That elusive condition referred to as happiness; a state of existence where you’re actually paid what you’re worth and no longer puzzled as to whether your credit card is a friend or foe. Every job offer, even at the entry level, is an opportunity to negotiate the most important number in your working life: your salary. Money isn’t everything, but for those of us struggling to establish our career paths, a suitable salary represents the mark of our independence and genuinely sought after financial freedom. If you’re prepared to negotiate for happiness, whether it’s for your first job offer, your next job, or following a performance review, then take to heart ticklemybrain’s nine step guide on what to do before you sign on the dotted line:
1. background story: Your relative power when sitting across from your prospective or current employer is dependent upon four major factors: (1) economy, (2) company, (3) hiring and (4) applicant factors. (1) Economy factors refer to the overall state of the economy and industry in which you plan to prosper, its unemployment rate and current demand for professionals of your caliber. (2) Company factors refer to the company’s profitability, position in the business cycle and size. The size of a company, for example, can give its negotiation more or less latitude; smaller companies are more likely to relent to your requests. (3) Hiring factors refer to how urgently the position needs to be filled and the company’s staffing budget. (4) Finally, applicant factors refer to the unique skill set required to successfully fill the position and the level of competition.
2. fortify: Preparing to negotiate is like playing a round of the strategic board game Risk. While the primary objective of Risk is “world domination”, the commonality is in being prepared. Going into the interview room without knowledge of your industry and average salary range offered in the region is similar to attacking countries with only a few soldiers. You need to obtain as much information as possible in an effort to map your skills against what a company considers valuable; this will be your armor. Try to get in touch with people who received offers from the company you’re applying to and its competitors. Ask the contact if and how he or she negotiated and whether it was successful. Establish your minimum requirements, which will depend on whether you have other offers pending, your financial status, how long you’ve been in the job search, and the state of the economy. Ask yourself the vital questions. How much do I need to pay my basic expenses such as rent, groceries, utilities, and transportation? What salary will I need to live a life superior to the one I’m living now? How much will I be saving?
3. dream candidate: To any successful organization, the dream candidate has many ideal qualities one of which is surely the ability to negotiate. It will want you to be a tough yet professional negotiator with its clients, so it expects you to set the same standards for yourself. Ideally, you should be able to demonstrate in monetary terms how the unique qualities you will bring add value to the company. Know how much your skills and experience are worth in the current marketplace and sell yourself. Also, don’t let your current salary limit your belief of what your earning potential should be.
4. you go first: You need to withhold your stance on what your salary should be for as long as possible. You go first and you’re down to three scenarios: (1) You’re low, they win. (2) You’re high, they think you’re arrogant and out of their price range. (3) You’re just right, and you’ll never know what could have been. Employers often use such information as a fundamental strategy to screen candidates out of consideration and you don’t want to put yourself in the dark zone before you even get your foot in the door. If the question pops up on your job application, go for words such as “open”, “negotiable” or “competitive”. You are now in the interview room and asked directly, “What salary do you expect here at McDonalds?” You, Version 1: “Well, what salary range is offered at your company to someone with my burger flipping and French frying experience?” You, Version 2: “Something comparable to the market rate, given my skills and capabilities.” You, Version 3: “I am flexible with my salary and I’m expecting to earn fair market value for the position.” You, Version 4: I’m sure that if I do receive an offer, it will be fair and reasonable”. You, Version 5: “I will consider any reasonable offer I receive”. Finally, if pushed to produce a number say: “I have researched this position by speaking to my peers at Burger King and Wendy’s, and for my position the range is $ to $. Is that what you have in mind?” Give a range making sure the bottom is the minimum you have decided you should take and the top being only a bit higher than your ideal. It might be relevant to you that you have payments and bills to make, but not to the company. Give business reasons only to back yourself up.
5. hmmm: Should the offer be made immediately after the salary inquiry then let the silence linger whether you like what you’re hearing or not. If the interviewer offers $50,000, a smart applicant will repeat the figure: “Fifty thousand,” you say while tilting your head back to investigate the ceiling tiles, “Hmmm.” You have set the stage to counter. Now it’s time to put your research to work. You should know the expected range for this job, and you can now begin to position yourself favorably within the range. You, Version 1: “My research has shown the range for this job to be up to $55,000 and I believe my experiences qualify me to come in at the top end of the range.” You, Version 2: “Taking my experience into consideration and knowing that I have the ability to jump right in and make a difference, I really feel strongly that a salary of $55,000 would be appropriate.” You, Version 3: “Based on my understanding of the job, the company’s needs, and the skills and experience I bring, I feel I’m worth $5,000 more than what you’re offering me.” If the thought of negotiating makes you queasy, remember that annual raises are usually a percentage of your salary. This one time negotiation will continue to pay you back. You will clearly need to make a judgment about each situation as it arises however, but experts agree against giving up your salary history. Scary mean guy sitting across from you: “Well, we need to know your salary history so that we know whether we’re in the right ballpark.” You: “Well, what is the going rate in the industry for someone giving the unique contribution I can make?” If scary mean guy persists, then the best bet is to reveal, without lying, a number that represents your current total compensation including salary and benefits. On both topics, more often than not, the recruiter will move on and the issue of salary won’t come up again until you’ve been offered the job.
6. the critical hour: You have received a job offer. Should the average salary offered by the company not have been mentioned in the interview this is a second chance where you have the power and should negotiate your salary. Use the same methods mentioned above, either through an email or even better, face to face. Each case can be viewed slightly differently depending on the discussion in the interview. For example, had your prospective employer only mentioned a salary range, you are now aware of his or her negotiating parameters. Explain why your skill set places you on the upper end of his or her range.
7. slow and steady wins the race: Don’t rush to accept the offer, even if it was more than you expected. Ensure everything in the documentation adds up to what you were offered verbally. Aside from the obvious salary you have successfully negotiated for, details to look out for are the job title, department, location, reporting line, work hours, vacation entitlement, benefits and start date.
8. he made me an offer I couldn’t refuse: When you receive a job offer, it is important to consider the offer in its entirety. Pay attention to the company’s health insurance plan, vacation package, overtime pay, and other perks. Maybe the company is not meeting your salary requirements but is somehow able to make it up to you in other ways. Keep in mind that some offers are too good to refuse even if the money isn’t there. This is especially true for programs that will teach you unique skills. Some jobs are so prestigious that simply having them on your resume is enough.
9. agree on the future: Performance reviews and salary negotiations are a continuous processes. The last step of a salary negotiation should be the first step of the next. Set the groundwork for what performance objectives you need to achieve to receive a raise or promotion in the near future.
Negotiating a salary is something we are reluctant to do, especially as recent work force entrants. The economy leads us to believe we should be grateful just to be hired and we don’t want to rock the boat. While its lovely to be appreciative and enthusiastic, not only can you negotiate the salary of your first and next job, you should.
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Sources –> Content: (1) www.salary.com - everything is negotiable/ your dream deal (2) www.careerbuilder.com – do’s and dont’s of negotiating a salary/ mishandling salary negotiations/ five steps for successful salary negotiation/ say hmmm to the first salary offer (3) www.askmen.com – eight tips to negotiating a higher salary (4) www.forbes.com – tips for negotiating your first salary Images: (1) www.vi.sualize.us - piggy bank (2) www.vi.sualize.us – in god we trust (3) www.stuffnoonetoldme.blogspot.com – how good i am (4) www.vi.sualize.us – walk the line
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