New Job Salary Negotiation Isn’t Scary!
In today's economy, people looking for jobs are at the point where every cent counts. When engaging in new job salary negotiation, you MUST keep a couple things in mind:
1. You might be working for the person you're interviewing/negotiating with
The last thing your new "boss" is going to want is to feel burned by you in a salary negotiation. The key to appropriately winning a new job salary negotiation is to make it seem like a win-win for both your new company and for you. Whether it's your educational background, work experience, or network, each of these can be used to make your new manager look good. Offer that up in your negotiation and you'll find you've created an ally rather than an adversary.
2. The only insight they have into your success at previous jobs is what you tell them, so make it GREAT
You are GREAT! So let everyone know it. You don't have to embellish your experience to be the exact person that a company needs. Just match your background with their job needs AND preferences. Communicate your greatness through your cover letter, resume, interview, and negotiation by staying on your story. Know what you want to say backwards and forwards so that nothing is off message. Once you have done that, you've ensured that you'll be in a strong negotiating position.
3 Ways to Make More Money
Let's face it. We all want to get paid the highest amount possible for doing our jobs. The jobs we do help our companies make a lot of money and without employees many of the great products wouldn't come to market. How many of you feel like you're adequately paid for the value you provide to your company? I didn't think so. How then can you earn more money for doing what you're doing?
1. Get in a hot industry - easier said than done right? Well you know what the hot industries are , and if you don't there are websites than can tell you. How do you get into that industry? We all have transferable skills. Map out your experience in what I call an "experience matrix". Want a surefire way to know if you're in a slow industry? Figure out if your raise was lower than the national rate of inflation. If you're an above average employee and your raise was that low, then you're in a slow industry.
2. Work smarter AND harder -when you work smarter at your job you become highly productive at doing what you have to do....but this frees up time...for pet projects that are risk free and may actually bring value. Doing things differently is what makes you stand out above your peers and bring more value to the company. Most companies actually do reward creativity and dedication.
3. Know your market value - keeping an eye on what your peers make can let you know if you're underpaid for your job. The best way to do this is to ask your peers (or use springraise.com, of course!). True, most managers don't like their employees comparing salary notes, but that's self serving. It's a manager's job to keep payroll as low as possible. It's your job to get paid as much as possible, and knowing how much people make around you can help you. At my first job out of college after I'd been there a year, I learned that newly hired undergrads were getting paid more than I was-and that's with the promotion I had just received! I used that knowledge to go to my manager to request more money. And I got it-a 16% raise.
These methods not only work separately, but also in combination. Think about if you're in a hot industry, you're outperforming your peers, and you know you could get paid more, then all of those things can work for you to get extraordinary salary increases. I was a management consultant in the mid 90s heyday and had worked smarter and harder than my peers. I also knew that I joined my company making slightly less than the average person at my level. Therefore, I got an 18% raise since I was seen as a top performer. Those kinds of raises only occur in hot industries where profits are strong and companies have to reward top talent in order to keep them happy and not look to jump ship.
To get those high raises, follow these techniques, and combine them when possible. You'll find your compensation will explode and you'll attain all of your career goals.
4 Reasons Why You SHOULD Discuss Salary In An Interview
I have heard many so-called experts say that you should not discuss salary in an interview. The rationale is that you're not in a strong enough negotiating position in that setting. In fact, here's a recent article endorsing just that practice.
Well, I'm here to tell you that all those "experts" are wrong--especially in this tightening economy. That's right, you SHOULD talk salary in an interview! Here are four reasons why:
1. If they're talking salary, they want to hire you.
You've just gone through a series of great interviews. Do you want to derail the momentum by putting off arguably the most important part? I don't think so. You want to engage in that conversation and be ready for it before going in.
2. You're instantly in a strong position when they bring up salary in the interview.
The interviewer is tipping her hand if she starts talking salary. It means you now have the opportunity to start defining terms. They're asking you what YOU require in order to come work for them. That sounds like a strong position to me.
3. You're on your game. Don't second guess.
You know how you've prepared for the interview. You've just nailed it. This is the time when you're at your highest personal confidence level. You've received validation that you're a star. Capture that moment of personal strength!
4. If you're unemployed, recently laid off, or need to change jobs quickly, you need to close the deal.
In this economy, getting the job you want--at least the offer--is paramount. Do you want to leave your offer up to chance? Time is your enemy. Get the deal closed and be ready to move into your new position.
The absolute KEY in all of this, is to be prepared to have that conversation in the interview. You have to set a salary goal before you even walk in the door. Interviewers will often ask, "how much are you making now?" When you're prepared for the question, you're poised, confident, and ready to give the answer that maximizes your compensation for the position. Your calm, cool demeanor will signal to the interviewer that you are ready. That shows you're ready to tackle the challenges of your new position because you're calm under pressure.
Here's even more content on the subject. Check out this (less than 3 minute) video that shows a situation where I was prepared with my data and ended up getting a 35% salary increase switching jobs just by being prepared to negotiate in the interview!
You also don't want to let time change your position in the minds of the company. You know how slowly companies move on offers when there's a delay. It could be a month before you here from them again. Discussing salary in the interview is a MUST these days if you have the opportunity. They could offer other candidates in the time between your interview and when you hear from them. You would never know that someone took your job.
And you can always talk benefits and other particulars later. The point is to come to an agreement quickly so you can secure your economic viability and start the new job you want.
Check out more salary negotiation advice at SpringRaise Salary Negotiation.
Think this is good advice? Bad advice? Let us know! Leave a comment.
Salary Negotiation Tactics
Recently I posted a question on LinkedIn Answers asking what different tactics people have used to negotiate salary. Here are some of the shocking answers:
As I have a tendancy to quit jobs in the middle of recessions with no other job-in hand, my "negotiation" technique is usually a step before begging. Other than that, I make sure during the interview process that they know that I'm open, but give them an idea of what I'm thinking about ($ range). The difficulty is that you don't really know what the job will entail before hand nor how much interest there is in the job.
OMG, I am horrible at this! I am consistently not getting my due when it comes to salary and packages.
I think I am going to sit this blog out, but then totally read up on others' advice!!!
I've heard that one tactic when you're actually first talking with a potential employer is to make them say a number first. You're not supposed to even talk numbers until you know they want you (ie. have offered you the position). Once you have that established, and they ask you what you need, you retort with "What do you expect to pay for this role?" or something along those lines. I've tried it. I haven't always been successful with it because I'm just too darn accommodating in these situations.
We weren't expecting these types of answers! "...negotiation is a step below begging", "OMG, I am horrible at this!" "...I'm just too darn accommodating..." And there were more like these! People seem to be genuinely afraid to negotiate salary, or don't have a clue as to how to do it effectively. Well, that's what we're here for at springraise.
So I decided to answer this one myself. True story below and a great tactic:
One trick I always used was to time my job searches during the performance management cycle, so when I'd get my raise from my current employer, I could use that number when asked by a new potential employer how much I made. That practice led to extraordinary compensation increases (35% and 51% the two times I used it).
This is a real tactic. If you're interested in more, go to our Salary Negotiation Series and sign up to hear seven more real-world tactics that can land you more money when you change jobs or even at performance review time. Good luck!
Salary Negotiation Tips
Let's face it. We all want to get paid the highest amount possible for doing our jobs. The jobs we do help our companies make a lot of money and without employees many of the great products wouldn't come to market. How many of you feel like you're adequately paid for the value you provide to your company? I didn't think so. How then can you earn more money for doing what you're doing?
1. Get in a hot industry
Easier said than done right? Well you know what the hot industries are , and if you don't there are websites than can tell you. How do you get into that industry? We all have transferable skills. Map out your experience in what I call an "experience matrix". Want a surefire way to know if you're in a slow industry? Figure out if your raise was lower than the national rate of inflation. If you're an above average employee and your raise was that low, then you're in a slow industry.
2. Work smarter AND harder
When you work smarter at your job you become highly productive at doing what you have to do....but this frees up time...for pet projects that are risk free and may actually bring value. Doing things differently is what makes you stand out above your peers and bring more value to the company. Most companies actually do reward creativity and dedication.
3. Know your market value
Keeping an eye on what your peers make can let you know if you're underpaid for your job. The best way to do this is to ask your peers (or use springraise.com, of course!). True, most managers don't like their employees comparing salary notes, but that's self serving. It's a manager's job to keep payroll as low as possible. It's your job to get paid as much as possible, and knowing how much people make around you can help you. At my first job out of college after I'd been there a year, I learned that newly hired undergrads were getting paid more than I was-and that's with the promotion I had just received! I used that knowledge to go to my manager to request more money. And I got it-a 16% raise.
These methods not only work separately, but also in combination. Think about if you're in a hot industry, you're outperforming your peers, and you know you could get paid more, then all of those things can work for you to get extraordinary salary increases. I was a management consultant in the mid 90s heyday and had worked smarter and harder than my peers. I also knew that I joined my company making slightly less than the average person at my level. Therefore, I got an 18% raise since I was seen as a top performer. Those kinds of raises only occur in hot industries where profits are strong and companies have to reward top talent in order to keep them happy and not look to jump ship.
To get those high raises, follow these techniques, and combine them when possible. You'll find your compensation will explode and you'll attain all of your career goals.
Salary Negotiation
ANYONE CAN NEGOTIATE HUGE SALARY INCREASES!
springraise: an extraordinary salary increase
Salary negotiation is one of the main keys to maximizing your career compensation over time. You can’t leave it to chance. You can’t let your boss dictate to you how much you should be paid. Information is power and Springraise Salary Negotiation is here to help you make the highest salary you can—not just now, but over the life of your career. Don’t take a chance, take the lead in your salary negotiations.
Check out the first of our videos from our exclusive Salary Negotiation Series. Here, our Founder, David Williams discusses how he was able to get a double-digit raise in his first negotiation out of college!
Salary Negotiation Letter
Sometimes it's necessary to write a salary negotiation letter to clarify your position and ask for higher salary. While we at Springraise Salary Negotiation recommend you do as much negotiation as possible in person, over the phone, through a recruiter, or even an HR rep from the company you're interviewing with--a letter can be a powerful way to justify your request for more money.
If you must write a salary negotiation letter, it must achieve two goals:
1. Justify your request for higher salary
Justification of a higher salary request can be difficult because there are few external sources that a company will consider valid to justify your request. There are some great pieces of information that companies do use including salary surveys. These surveys are sold to companies so they can get a sense of what competitive salaries are at different levels. If you have that report, then you have equal ground.
2. Convey that you're willing to walk away from the offer
Positioning in negotiation is key. The ultimate power in a salary negotiation is walking away. Companies spend thousands of dollars to get people in the seats to interview. When they like someone, they WANT that person. If you are that person and there's a credible threat that you'll walk away, companies tend to negotiate. Let me make this clear:
***It is cheaper for them to increase your salary than it is for them to keep looking for candidates.***
I have hired many people throughout the course of my career and this is generally accepted law, not theory. It's a secret employers don't want you to know! So have confidence and don't be afraid to actually walk away if the salary isn't right.
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Get Top Dollar! shows you many more and how to make double and even triple digit percent salary increases. I have gotten salary increases of 16%, 35%, 18%, 80%, 51% and 123% (Wow!) throughout my career. I can help you do the same.
Get Top Dollar! Salary Negotiation Guide
Get Top Dollar! gives you COMPLETE examples of where I've used my PROVEN methods to get extraordinary salary increases.