Entries from November 2009 ↓

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What Open-Door Salary Negotiation Is Not
I’d like to debunk some commonly held myths by telling you what negotiating is not:

• It is not a cutthroat battle to the finish, where the winner finally gets what he or she wants and the loser storms out and slams the door.
• It is not a balancing of a scale, where the two parties meet right in the middle and neither really gets what he or she wants.

Rather than using the metaphor of a “battle to the finish” or a “balancing of the scales,” I’d like you to think about negotiating in terms of an “open door.” In open-door negotiating, there are no declarations of finality, no threats, and no settling for something mediocre just because it happens to be in the middle. There especially isn’t a passive acceptance of the first offer you get just because you fear you might lose the job if you mention a
higher figure. Open-door negotiating is about creating possibilities, carefully weighing those possibilities, and coming to a civilized agreement.

Taken from : Fearless Interviewing - How To Win The Job

Interestingly enough, the interviewer left the room several times and insisted she had gone to her boss and that her boss had gone to the vice president, and that they absolutely refused to budge. But, because Leticia knew how to perform above and beyond the functions listed in the job description, and she had examples to prove it, the company finally caved in, though not without a lot of “drama.”

It may look, in the final hour, as though the employer is about to fall flat on the floor and die before handing you the top rate for your talents, but I haven’t gotten a report of a serious casualty yet. Hold out!

Open-Door Negotiating
Remember Stephan, who doubled his offer and got an expanded benefits package? Like Leticia, he used the techniques of open-door negotiating. Open-door negotiating may not be what you usually think of when you think about striking a bargain with an employer. There’s no threatening behavior, no fists on the desk, no high-pitched voices, and no tones of finality. In fact, it’s important that before I explain what open-door negotiating is, I
tell you what it is not.

Taken from : Fearless Interviewing - How To Win The Job

4. Forecast how long you are willing to wait until the negotiation resolves in your favor. Some people feel they can wait only 10 minutes; others, wisely, know that it can actually take weeks before a compensation package is settled. You may need income at this very moment, but the longer you can afford to wait for circumstances to go your way, the greater advantage you will enjoy

Is it worth it to you to spend a couple of hours planning your negotiations if it means earning $20,000 or even $40,000 more a year?

Okay, once you have determined these bargaining factors and learned the techniques of open-door negotiating, having a conversation about your salary will be like a walk in the park.

Leticia’s Story
One of my clients, Leticia, was terrified about negotiating, and she told me that she had spent more than an hour holding her ground and reiterating her value to the company until, Voilà! She managed to go from an initial offer of $37,500 with medical and dental benefits to $51,000 plus bonuses, medical, dental, and vision coverage—plus a 14-day paid vacation and tuition reimbursement.

Taken from : Fearless Interviewing - How To Win The Job

At no time, especially during salary negotiations, do you want the employer to think of you as simply “filling a position.” Rather, you need to be thought of as an individual with special
talents who can help the employer solve problems and who can add value to the bottom-line profits of the company.

So few people actually do a thorough inventory of their abilities and are able to communicate them. I’m certain that after doing the exercises in the previous seven chapters, you’ll be able to absolutely shine as that ideal candidate who brings extra value
to the organization. With extra value comes a higher salary. Let’s continue with the last two bargaining factors.

3. Determine your target salary and benefits. Your target salary should always be 15 to 20 percent more than what the employer initially offers. Learn to quickly multiply by 15 or 20 percent and add it to your salary figure on the spot if you need to. Distinguish between the benefits you absolutely need and those you want. (See page 139 for a list of benefits.)

Taken from : Fearless Interviewing - How To Win The Job

Acquaint yourself with what the average job expectations are, and then use Q statements to prove you can exceed them. If there’s no job description, look up a typical job description for the position in the Occupational Outlook Handbook—a massive encyclopedia published by the U.S. Department of Labor that features not only job descriptions but also salary reports, job requirements, and future economic outlook for more than 6000 occupations. You can access the handbook online at http://www.bls.gov/oco/.

The basic premise of all of these bargaining factors is that you are not a position. In fact, what you bring to the table may be a lot more than what the company had in mind for the position. Since you’ve assessed your skills and constructed Q statements in the last chapters, you are more likely to be able to convince the employer that indeed you have more to offer the company in bottom-line profits than the average person they had in mind for the position.

Taken from : Fearless Interviewing - How To Win The Job

Ask yourself the following:
• Can I help the company make money?
• How about saving money?
• Could my skills be used to help speed up production, decrease waste, add a valued service, or improve customer relations?
• Do I have stories illustrating that I perform consistently over quota?
• Could I act as a manager or executive who would handle bigger budgets, manage more effective teams, and provide measurably superior leadership?
• Can I prove that my organizational skills can save the company time?
• Can I demonstrate that my public relations or customer service skills could turn the company image around?
• Can I help save training time by being an independent, bright self-starter who learns quickly and doesn’t mind jumping in head first?
• Do I have innovative ideas that could bring distinction, respect, and perhaps awards to the company?
• Can I prove, with examples, that I can get it done faster, better, cleaner, safer, more beautifully, or more accurately?

Taken from : Fearless Interviewing - How To Win The Job

There are a couple of quick and handy ways to estimate what a reasonable range for your position might be. One is the do-ityourself method, and another is to let a professional salary service do the work. If you would like to research your salary range and your probable benefits yourself, I suggest these free Web sites and links on the Internet:
http://www.salary.com
http://www.salaryexpert.com
http://www.jobsmart.org
http://www.bls.gov/oco/

If you’d prefer to have a professional service research your salary for a fee, I would recommend these companies:

Pinpoint Salary Services, http://members.aol.com/payraises/pinpoint.html Personal Salary Report, http://www.salary.com

2. Clarify what qualifies you to make more than average and more than the company’s initial offer. Complete the qualifications worksheet at the end of this chapter. What added value do you bring to the employer? Read the job description (if there is one), and analyze how and why you, as compared to the “average” applicant, can add more to the bottom-line profits of the company. Use your skills assessments and Q statements to make your case.

Taken from : Fearless Interviewing - How To Win The Job

Salary negotiations can be a very delicate matter. However, the more you know going in, the more influence you can exert when the time comes. Take the time to research your salary carefully and determine where you stand on these four bargaining points:

1. Know the relative worth for your position in the marketplace.
2. Clarify what qualifies you to make more than average and more than the employer’s initial offer.
3. Determine your target salary and benefits.
4. Forecast how long you are willing to wait until the negotiation resolves in your favor.

I want to see you get every penny and every advantage that you deserve. To accomplish that, let’s take a closer look at each bargaining factor.

1. Know the relative worth for your position in the marketplace. It is helpful—especially if you happen to be entering a new field, going from a very small to very large company, or
making a significant geographic shift—to get a ballpark salary figure for a position. Do some research to determine what, statistically, is a low, mid, and high salary range for a particular position. At no point should you confuse this ballpark figure for the actual sum you’ll settle for. You should use this only as a broad guideline.

Taken from : Fearless Interviewing - How To Win The Job

Thomas figures he already knows about interviewing techniques because in his last job, he interviewed other people. When Thomas interviewed for this recruiting position in a staffing company, he walked away with an offer of $30,000 base salary plus commissions and a full benefits package.

Stephan has only 3 years’ experience in technical recruiting and is 37 years old. He’s done considerable research on interviewing techniques, salary negotiation, and the company he is
interviewing with. Though his finances have gotten very tight during a period of 3 months of unemployment, he’s willing to wait it out for the right job at the right salary. Stephan has an interview today at the same company that Thomas is interviewing with. Although he has less experience than Thomas, Stephan negotiates for a salary of $60,000 plus commissions with full benefits, a hiring bonus, several perks, stock options, and permission to telecommute from home two days out of the week.

What happened here?
How did Stephan, with 2 years’ less experience command $30,000 more in salary, plus extensive benefits, perks, and stock options? The chart below examines some of the things Thomas and Stephan did differently. The disparity between Thomas’s salary and Stephan’s is not an accident. Stephan consistently applied the techniques of opendoor
negotiating and knowledge of the four bargaining factors. Let’s take a look at what they are.

Taken from : Fearless Interviewing - How To Win The Job