1. A
Piece of the Pie
2.TheTrampoline
3. Partial Time
4. Multiple Offers
5. Job Switching Bonus
6. Range
7. Survey
Now
that you are familiar with the general principles of salary negotiation, here
are seven specific strategies that can be used. Many of them can be used in
any situation, and a few are appropriate in only certain situations. Each
section lists advantages and disadvantages for the strategy. Weigh these
considerations against your particular situation to decide which approach is
best for you. Alternatively, depending on your circumstances, you may be able
to combine strategies, taking certain ideas or elements from several sections.
These strategies have all been used successfully by other job hunters, but if
they inspire new ideas for your own approach, don't hesitate to be creative!
STRATEGY 1: A PIECE OF THE PIE
Figure out the impact of your work in terms of financial contribution and ask
for a share of it.
Through your work you will contribute positively to:
- the
increase of profits/gains;
- the
decrease of costs/expenses;
- the
avoidance of mistakes/errors.
Figure out your salary in relationship to the contribution you will generate.
Use your past achievements, information you have gathered from your research,
and whatever you learn from your interviewer to quantify the contribution of
your work. Measure this contribution by yourself or with your interviewer.
Once you reach an approximate amount, state it and ask him to pay you part of
it as a salary (one-fifth, one-fourth, one-third, half, etc.).The negotiation
might resemble the following dialog:
Q:
How much do you want to make?
A:
Thank you for asking. I have figured out the contribution I could make to your
organization. In a previous job, I reduced costs by and increased
sales by . These types of achievements should be transferable to
your department/ organization. Hence, my salary could be based in part on a
share of this contribution.
Advantages of this Strategy
- You
stick to the economic reality.
- You
stand apart from other candidates-you are unique.
-Your
calculations are objective and rational.
-
Your salary will automatically be adjusted on your future performance.
- You
do not have to mention your current or previous salary.
-You
avoid negative comparisons with figures from salary curves.
-Your
salary may be more easily renegotiated in the future.
Disadvantages of this Strategy
- The
calculation is not always easy or possible.
- You
do not use traditional methods to talk about salary, which may puzzle your
interviewer.
-
Your reasoning will probably depart from salary curves.
- You
may be penalized if the results of your work are not satisfactory.
-
Your calculations may, in some instances, lead to negative results.
-Your
salary may be open to continual review.
Advice for Using this Strategy
This
strategy is by far the simplest and most efficient one. It is, of course, the
easiest one to use for those who do work that has immediate, tangible, and
visible results (applied research, sales, production, etc.). It appears more
difficult to use for some jobs. However, upon reflection, there is always a
quantifiable way to measure the impact of work in an organization.
STRATEGY 2: THE TRAMPOLINE
Accept a job with lower pay than you expected but with a written commitment of
a substantial raise in the near future (3 to 6 months). If the figure you have
in mind does not correspond to the one stated by your interviewer-say you want
a monthly salary of 80 and his figure is 60-use this strategy. After all
figures are stated (namely, 80 and 60), remain silent for a time, reflect, and
then offer a counterproposal. The proposal consists of accepting his 60 offer
with one condition: your salary will be readjusted after an initial period
(sometimes linked to objectives) and will be retroactive to your start date.
It is
a good sign if the interviewer starts talking about the retroactive component
of the proposal. This means he has accepted the principle of going from 60 to
80 and is now discussing the details. You may show flexibility on the details
because you have already been successful in getting him to jump from 60 to 80
(the key issue). Of course, this type of agreement must be confirmed in
writing prior to joining the organization. The negotiation might look
something like the following dialog.
Q:
How much do you want to make? A: 80 per month.
Q:
I'm sorry, but this figure goes far beyond the
one
we have budgeted.
A:
May I ask what you have budgeted? Q: 60 per month.
Remain silent for a while, and then continue: A: I really want to work for
you. Therefore, let me suggest this. I will start at 60, and within six
months, if we are both satisfied, you raise me to 80 with a retroactive
effect.
Advantages of this Strategy
- You
show your commitment, determination, and good faith.
- You
test the level of trust your interviewer has for you.
- You
make your interviewer feel secure about .you.
- You
get what you want without having made a major concession.
- You
stress the fact that this type of contract has two winners.
Disadvantages of this Strategy
- You
agree to make less money for a few months.
-
Your benefits are calculated on a lower monthly basis.
- You
could fail during the initial trial period due to factors beyond your control.
Advice for Using this Strategy
This
strategy should not be used in jobs where contributions or results can be
stolen by unscrupulous employers and co-workers during the initial trial
period. Examples might include a salesperson whose customer list could be
"borrowed," a researcher who could lose a specific technology, or a production
foreman who could disclose his own techniques for more efficient
productivity.
STRATEGY 3: PARTIAL TIME
Offer
to work on a part-time basis if they cannot pay you the salary you want.
Sometimes you will be attracted by a specific job or company. However, the
company you are interested in may not have the financial resources to offer
you the salary you want. If this is the case, offer to work part time and have
them pay you the amount forecasted for a full time job.
Let's
say you want a monthly salary of 100 and their figure is 60. After all figures
are stated (namely, 100 and 60), remain silent for a time, reflect, and then
offer a counterproposal. The proposal consists of agreeing to work for the
salary stated by the interviewer, but limiting the working time to a portion
of full-time hours. In the case of a 40-hour work week, you could suggest
approximately 24 hours (40 x 60 divided by 100). Once you have a job which
uses 60 percent of your time, it is up to you to find a second employer who
can pay you for the remaining 40 percent.
This
type of agreement is very common in so fields and for some types of jobs,
including training centers, nonprofit organizations dealing with social issue
and accountants. If you accept this type of arrangement, it is essential that
you do not spend more than the portion of time agreed (in our example, 60
percent) on their premises. If you have to deal with a very heavy workload or
have to work overtime to face the challenge you accepted, take the work home.
Do not do it at your work location. This will allow you to maintain a strong
position when it is time to renegotiate your contract. When you elect to work
part time in this way, you are not allowing yourself to be underpaid. The
employer is not allowed to pay 60 percent for 90 percent of your time, and you
have avoided setting a precedent with which you are unprepared to live.
During this negotiation it is better to use percentages of time rather than
days. Do not say "half time" or "three-quarters time."Say"60 percent of my
time" rather than "three days per week," or "50 percent of my time" rather
than "two-and-a-half days per week" or "half time." This allows you to
determine the way time is split after you have negotiated the amount you will
be paid. For instance, 60 percent of the time could correspond to either three
days a week or thirteen days per month. The negotiation for this arrangement
might look something like the following dialog.
Q: I
am sorry, but we cannot offer you the salary of 100 that you want. Our means
are limited and
the
figure you suggest is out of our range. A: What sort of salary did you budget?
Q: 60 per month.
Remain silent for awhile, and then continue:
A: I
must admit that your organization attracts me, and I want to work for you. In
addition, the job we discussed corresponds exactly to the type of work I want
and to which I can contribute. So let me suggest the following:
I'll
accept 60 per month but will only work 60 percent of my time.
Advantages of this Strategy
- You
do not lose a job that really interests you.
- By
having two or three employers, you spread the risk and don't put "all your
eggs into one basket."
- You
will likely work more efficiently if you know your time on the employer's
premises is limited.
- You
prove that this type of contract has two winners.
- If
there is a work overload, you can renegotiate your contract (time and salary).
- You
get the feeling you are really needed.
Disadvantages of this Strategy
- In
the beginning, sharing your time with two or three employers can create
feelings of insecurity and uneasiness.
- You
may feel that you do not have enough time to delve deeply into the
problems/needs of any one of your employers.
-
Your financial situation may be difficult and uncertain at times.
- You
may lose credibility with colleagues, or they may be envious.
- It
may appear that you are receiving special treatment, which can elicit
responses from colleagues that impair your ability to work efficiently.
Advice for Using this Strategy
Occasionally an interviewer will be interested in this type of proposal but
will be skeptical that you can master the tasks and do the work with only 60
percent of your time devoted to him. In this case, offer to work a trial
period during which you will be paid the 60, but you will work full time (for
two to six weeks). At the conclusion of this trial period, you will drop back
to part time (60 percent), after proving you have mastered the job. An
alternative strategy is to work the equivalent of a five-day week and to
include Saturday. In this way, you can bill one weekday to another company.
STRATEGY 4: MULTIPLE OFFERS
if
you have other job offers, tell your interviewer about them. Then, if
appropriate, state the highest salary you have been offered. Let's say you
have established that you are the right person for the job. Your interviewer
suddenly asks you how much money you want to make. You state that you are
actively looking for a job and have two firm job offers under consideration.
Watch out, no bluffing! Stick to the truth. Advise the interviewer of the
highest salary amount offered to you.
Immediately after this discussion, reassure your interviewer by telling him
that if he were to offer you the same salary, you would, without hesitation,
accept his offer. Do not say this if you do not mean it, otherwise you may
come across as a blackmailer. Then remain silent. Wait for him to break the
silence and make a counteroffer. The negotiation might look something like the
following dialog.
Q:
How much do you want to make?
A: As
I mentioned to you earlier, I am actively looking for a job. I am now in the
final phase, as I have already received two firm job offers. One of them has
offered a salary of
Q: I
take it there is some fierce competition out there!
A:
Yes, to a certain extent. However, if your organization can match this
offer-or beat
it-I'll decide on the spot. Of the three, I would immediately accept yours,
because I like your organization very much. The job suits me and corresponds
exactly to my skills. Also, I'd like to work for someone like you.
Advantages of this Strategy
- By
stating that you have other job offers, you stress the fact that you are a
resource person for others, thereby "up-ing the ante."
- You
behave in a very natural and honest way by putting all your cards on the
table.
- You
provide your interviewer with information about the job market. This may help
him - if necessary - to have tangible information to justify offering you a
salary higher than the one budgeted.
Drawbacks of this Strategy
- You
may anger your interviewer by being perceived as arrogant or boastful.
- You
may generate a "no" or stall negotiations if your interviewer believes you are
bluffing.
- You
lose credibility if the strategy doesn't work and you accept their proposal on
their terms.
Advice for Using this Strategy
Avoid
bluffing when you use this strategy. Do not say you have other offers if this
is not the case. It is always easy to get a firm offer for a job you do not
want. There are thousands of jobs out there that no one wants to do.
Experience shows that the less eager you are perceived (without appearing
disinterested or lacking enthusiasm), the more desirable you become. If your
interviewer wants to know the names of the organizations that have made you
offers, you should be specific and disclose them if it is helpful to you. If
you do not want to disclose the names, decline in a tactful way by saying,
"For obvious reasons, and to respect the wishes of these organizations, I must
be discreet and not disclose their names."
STRATEGY 5: JOB SWITCHING BONUS
If
someone tries to lure you from your present job, negotiate a job switching
bonus. Let's say that while in your current job, you are approached directly
or indirectly by a headhunter, recruiting agency, or someone from another
organization. They ask you to leave your present job and join a new company.
To begin, state your satisfaction with your present job, while letting him
know you are willing to discuss new opportunities that will further your
career.
Secondly, tell them that you are happy where you are, and that you will not
consider any professional move that does not increase your salary by at
least percent (anywhere from 10 to 50 percent). Your interviewer
will then try to get you to disclose your present salary by stating that this
percentage is meaningless if he doesn't know your actual salary.
State
that your current salary is already a "sure bet," and reiterate, on the other
hand, the increase of percent could result in an amount which could
justify a move. After discussing and establishing this increase as a must,
disclose your actual salary and use it as a springboard for further
discussions. The negotiation might look something like the following dialog.
Q:
How much do you want to make?
A:
Thank you for raising the issue. As I told you, I like the job I am in right
now, but I'm open to discussion. I will not consider a job change unless my
salary were to increase by at least percent.
Q:
Yes, I understand. This depends on your current salary, of course.
A:
For you, certainly. But for me, my current salary is 100 percent certain right
now. The only variable for me is the potential salary increase I can make. It
is important that we agree on this percentage before talking further.
Q:
Okay. Let's assume a 20 percent increase.
A: My
actual salary is 100. Therefore, I would need a salary of 120 to leave my
current job and join your organization.
Advantages of this Strategy
- If
you are truly satisfied with your current job, you are at little risk.
- You
use a very simple method-easy to substantiate and calculate.
- You
improve your salary situation.
- You
get feedback on your present job.
- You
may be able to use this counteroffer in your present organization to better
your position.
- You
feel that you are valuable to others.
- You
project the image of a serious, determined person.
Disadvantages of this Strategy
- You
may be perceived as someone only interested in money and not the content of
the job.
- You
may come across as too demanding and become less desirable.
- You
take the risk of moving to a job which does not match your other needs.
Advice for Using this Strategy
The
difficulty is to determine the percentage increase you want. It is best to
state two figures (a range of 20 to 40 percent), instead of just one (30
percent). The appropriate percentage also varies according to the market
situation: eagerness of competition, unemployment rate, the demand for your
skills. Take these considerations into account when deciding what percentage
is appropriate.
STRATEGY 6: RANGE
State a range from the (highest) salaries of your future subordinates to the
salary of the person to whom you will report. Ask your interviewer to provide
you with information about the people who will work for you. Ask him about
their motivations, their experience, their backgrounds, and their average
salary, and ask him to specify the highest salary paid. Then change the
subject. You now have an indication of the lowest part of your salary range
and the figure below which you cannot, under any circumstances, go.
Also,
during the interview, try to evaluate the salary of the person to whom you
will report: probably your boss, manager, or supervisor. The research you
performed on the company to prepare for the interview will help you identify
who this person is likely to be. This information, along with research from
salary surveys for companies of similar size in similar fields, can help you
determine what your manager's salary is likely to be.
As a
general rule, your boss will make anywhere from 25 to 50 percent more than
you, and possibly 50 to 100 percent more than your subordinates. When the end
of the interview is approaching and you are asked your salary expectations,
state a range that runs from the salary of the best paid subordinate (as your
lower end) to the probable salary of your superior (as your upper end). The
conversation might resemble the following dialog.
Q:
How much do you want to make?
A:
Thank you for raising this issue. Before we discuss my figures I wonder if you
could give me some details about the people who will work for me?
Q:
Certainly. What would you like to know?
A:
I'd like some information about what they think about their jobs, whether they
like them, their motivations, their professional tracks, their skills,
backgrounds ...
Q:
There are seven people who would work for you.
Most of them have a background in ...
A:
And from a salary standpoint, do they consider themselves well paid or
underpaid? Q: No, I believe that our salaries are in line with the rest of the
market.
A:
What is the highest salary any one of them makes?
Q:
100 per month.
A:
Thank you for the information.
Then,
later in the interview, when the conversation turns back to salary
negotiation:
Q:
Could you tell me how much you want to make?
Remember that the best paid person among your subordinates makes 100, and that
your research has allowed you to estimate the probable salary of your superior
at 180. You are now safe to answer:
A:
Yes, with pleasure. Now that I have specific information about the job, I can
answer you. First, let me tell you that I like your organization and would
certainly enjoy working here. As far as my salary, my range runs from 130 to
160.
Advantages of this Strategy
- You
discover the salary policy of the organization.
- You
measure the knowledge your interviewer has about his organization.
- You
get a feeling for the communication policy of your future organization if you
take the job.
- You
risk little in your salary negotiation because your range is calculated by
reasonable and proven figures.
- You
use figures which do not create precedents and fit in with existing company
salary curves.
Disadvantages of this Strategy
- The
salaries of your subordinates are not necessarily a good benchmark for the
lower end of your range.
- You
may make your interviewer uncomfortable by requesting information often
considered taboo (the salaries of others).
-You
expose yourself to questions about your last salary.
- You
may be perceived as placing too much importance on the salary issue.
-You
may be provided with erroneous figures.
- The
figures you state may bear no relationship to your skills, and reflect only
existing salary curves, which may be out of sync with other companies in the
same field.
-The
top of your range is often a figure based only on an educated guess and may
pose a risk to you.
Advice for Using this Strategy
This
is a very useful method and easy to use, especially when salaries are
published. If this strategy appeals to you, be sure to perform the necessary
research before the interview.
STRATEGY 7: SURVEY
If
the information you gather from salary surveys is favorable to you, share this
information with your interviewer. Prior to going to your interview, consult
the most recent salary surveys conducted in your field for the type of job you
desire. You will find them in magazines, newspapers, professional
associations, alumni associations, government reports, or on the Internet.
During the interview, when asked for your salary figure, quote the surveys.
Tell the interviewer how and when the surveys were conducted and published.
Then quote the figures or ranges that correspond to the job for which you have
applied. Your dialog might look like this:
Q:
What are your salary expectations?
A:
Thank you for asking. Before our meeting today, I took time to gather some
information, and I studied a survey conducted by the XYZ Institute. It covers
salaries paid in this area by organizations of your size in this field. From
this survey it appears that someone with my credentials and background in the
job of has a salary between 85 and 100.
Advantages of this Strategy
- The
figures you state are published and difficult to question.
- You
do not commit yourself personally.
- You
provide a range without limiting yourself to one figure.
- You
state facts and figures, which is very reassuring to an interviewer.
Disadvantages of this Strategy
-You
place yourself in comparison to others as just "one of many."
- You
do not define yourself in relationship to your skills and competencies, but
according to characteristics that have little, if anything, to do with your
potential.
-Your
survey may be questioned if it does not apply to the field or the size of the
organization with which you are negotiating.
Advice for Using this Strategy
Of
course, use only those surveys that are favorable to you!
