The first strategy is to always get as much as you can when you are first hired because any salary increases in the future will normally be based on your entry level package. If you "low-ball" your initial salary package in order to get the job, with the idea that you can make up any discrepancy later on, you are deluding yourself. Take our friend Jack, for instance. If he takes the position for a straight $40,000 on the false assumption that he will get substantial increases once the company realizes his worth, it may be years before he even begins to approach the $60,000 he originally had in mind. Even if he got a 15 percent increase in his salary each year for five years in a row (a very optimistic scenario), he still would not be making the money he wanted at the outset.
A second strategy is not to discuss your salary requirements too early in the negotiation process. It is to your disadvantage to do so because the employer cannot possibly know what you are worth to his company until he has taken sufficient time to learn about your total value to him. Also, once he is finally convinced that he really wants to hire you, you are in a much better position to negotiate for more money.
Most employers are aware of the strategy and some will try to derail you by offering you a salary figure right away. Be very wary of the immediate offers. The reasons he might do this aside, it puts you in a dangerous position if you respond favorably to the premature offer. The primary damage to you has to do with an old but true adage that, he who commits first to a position in any type of financial bargaining is normally the winner. If you seem willing to consider that figure, you are putting automatic limits on any future possibilities. Also, it puts you in the difficult position of making an immediate decision without having the real opportunity to analyze it. Therefore, if the employer says to you, "This job pays $40,000. When can you start?" during the early moments of the initial interview try to put him off in the most diplomatic way you can. You might say, "Well, I wonder if we can wait to discuss money until I know more about the job. By the way, did you say that this job . . .?" Or you might counter by saying, "Money isn't really my primary concern right now, I'm more interested in making a significant contribution. Did I understand you to say that this job ...?"
Another approach some employers take is to ask you almost at the outset how much you are expecting before they have made any sort of firm offer to you. They frequently do this to make their choice of candidate as simple as possible. If you want too much money, they can dismiss you right away and avoid the rest of what could be a difficult interview. The question, "How much money are you looking for?" is an attempt to put the burden of proof on you. In any case, your response should be the same as was indicated above; that is, avoid an immediate affirmative response at any cost.
If, however, he will not take "no" for an answer, give him the broadest possible range that you can such as, "Well, I'd like to earn $45,000 to $60,000 this year depending on my level of responsibility." The idea here is to increase your options and adjust your acceptable figure once you know what the job actually entails.
Some employers play another game of which you should be aware. They offer you the job without mentioning what the salary is. They do this to get a commitment from you before money is discussed. In effect, they are dangling the proverbial carrot-on-the-stick before your eyes. At last you have landed the job that you want, but once you accept it they are in the driver's seat and you have lost the negotiation. Your natural inclination is to accept the offer because you are so happy with the prospect of working for this company or doing the kind of work that they are offering.
The best way to handle the offer without mention of salary is to say something like the following: "I am very grateful for the offer to join the Ajax Company but so far we haven't discussed a salary. While money is a secondary issue here, it is important and I really can't commit myself until we come to terms. It seems to me that with my experience and success in this field, I should be worth approximately $55,000 to $60,000." After saying that, remain silent and avoid the temptation to say anything more. Now, you are in the driver's seat. After all, he has already committed himself to hiring you. Now he has to figure out how to get you to join his company; and you, in turn, have established a first commitment posture.
One final and very simple strategy for salary negotiation is to split the difference. If the employer offers $40,000 and you were thinking in terms of $60,000 it may be in your best interest to exercise an option such as offering to accept it for $50,000; however, never do this unless you hold out for some additional income tied to performance.
In the final analysis, salary negotiation is just another part of the employment interviewing game. If you follow the advice in this article you will be surprised at how easy it is to get more money and benefits than you ever thought possible.
