Careers

When to Begin Negotiations

Although you should determine your desired salary range prior to an initial interview with an employer, you should avoid instigating a discussion of compensation during the initial employment interview. The ideal time to begin salary negotiations is when the job offer has clearly been extended. Prior to receiving the job offer, you have nothing to negotiate. After the offer has been extended, the employer has already reached the decision that you are the ideal candidate. Also by this point, you should know what your ideal compensation package emcompasses.

The Negotiation Process

When arriving at the initial compensation offer, attempt to make the employer present the first salary figure. Employers may ask you initially, “How much would it take to get you?” or “What are your salary expectations?” Employeers are seeking a dollar figure. However, you can turn the question back to the employer by summarizing the responsibilities and expectations of the position and by following the summary with “What has the organization budgeted for a position of this nature?” or “What figure or range did you have in mind for someone with my qualifications for fulfilling this type of position?” Also, your pre-determined salary range may then be extended to the employer in a respectful manner, such as “I believe my qualifications merit a starting salary between ______ and ______.”

Reacting to the Initial Offer

When an initial offer has been extended, you will likely judge the offer in one of two ways. You will either regard the offer as fair, or the offer will not be as agreeable as you expected. The way you react to an offer will depend on this judgement:

If you believe the offer is fair, you may want to try and increase the value of the proposition. this attempt may be initiated by stating to the employer that you are very close to an agreement. The appropriate next step in this reaction is to disclose again a desired salary range using a low end that is at the employer’s offer and a high end that is slightly above the employer’s offer. This disclosure should be followed by an effort to reconcile your desired range with the offer by asking, “How much liberty to negotiate do we still have?” Using this strategy may result in a slight increase in your offer or in the same offer. Regardless of the result, the offer will be no less than the salary you have already judged as equitable and worth considering.

If the employer’s offer is less than you believe is equitable, your strategy should be to continue negotiations by offering incentives, using leverage questions and discussing the value of benefits while trying not to negotiate below your desired range. Incentives, such as an early or immediate starting date or a re-emphasized skill package that directly relates to the employer’s needs, may cause an employer to re-evaluate and increase the offer. You should stress your potential assets to the employer and use questions to make the employer realize your value. Here are some example leverage questions:

1. What is the time frame for filling this position?
2. How often are performance and salary reviews conducted?
3. Does the company have an official policy on internal growth?
4. What potential career paths within the company might someone entering this position pursue?

After using one of these two reactions you should have a clear understanding of the value in the entire compensation package, including salary, benefits, potential for professional growth, and employer stability.

Only one more step and you will know how to correctly negotiate a salary. Read the next post about benefits and making the final decision.