Remember when you were a kid playing Monopoly and you got to the point in the game where you needed to trade property or offer money in order to make a monopoly? You had to decide what you needed to do to stay in the game, and then you had to work cooperatively with the other players to make it happen. Well, when you negotiate your compensation and benefits package with a potential employer, the process is very similar. First, you need to establish trust and credibility and establish rapport to convince the other party that they are making the right decision. Next, you have to consider your priorities and decide what you really want and what you are willing to give up. Finally, you must create a situation where both parties feel satisfied when the deal is sealed.
I’ve posted multiple times about salary negotiation strategies including what to negotiate for and how to communicate your salary goals, but I wanted to post about what you can actually say to a potential employer when you are navigating the salary conversation. Here are some of the top situations my executive clients find themselves in and recommendations for getting the most out of the conversation.
You are on a first interview with a company. The interviewer asks “What type of a salary are you looking for?”
“Before we discuss salary I’d like to learn about the position and share with you how I can add value to your organization.” Identifying a salary too early in the process often works against candidates, because many use only past salary as a benchmark rather than uncovering what the market will bear. If pressed for salary information, you can ask the interviewer what the range is for the position, and if this is revealed, you can suggest this range is consistent with your expectation (even if it’s not perfect; there will be room for further negotiation later). If they are not willing to offer the range, give them a salary range based on your knowledge of the market, not your past salary alone. Here are six tips for uncovering salary information.
The HR manager informs you that the salary for the position you are being interviewed for is $150,000. The HR manager knows that your previous salary was $25,000 more. She expresses concern over your level of interest in the position.
“Salary is not the most important issue for me. From what you’ve told me so far, the position sounds like an excellent fit for me. I’m much more interested in the quality of the job than the base compensation.”
A hiring manager insists on knowing your past salary despite your attempts to table the conversation.
“My compensation can range from $180,000 to $230,000, depending on bonus. By giving a range, you leave the discussion open.”
You have two competing offers. You’d like to work for this company, but the other position offers a higher salary.
“I want to be totally transparent. I have a very generous offer from another company, but I’d prefer to work here. However I just can’t ignore the differences in the packages. If you could put together a similar package I would be very interested in your offer.
A hiring manager offers you a starting salary of $170,000. Your research indicates that salaries for similar positions have a salary range between $170,000 & $230,000.
“I’m very excited to receive an offer, and I really want to be part of your team. I’m a bit disappointed in the salary. My research indicates that $170,000 is a more typical salary for someone new to this type of position. Given my seven years of experience, I consider myself someone closer to the mid-point of the salary range. Is there room to negotiate?”
You are offered a position with a start-up with a starting salary of $200,000. You previously earned $250,000 with a Fortune 500, but you’re very interested in being part of a new venture.
“I appreciate the offer and can’t wait to get started. Given the fact that my experience with a larger firm will certainly add significant value to this venture, can we discuss stock options as part of this package?”
An offer has been extended to you, but there is a three month waiting period for benefits coverage. You’ve been told this is standard company policy.
You – “So if I understand you correctly, no one ever receives medical coverage before three months.”
Negotiator – “Except in very rare circumstances”
Once they admit an exception has been made, you may be able to negotiate the same for yourself. Or you may be able to negotiate that they pick up your COBRA payments for the three-month period.
You’ve been asked to sign a one year non-compete agreement and you think six-months would be more reasonable.
You – “The non-compete agreement will probably keep me from working for a year, so I’m sure you’ll agree to a one year severance package.”
Negotiator – “We can’t offer you a one year severance package.”
You – “Then why don’t we make the non-compete for 6 months?”
By showing why this is fair, you may be able to negotiate a better arrangement for yourself with more security should you end up leaving the role.
Everyone can learn to negotiate effectively for what they need and want. Companies are willing to negotiate what is fair and reasonable. Prove that the compensation package you are seeking is consistent with the value you will bring to the company, and you will create a win-win for yourself and the employer.
