Salary Negotiations: Avoid Salary Topic During Job Interviews
One of my newsletter subscribers asked me whether or not it was okay to talk about salary during the first interview with an employer. They were worried that it would give the wrong impression. How could they avoid revealing their salary expectations too soon? They were wondering how they could postpone this discussion until the right time. My golden rule is to never lie to anyone. Therefore you need some good strategies to avoid this topic until the last minute.
Many times I have faced the same scenario. When asked by the hiring managers what my expectations were or what my salary history is, I have used the following approach.
1) My first response would be to try to defer the topic until later. Because we haven’t really gotten through the responsibilities of the job, nor the contributions I can make in the new position. The new job is somewhat different from the past job because the company’s market, product or industry are somewhat different than the past companies. Therefore the past salary history is not all that applicable. I would prefer to be paid in accordance with the market and the company’s hiring practices.
2) If I am pressured for an answer in an interview where the request is to provide my previous salary, I set out the total value of what I expect the compensation package will hopefully include. That is cash value for the time and effort (salary), list the benefits in as much detail as I can, how much holiday, and other working conditions such as flex time, or time off in place of worked overtime. I also prefer to reiterate that the job I am looking towards is not with the same company and thus my previous earnings not very relevant. In reality, there are so many things to consider, such as home life balance, health benefits, vacations, overtime, etc,etc, that factor in. What is most important to me is that my salary will be aligned within a margin of my past job, and does the package I am offered match what is reasonable for the current job market which can be totally different.
3) While you may feel you are a high performer, you also may be somewhere above average but not commanding the highest pay. Know the salary range for the job you are applying to, but be realistic when setting your percentile level for your salary expectation. The majority of people are between the 25% and 75% level. Remember that the employer will confirm your performance level with your past employers at reference checking time.
4) Even if you had been making a lower than average salary before, possibly even well below the average for that job in that market, you should expect to be paid within that fair market range when you go to your next career opportunity. You may have one of many reasons for accepting a job at a lower salary than at your previous job. It doesn’t explain your value to the new company. The end analysis is that your value to the market is what the market is currently defining as the salary range for your talent, your level of performance and experience in the industry.
5) If you do give in and tell them your past salary, make sure you clearly express that you expect to be paid respectably, and you just don’t want to be taken advantage of. Explain what you do know about the job market at that time. Most employers will respect you for expressing your expectation for your reasonable salary. Just remember salary negotiation is not supposed to be an offensive situation where you are demanding. Remember to be clear in your negotiations but respectful in your dealings with the recruiting manager.
Never lie to a prospective employer. This is cardinal rule number one. The new company will find out facts and do their legwork to assess your history and past performance. You need to clearly communicate the value you bring and that your past salary history whether high or low is not too pertinent to the new job. You need to be met with fairness in the recruiting process, and that your value proposition is clear and well expressed.
Re-negotiate The Salary Of Your Current Job
A friend wants to re-negotiate his base salary to be within the range of peers in his field. We looked at a salary survey website and found that he is quite underpaid. Can a person re-negotiate their salary? Is it better to quit and then get re-hired?
Absolutely! You can definitely negotiate a pay raise in your career. I recommend people start considering a number of things in order to approach their bosses for a raise.
Of course, if you just accepted a job offer, it is not a good time to ask for more money, but once you have some time and accomplishments behind you, you should look to salary negotiation. If you just accepted the offer, you did so fair and square. That is why it is important to know your value before accepting any job offer.
There are many ways to increase your total compensation. Think about things like stock options, improved benefits, more days off, or pension plan contributions as other value adds to your compensation. Sometimes it is easier for the employer to give you what you want if you aren’t looking at the hard cash bottom line.
Consider taking these steps before you ask your boss for a pay raise.
1) Know the value of your skills in your area. Research multiple sources for salary data, and be aware that surveys conducted by HR will be more reliable than those that are self-reported by employees.
2) Your value-add is a very powerful salary negotiation tool. You should be aware of all the ways you add value to the business and prepare to communicate it effectively to the boss.
3) Prepare yourself to discuss this with the boss, and mention that you would like an increase to be in line with the current job market salary range.
4) Having done your research and having an intuition for where your performance falls within the percentile range, you will need to have a conversation with your boss and agree on the level you are performing at.
There are many factors to consider. I recommend doing a lot of research. One thing is for sure, you will not likely get the raise as quickly or necessarily as much as you were hoping for without mastering your skills in salary negotiation.
If you love your career where you are working, you may need to balance the quality of the work-life with your need for an increase in pay. I recommend looking for an increase where you work first before going through the job efforts unless you’re unhappy with your job.
Either way one strategy that helps in negotiation is to have another job offer in hand. With that in your back pocket you will have more leverage with you salary negotiation.
Reasons to Brush Up On Your Salary Negotiations Now
Do you give your all to the company you work for? Do you feel you could be recognized more by the boss for the professional work you do? Do you feel you work too hard for too little compensation? You may well be one of the millions of professionals globally who need to learn to negotiate your salary.
Earning a higher salary is not a factor of luck, it is a matter of being proactive and building yourself a well planned case for negotiating a pay raise. When you have a well planned case, you can approach your boss in a totally empowered way, and you give yourself the best chance of success.
What are your motivations for stepping up your salary negotiation game? These are some great reasons to learn how to negotiate a salary like a pro.
1. Earn the respect of your employer. For many people, being treated with respect and feeling that respect from their supervisors is a big reason to stay with that company. When you are successful in negotiating your salary, you will have earned the respect you were looking for. Your boss wouldn’t have agreed to a pay increase if they didn’t respect you. They will respect you for your approach to salary negotiation.
2. Self respect. When you stand up for yourself, and negotiate a salary increase successfully, you will feel a sense of pride for your accomplishment. It is not self indulgent, it is rather well founded pride in both working hard and deserving the raise, and in preparing yourself with a solid case for salary negotiation.
3. Increased spending money. Honestly, if you’re going to negotiate salary, you are going to do it for the extra cash flow you will have. Whether your reason for wanting to earn more money is based on your wish list, or because you need more money for the day to day cost of living, having more income is your main motivation of salary negotiation. If you’re going to succeed in negotiation, you need to have the best salary negotiating skills.
4. You may negotiate extra benefits. Many times, salary negotiations may not end with the final dollar figure that you had in mind, but you may instead compromise by negotiating a combination of salary and benefits. For many people the combination of extra cash and extra time off, or other benefits like pension, stock options, or other unique benefits are a big deal.
5. You higher salary now, will be the baseline for your future salary negotiations. This is a major factor when considering taking on a new job, or when working your way up the corporate ladder. The higher you start, yes the more you have to prove, but also, the higher the threshold when it comes to things like both next salary, and performance bonuses that are based on your salary grade.
Everyone has their own reasons for asking for a pay raise. You know your reasons too. What is most important is that you go into the salary negotiation well prepared with a well thought out plan that includes expert strategies. You will not regret the effort you spend preparing when you close the deal on a new higher salary.
Wishing you the ultimate in salary negotiating success.
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