Salary Negotiations

The best advice I ever heard when it came to salary negotiations was, “Do not ever put yourself on sale.”  These wise words came from Suze Orman, who is a famous financial guru.  Have you ever put yourself “on sale” when negotiating your salary?  When you reflect about your previous salary negotiations, how much “negotiating” did you honestly do?  When deciding to move on to greener pastures, people often forget about this crucial piece of the hiring phase that only occurs to some after an offer has been made.  This is the time to ask yourself, “What am I really worth?”  Luckily, we are experts in this phase and want to share our recommendations with you.

Correctly pricing your salary, or hourly rate, needs to be balanced between the prospective company’s needs and your skills.  Each skill has a value, each job has a standard rate for the region in which the tasks will be performed.  Prior to entering into salary negotiations, it’s wise to do some research on the web regarding your market’s current rate for the job title, which can be done online.  For instance, someone who will go to work in Dallas, TX will be paid differently than someone working in Pleasonton, CA, Minneapolis, MN or Manhatten, NY.  You need to assess a fair range, as this will demonstrate your knowledge regarding the position.  You would hate to under-price yourself because you didn’t do your homework.

Based on the job title range, honestly evaluate your skills required for the position.  This can be a subjective task, however, being honest with yourself during this process is essential to your salary negotiation.  Where do you fall in this range?  As an example, a job description may say, “Strong Excel skills required.”  Well, this is a subjective statement, what are “strong” skills?  If you can wield a pivot table like a samurai wields his sword, then rank yourself high in this category and price yourself accordingly.  If you don’t know what a pivot table is, then you should say that your Excel skills are average or low and consider the learning curve you will need to go through when negotiating salary.

Once you decide how much to ask for, if possible, let them throw out a number first.  This is key, as it lets you know where they believe your skills are worth.  Once they give you a number, you can let them know you would like a few days to think it over.  Come back with a higher number, and list your expertise at task A, B and C as your logic for the increase.  In my experience, this strategy worked out well and I got more than what I thought I would have ended up with in the end.  Performing this type of due diligence compounds after each raise you earn after working with the company for years, so don't sell yourself short.

If you have to give a number first, say it with confidence and don’t waver.  If you know you have correctly priced yourself, then there shouldn’t be too much of a discrepancy between your number and theirs.  Give them enough time to properly respond and then negotiate from there.

Correctly pricing yourself when looking for a new job is essential for your long term financial goals.  Putting yourself on sale to land a job isn’t fiscally responsible when you are aware of how valuable your skills are relative to the rest of the workforce.   Honest employers will pay you correctly, and fairly, for the tasks required to do the job.  Use this opportunity to price yourself correctly and get what you are worth!