Many job seekers think, "If this company really wants me, they will pay the salary I want." But negotiating salary is not quite that simple.
Here's one way to think of it:
Your value = the employer's need within budgetary and policy limits
Employers, of course, keep their budgets secret. But what they will disclose is that they are interested in hiring you. Wait for that cue.
You should begin your part of the negotiation by creating your value for the employer. Through your paperwork and interview, show yourself to be an employee this company needs. Show you have competence, experience, interpersonal skills, a team attitude and the ability to manage change. Pay attention to the job requirements and prove that you are the perfect fit.
Employers will often ask you how much you are making. Answer honestly. But wait until the interviews are completed -- and you know the company wants to hire you -- before starting the salary negotiation. It's especially important not to start off talking salary if you are seeking a substantial increase over your current pay.
Talking businessKnow what you require in salary and benefits, what you want and the priority of these desires. Everything is negotiable, but the company will be limited on some things, depending on budget, policies, fair compensation guidelines and restrictions on benefits.
You can usually negotiate within the "package" of the offer. For example, if the employer cannot budge on the base pay, perhaps you can get a signing bonus to make up for the cost of moving, buying a car or leasing an apartment. Relocation payments are always negotiable if the employer offers it in the package.
Paid time off is more difficult to negotiate because many companies have vacation policies based on how long employees have worked there. Medical and dental benefits usually have their own inflexible guidelines. But you can negotiate who pays for your COBRA health coverage, which allows you to remain covered by your previous policy until the new one kicks in.
Employers will give you some time, even if it is overnight, to consider the offer. But don't take so long that you appear to be stalling. In most circumstances, a few days is long enough. And it is always wise to seek counsel from someone you trust as you are weighing whether to accept the job offer.
Next week: Damage control for employers.
