Salary Negotiation Do’s and Don’ts
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) The approach I would take would be to ask to table the question until later in the interview or for another day. It is important to me that we have first come to a common understanding on the roles and responsibilities of the job, and also, the type of experience I bring to the job, and what I will be contributing to the new company. I would prefer to be paid in line with the current job market and within the companies standards for this role.
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) It is very important to be aware before interviewing for the job, what the range is for that position. It is important to determine where I believe I fit within the market percentiles for that job. Most people do not meet the top end of the salary range, and there needs to be room to grow into it. I don’t recommend asking for the highest salary in the range unless you know you are a total super star. Your super star status will be confirmed by reference checks, so be reasonable, but also, don’t undersell yourself.
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 disclose your salary history information, remember to state your case about the relevance of the information. You may give your personal reasons for accepting the lower pay, but most important is to explain you want the outcome of the salary negotiation to be one where both parties are respected, and that they feel a sense of win-win in the outcome.
Honesty is imperative when doing interviews. Employers have many means to determine whether you’ve been honest with them in the hiring process. What is most important is to be clear about what you can contribute to the company first, and that you expect fairness in the hiring process.
What To Avoid When Yourre Starting Out
Tags: salary, compensation, Advice, Business