started in meeting the challenges we discussed.'
Then clarify:
'Please allow me to clarify my understanding of the position. This is a full time, exempt position as IT Division Manager for your Cincinnati office. I would be reporting to the Vice President of Technology and be responsible for the supervision of seven staff. I would be required to manage the implementations of new technological initiatives within the branch office during the first six months of employment and spearhead some cost-cutting measures to trim at least 15off the department budget.  
'Do I have this correct?'
Make a strong case for a higher salary based on the value you will bring to the role. Be sure to mention any critical needs discussed during the interview and your ability to solve those issues.
'As we discussed, I have the requisite skill set to make an immediate contribution. As you know, I have led the successful implementation of new equipment in my current role and feel confident of my ability to reproduce that success with this company. Based on my expected contributions and what I have come to understand to be fair market value from some industry-based research for this level of position, a salary range of X to Y would be more appropriate. Can you work with me in this range?'
Three Possible Responses from the Employer
1. Employer doesn't budge!
Suggested response:
Remain enthusiastic and display an attitude of cooperation: You want to give the impression that you are trying to work out a win-win situation
'Okay, I do understand your position. I remain confident in my ability to excel in this role so perhaps we can build in some performance-based bonuses? I would certainly also factor in the scope of the benefit package offered.'
2. Employer raises the offer a bit but still below your expectations
Remain positive and reiterate key challenges of the position. Once again, express your confidence that you can meet and exceed performance expectations.
'I remember our discussion about the difficulty the department is having with team morale and how it is adversely affecting productivity. I have a consistent history of building strong teams in very similar situations, and I have full confidence in my ability to drive consensus and enhance overall productivity. I have calculated that even a 5boost in productivity would increase your bottom line by $50,000 in the first year alone. Based on this assessment, could you agree that a salary range of X and Y would be fair?
Continue on in this vein as long as the employer is receptive and you are able to continue documenting relevant past experience. As in the above example, it is always helpful to translate your value in terms of hard numbers.
3. Employer counters with an offer that is aligned with your needs and expectations
The negotiation process is now over and you can move forward to discussing benefits, bonuses, and special perks.
Article Source: http://www.articlesbase.com/interviews-articles/negotiation-20-how-to-get-the-job-offer-you-want-3664752.html


About the Author
Sherrie A. Madia, Ph.D. is an educator, author, and trainer.  Her most recent books include The Social Media Survival Guide (Also available in Spanish), The Online Job Search Survival Guide, and S.E.R.I.A.L.PRENEURSHIP: The Secrets of Repeatable Business Success. She is frequently cited by the national media as an expert in social media.  She is Director of Communications, External Affairs, and a Lecturer at the Wharton School of the University of Pennsylvania.

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