Knowing What You're Worth
At a recent job fair conducted by the NCOA, an Air Force senior master sergeant was discussing salary with a recruiter. He was a communications specialist and had agreed to start work with the company in three weeks. When the recruiter asked him for his salary requirements, he said he had done some research and talked to his buddies in industry, and he really had to have compensation somewhere in the neighborhood of $20,000 to $22,000. The recruiter looked him squarely in the eye and said.
"I sure am glad to hear that because I was going to offer you thirty-one-five!" In this case, the applicant was paid $31,500 because the company is extremely reputable and believes in taking care of people. Others, less reputable, would have hired him at the lower amount. Six months later, when the applicant found he had got a raw deal and quit, they could probably have found another person selling himself short. You can't afford to make that kind of mistake. This person obviously had not prepared for the negotiation and could easily have been burned.
Salary negotiation should be based upon the good principles of sales we have been following throughout the job search. You would not try to buy or sell an automobile unless you had first checked the NADA Blue Book to determine the vehicle's value. Otherwise you would never know if you were getting (or paying) the true value.
Remember, checking out on your salary expectations is a buy-sell situation. You are trying to get the highest pay for your services, and the employer is trying to get your services as economically as possible.
The Power of the Purse
As you talk with future employers, you will find it interesting that, in many cases, the individual who has the hiring authority (manager, director, supervisor, or foreman) seldom has the authority to determine your compensation level. Compensation is controlled by the human resources department because in many companies they own the salary budget. Their mission is to keep the cost per hire low and to keep all other compensation programs within reasonable limits. Many companies also have strict policies on starting salary, but others are flexible.
Because you won't know which you are dealing with, you will need a strategy to ensure you get the best possible deal. Compensation programs are structured in most companies to place salary within a range. That means as long as you remain in a certain position, you will make no less than the minimum for that position, and no more than the maximum. The ranges are usually divided into steps, sometimes called quartiles or quintiles, to allow for normal advancement within the position.
You may or may not know the range for the position you are seeking. You should assume any offers will be at the low end of the range. Your tactic will be to bump the offer to see if it can be raised by 10 percent.
After a successful interview you will probably be called back to meet with the human resources people again. At that time the administrative formalities will be taken care of, and salary will be decided upon. This is where you can negotiate.
When the offer comes, you should immediately evaluate it to determine if it is fair. Considerations should include benefits, advancement potential, and your interest in the position. You should review information gained in your research and confirmed by your visits to the state employment service and private employment agencies.
Learning to Say No
If the offer is not fair, reject it immediately. State your reasons and your sources of information by saying, "That's not really a reasonable offer. I've done quite a bit of research and talked to the state employment service, and I know widget operators make at least _ in this market." The figure you quote should be the most current information you have and include a 10 percent error factor. For example, if your research indicates widget operators make $20,000 in that marketplace, you should quote $22,000. Then, you should sit back and await the response to determine if you want to negotiate further or just decline the job.
If the offer is a fair one and you feel comfortable with it, and then bump it by 10 percent. "Mr. Jones, that's really a fair offer, but I was thinking more along the lines of $_. Do not go crazy and ask for 50 percent, and don't forget to consider the benefits. Perhaps a little bit less might be fair for a great benefits package, and a little bit more for a weak package, but always ask for 10 percent. In many cases you will find the recruiter was holding some back to sweeten the deal for your services. After all, companies are in competition for your services and might pay just a little bit extra to get you. If you don't ask, you will never know.
