Repricing

As a former Manager I can tell you that money is the most sensitive issue in the whole hiring process. It’s sensitive for both prospective employer and job applicants. Handled correctly, both employer and applicant can come to an amicable figure. Here are eight ways I found that make the process of salary negotiation more efficient.

All of these are from the applicant’s point of view but will serve employers as well because the applicant will be well prepared for the process.

1) Do Your Research.

Before the actual interview, contact the professional organization that represents your field or career. They should be able to provide you with salary information based upon averages for particular job functions. With that information you can now examine your monthly cash requirements. Remember to deduct 25% for taxes from your expected salary range. This will give you a realistic idea of net earnings on paydays.

2) Determine what your skills are worth.

You should understand that different segments of the economy do not pay the same rate. You may need a variety of skills depending on the job location that may not be required in another locale. Your career, if practiced in California, may command a higher salary than if you were employed in Ohio. The California position may also require a greater variety of skills than that in Ohio.

Employers also tend to set salaries based upon local economic conditions such as cost-of-living in the particular community. Salary range information is available at American Almanac of Jobs and Salaries, National Association of College and Employers, Career Center, and professionals in your related field.

3) Be realistic with your salary range.

In stating your salary range, avoid basing your desired salary on your current salary. Always tell the truth when it comes to salary history. It is acceptable to ask for an increase above your current salary but keep it within the range you discovered during your research.

4) Weigh the company’s compensation package.

To determine your fair market value for a specific job, you should consider the economic, geographic, and industry factors of the job offer. Weigh the benefits of compensation and promotions, insurance, allowed time off and retirement settlements of the offer to ensure a fair proposed salary.

Many companies offer tax exempt perks in place of money. These can range from a company car to a company cell phone. Perks run the gamut and they are worth real money to you because you will not have to pay for perks out-of-pocket.

5) Sell yourself.

If you have done your research on the company and the job description, you should know what you could offer the company that requires a larger salary but never say it directly. Sell yourself discreetly. The interviewer should see your value and realize that a better salary offer is in order.

6) Have a positive attitude

In negotiating, never appear confrontational or arrogant. This is not a game to be won. Be professional. Negotiation is basically a process which could benefit both parties. You win more of what you want by understanding the needs of the company and by playing to those needs. Be sure to point out how you can meet those needs. The employer needs to see you as a valuable, not costly, addition to the staff. The employer is not looking at how much they have to pay you as much as how you can contribute to company profitability.

7) The final offer.

Be aware when the negotiation process is done. Pushing further, when a deal has reached its maximum, could leave a negative first impression. You want to leave on a high note.

Show what you are made of.

Getting the job is only the first step toward gaining greater compensation. Once you are hired, offer extra skills to the company and prove you are worth more by doing quality work. This attitude is what promotions are based upon. Promotions mean greater compensation in the long run. At the very least you will be confident enough to ask for a greater raise that the norm when evaluations take place.

Finally, here is an important fact: A survey conducted by the Society for Human Resource Management found that four out of five employers are willing to negotiate compensation.

I hope you use these tips wisely and prosper!

Jim DeSantis