Negotiating a Better Package When You Start Work

© A & C Black Publishers Ltd 2006

GETTING STARTED

When you start a new job, you have a unique opportunity to position yourself as a valuable asset in the organization and to set your level of compensation accordingly. To achieve this you need to establish an appropriate asking price. On one hand, you don’t want to oversell yourself and price yourself out of the market. On the other, you need to avoid selling yourself short, for it is likely that your compensation upon hiring won’t change significantly for a while, unless you are quite assertive and work your way upward with early promotions.

There are no hard and fast rules about how or when to conduct your negotiation. Every situation is different and each employer has a different set of thresholds. Understanding the context in which your negotiation is going to take place and being sensitive to the culture of the organization is therefore essential.

Having said that, there are some practical steps you can take to position yourself sensibly.

FAQS

I am in the process of applying for a new job. How should I prepare for the negotiation on the package?
You need to do your homework before entering the negotiation so you’re supported by accurate, current information. This means familiarizing yourself with the company itself, as well as the range of salary and benefit options that are being offered. You may be able to tinker with the combination of benefits, if not the salary itself. Don’t assume you’ll be offered more than your former salary, especially if you’re competing with someone who is equally qualified but willing to work for less. If the salary offered is less than you had hoped for, you can discuss the benefits package and request an early salary review.

I feel extremely uncomfortable talking about how much I’m worth. What can I do to make this easier?
Many people dislike the negotiation phase of finding a new job. Here are some simple steps to make this easier.
~Try and avoid discussing your package until you have been offered the position.
~Prepare in advance to advocate in a convincing way for the package you want; it’s important that you believe you are worth the price you’re asking and can demonstrate your assertions with facts.
~When you start negotiating, make sure you have in mind the minimum salary you are prepared to accept. (Don’t reveal this figure, though!)
~Try and elicit the salary information first. If you are offered a range, go high or even slightly above the top end. If you’re offered a specific figure, assume it falls in mid-range and try to push it up.
~If you are asked to name a figure, don’t lie, but offer a range within which you would be prepared to negotiate.
~If your negotiation is successful, ask for the agreed terms and conditions to be confirmed in writing—before you resign from your current position.

I’m applying for a job that is a dream come true, and I don’t want to put off my prospective employer by asking for too much. How can I safely position my worth?
You can put off a prospective employer by pitching too high or too low, so it’s important to get your level right. Study the want ads to get a feel for the market rate, and draw information from your professional network. Some listings on the Web will help you, too; some of these are indicated below.

MAKING IT HAPPEN

Position Yourself
In applying for a job, you’re effectively a salesperson promoting a product, and it’s up to you to demonstrate that the product is valuable, high-quality, and superior to anything a competitor can offer. Potential employers, or buyers, are looking for the best value for their money, so will be driving the deal in the opposite direction. If you’ve positioned yourself well, they won’t want to risk losing you, however, and might well be prepared to settle at the top of the market rather than the bottom.

Leave the Salary Discussions As Late As Possible
It is preferable to leave salary discussions until you are offered the job, but this is not always possible. Many recruiters ask for salary expectations and details of current salary early in the process. Some even screen people out on this basis. If this is the case, you may need to spend some time researching the question of salary at the application stage or before the first interview. Think carefully about your aspirations and be absolutely sure of the career step you envision for yourself, the experience you would like to gain, and the context in which you would like to work.

If you are forced to answer a question about your salary expectations at the beginning of your interaction, have a figure in mind at the higher end of the scale. You can always supplement this with a request for a particular package of benefits.

Consult the Right Sources
In deciding on an appropriate salary level here are a number of pointers that can help you settle on a figure.
~ Look at the range of packages offered for similar positions in ads.
~ Ask for advice from people in your professional and personal network.
~ Ask your mentor, if you have one, to advise you—or use his or her own network to access the information.
~ Professional and executive "headhunter" companies will have ideas and figures for you.
~ Go to some of the Web-based salary information services.

Consider the Package, Not Just the Salary
Some employers have fixed-scale salaries, in which case there is little room for negotiation. You may find, however, that the total package of pay and benefits raises the value of the salary to an acceptable level. For instance, you may be offered excellent medical coverage, an unusually good pension plan, a company car, and significant bonus potential. You may be able to negotiate a cash equivalent in place of a benefit, particularly in a smaller organization that has some flexibility. When bonuses are mentioned ask how the bonus is paid so you’re absolutely clear on the terms and conditions attached to it. Some companies spread the payments over several years as an incentive to stay with the business. Get the details of the way the company delivers on promised benefits, and decide on balance whether the package is attractive or not.

It is worth remembering that all benefits are subject to federal and, in some cases, state income tax, even a company car. See what the company may be able to offer as a way to reduce your exposure to taxation. For example, a company that has a "fleet" of cars may be able to offer you a car without it being considered a taxable benefit. Likewise, through careful planning, you can reduce your taxable income through bigger tax deferred contributions to your individual retirement plan (IRP) or through a "deferred compensation" plan. Doing so, however, means learning to live with less cash now in exchange for more being put into savings, where tax is deferred until you withdraw the money, presumably when you are in a much lower tax bracket.

Explore the Boundaries
Job ads commonly list salary ranges to give applicants an idea of the boundaries of the negotiation. You can be sure, however, that the negotiation will start at base level. If you find that the company isn’t responding to your sales pitch, consider negotiating an early pay review instead: for instance, if you meet or exceed certain performance, sales, or other criteria during your first six months of employment, you’ll get a specified raise. Make sure that the criteria are clearly established and are included in your contract of employment.

Some employers state that the salary is negotiable. The onus is then on you to move in with an offer. Again, try and defer discussion until the end of the recruitment process, and be sure that you’re up to date on the going rate for equivalent jobs in your industry.

Stay Calm
Project a calm and assertive demeanor during pay negotiations; your goal is to be professional and self-confident. You don’t want to appear to be arrogant, overeager, or, conversely, too timid. Giving any such impression can diminish your opportunities.

COMMON MISTAKES

Not Doing Your Research
Just asking for a lot of money will not be enough to convince your prospective employer of your premium value. You will have to supply the company with ample reasons to support your demands. If you don’t have a rational argument, you look ill-prepared and unprofessional. Time spent on research is always well spent. It allows you to argue your case logically and professionally.

Bluffing
Don’t bluff in your negotiation and try to play off fictitious job offers against the real one you’re hoping to get. Employers generally don’t respond to this kind of pressure, and instead of receiving a speedy offer you’re likely to be left with nothing.

Being Too Interested in the Package
Behaving as if you’re more interested in your package than in the job is a mistake. Every employer knows that you want a fair package, but you need to demonstrate that your financial concerns are balanced with a genuine desire for the job.

Top Ten Tips for Job Seekers to Ace Phone Interviews

Many job seekers have a misconception that phone interviews are easy. There
isn’t the added anxiety of choosing the right shoes or tie, getting stuck in traffic, or
having enough copies of your resume handy. But just because there aren’t these
worries to deal with, phone interviews shouldn’t be taken lightly—they are often
challenging in their own way. In fact, bombing on the phone often means there
will be no chance to stress about pinstripes. Job candidates won’t get to the next
step unless they effectively prepare for and conquer the phone interview.

Because there are more jobs available—and many qualified candidates hoping to
take the spot—HR professionals and hiring managers are still inundated with
resumes. Phone interviews are becoming more and more prevalent because they
give employers the opportunity to screen prospects to see if candidates sound as
good as they look on paper—before committing to a face-to-face meeting.

What can job seekers do to help ensure that they succeed in making a great first
impression over the phone? The following are ten tips to acing your next phone
interview:

1. Be old fashioned and find a land line.
Unless it is absolutely unavoidable, do not conduct phone interviews from a cell
phone. Wireless service is too unreliable and can result in dropped calls, echoing,
interference, and background noise. Regardless of your choice of phone, you
should make sure the interviewer can hear you clearly. You don’t want a good
interview spoiled by a bad connection.
2. Think “free.”
You want to take the call in an area where you can speak freely, away from
distractions. If you call from work, make sure you are able to speak without
restraint. You don’t want to give shortened or code answers because you’re afraid
your boss or coworkers might overhear. If you’re at home, be sure to avoid
disruptions. Turn off the TV, send the kids to the neighbors and deactivate the
call-waiting feature on your phone.
3. Be prepared.
Have your resume and the job description at the ready. It’s easier to recall and
access information when it is in front of you.
4. Do your homework.
Research the company the same as if you were preparing for a face-to-face
interview. Search the web for information about the organization, its founders,
products and services. Read what the industry press is saying. Find out what the
company does, what stage of growth it’s in, and what kind of buzz it’s getting.
5. Stand up and smile!
By standing, you are literally and figuratively “on your feet.” Standing and smiling
mentally prepare you for interview mode. You will speak more clearly and be more
attentive. It puts you in the right frame of mind and increases your energy level.
6. Let the interviewer lead.
While it is important to remain an active participant in the conversation, don’t
dominate the dialogue. The hiring manager most likely has only 20 or 30 minutes
set aside to assess your competencies and compare you to other candidates. Don’t
be passive, but let the interviewer guide you through the process.
7. Ask thoughtful questions.
It makes sense to prepare some targeted questions ahead of time to ask during
the interview. The questions should be about the position, your assignments or
about the company’s culture or structure—information that can’t be found via a
web search.
8. Demonstrate your passion.
How do you feel about your career, your industry or this job? If you love it, let
them know! Convey your energy and enthusiasm. Don’t get stuck in a monotone
diatribe.
9. Don’t bore the gatekeeper.
Most phone interviews are conducted by a member of HR who doesn’t want to hear
the technical intricacies of the software you developed or the minor details of the
M&A you helped push through. The phone interviewer wants to know if you
communicate well and if you’ll fit within the company culture. These initial
interviews provide a chance to let your interpersonal skills—not your technical
skills—shine.
10. Nix the tics.
Speech tics and stallers, such as “um,” “er,” “like” and “ya know” are even more
glaring during phone interviews when there isn’t anything else on which the
interviewer can concentrate. Remind yourself to speak slowly, concisely and
carefully to avoid these conversation faux pas.

During a phone interview, you have a chance to make an impact quickly. People
don’t often realize the power of their voice. But on a phone interview, that is all
the interviewer has to go by. If you are unprepared you won’t get your foot in the
door for that next interview. Following these ten tips will help you ace your next
phone interview and be well on your way to securing your next position.

Compliments of Winter, Wyman

Five Ways to Say "I'm Unprofessional"

When you're looking for a job or internship, particularly in a tough market like this one, there's nothing worse than leaving a prospective employer with some sort of bad impression. Unfortunately, though, there are many ways you can do just that, often without even knowing it.

In most job-filling situations, the employer has the luxury of choosing from several well-qualified applicants, all of whom could probably do the job. It is then that the little things, like the common but often unrecognized mistakes described here, almost always come into play. Make sure you avoid them, so they don't cost you a shot at the job.

1. Using a Cutesy Email Address for Correspondence

Example: cutiepie@domain.com, or -- far worse -- something like sexkitten@domain.com.

You Might Think: It's a clever, memorable email address everyone will get a kick out of.

The Employer Will Probably Think: I can't believe someone would actually list this email address on her resume, let alone use it to correspond with me. Will she do the same thing on the job if I hire her? Yikes!

2. Putting a Silly Message on Your Answering Machine

Example: A is for academics, B is for beer -- and one of those reasons is why we're not here. So leave a message, OK?

You Might Think: Mine is the funniest answering machine message this side of the Mississippi. My friends will love it.

The Employer Will Probably Think: Good lord, this person probably lives in Animal House. And I just can't risk interviewing, let alone hiring, someone like Bluto or Flounder. Sorry, Charlie. Click.

3. Sending Your Resume and Cover Letter Without Proofreading

You Might Think: Everybody makes mistakes, even employers. So if there's a mistake or two on my resume, no big deal. The employer probably won't even notice, much less care.

The Employer Will Probably Think: Everybody makes mistakes, even employers. But making more than one minor mistake on a resume or in a cover letter is unacceptable, and often, even one is too many. How do I know this person will proofread the letters he writes to shareholders? What if he someday leaves a zero or two off one of our financial statements? I better put this resume aside and look for someone who's more accurate and thorough.

4. Winging Your Interviews Instead of Preparing Thoroughly

You Might Think: I'm good at thinking on my feet, and if I get stuck, I'll just BS my way through, like I've done on many an essay exam. Besides, they can't expect me to know everything about the company.

The Employer Will Probably Think: This person clearly knows nothing about the company, nor has she made any effort to learn more about us and what we do. She must not really care whether or not she gets the job. I want someone who cares. Oh well, maybe the next person will be better.

5. Failing to Send Thank-You Notes After Interviews

You Might Think: A thank-you note? You're kidding, right? Do people even do that sort of thing anymore?

The Employer Will Probably Think: This person has no follow-up skills, not to mention common courtesy. He could have at least dropped me a quick email note, like this other person did. I think I'll invite this candidate for the second round of interviews instead. The other guy must not really want the position.

by Peter Vogt - MonsterTRAK Career Coach