Negotiating an offer
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Secure the best pay deal for yourself
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Negotiating an offer
Securing the best pay deal for yourself requires skillful negotiating. If you're interested in reading more about what it takes to negotiate compensation, try these recommendations from Richard G. Shell, the Thomas Gerrity Professor at the Wharton School of the University of Pennsylvania. Dr. Shell teaches in the school's legal studies and management departments and is director of the Wharton Executive Negotiation Workshop, a weeklong executive program on salary and other negotiation issues for managers. "Get Paid What You're Worth: The Expert Negotiator's Guide to Salary and Compensation"
By Robin L. Pinkley and Gregory B. Northcraft
"This is a great starting place for anyone deciding to negotiate compensation. It covers all the basics." "Women Don't Ask: Negotiation and the Gender Divide"
By Linda Babcock and Sara Laschever
"Women often get paid less than men for doing the same job. This book explains why and what you can do about it."
"Influence: The Psychology of Persuasion"
By Robert Cialdini
"There is a lot of psychology behind effective negotiations in both business and everyday life. This wonderful work explains the 20% of that psychology that makes 80% of difference to your success."
"Emotional Intelligence: Why It Can Matter More Than IQ"
By Daniel Goleman
"Sometimes it isn't what you ask for but rather how you ask for it that makes the difference. This work shows that getting ahead depends as much on your sensitivity to peoples' feelings as it does to the excellence of your work." "Think and Grow Rich"
By Napoleon Hill
"Having the right mental attitude is critical when you are asking for more pay. This classic self-help manual shows you a step-by-step process for getting psyched up so you will achieve your goals -- for compensation and everything else." "The Entrepreneur's Guide to Business Law"
By Constance E. Bagley and Craig E. Dauchy
"Although written for entrepreneurs, this basic guide to business law has excellent sections on employment contracts, including noncompete clauses and other contentious issues."
"Sam Walton: Made in America"
By Sam Walton with John Huey
"If you get tired of asking for raises -- or don't get paid what you deserve -- then it may be time to strike out on your own. This inspirational book shows you how to do it. Wouldn't you rather have other people asking you for a raise instead of you asking them?" |
Preparing for negotiation
- Your strength in negotiating a salary package comes from how closely aligned your skills, knowledge and expertise are to what the employer is looking for. Therefore, ensure you clearly understand and are able to articulate what it is you have to offer.
- When an offer is received, remember, everything about it is potentially negotiable, for example, base salary, starting date, working hours, relocation expenses, benefits, bonus. The higher the position within an organisation, the more bargaining power you have.
- Also remember that you are hoping to build a long term relationship with the employer, so the outcome needs to be a win:win.
- Be clear on what it is that is important to you, such as base salary, working hours, flexible working conditions or commissions on reaching target. As important as money is, it isn’t everything!
- Always try to gain an understanding from the employer first as to the salary package they have allocated to this role – without this information, you could easily under or over-sell yourself. For example, in answer to the employer question “So tell me, what salary are you seeking?”, you can respond “I believe my skills and experience are a solid match for this role. May I ask what salary range you have established for the position?”
As a starting point, ask yourself these questions:
Do I know all I need to know about this organisation, the role and the targets?
Have I successfully communicated my value to the employer in terms of skills, knowledge and expertise?
Have I thought about what is most important to me with regards to remuneration and reward?
Have I researched the market to find out what salary a position of this nature is attracting?
Am I willing to take a lower salary to get a foot in the door and be given an opportunity to demonstrate my capabilities?
TIPS!
- Do not exaggerate your current or previous income, this can be easily verified as part of the reference checking process. What you can do is mention the ‘package’ you were on, inclusive of salary, superannuation, bonuses, and any other incentives.
- Do not accept offers there and then, but request time to consider and respond.
- When negotiating, reaffirm your strong interest in the opportunity and the company and provide reminders of your suitability for the position.
Always try and get the offer in writing – it would be unwise to resign from a current role until you have this in place.