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Tips on Salary Negotiation

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Of the many factors that job-seekers evaluate and weigh when they receive an offer, salary is by far the most important one. It's the reason why most people work and job-seekers' single greatest consideration when deciding whether or not to accept an offer. Unfortunately, many people don't know how to handle this salary issue and they accept lower offers than they need to.

When it comes to salary, there's also a conflict of interest between company and potential employee. A company is in business to make a profit and therefore wants to minimize expenses. Since salary is an expense, the company tries to keep its offers as low as possible. A job-seeker, on the other hand, is looking to make the most money he can and wants the highest attainable salary. Thus a difference of opinion can arise concerning an equitable figure, and negotiating begins.

Getting a company to increase its offer is easier than most job-seekers realize. The salary that's initially proposed is frequently designed to "test the water." Although it's an amount of money that the company believes will be accepted, it isn't the greatest possible sum. The company will agree to a higher figure if given good reasons to support it. As positions increase in seniority, organizations become that much more willing to negotiate.



When the company is local, advise the personnel representative of your interest in the position and the company, that you were hoping for a higher offer, and that you would like to arrange a meeting to explain why you feel an increase is warranted. He'll either negotiate with you, set up an appointment, or ask what salary you're seeking and tell you that he'll speak with the manager and call you back.

When the company is located out of town, proceed as above, but explain that you would like to discuss your reasons for deserving an increase. This gives the personnel representative the opportunity to negotiate with you if he has the authority to do so.

It's important to be tactful when speaking with a personnel representative. Regardless of your feelings about an offer, never be rude or say anything that might irritate him. He could be the person with whom you end up negotiating! If not, he's now your link to the manager, and how he communicates your reaction and attitude can have a significant impact on the manager's willingness to accommodate you.

There will be times when a company won't increase its initial offer. Here, try to negotiate a raise to a certain level after a three-or six-month period. You can also negotiate the following: a performance bonus, stock option, expense account, insurance policies, vacation time, company car or car allowance, club member ship fees, and legal, tax, and financial planning assistance.

If you were referred to a company by an employment agency and it's your responsibility to pay the fee, ask the company to assume this expense. If the company declines, try to negotiate reimbursement after a 3-, 6-, or 12-month period. Since companies are usually amenable to the latter, always ask to be reimbursed, whether or not you're negotiating salary.

Regarding Your Current or Last Salary

What to say to interviewers when they ask about your current or last salary is one of the trickiest parts of salary discussions. If your income is low, some employers will view this favorably because it won't cost them a lot of money to hire you. Others, however, will question your abilities.

If your earnings are high, this could preclude your being made the offer. Yet some employers might see this as validation of your capability and expertise and become that much more interested in hiring you.

Clearly, there are good reasons to tell an employer what you've been earning as well as to withhold this information.

When deciding how to handle this matter, there's also another factor to consider: Some employers will be angered by your refusal to discuss your earnings level, while others will understand that you want an offer to be based on your value to the company and not on what some other organization has been paying you.

The best approach to take is to weigh all these variables and handle questions concerning your current or last salary on an individual basis. Depending on the circumstances, you might reveal your income level to one employer but not to another.

Giving Notice to Your Present Employer

Once you've accepted an offer, give your manager reasonable notice that you'll be leaving the company. Two weeks is usually an appropriate amount of time, except for senior- and executive-level positions.

Never advise the manager in a way that could cause resentment or bitterness, regardless of how difficult it was working for him. You might need his reference at some point in the future.

The two of you might also end up at the same company. In addition, you want the opportunity to be made a counteroffer. Because companies don't like to lose valuable employees, they frequently promote people, transfer them to a different department or division, create a new position for them, or match another company's offer when given resignations. Although these "forced reassignments" and salary increases don't always prove advantageous in the long run, you still want the option of being able to consider such a proposal.

Some job-seekers use this situation as leverage to negotiate a higher offer from another company. They give notice before accepting the offer, with the expectation of generating a counteroffer from their current employer. Then they inform the other company of their new salary in hopes of obtaining yet another increase.

After you've arranged a starting date with your new employer, thank all the people who helped you in your search and advise them of your new position. Either call them on the phone or write them brief notes.
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