Washington - I recently had the pleasure of attending a talk on finance and power.
It was sponsored by the Centre for Women's Studies and the Robert H. Smith School of Business at the University of Maryland.
Alumna Michelle Singletary, personal finance columnist for The Washington Post, had the audience spellbound as she offered her insights on finance.
One point she made was always to negotiate when considering offers. “Know your worth,” she said. “Do not sell yourself short.” I couldn't agree more. In fact, research shows that people who do not negotiate for salary start behind their peers who do. With every raise predicated on the starting position, they could be paying for this lapse for a very long time.
It is important to remember that your salary history may send a signal that profoundly affects your performance reviews, raises and job offers for years to come. But don't be alarmed - negotiating salary, while stressful, involves skills that you can learn. About 80 percent of employers stated that the job applicant who negotiates in a professional manner would make the best impression on them compared to applicants who just accept the first offer or applicants who use an overly aggressive style when negotiating.
To help you out, here are my top tips for negotiating your salary:
* Get a written job offer before conducting any salary negotiations. Employers want you the most right after they have given you a written offer. This is the time when you have the most leverage.
* Avoid answering questions about your current or previous salary or salary expectations. If you do, you may end up providing a salary number too high (and they no longer will consider you for the job) or too low (and you get a really low salary offer). Try to deflect these questions as best as you can by saying something like, “Before we address those issues, can you tell me more about the job tasks and responsibilities,” or “This job is really different from what I was previously doing, so the salary from that job is really not relevant; I would love to hear more about the job responsibilities.”
* Conduct market research to determine your market value. You will not know if an offer is a good one unless you have researched salaries for comparable jobs.
* Set a maximum plausible position. Come up with a salary range that makes sense. Do not think about what you need (your minimum point) to survive. Think instead of the top amount that you are aspiring to that is realistic. Applicants with higher targets will generally be given higher salaries.
* Establish your best alternative to a negotiated agreement. This means you should look for other offers that you can use as leverage. Try to get all your job offers around the same time so you can make comparisons among them.
* Give yourself time. After you receive the written offer, review it carefully. Thank the company for the offer, but do not answer yes or no until you have had time to think about it. Sleep on it to figure out how you feel.
* Choose your battles. If you decide you want to negotiate the offer, think about the top two or three things you really want to have changed in the offer. These might include salary, location, signing bonus, performance bonus or amount of vacation.
* Practice what you will say when calling them back to talk about the offer. Script out what you will say, what they may say, and what you will say in response. Have someone practice with you. Practice enhances your self-confidence.
* Keep it professional. Listen to what they say and ask questions using a nice tone and style. Ask questions to understand, not to be confrontational. “Can you help me understand how you arrived at that offer.” This style also provides you with information about their views, which can be beneficial when you negotiate with them.
* Remember to consider nonmonetary things, such as job title, location, start date, relocation, benefits and educational or professional development funds.
* Be persistent. Just because they say “no” the first time does not mean it is hopeless. You can ask them, “Can you help me understand why that would be difficult to do,” then say nothing (using silence). Sometimes hiring managers have to check with someone else at the company. Let them check. Ask if they need additional information from you.
* Don't quibble over small things. Don't fight over small differences in salary or perks. It makes you look bad.
* Get your final offer in writing. Then, send your letter of acceptance. If you turn them down, make sure to do this diplomatically since your reputation is connected to how you treat them.
* Most importantly, remember that you might not get everything you want, but you probably won't get anything more or different if you don't ask. You have to ask! In addition, your success in salary negotiations is all about how much you prepare and practice. So, take the time. You are worth it.
Washington Post
* Russell is the vice dean and the director of the Executive Coaching and Leadership Development Program at the University of Maryland's Robert H. Smith School of Business. She is a licensed industrial and organisational psychologist and has more than 25 years of experience coaching executives and consulting on leadership and career management.