Salary Negotiations-How to get a higher offer

Getting a job offer is an exciting moment. Receiving a salary offer lower than expected can be disappointing. Many people feel they have little or no options to negotiate higher compensation yet many people do receive higher compensation just by asking. How you ask can be just as important as what you ask.



Negotiating is not a sophisticated process unless you are a professional athlete, media personality or movie star. Professionals at this level usually have an agent negotiate for them.



Negotiating is its own reward. Even if you do not get the results you desire, you'll feel better about yourself for investing the effort to negotiate. You will also communicate to the employer that you are serious about your career and want the best for yourself and your family.



You deserve the best and the world will provide if you have the courage & calmness to ask specifically for what you want.



WHO TO NEGOTIATE WITH

Negotiating with the hiring manager is the most effective scenario. Negotiating with anyone else is usually a waist of time. Many companies have a representative from Human Resources (HR) present the job offer to you over the phone. HR is usually powerless to negotiate with you. No matter what they agree to, they still have to get agreement from the hiring manager.



Sometimes you find a position through an agency recruiter. They can be helpful in expressing your salary requirements but they are also powerless to get agreement because the recruiter often deals with HR who has to speak with the hiring manager.



When you interview with the hiring manager be certain to get their business card or contact information. During the closing phase of the interview mention that you'll call them when you have additional questions. Most managers will agree to this request and the ones that don't are an undesirable boss.



WHEN TO NEGOTIATE

Wait until you have leverage

Many companies ask for your current salary information before the phone screen or before an offer is prepared. This puts you in an uncomfortable position because you don't want to risk losing a good opportunity based on a salary number even before the interviews begin. You also don't want to ask for less than you might get.

The first person to specify a number loses. Meaning, as soon as you specify a salary number you are at a disadvantage, so delay giving a number until after they want to hire you. Until then, you have no negotiating leverage.



Take the high road

When asked for a salary number before the interviews are scheduled, take the high road. Respond to the salary question by stating that there are several factors you consider when selecting the next company you will work for. These factors include; quality of the position, quality of the company and the team, location growth and finally compensation. Of all these factors compensation is the least important. What you'd like to do is discuss compensation after the company and you have decided that there is strong interest in hiring you.





Just before the offer

The interview process is complete and now the company wants to discuss your salary requirements. Most of the time they ask about salary before this point, but if they haven't asked before this time, they will ask now. They want to hire you and now want to know the price. What you know is that they really like you and feel you are very qualified for the position. At this point your negotiating leverage is growing. The salary number you state begins the negotiating phase and usually sets the point where negotiating begins. The art of negotiating often states that the first person to state a number loses. It is very difficult to negotiate up unless you have another company who is interested in you.



WHERE TO NEGOTIATE

The best place to negotiate is face to face at the company, neutral location or a quiet restaurant. You are the most influential in-person. If you can't meet, then negotiate over the phone. Before negotiating write out your specific requests, any additional questions about the position and benefits, and prepare your minimum acceptable terms for the offer. If you accept something below your minimum the excitement of a new job will quickly be replaced with disappointment.



HOW TO NEGOTIATE

The Pause

Immediately after being told the offer, take a long slow deep breath and be silent for 5 seconds. This communicates that you may be disappointed with their offer and that you are considering it. Several years ago I used this technique which resulted in a 20% increase in compensation. Even I was surprised. The hiring manager felt pressure to increase the offer simply by my silence.



The hiring manager asked me to meet him in the office to discuss salary and start date. He told me the offer and I took a deep breath and frowned just a little. In my head I was thinking “how can I get this offer just a little higher”. Before I could say anything, he said he could go a little higher and made a second offer. Again I took another deep breath. I then asked him “what do you pay your best recruiter.” I then asked if he was convinced that I had skills equal to or better than the best recruiter. He was convinced that I was just as skilled but time would tell whether I was or not. He agreed to pay me the same as the highest paid recruiter. I also said that if my performance was not equal to or better than others we would be happy to discuss a reduced salary. He agreed and I secured 20% more than the first offer. The entire negotiating event took about 15 minutes and the key was to take a deep breath and be calm.



Homework with a Guarantee

When you ask for a higher compensation package, after the offer is official, you are asking the company to go through another approval process to get a higher salary. You're asking them to do more work. They really don't like this very much. If you ask for a higher salary, you can increase your leverage by providing a guarantee that you will accept the higher salary. It could sound like this. If you increase your offer by $___ a year I will accept that offer and start work on _____ (date). This statement tells the company that they have a guaranteed offer acceptance if they do a little extra work.



Competition and Urgency

Interviewing with multiple companies simultaneously will work to your advantage. It's nice to have choices but the real benefit is the negotiating leverage this situation gives you. When companies feel they have to compete for your talents, you win. During your interviews you could say “I'm interviewing with several other companies and I'm expecting to receive another offer next week. I must say however, that I'm very interested in this opportunity with your company.



Just as Good as Cash

There are other ways to be compensated besides salary. You won't get what you want unless you ask. Consider negotiating for the following.

An extra week vacation, flexible working schedule, working from home 1-2 days per week, 100% company paid medical insurance, car allowance (if applicable), cell phone, and internet access at home are some of the extra benefits you might get through negotiations.



Early Review

You can also ask for an early performance review to highlight the results you have achieved in the first 3-6 months and to get feedback from your colleagues and boss. You may be able to leverage early results for an incremental salary increase based on your proven performance.



Signing Bonus

If the company if not willing to offer a higher salary, they may be open to offering a signing bonus. Salary may be limited due to internal salary ranges or internal equity with other employees. A signing bonus would avoid conflicts with internal norms while providing you with an initial cash bonus.

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