With finals over, it’s now time to focus on other equally important events. No, it’s not the graduation party. I am talking about a having a solid salary negotiation strategy.All eight people interviewed for this article—four job candidates and four recruiters—agreed that salary negotiation is the most awkward step in the job search process because job applicants and recruiters have opposing interests: the employer wants to find the best talent in the most cost-effective way while the candidate wants to find the best job with the highest possible compensation. “As an employer, I need to focus on those applicants who are within the salary range allowed by our budget,” said a VP at a financial services firm in Boston.
The paragraphs below are a compilation of interviews with job candidates and recruiters in the New England area. They provide an overall approach and food for thought when dealing with a salary negotiation situation.
Focus on interests. The word negotiation implies taking a position against your “opponent” (in this case a prospective employer). This approach does not guarantee a favorable outcome. Instead, consider evaluating all the reasons why you want this job. Furthermore, also create a list of why the potential employer is looking to fill the position. Is this a newly created position due to growth? Are they downsizing and restructuring job functions? Knowing the employer’s reason for the job vacancy, will help you position your negotiation approach.
Develop a BATNA. A Best Alternative to a Non-Agreement—or BATNA—as it is known by negotiating experts, is another way of knowing what your options are if you don’t get the job. Until you write your alternatives down, you will not be able to assess any alternatives clearly and realistically.
Know what you are worth. Learn about salary and compensation trends in your industry and function, through informational interviews, the Internet and sources such as the Occupational Outlook Handbook. This information will give you confidence that what you are asking is a number that represents, “the fair market value for someone with my experience and skill,” as a current candidate described it.
Consider intangibles. Salary negotiation is not limited to a dollar amount. It includes other benefits such as flex-time, time off, and other perks such as training, memberships or early release days. These benefits should be weighed in when looking at a company’s compensation package. The question becomes: Will the intangibles make up for the salary offered?
In the end, there is no wrong or right way of negotiating a salary. The reason is simple: negotiators are people. And people—whether recruiters or candidates– have different values, perceptions and communication styles. This human side of negotiation increases the chance of unpredictability; hence, the importance of developing a comprehensive negotiation strategy.
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