BEFORE THE INTERVIEW:

11 General Principles of Negotiating Salary

 PRINCIPLE 1: POSTPONE THE NEGOTIATION

 Never begin salary negotiation before receiving a firm job offer. If your interviewer mentions the salary issue at the beginning of the interview, you can respond with something like:"Thank you so much for mentioning this issue. Before we discuss this, may I ask you ... ?"

 This technique will move the conversation away from the salary issue. Ask questions regarding the responsibilities, the tasks, the mission of the job. If the interviewer has you "on the ropes" and will not be dis­suaded from discussing the salary issue, do not lose your chance at a good job by refusing to discuss this issue. Instead, quote a very broad salary range or use one of the following four strategies to postpone salary negotiation.

 1. Bounce back the question to the interviewer.

"I am sure that you have budgeted an amount for this job. What sort of range does the salary curve or your budget show?"

"I have an idea of what the market offers for this type of job. Could we please begin by discussing what your company is prepared to offer?"

“A company like yours surely has an idea of the salary range to be offered. What do your salary curves suggest?"

 2. Stall Elegantly

"I am sure we will come to a fair agreement on salary once we have established I am the right person for the job."

"Salary isn't the issue here. I know that I have to produce more than I cost. First, let's figure out how much I will produce for you."

"Salary is the third item on my working condi­tions list. First, let's establish that we can work together. Second, let me show you how, through my job/work I will contribute posi­tively to your organization. Then, as a third point, we can discuss the salary issue."

 3. Use Your Sense of Humor

Your job as interviewer is to make me talk about salary! My job as interviewee is to remain silent on this issue! Isn't it?"

"I never like to talk about salary for a job I am not sure is right for me. Could we first see if I am the right candidate for the job?"

"What I expect from a job is far greater than what I expect from a salary!"

 4. Disarm Your Interviewer

"Discussing the money issue at this stage of the interview is a little bit premature, don't you think?"

"I hope you won't mind if I ask to postpone this discussion for now."

"As a principle, I don't like to discuss salary prior to being offered a job. I'm sure you can understand that."

"I'm sure the salary offered for this job will be fair, equitable, and satisfactory."

 PRINCIPLE 2: AVOID MENTIONING YOUR LAST SALARY

There are at least five reasons why an interview( wants to know your last salary or your salary expectations as soon as possible (preferably even before the interview).This knowledge allows him to:

- gauge where you fit in the salary range;

- screen you out quickly if the number of candidates is large, as salary is an ideal and obvious way to compare candidates and screen them out;

- save money if your actual or last salary is below the one budgeted for the job;

- know the market better;

- evaluate your level of entry into his company (competency ratio).

 When reacting to a question regarding your actual (or last) salary, it is essential not to answer at all. One of these four tactics will help you.

1.  Range. When your interviewer asks you what your current/last salary is/was, give only a broad range:

Q: How much do you make in your present job?

A: In my present job my salary is exactly in the range I'm shooting for now: between          and      

 Tactic 2: Gentlemen's Agreement. If you come from a company or work for an organization where there is a gentlemen's agreement about nondisclosure of salaries, seize this opportunity not to answer.

Q: How much do you make in your present job? A: At XYZ company, where I work now, there

is a gentleman's agreement about nondisclosure of salary. I must stick to the moral commitment I made to-them not to discuss my salary with anyone.

 Tactic 3: Later Stage Disclosure. This tactic consists of proposing to give the information to your interviewer at a later stage. This means you will disclose the information but only after you have negotiated a salary with him. This method is common in highly competitive fields, such as computer or telephone systems sales. When your interviewer asks you to tell him your current/previous salary, do it as described below.

Q: How much do you make in your present job? A: Would you like to see a copy of my last pay slip or should I just tell you my salary?

Q: No, just tell me.

A: Well, before I tell you I would like to negotiate my future salary with you. When we have an

agreement, I will disclose my former salary.

Your interviewer may then smile and tell you that you are a "tough negotiator." Simply thank him and say, "The toughness and style I bring to the negotiation table, I will bring to work for you full time in my new job!"

 Tactic 4: Anticipated Salary. If you are presently in a job, this technique consists of telling the salary you will be making after your next promotion.

Q: How much do you make in your present job?

A: After my next promotion, which occurs in four months, my salary will be raised to

 PRINCIPLE 3: MAKE THEM TALK FIRST

In the good old Western movies, in the final duel scene, there was always a good guy and a bad guy. In the traditional movie, the bad guy was the first to move but the good guy always drew faster and shot the bad guy dead! The same thing happens in salary negotiation: The first one who makes a move, gets shot down! It is always best to talk last. Wait for the interviewer to expose himself. Effectively postponing the negotiation and making the interviewer talk first has several advantages. Most importantly you:

- get a better salary offer than you originally planned;

- refrain from "shooting yourself in the foot" by asking for too low a figure, or from ending the negotiation by asking for too high a figure;

 -"up the ante" more easily when salary is finally discussed later;

- take the necessary time to obtain specific information about the level of the job and its corresponding responsibilities;

- can gauge how the interviewer is evaluating you before you have to negotiate with him;

- discover the starting point of the negotiation process.

 Sometimes an interviewer will try to open negotiations by coming right out and asking how much money you want to make. It is important not to take the bait and simply state a figure or a range. To keep the advantage, tactfully turn the question back on to your interviewer:

Q: How much do you want to earn?

A: Oh, thank you for raising this issue. Before answering you, I'd like to ask a question. Q: Please do.

A: Do you have salary curves or indexes in your organization? Q: Yes, of course we do.

A: Could you tell me, then, what sort of salary range you have in mind for this job, based on those curves? This will make things easier and save us time.

 PRINCIPLE 4: KEEP YOUR OPTIONS OPEN

Sometimes the interviewer will mention salary early in the interview as if it were predetermined and nonnegotiable. He may say something like: "We have projected a salary of                        for this job," or "The final figure we have is     ." Although, in accordance with Principle 2, you will probably want to delay discussions of salary at this point, Principle 2 applies only when the interviewer is prematurely wanting you to discuss salary. In this case, he may be simply trying to slip a figure by you without further discussion. If you do not reply in some way, your silence could be taken as an acceptance of the stated salary. If a figure is given, it is important not to simply nod in understanding or otherwise let the remark go by. This may foreclose your ability to negotiate later. Instead, you must acknowledge that the subject of salary has come up without either agreeing or disagreeing and then either 1) employ strategies to postpone further discussion, or 2) follow the strategy discussed below.

 Sometimes, after stating a figure, the interviewer will ask, "Would that fit you?," "Do you agree?," or, "Is that the sort of range you are interested in?" Never simply say that you agree or disagree. Instead, simply state, "This figure fits perfectly into my range." This rather open-ended reply can accomplish several things:

- keep the discussion from getting stalled or stuck, or prematurely focused on salary;

- keep you from being tied solely to the amount the interviewer proposes;

- keep you from having to accept his offer;

- allow you to continue the interview with all your salary options open.

 Consider the following dialog to see how the interview might progress in this situation:

Q: We have budgeted                for this job.

A: This figure fits perfectly into my range.

 Then you can proceed, using facts and figures to show him that you are the right person for the job, listing achievements that match his needs. When you receive the job offer,you are in a position to continue:

A: Can we now negotiate my salary with your organization?

Q: We have already done it!

A: Yes, you already told me what sort of budget you have for this job and I told you that this

figure fits exactly in my range. Now that I know what the job entails, I can better narrow down

my range from               to                     .

 Now you can simply state your range and begin the negotiation. Make sure the lower figure of your range is close to the figure stated by the interviewer.

 PRINCIPLE 5: UP THE ANTE

 If you have successfully postponed negotiation to the proper time, and if you have succeeded in making the interviewer mention the first figure, it is now your job to "up the ante." One very effective method is to use "The Echo."

 "The Echo" is just what it sounds like: simply repeat the figure stated by the interviewer and then remain silent. Whatever amount is stated, do not show a reaction. Your face should remain calm and unchanged. The full technique looks like this:

1.Your interviewer has spoken first and mentioned a salary of                   . Repeat this figure exactly with only the slightest suggestion of a surprise or question.

2. Look the interviewer in the eyes, or if this embar­rasses you, look at his eyebrows or the right or left side of his face.

3. Do not be overt. Do not show satisfaction or deception, only the faintest hint of a surprise.

4.The very fact that you repeat the amount and then remain silent, showing no other reaction, may cause the interviewer to be perplexed. As a result, he may increase his offer.

 You will want to practice this technique because it can feel awkward. When a figure is mentioned, a reaction is expected, and your impulse will be to give one - either positive or negative. If you have rehearsed well, however, you can hold your emotions in check, and maintain a calm, cool silence after you have simply repeated the figure. It may feel awkward, but that's exactly why it's effective. Your interviewer will want to break the awkward silence-usually by suggesting a higher figure!

 Here's an example of a dialog using the "Echo" technique:

A: May I ask what sort of salary you have budgeted for this job?

Q: We have budgeted around 100.

A: 100?...

Remain silent and wait for the interviewer to break the pause.

Q: Yes, 100... but this is not our final offer! A: This is not your final offer?...

 One last note: if the interviewer mentions a range instead of a flat figure, repeat the higher figure when using the Echo technique. It can be just as effective!

 PRINCIPLE 6: NARROW THE GAP

 If the salary you desire is higher than the one being offered, try to fill that gap and that gap only. Furthermore, try to make the gap appear as small as possible. If you are speaking in terms of an annual salary, for example, divide the salary gap by 12 to make it a monthly figure, which appears smaller.

 For instance, if you want an annual salary of 112 and you are offered 100, focus on the gap of 12 (112-100 = 12). Divide this yearly gap of 12 by 12 months, to get a monthly gap of one. This is then the place to begin your negotiation: "Actually, we are very close to each other - our gap is only 1 per month. Can we see what we can do about this?"

 PRINCIPLE 7: NEGOTIATE FUTURE SALARY INCREASES

 There are two types of increases for salaries: an automatic one to reflect a cost of living increase, and a discretionary one to reflect the merit of your performance or efficiency. Ask the interviewer one of the three following questions:

1."As I hope to make my career with your organization, could you please let me know your policy for salary increases?"

2."We have discussed the base salary. I am sure, in an organization like yours, there is a yearly adjustment to reflect a cost of living increase as well as a merit increase. Could you please elaborate on this?"

3."I am very interested in the future I could have with your organization and would like you to elaborate on two points. First, when will the first raise be given? Second, will this raise reflect only a cost of living increase, or will it also include a merit adjustment?"

 After you have asked this type of question, you must try to shorten the period until your first salary increase. This period should be as short as possible. There are three ways to shorten this timeframe, running from an "elegant understatement" to an ultimatum. Consider how the overall interview and negotiation has gone so far, and use your instinct to decide which tactic is best:

1."Could we consider making the timeframe for a salary increase shorter than your usual policy?"

2."The period between now and the first increase is long. By how many months could you shorten this?"

3."I like your salary offer. However, I can only accept it if you are willing to give me a raise within              months."

 PRINCIPLE 8: AVOID BLUFFING

 A large majority of people believe it is hard to negotiate without some bluffing taking place. However, experience shows that the most successful negotiations are done without bluffing and are organized around very smart strategies of information retention.

 You will be more efficient if you stick to the truth for several reasons:

- the very fact that you use only true information makes you feel more comfortable and secure, which makes the interview easier for you;

- when checking is done after the interview, your integrity and good faith are proven and you benefit from this;

- bluffing, lies, or exaggeration can hamper the otherwise good negotiation tactics at your disposal and quite possibly close the door on an interesting job.

 PRINCIPLE 9: STAND YOUR GROUND

 If you are firm and persistent, you may fear your interviewer will feel you are somewhat inflexible, but it is more likely he will respect your tenacity and self- - confidence, which will only increase his esteem for you. If, however, you feel embarrassed and wish to lighten the mood (humor has never hampered a good negotiation), you can try one of the four following strategies.

 1. Agree with Gentle Humor

Q: You certainly are tough when it comes

to negotiating! A: Why, thank you!

 2.Turn Negatives to Positives

Q: You seem so sure of yourself. It appears that nothing will make you budge.

A: Yes, this is a compliment given to me by many of my past employers.

 3. Common Sense

Q: You appear to be a person who is always watching out for himself.

A: Do you think so?

Q: Yes, you seem to be very interested in the money aspect of this job.

A: The job to be filled requires excellent negotiation skills. I am demonstrating that

I have those skills. Later, when I work for you, I will fight and negotiate just as firmly on your behalf.

 4.One-Upmanship

Q: As a negotiator, you are not what I would call easy.

A: Oh, thank you! I am convinced that you are testing me right now. Shall we try arm wrestling too?

 PRINCIPLE 10: NO TELEPHONE NEGOTIATION-EVER!

 Turn down any proposal to negotiate salary over the telephone. Use the telephone only to confirm that you accept a firm job offer. All other details must be negotiated in person. Negotiating by phone has two main disadvantages:

- You cannot see your interviewer and therefore you cannot measure his interest (or indifference) to what you are saying.

- Your negotiation position is weaker and you are more vulnerable. If there is any type of mis­match, the split will be one that you cannot address again.

 If, as sometimes happens, you feel that your interviewer is trying to renegotiate an already agreed-upon salary over the phone, adopt one of the two following attitudes:

- If you do not want to renegotiate, remain firm and say you do not wish to reconsider the previous offer.

 - If you are willing to reopen the negotiation, say that-as a principle-you never negotiate money issues over the phone and arrange for an immediate appointment.

PRINCIPLE 11: GET IT IN WRITING

Accepting a firm job offer together with a salary proposal can be done either verbally or in writing. However, a confirmation in writing is a must in the following four cases:

- if you have some sort of negative intuition or feeling about your interviewer and have doubts about the value of his word;

- if the promises made to you seem too numerous or generous to be given without something more being demanded of you some time down the road;

- if the salary formula is complex (due to adjustments, commissions, etc.), or if you think the salary has not been stated clearly or not negotiated thoroughly enough;

- if the risk to you is great. For instance, if you must resign from a present job to take a new job the risk is too large to accept without having a firm written proposal in your hand, signed by the person for whom you will actually be working.

If the interviewer is reluctant to commit in writing, suggest that you write the letter for him to sign, saying, "How do you want to proceed? Do you plan to confirm this offer in writing yourself or would you prefer that I do it?" If the new employer agrees that you should write the letter, be sure to stress the interest you have for the job and exactly what has been agreed upon by the two of you. Send your new employer two copies, signed by you. Ask him to sign one and return it to you in an enclosed stamped self-addressed envelope.