Reap the Rewards by Learning to Negotiate Now

The good news is, negotiation doesn't have to be ayourself -- until you feel ready. Getting the employer
win/lose game in which the best player wins. In fact,to want you is crucial to maintaining the upper hand in
when it comes to negotiating the terms for youryour negotiating.
career moves, that's exactly the outcome you wantIf the question of money arises too soon, tell the
to avoid. If you win and your employer loses, youinterviewer you need to learn more about the
lose in the long run. Inevitably, your employer willcompany and the job opportunity before discussing
start looking for someone who can perform yourfinancial needs. If the employer still persists, ask if
function at less extortionate rates. If you lose andyour are being offered the job. If pressed to give a
your employer wins, well, you lose.salary figure, speak in terms of the job's worth and
The sooner you learn to negotiate, the sooner you'llyour ability to do it well. Let your interviewer know
start reaping the rewards. Unfair as it may seem,that, while money is not your main objective, you
employers tend to prefer those candidates whobelieve in excellent compensation for excellent
already earn a greater income. While theseperformance.
candidates cost more to employ, their higherA good answer to the salary question is to quote
incoming salaries are assumed to reflect greateranother offer you've been made, provided it is
competence, initiative, and achievement. So, it's triplyattractive. You may announce the salary you would
in your interest to pursue income increases at everyexpect or answer that it depends on the total
legitimate opportunity. One, you immediately increasecompensation package with fringe benefits and other
your income each time you succeed. Two, you makeperks.
yourself more desirable as a candidate for your nextYou might also respond by saying that salary is the
position. Three, you increase your future income; thethird item on your priority list. Number one is making
higher your salary/benefit package going into a newsure you can work well with the employer, and
job, the better the offer a prospective employeenumber two is being the right candidate for the job.
must make to attract you. Whether you're lookingYou also invite the company to offer you what it
for a raise and promotion within your currentfeels you are worth based on your skills and
company, or looking for greener pastures, theaccomplishments. Your weakest response is to
following strategies apply.divulge your present earnings. Or worse, to say, "I'm
1. Prepare before you proceedwilling to accept a comparable offer with good
"I'm so broke I can't even pay attention."earning potential."
Negotiating a significant jump in income requiresThis will typically net you to a zero-to-ten percent
research on the negotiator, firm, and industry. Youincrease, with an accompanying song and dance
must be familiar with the company's wage limits andabout the many intangible benefits of your new
fringe benefit options for the job in question, andposition. If you must quote your current salary, tell
with the style, thinking, and perspective of thethe employer that you will be getting a salary review,
person with whom you will be negotiating. Exploreand you expect at least a 10% increase. If this isn't
the types of compensation programs available in thetrue, make it true by having such a discussion with
industry and the industry-wide income levels typicalyour current employer.
for persons with your background and experience.If you're ready to discuss money and your
Try to determine how much authority thenegotiator still hasn't brought it up, you can move her
interviewer will have to discuss salary and fringein that direction if the mood is highly positive and you
benefits.feel that she really wants you for the job. You might
Contact industry associations, executive recruiters,say, for example: "I feel very comfortable with you,
and competitive companies for salary ranges andthe position available, and the quality of this
fringe benefit packages. Research library referencescorporation. Now where do we go from here?"
including the Occupational Outlook Handbook and theRemember, don't be impatient! Your ultimate goal is
American Almanac of Jobs and Salaries, and otherto get the interviewer to make the best possible
reference works. Also independent researchoffer first. This offer is simply the opening gambit as
companies offer industry data on average salaryyou begin further negotiations in earnest.
levels for specific positions.7. Seek the employer's position before stating your
Before your negotiation, set specific income andown
benefit goals, develop acceptable trade-offs amongJust as you should allow the employer to mention
these elements, and identify areas in which you willmoney first, you should also encourage the employer
be willing to make concessions. Keep in mind that it'sto mention his or her other terms -- relocation,
not how much you're worth, but how much theystarting date, car allowance, salary limits, job title, and
think you're worth that counts. Also, examinethe like -- before revealing yours. Probe carefully to
alternate routes to the compensation you desire.see what he or she really wants. Size up the
These may include changing employers, changingimportance of any points of disagreement. You need
positions within your present company, or becomingto gain an understanding of the employer's position
self-employed. The less desperate you feel aboutto plan your proper gain and to plan your proper
attaining your desired income through one particularstrategy. Don't let the negotiator pressure you into
course of action, the more vigorously you canaccepting an offer until you feel satisfied you're fully
negotiate to get it.informed.
Remember that you are negotiating a total8. Keep good records of your achievements
compensation package. Weigh pure dollars against allThroughout your career you should develop the habit
benefits -- perks, automobile allowances, guaranteedof documenting everything that reflects positive
incentive and bonus, commissions, insurance, countryperformance. Save (and when appropriate, solicit)
club privileges, financial and legal assistance, first classwritten letters of recognition. Note the overtime you
air passage, four-week paid vacation, job title,work, the goals you achieve, the money you save
secretary or support assistance, car phone, and soyour employer, the bonuses you earn, etc. Be
forth.specific. Having all the pertinent facts at your disposal
One industrial troubleshooter I know earned $6,500will help you build a credible case for your worth to
per year in 30 minutes just by researching histhe company.
industry -- and by having a ready trade-off. InA colleague of mine helped place a substance abuse
negotiating with a potential new employer, this mancounselor who began in this field as a volunteer.
had reached agreement on every point except salary.Years before, this man's hometown paper had
The employer wasn't budging from a figure $7,500devoted a Sunday feature story to his volunteer
beneath what the applicant felt he was worth.work and the crisis intervention center he had helped
"In my current job," this man recalls, "I had calculatedfound. "I made this article an attachment to the
the monthly revenue I generated for my employerresume," says the counselor. "It said things about me
through billable hours and warranty claims avoidance.that might have sounded egotistical had I said them
It turned out to be about $12,000 per month over-- and carried more credibility as an outside source,
and above my salary.too. I believe that article, as much as any one thing,
"I also knew that the position for which I washelped me win my current position."
applying had been open for two months; experts in9. Never make an easy concession
my field are rare. So I pointed out that it would costWhen you make a concession, let the employer
the company less to hire me on the spot at myknow it's difficult. Make small concessions first. Say to
desired salary than to wait another month and hirethe employer, "If I give this up for you, what will you
another applicant at the lower salary -- if they coulddo for me?" or "Will you give me this in return?" You
find one. They wavered. So I offered to use mycan afford to trade a few chips from your pile for an
new personal car for regional site visits at a fairimmediate concession from your negotiator in return.
reimbursement rate. (I prefer my car over their fleetBut remember, the value of your concession
cars anyhow.) That clinched it. They offered mediminishes rapidly, so the time to work your trade is
$6,500 more and I happily took it."before you concede a point for keeps.
Identify the goals of your prospective employer bySometimes the best way to reduce your ultimate
trying to anticipate what offers you will be made.concession is to "flinch in surprise" and then be silent
Run through all possible scenarios you may encounterfor a few moments when a figure is given. You may
in the negotiating phase. Set limits you will accept,even slowly repeat the figure and then be silent
and be prepared to walk away if your terms can't beagain. If the employer becomes anxious about your
met -- assuming they're reasonable and realistic. Inapparent resistance, he or she may sweeten the
the early stages of the negotiation, let the negotiatoroffer to mollify you.
know you're interested only in an exceptional10. Always counteroffer
opportunity. You thereby set the stage so that theWhen you do respond to an offer, make a
interviewer is unlikely to make you a low offer.counteroffer a little higher than you expect to get.
2. Choose a conducive settingThe result? You may gain something without having
Choose an environment for the negotiation in whichto give up something later in the negotiation.
both you and the interviewer feel comfortable. IfHowever, keep your ultimate goal in mind: a win/win
possible, avoid distracting events such as dinner, andresolution. You have to come to work every day
distracting settings such as lounges or lobbies. Makewith your negotiator, so it's important to appear
sure the person you're meeting has the authority toreasonable as well as self-respecting.
make the final decision. Otherwise, delay until11. Accept when the time is right
someone with authority can meet with you.If your instincts tell you the time is right for the
3. Always negotiate in persongetting the best offer, push for a decision
Negotiating in person gives you the greatest control.immediately, even if it's your first offer. Sometimes
Face-to-face meetings provide the chance to readan employer will be more receptive to making an
and exchange body language, use silenceoffer right after a long, impressive interview than
constructively, make eye contact, and in generalafter a thoughtful delay and a cooling-off period.
enjoy a much richer and more subtle communication.Emotions play a major role in every negotiation, so
Less personal means of negotiation -- phone calls andsettle when the employer's emotions are most
or the mails -- will almost always result in a lessstrongly in your favor.
satisfactory outcome.12. Get your agreement in writing- Better yet, write
One sales engineer told me the difference it made toit yourself!
negotiate in the office of her future boss. "TheAs you accept an offer, establish your expectation
minute I walked in, I noticed pictures of racingof receiving a written employment agreement by a
sailboats on his wall. Well, I'm a nationally-rankedspecific time. A written agreement reflects a firm
Hobie Cat racer, so we wound up swapping greatcommitment, and clarifies what is expected of both
racing stories for 20 minutes before we began talkingyou and your employer.
business. I got the job -- not only because we built aAs part of your agreement, insist on a three to six
personal rapport, but because our good feelingsmonth severance contract. This protects you if
convinced my boss that I'd warm up his firm'sthings don't work out. It protects you from a
prospects, too.company merger, takeover, new boss, and similar
"By phone," she concedes, "I never would have hadsurprises. It also insures fairer treatment from the
the visual cues that got things moving in the rightemployer. The employer will not grant a severance
direction."contract unless he or she feels you're right for the
4. Never negotiate with strangersjob. He or she will also work harder in meeting the
Build rapport early in the meeting. Creating an open,agreement to avoid having to settle a severance
relaxed, friendly environment develops trust andcontract.
mutual respect. Start negotiation proper only afterOffer to write the agreement yourself as this allows
you and your counterparts are comfortable with oneyou to ensure the inclusion of all details to which you
another.and your employer agree. If you're switching
5. Establish mutual goalsemployers, don't turn in your resignation until after
Concentrate on establishing and reinforcing points ofyou have the letter of agreement in your hands.
agreement. Continually reiterate your feeling of13. Guarantee your performance, and honor your
mutual compatibility and cite the positive attributes ofguarantee
both parties. This creates a bond of harmony to helpYou can generally negotiate better terms for
overcome the differences which are likely to arise inyourself if you are willing to commit to specific
negotiation. If you hit a sticking point, reviewing yourperformance goals. Doing so also works in your favor
points of agreement and shared goals will rebuild yourwhen it's time to review your performance; these
accord with your negotiators.goals provide a ready-made, tailor-made yardstick.
6. Let the negotiator raise the subject of moneyOnce you commit to performance goals, follow
"To negotiate, you've got to care, but not thatthrough. Negotiations with employers are a
much."continuous cycle, beginning the day you arrive and
The first person to mention money usually pays forextending to your next salary review when the cycle
his impatience. Let the employer bring it up as manybegins anew.
times as necessary -- without talking numbers