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Smart Salary Negotiation Tips
By Nathan Newberger
11 Commandments For Smart Negotiating

1 - BE PREPARED.
The more information you have about your market value and the prospective
employer, the greater your likelihood of success. This is the first
commandment because it's the most important. There's a wealth of information
available on the Internet, at the public library and through professional
associations and networking groups. Time spent learning how to negotiate and
preparing for negotiations may be the best investment you'll ever make.
2 - RECOGNIZE THAT EMPLOYMENT NEGOTIATIONS ARE DIFFERENT
When the negotiations are over, you'll have to work with the person with
whom you're negotiating. Moreover, your future success may depend on that
person. So, while you want to negotiate the best possible deal, you need to
do so in a way that doesn't damage your image. At the same time, the
employer's primary concern isn't negotiating the least expensive
compensation package it can get away with. Rather, their focus will be on
getting you to accept the job.
3 - UNDERSTAND YOUR NEEDS AND THOSE OF THE EMPLOYER
To be successful in this type of negotiation, you need to examine your
priorities. What do you really want? Are you comfortable with a low salary
and a large equity stake? Are you able to handle dramatic swings in income
from year to year? Understanding your needs will also help you determine the
type of company you want to work for. For example, a family-owned company
may be able to offer a competitive salary and a large bonus based on
results, but may not be willing to offer significant equity to a non-family
member. A start-up company, on the other hand, may not be able to offer
market salary, but will typically offer stock options. By recognizing what
an employer can and can't do, you'll be able to determine what issues you
should press.
4 - UNDERSTAND THE DYNAMICS OF THE PARTICULAR NEGOTIATIONS.
Sometimes you'll have skills that are in great demand. And sometimes, you
may be one of several qualified candidates the company would be happy to
hire. Sizing up the situation and understanding the relative position of
each party will help you determine when to press your advantage and when to
back off.
5 - NEVER LIE, BUT USE THE TRUTH TO YOUR ADVANTAGE.
It's not only wrong to lie, but in employment negotiations, it's
ineffective. If you lie during negotiations, sooner or later you're likely
to be caught. Once you are, even if you don't lose the offer, you'll be at a
tremendous disadvantage, and your credibility will always be suspect. On the
other hand, total candor wont be rewarded. You're under no obligation to
blurt out everything you know. You can determine what you want to say and
how you want to say it, and try to put everything in its most positive
light. One key element of your preparation should be to recognize areas of
concern so you can rehearse how to handle them when they inevitably come up.
6 - UNDERSTAND THE ROLE FAIRNESS PLAYS IN THE PROCESS.
The guiding principle for most employers when negotiating is fairness.
Within the constraints of their budget and organizational structure,
employers usually will agree to anything that's fair and reasonable to hire
someone they want. Appeals to fairness are your most powerful weapon. Thus,
you should be able to justify every request you make in terms of fairness.
For example, if other computer programmers in similar companies are being
given sign-on bonuses, you should expect to be treated no differently. Your
prospective employer will want you to accept it's offer and feel that you've
been treated fairly. Understanding the importance of fairness as a
negotiating principle can make the difference between success and failure.
7 - USE UNCERTAINTY TO YOUR ADVANTAGE.
The more information you convey to a potential employer about your bottom
line, the more likely it will limit what you get. Before making an offer, a
company typically tries to determine what it will take for you to accept the
position. With that information, the prospective employer will be able to
determine the minimum package it needs to offer. While they may not offer
you as little as they can get away with, if you've divulged too much
information, they likely wont offer you as much as they might have
otherwise. By not disclosing exactly what your current compensation is or
exactly what it would take to get you to leave your job, you'll force a
potential employer to make it's best offer.
8 - BE CREATIVE.
Consider the value of the total package. Look for different ways to achieve
your objectives. Be willing to make tradeoffs to increase the total value of
the deal. If you're creative, you can package what you want in ways that
will be acceptable to the company. You'll also be able to find creative
"trades" that allow you to withdraw requests that might be problematic to
the company in return for improvements in areas where the company has more
flexibility. That way, you can maximize the value of the package you
negotiate
9 - FOCUS ON YOUR GOALS, NOT WINNING.
Too often in negotiations, the act of winning becomes more important than
achieving your goals. And it's also important not to make your future boss
feel as if he's lost in the negotiations. You'll have gained little by
negotiating a good deal if you alienate your future boss in the process.
10 - KNOW WHEN TO QUIT BARGAINING.
The one sure way to lose everything you've obtained is to be greedy. There
comes a point in every negotiation when you've achieved everything you could
have reasonably expected to gain. While most companies will want to treat
you fairly and make you happy, few companies want a to hire a prima donna.
Being perceived as greedy or unreasonable may cause the deal to fall apart.
Even if it doesn't, you'll have done immeasurable harm to your career. This
brings us to the 11th and most important commandment:
11 - NEVER FORGET THAT EMPLOYMENT IS AN ONGOING RELATIONSHIP.
Job negotiations are the starting point for your career with a company. Get
too little and you're disadvantaged throughout your career there; push too
hard and you can sour the relationship before it begins.
Understanding these principles will allow you to effectively negotiate the
terms of your new job. Then do your job well and continually seek out new
challenges. As you take on added responsibilities and learn new skills,
there will be opportunities to negotiate further improvements.
--------------------------------
Nathan
Newberger is the job and career expert at
WorkTree.com
Nathan has over 10 years experience in staffing and human resources. He has
worked both as a recruiter and career counselor. Mr. Newberger has been the
Managing Editor at WorkTree.com for the past 5 years and his articles have
helped thousands of job seekers.
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