How Much Are You Worth?

Negotiating the offer

Having Written your resume in such a way as to capture the attention of the hiring authority and dazzled them in a series of interviews, we now come to the trickiest part of tying up the deal – negotiating the offer.

If you’re working with an experienced search professional, then this will be handled for you in a professional and efficient manner.

If you’re not, then the following tips might be useful for you.

It is important to consider the entire package, and weigh up the remuneration not only in hard cash, but also the benefits that come with the salary, the career prospects ahead of you, the company's culture, the potential for promotion and the bonus structure.

Remember that this is an opportunity to negotiate your base salary, all subsequent salary increases and annual reviews will be based on this initial figure.

In any negotiation, it is important from the outset to assume the role of job chooser rather than job seeker.

Negotiating can be an elaborate game of bluff, and eventually what really counts is 'what the interviewer thinks you're worth'.

What are you worth?

A true professional will go into an interview with a clear idea of what they are worth.

Do the math before hand so that you have a ballpark figure of the minimum you'd accept and the most you could expect. Take the time to calculate the following:

1. Minimum requirements: are based on your living expenses and the cost of maintaining your current or desired standard of living.

2. Your market value: is based on advice from recruiters, adverts for similar jobs and salaries of other employees within that company.

Compare the salaries of your present colleagues who were recently hired for similar roles, or by consulting salary surveys in professional journals or on-line.

3. Your dream salary: which is a figure that would make you really smile!

Be realistic, but don't be afraid to aim for the stars. It's amazing how many times people sell themselves short because they were naïve or misinformed about how generous a particular company can be. Some companies like to overpay as a means of promoting loyalty.

Having completed this you can now assess what would be a realistic negotiating band and from this come up with an opening gambit.

Opening gambit

It is important not to sell yourself short by mentioning a figure up front. Usually the interviewer will ask you during the interview what salary you would expect.

Sometimes they may even ask this when you initially apply for the job. It is best to avoid this negotiation trap by responding with the classic answer "it depends on the package of benefits".

Negotiating rule of thumb:

The person who mentions a figure first, places himself or herself at a disadvantage.

There are two useful 'things' to bear in mind.

Firstly, although the person making the offer is likely to be negotiate, they are also likely to be working with you once hired, and are therefore more interested in hiring the first choice candidate over saving the company a few thousand dollars.

Secondly, in monetary terms it's easier for the company to accept concessions than it is for the individual. Always assume that they want you more than you want the job.

The good news is that once an offer is made, the ball is in your court. This means they want you for the job, and you are in a position to lay down your expectations and let the negotiations start from there.

If you're under pressure to mention 'what salary you would be looking for', it is best to quote a range that begins a little below your ideal figure and ends a little above it. For instance, if you are aiming for $80,000 per year, mention that you would be looking for something between $75,000 and $85,000.

The next step is to say nothing. Wait for a reaction.

On the other hand, if the interviewer mentions a figure first, you are then free to consider whether their offer is unacceptable (according to your expectations), generous, or within the negotiating range. Don't be afraid to say that you'll give it some thought and come back to them.

Settling on a figure

If an offer is made that is in line with your expectations, it's still worth negotiating for a little more, remembering that their offer is an opening gambit which is probably less than they are willing to pay. The intention to employ you is not likely to be withdrawn if you ask for more money.

"I was hoping for something more in the range of…" or "How much room do we have for negotiation?" are two ways of asking for more. If you suspect that they are unlikely to budge on money you can haggle for additional benefits) or request a review after three to six months.

On the other hand, they may make an offer that is below or close to your minimum. Your strategy now is to focus on the topic of money, and proceed in a calm, business-like manner with comments such as; "I'm very interested in the position but feel the salary is a little on the low side for the role" or "I will have to go away and consider if I can accept a salary in that range. Is there any room for negotiation?"

Remember to be diplomatic at all times, showing a willingness to reach an equitable conclusion. This is not a scene from Monty Python’s Life of Brian (remember the scene: ‘Don’t you want to haggle?’) it’s serious business.

Always be firm, and give the impression you are working towards a mutually beneficial solution. Don't rule out the potential of benefits in boosting the value of your take-home salary.

And finally…

Take your time. Choosing the right job is an important and time-consuming process. If necessary, go away and think about their offer before coming back to accept or re-negotiate.

Weigh up all the factors, such as commuting time, career opportunities and company profile before settling on an acceptable figure. And, if it doesn't seem worth it, don't be afraid to turn down the offer and patiently wait for something better. At least you'll have more negotiating experience at the next interview.

© 2004, MFA Group.com