The Gentle Art Of Negotiating Salary | 8 Tips for getting the money you want
Interviewing for a new job is a long and arduous courtship. If the courtship goes well, after the interviews it’s time to negotiate a compensation plan.
As a prospective employee, how should you approach negotiations? When both sides are motivated, usually it is pretty easy to come up with a fair agreement. Here are some suggestions:
1. Early on, make sure you are on the same page.
Hopefully you established early — even before the first meeting — that you and the employer are in the same ballpark. You simply want to know if there is a basis for continued discussion.
2. Have the right attitude.
Be fair. Your objective should be a deal that is a win for you and the company. Don’t try to squeeze every last nickel out of the process.
3. Know what you are worth.
Negotiations often snag when prospective employees have unrealistic expectations. Unreasonable demands reflect poorly on you, so do your homework. It’s easier than ever to get hard data on compensation for similar positions. Consult surveys, review SEC filings, and talk with colleagues in the industry.
4. Know what you want.
Know what you would like to achieve for base salary, incentive compensation, and equity. Under-stand where you need to stand firm, and where you are willing to make trade-offs.
5. Put yourself in the employer’s shoes.
Try to appreciate what is reasonable from the company’s perspective. For example, Fortune 100 firms won’t offer as much equity as start-ups, and start-ups won’t offer as much cash as Fortune 100s.
6. Don’t get hung up on title.
Titles vary across companies. Assess the level of a job by compensation and responsibility, not just title. The world is full of people titled “director” at large companies who earn more than small company CEOs. And it is common for a job called vice-president in a small company to be titled director in a large one.
7. Look for creative ways around roadblocks.
When you hit an impasse, don’t give up. Instead, look for opportunities to create win-win compromises. For example, if the employer cannot offer the cash compensation you want, perhaps they can make it up by granting more equity. If base salary is too low, maybe they will consider higher incentive pay. Perhaps they can consider a sign-on bonus. If both sides are willing, you will find a way.
8. Know when to walk away.
Most employers know what talent is worth and are happy to pay for good people. But there are a few companies that will try to drive compensation as low as possible. It’s a red flag if a prospective employer leads with an offer that is well below what you the range you discussed earlier in the process. If you join you may have more unpleasant surprises.
The bottom line: Know what you are worth, know what’s important to you, and approach negotiations with the objective of making a fair arrangement for both sides. If you do this, and you are dealing with an employer who approaches the process the same way, coming to an agreement that works for both sides will be painless.
Mike Travis is a principal with Travis & Co., an executive search firm based in Ashby specializing in recruiting for the medical devices, biotechnology and pharmaceutical industries. He can be reached at mtravis@travisandco.com.
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