Salary Negotiation: How to Earn More Money and Your Employer’s Respect

As important as fair pay is to most of us, effective salary negotiation is a subject that is often misunderstood and avoided. Current research indicates that the average tenure of a position today is 3.8 years. Over the course of your career, how well you negotiate raises or starting salary will have a huge cumulative effect on the quality of your life.

So why is this skill still elusive to many career professionals?

Most of us do extensive research and prepare extensively for a job interview. We craft the perfect resume, slave over cover letter drafts, and rehearse answers to anticipated interview questions. We make sure we are well dressed, have references, and arrive on time. But too often, only superficial attention is paid to thinking about how, when, and why we will end up satisfied with our salary terms.

One problem is that cultural taboos in our society make talking about money a no-no. Many of us find bargaining for money inherently unseemly, or feel guilty for not accepting what is so kindly offered. Aren’t you supposed to haggle if you’re buying handmade rugs somewhere in Turkey?

We want to believe that the first offer we hear should be the highest possible dollar figure; Plus, we don’t want to “rock the boat” and potentially ruin our chances of landing that great job. That voice inside of us whispers “Everything in this interview has gone very well! Don’t blow it now!”.

However, whether you like it or not, you are a negotiator. You can’t get off this ride. Negotiation is routinely carried out in dozens of ways in our daily lives. Given the fact that you will win or lose several thousand dollars in the span of a few minutes, learning how to negotiate your salary respectably is vital! Notice I say respectably.

Unfortunately, I see countless candidates who come across as too aggressive or too tame, for their own good. This is often due to a lack of self-preparation and practice. Many candidates also do not realize their position in the market and the position of the employer. Not good!

The good news is that salary negotiation skills can be learned or improved. Here are seven key tips for getting paid what you’re worth while maintaining a healthy respect that others have for you:

o Don’t think that effectively negotiating your salary means you have to have the mindset of a used car salesman! You are not being sneaky, out of line, or ungrateful by not accepting the first number that is rolled. Most employers value candidates who clearly possess self-esteem and self-confidence; these qualities are revealed through skill and poise in the way you negotiate your salary; they are also revealed if you do nothing.

Think about it: doesn’t it make sense that if you demonstrate effective negotiating skills for yourself, you’ll in turn negotiate smartly for your employer, too? Hiring managers realize this.

o Remember that its value is much more important than a number somewhere on a spreadsheet. Yes, this is true despite the common cries that “payroll budgets are fixed, this is the best we can do” or “in this economy, you have to be realistic”. Employers in general aren’t looking for “cheap deals,” but instead want value in their employees.

A common misconception is “I’ll have a better chance of getting the job if I don’t ask for a lot of money; I won’t cost as much as other candidates.” Do not go there! Focus on the value you bring, not how little it costs. By the way, if you do this correctly, the question of “previous salary history” should be much less relevant. This means that you will have a better chance of jumping to higher ranks faster in your career.

o Do not (and I mean never) accept any type of benefit before negotiating your salary. Because? Once you accept some form of compensation other than salary, the employer has leverage to justify why your salary should be lower. Always remember to come to an agreement on the starting salary first. Then negotiate non-salary benefits and special considerations afterward.

o Delay in discussing compensation; try to discuss its value and the specific benefits it can bring, for as long as possible. The employer should perceive you as a valuable and unique resource, not a trade good with a price tag.

Think about those high-end infomercials that delay the deal’s price reveal until the very end (if at all). The objective of the infomercial is to draw your attention to the value of the good or service and its different uses and applications.

Certainly something that clearly validates a profit or cost savings of $25,000.00 would have an attractive value of $2,499.99. But would you really pay attention to an ad that immediately said your cost was $2,499.99? Probably not! The same psychology applies to salary negotiation. The longer the interview process lasts, the more likely you are to be considered a valuable resource, obviously worthy of higher rank pay.

o Do not accept any offer, no matter how lucrative, on the spot. Instead, he expresses his continued interest in the position and how he clearly sees himself making contributions (specify once more). So always ask for 24 hours to consider the offer. Certainly one day it will give the hiring manager time to find the necessary “leeway” if necessary.

Be passionate and excited, but don’t lose your objectivity: any position that will be at the center of your daily professional life for years to come won’t vanish in 24 hours. Good?

o Remember the old axiom “he (or she) who talks first loses.” Wait until an offer has been made, but don’t respond right away. Remember that in many cases, what you are initially offered may be the lowest number the hiring manager dares to put forward.

This is mission-critical territory: often even casual comments made by you constitute implicit acceptance of the offer…which can quickly turn into explicit acceptance as the conversation progresses. Don’t let this happen! Instead, intentionally steer the conversation toward the responsibilities of the position. Who will you be supervising? What are some specific, tangible contributions that you see yourself making? Where do you see yourself in the organization in the future?

The bigger the long-term picture you create, the more likely you are to trade more effectively. You can only really start trading after you have brought realistic present and future scenarios to life.

o Do not negotiate too much. How do you know when to recognize what is too much or too little? By researching your market ahead of time. Don’t just go to http://www.salary.com and think you “should” earn a certain dollar amount without taking into account the unique opportunities each employer has. This is not really a true investigation.

A salary is compensation paid for services rendered. Your salary should be commensurate with your skills and experience gained yesterday, but negotiated for the work you will do today and tomorrow. Remember, you don’t get what you deserve in life… You get what you bargain for!

Do you want more help? Check out this month’s HireWorks recommendations for great resources.

Special offer! This month we will review 10 CVs free of charge. Find out what improvements you can make to get noticed by hiring managers and land that all-important first interview! Click here to submit and be among the first 10 people to respond!