The art of salary negotiation is a kind of pas de deux, an intimate embrace or dance between the job seeker and the potential employer. There are steps and missteps that make this endeavor a high-stakes game of psychology, timing, and smarts.  There are strategies and components of emotional intelligence that are critical for a successful and more lucrative outcome. 

Everything is negotiable

Every new job, every salary opportunity, and every performance review provide an opportunity to negotiate not only base salary but also various kinds of bonuses, benefits, stock options, and other incentives that add to job satisfaction and provide financial security. Taking control of your job search prior to your job offer and taking into account more than just financial considerations can also lead to that elusive condition called happiness or job satisfaction.

The art of negotiation is an opportunity to define, communicate, and achieve the income stream that you most probably deserve. First, however, you must do your homework: Gather information, plan your strategy and approach, and practice salary negotiation strategies with a spouse or friend. The most effective negotiations strategy begins with knowing what your skills and abilities are worth. You need to be able to communicate both your brand and your value to your potential employer. And you must also understand the range of salary possibilities within your community for similar positions. Salary.com is a great source for this information.

According to Jack Chapman, youtube.com guru on salary negotiation, there are several rules to follow when negotiating your salary:

Rule #1: Postpone the salary discussion until your potential employer is ready to hire
Many times I have heard applicants say that they divulged their desired salary early on in the interview process. This is a big “no-no.”  Don’t do it!  Why?  Because you don’t know where the floor or the ceiling exists. You will either be screened out, or in, but in the low-ball section. It is disadvantageous to disclose your salary request until you know that you are on the short list of candidates. Deflection is key to success here. Say something like: “I am sure you will be fair to me when it is appropriate to negotiate this salary; until then I need to find out if I am right for this position.”

Always establish your value to the company first. Why? The psychological dance here taps on human nature. Your value will be greater when the employer wants you on its team. You gain the competitive edge in the salary negotiations process when this happens. Once the screening out is over, the employer switches to the “recruit mode” trying to sell you on accepting the job offer.

Salary-Making Rule #2: Let the employer go first
In most cases, let the employer make the first move. However, Jack Chapman indicates that there are two strategies here: (1) You make the high offer and maneuver down from the top; or (2) you let the employer go first and negotiate up from the bottom.  The important thing here is to determine the employer’s range. You don’t want to leave money on the table by coming in too low.

Sometimes going with a higher number can have a magnet effect and can actually raise the offer. When negotiating with a headhunter, third-party recruiters prefer accurate disclosure so that they know how to position you.

Salary-Making Rule #3: Silence, or “The Flinch”
This next strategy requires practice. Chapman advises that after the employer makes the verbal offer, you repeat the amount slowly. For example, if the offer is $65,000, say, “Sixty-five thousand…,” and then pause. “Ahem.” This single four-letter word followed by 30 seconds of silence buys ambiguity that can work well in negotiating a higher salary. (Watch Chapman’s You Tube video at http://salarynegotiations.com/step3.htm.)

Salary-Making Rule #4: Provide a researched response
When it is time to counter the offer, you must understand your individual value to this employer in this marketplace. In this dance of salary negotiation, you now take the lead. You need to have high-quality information to back up your response and compel your potential employer to hire you.

Chapman offers a calculation of your Market Value at ORV$ + IV$ + Rf$; in other words, ORV is Objectively Researched Value, IV is Individual Value, and Rf is Risk Factor dollars.  All of these equal your Market Value.

Your increased value derives from your special talents, business connections, and creative ideas relative to the other candidates.

Salary-Making Rule #5: Clinch the deal
Always provide a “conditional yes,” enthusiastically, when you have a deal. Indicate that you still need to think about it.  The goal here is to provide additional time to think it over, just in case you have forgotten something important such as tuition reimbursement or relocation expenses.

Negotiate for a win-win
Remember that the art of negotiation is neither about strong-arm tactics nor about who wins and who loses. It is a two-way process where you and your prospective employer each attempt to achieve what’s best for the company and for you. In a negotiation, you're both designing the terms of a transaction so that each of you will receive the maximum benefit from the final agreement.

Need help in your job search? Contact Julie Swaner, (801) 585-5036.

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