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Pay Negotiation Tips...
Do not negotiate or discuss pay
too early. Until you have gone through the complete
interview process, determined that you want to work at this
company, and they have given you a written offer, do not
negotiate or discuss pay. In fact, do your best to
avoid the topic, even if it is brought up by the company
during the interview process, which it probably will be.
When asked what pay are you looking for, keep your answer
simple. I am flexible, I am open, would like to learn
more about the position, etc.
Turn the question around by
saying that you would consider all competitive offers, and
then ask what the range is. They may or may not tell
you, but either way that will usually end the pay topic for
now. There is basically no upside in having in-depth
pay discussions with anyone at this company until both sides
want each other.
You may have the philosophy, because you read it somewhere,
that you will never tell a prospective employer your current
pay situation. This approach will backfire, or make
you not look very good. Be up front and share your
current pay, but only if asked. You may say, well that
is not their business. Like it or not, and whether it
is technically the company's business or not, you need to
share this information. Not sharing, and being
untrusting to a future employer and hiring manager, will
often end or hinder future discussions, or at least drop you
down a few notches since most people will disclose this
willingly.
Remember, you can ultimately, if you get the job, turn the
offer down or negotiate it. At least put yourself in
the position to negotiate. The key, which will be
repeated, is to make them want you first. So if you
take the hardball approach about not writing in your
application or not telling them your situation when asked,
don't expect a positive outcome. Think about it this
way. If you tell them your situation, the company will
now have some idea if they will be able to compete for your
services. Let them end it, not you. Think about
it from the hiring manager's perspective. You have someone
who is not open and trusting enough to share their current
pay. Is that kind of employee they want on their team?
Probably not.
Mostly, the people who are adamant about not sharing their
current pay believe they are paid too low, or they have
heard a story about a guy making such and such doing the
same thing at XYZ company. This may be true, but you
must have some trust that employers in your industry have an
idea as to what the current pay standards are. If not,
you will have plenty of time to educate them after they
offer you the job. You may say, well won't I be
wasting my time if I do not know upfront what the pay is.
Do not worry about wasting your time if you do not know
exactly what the current pay is prior to an interview. Often
you will know, sometimes you will not. That is the
risk you take interviewing and trying to better your current
situation. There is no plug in formula for pay, and
many factors discussed later cause it to vary.
You may notice that the advice we are offering has to do
with you GETTING THE JOB FIRST, before making pay an issue.
This is the best negotiation tip we can give you. You
are in a position to negotiate and make demands only when
the company and hiring manager wants you. Of all of
the things to be concerned with during the interview
process, pay should be towards the bottom. Focus on
skills that make the the company and hiring manager like
you. Could you possibly see a situation where a hiring
manager offers a job to someone that they do not like?
Make them want you badly, because if you do not accomplish
this, pay is irrelevant.
Even if you know the pay range and think it is too low,
nothing is set in stone. You may really like the
company, industry, market, etc. We have witnessed
numerous occasions where a pay range is known, and the
company goes way beyond it. Why? Because the really
wanted this person.
When the offer arrives, review it thoroughly. Make
sure you truly understand all of the terms and conditions.
Do not react, but study and let your mind absorb it.
Ask yourself what your initial thoughts are. Too high?
Low? Seems fair? Wish this was in it? You need to be
clear about what you really want and are willing to ask for
in addition. Also, do not feel like the negotiation
Gods are going to strike you down if you just decide just to
accept it. If you factor in the position, company,
pay, etc., and it all seems like a nice deal and you feel
good about everything, go for it.
If there is a component missing that you were hoping for,
then ask for it, but do it professionally. Stay calm.
There is absolutely nothing wrong with negotiating an offer.
You will not offend and most companies expect it. You
can do this informally, by letting the hiring manager, HR
person or recruiter know specifically what you would like
changed. If they require a formal response, or if you
would feel better doing this in writing, then go that route.
Ask the employer how they would like you to respond.
Keep this in mind, studies have shown that the a high
percentage of offers would be negotiated on the employer's
end, yet only 1/3 of candidates ever ask for more or better
terms. You will benefit yourself immensely long-term
if you get better terms now. Find a simple future
value of money calculator and you will see just how
important it is. As mentioned, there is no plug-in
formula for pay, so you need to look at other factors such
as the following.
Business factors - What is the current state of the industry
you are in? What is the general state of the economy
(avoid watching the evening news for good mental health).
Is the unemployment rate high in your area? Is the
supply and demand for your skills high or low?
Employer situation - Is the company doing well? Profitable?
Losing money? Are they a start-up, mature, or in a
turnaround situation?
Position / hiring authority factors - Is the position
urgent? How long have they been looking for this person?
What is the competition and availability of other candidates
for this position?
You factors - Do you have other offers? It is certainly okay
to share this information during negotiations, since it will
often lead to a better offer. It is probably the best
and easiest way to negotiate an offer. NEVER lie about
this. What are your technical or non-technical
expertise? Is your skill set, knowledge, experience
unique? What is your financial situation?
Key tip number one: Make them want you, badly. This is
the best tool you have for negotiating.
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