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Most popular Business
How to talk about pay
September 25, 2008 at 09:33 | Edward CocksLet the employer make the offer, preferably in writing, and then base your response on your own expectations and requirements. If you are happy with the initial salary offer, then things are simple. Accept and begin your new career. If you want more, the challenge is now on you to engage in the negotiating process. The secret to salary negotiation is to focus on the value that the position has to the company, then to the value you bring to the position.
Some advice: Be absolutely certain that you completely understand the job and all of the employer’s requirements.
If at all possible, ask for a written job description or have the employing manager restate the description. This also provides you with valuable time to plan your next few steps. One of the best tactics in this exercise came from a friend and colleague who wrote it all down, spent a moment looking at it and then turned it around to the executive offering the job and said: “Is this everything the job you are offering entails?” This was perfect! Now the employer is responding to, rather than leading, the negotiation process. Even better, it focuses them on the requirements of the job and makes them more likely to increase their valuation of the position.
After verifying exactly what the position involves, you should be able to draw upon your knowledge of the local market and industry conditions (you did do your homework right?) and decide how you will react. Do your best to make the employer change the offer amount as much as possible before you ever say the number you have in mind. For instance, when the employer has verified that the position is completely and accurately described, rather than responding with a raised amount, ask them another question: “Do you believe that your offer is fair for this market, given the position’s importance to the company?” Again, they are in a responding position. Keep them responding to your questions as long as possible and, hopefully, raise their offer.
When the value of the position to the company is fully established, now is the time to ask: “Am I the candidate you want to fill this position?” When they verify that you are indeed the one they want for the position, simply say: “I believe that I can do this job well above your expectations and would like to know what your best offer will be.” Again, this continually keeps them responding to questions and, so far, you have been simply asking questions.
If the final number is again below your expectation, now you can say: “The offer I would find acceptable is…” - and then be ready with the amount. Be sure this is an offer you will accept.
One last reminder, all too often employers will try to force you into negotiating based upon your last salary. This is one of their tactics for salary negotiation, albeit a flawed one, and has absolutely no bearing on your value to their company.
In fairness to the employer, you must also remember that your financial situation is of no concern to them in the negotiation process.
Good luck!
Edward Cocks has an M.B.A. degree and a bachelor’s of business administration in personnel and industrial relations. He presently teaches human resources management as well as business planning at Wisconsin International University in Kyiv.