Research equates to power. That"s absolutely the case now. Before you receive an offer, you need to create a checklist of your needs and expectations. Guerrilla, if you don"t plan like this, you may find that in the rush and excitement of accepting the position, you forgot or missed important elements. Winning at this stage requires you to look beyond salary and deal with the complete package.
NEGOTIATE YOUR POWER BEFORE YOUR PAY
This may seem at first a little backward. Doesn"t your t.i.tle determine your salary? Well, actually, no. It"s the depth of your responsibilities that determines how much an employer is willing to pay you. The greater your level of responsibility, the richer your pay packet. Therefore, it"s in your best interest to negotiate your duties and responsibilities before tackling compensation. You and the employer must have the same understanding of your responsibilities and the specific performance standards that gauge your success.
Performance standards must be observable and measurable; they can"t be subjective or your performance becomes open to interpretation, making your bonus subjective as well.
For example, a subjective clause in a contract might read, "Increase sales." An objective statement would read, "Increase sales by 15 percent in 12 months." Only the second clause can be measured.
If during the interview process you agree to shoulder more responsibility than the employer originally envisioned, doc.u.ment it at the time, so that when you negotiate compensation, you can both make an apples-to-apples comparison. By supersizing the responsibilities of the job (do you want fries with that?), you push compensation upward. The easiest way to negotiate the salary you want is to increase the responsibilities of the job. You must doc.u.ment the following: * t.i.tle* Reporting structure* Authority* Accountability* Number of direct staff* Specific performance standards* Committee responsibilities if any
Any increase in authority or responsibility that you can doc.u.ment that you can doc.u.ment will amplify your compensation package. If the increase in responsibility is not doc.u.mented and the "job description" stays the same, there"s no justification to raise your salary. You and the employer need to have the same view of the position"s scope before the offer is made. Your initial strategy is to increase the compensation package in light of the increased responsibility. That way, the employer"s first offer is already inflated and probably closer to an acceptable level, requiring only minimum negotiation. will amplify your compensation package. If the increase in responsibility is not doc.u.mented and the "job description" stays the same, there"s no justification to raise your salary. You and the employer need to have the same view of the position"s scope before the offer is made. Your initial strategy is to increase the compensation package in light of the increased responsibility. That way, the employer"s first offer is already inflated and probably closer to an acceptable level, requiring only minimum negotiation.
Once you have the details of the job finalized, it"s up to the employer to come back to you with a reasonable offer. You have 2 choices here. You can either tell the employer exactly what it will take to close the deal or you can let him make an offer. After investing this much time in interviewing and negotiating, most employers will come back with a reasonable offer because they don"t want to repeat the process with someone else. By the time it gets to this point, the employer already has a pretty good idea of what the market is paying for this position and what the company can afford. As a headhunter, my strategy is to aim for the absolute top dollar and settle a few bucks below. It"s in your best interest to let employers think they"ve won. This shows that you are flexible.
Establishing Your Bottom Line
Do you know what your bottom-line salary must be? "More" isn"t a number. Most people have an idea of what they would "kinda like to make," but rarely do people know exactly what they need. Fewer still know what they want prior to the offer. Failure to establish your bottom line may place your current lifestyle at risk or at the very least leave money on the table. It"s important to know those details but it"s even more important not to tell the employer. Ideally, you want to start negotiating well above your minimum amount and if all goes well, never approach it. Guerrillas won"t wait until the last possible moment; they"ll tally up the cost of their lifestyle well in advance of the employer"s first offer.
All employers think about salaries in ranges of high and low. Many subscribe to salary surveys. You can find out the inside skinny on thousands of companies-free-by going to Gla.s.sdoor.com. Your future employer"s industry a.s.sociation will likely have a salary survey, too; pick up the phone and ask. If you can"t get access to it, then do your own. Call their compet.i.tors. You"d be surprised how much information you can get from a human resources department if you tell them you are a researcher-which you are. Appendix 3 provides a detailed list for researching compensation requirements.
Negotiating Benefits
Compensation is more than just your base salary, but employers will be focused primarily on the base salary because it"s a fixed cost and in some cases, such as insurance, it determines the cost of other benefits. From your viewpoint, though, almost everything you don"t have to pay for directly is money in your pocket.
Maybe you noticed that I did not list a cell phone as a benefit in Appendix 3. Companies will try to tell you it"s a benefit; in reality it"s an electronic dog collar. Many of the newer phones have geographic information systems (GIS) positioning technology making it too easy to track you down-via satellite-on your day off. Ask for a monthly allowance instead.
Tuition Forgiveness
This is not the same as an education allowance. Tuition forgiveness deals with the money you already invested in your education. For example, you may have financed an advanced degree in nursing, and now each month you have a student loan just as you might have a loan for a car or house. If you"re in a "hot area" like IT security or nuclear medicine, you may be able to get the employer to a.s.sume your education mortgage.
Now"s the time to stop reading and turn to Appendix 3, if you haven"t already. Take a hard look for any items you currently pay that you could switch over and have the employer cover. Insurance programs can be very costly and you pay for them with after-tax dollars-double ouch. The employer will gladly provide extra benefits if he thinks that you will accept a lower salary. Let him reason that way for now.
Remember, benefits are great, but they"re not spendable dollars. You maximize your cash flow by having the employer pay for your benefits. Always maximize the employer"s portion of the coverage because you"re not taxed on benefits. Well, okay-in Canada benefits may be taxed; but in the United States, you"re taxed on your gross salary, not your total package including benefits. Frequent flyer miles are the only exception; if the company gives them to you and you use them, the IRS will tax you.
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GUERRILLA MISSION.
Look at the list in Appendix 3, determine what you have now, and how much each item costs. What benefits can you reasonably expect the employer to pay for? What would you like them to pay for? Make a list now so you know what you"re going to be negotiating for and the monetary value of each item.
Using a checklist ensures you won"t have regrets later. It also demonstrates your business savvy. Be alert, employers may try to trick you by focusing on your "total compensation" instead of your salary. Instead of focusing on the $40,000 salary, the employer will try to sell you on the $52,000 package (base + benefits). In most employee/employer negotiation schemes, it"s to the employer"s advantage to load up the benefits component to lower base salary. Of course, guerrilla, you"ll be prepared to counteract this. You want the highest possible salary and great benefits, too.
YOUR STRATEGY
Take the lead. Do not make the mistake of letting the employer define the issues for you. You must negotiate salary last. Why? Simple, the employer will be focused on the big number-your salary-to the exclusion of all else. We want to nibble-just a little-and then a little more. Talking about the little items first will earn you a string of rapid concessions on items like insurance, professional fees, and vacation. If the employer wants to be the hero on the salary front, who are you to deny them? A true winner gives wins away, so let them feel like they"re winning. For the time being, focus on increasing the value of your benefits by 50 to 100 percent. It"s still money for you and there"s no ego involved in their giving away benefits.
GUERRILLA TIP.
If you are relocating and you already own a home, make sure you don"t get stuck with two. Have a clause put in the employment agreement that states in effect that you"ll endeavor to sell your house but if after 2 months the house is not sold at fair market value, the company is responsible for buying the former home outright or paying your mortgage until such time as the house is sold. This is one of those benefits you want to think about from the outset but only table as an "afterthought" just as you"re reaching to sign the employment agreement. Essentially, you need to have all the other points of the agreement in writing before you try this. Don"t worry, you"re not going to shock the employer; they were just holding their breath hoping you wouldn"t bring it up. Shame on you if they succeed.
On several occasions, I"ve needed to go above and beyond even this. I have gone so far as to negotiate the moving of a director"s wine collection from France. In another case, we bought a manager a home and moved his daughter"s horse.
Nothing, it seems, is beyond reason as long as the employer is convinced the company needs you. Remember, though, parity is important in an organization and some of the things you request may be denied because they would shake up the organization"s existing compensation ranges and structures. If this is the case, don"t push further-the organization isn"t likely to budge and you will lose.
THE PSYCHOLOGY OF THE DEAL
After several go-rounds on benefits, you"ll likely be close to settling in to negotiate salary. When you think that time has come, you may want to raise the following issues as much for the opportunity to secure them as to give them away: * Signing bonus* Severance* Earlier-than-scheduled compensation review* Guaranteed minimum first-year bonus
How you deal in the final negotiations will be a telltale sign for the employer on how well you will negotiate for the company. This is especially important if you are seeking a purchasing, marketing, or sales position. You don"t want to cave, but you do want to be seen as being logical in your rationale and considerate of their position.
Throughout the negotiations, you may hear comments or questions like the following and you need to be prepared to deal with them in a logical and matter-of-fact style: * If we make you this offer, will you accept it right now?* What will it take for you to accept the offer?* What other way can we structure this deal so that it would be acceptable?* What do you think is fair-market compensation for someone like you in this city?* How low can you go on each dimension of the compensation package?
My advice is to remain cool and stick to your agenda. An employer who is asking you these questions is trying to close you. The "psychology of the deal" dictates that you never never accept an offer on the spot. If you say yes immediately, it weakens your position now and in the future. Always ask for a day to think about it even if you"re ready to sign. You may want to use phrases like: accept an offer on the spot. If you say yes immediately, it weakens your position now and in the future. Always ask for a day to think about it even if you"re ready to sign. You may want to use phrases like: * I"m very interested in joining your team, and I"d like the night to think it over. Is that okay with you?* I"m very interested in joining your team, and I"d like the night to discuss the details with my spouse. Do you mind? (This is especially relevant if it requires relocation.)
Your uncommon courtesy will buy you the night-or longer-to mull over the details and ensure you haven"t missed anything.
BREAKING AN IMPa.s.sE
When negotiations come to an impa.s.se, and they always do, it"s your responsibility to continue driving the deal. Be prepared to ask questions and keep the negotiations alive and moving forward. Asking the following demonstrates your sincere interest in coming to an agreeable offer: * What flexibility do you have on: salary, signing bonus, annual bonus, or anything else?* How about considering other dimensions of the package, beyond annual salary and job t.i.tle? For example, signing bonus, annual bonus, vacation, retirement plan, and equity.* What other differently structured compensation packages can you offer?
NAVIGATING THE GAUNTLET
Most people are reluctant to negotiate because they either feel greedy or have a hard time a.s.serting themselves. Yet, these same people are quite effective when acting on behalf of their company. Guerrilla, if this describes you, it is okay. Your remedy is at hand-do it for your family. Think what a difference an extra $5, $10, or $20,000 could make in little Timmy"s life. By negotiating for those you care about most, you"ll negotiate a better deal. It"s never just about you.
BODY LANGUAGE