The Top in Salary Negotiations
Talking about money with a potential employer might feel a bit awkward, but coming to terms that leave both sides content is crucial. Below, experts offer suggestions on how to prepare for salary negotiations.
Candidates who land offers at the higher end of a salary range are ones who can demonstrate to an employer that they are worth the price. Some ways to do that include:
- Quantifying experience. ("My client increased sales by 8 percent after implementing my marketing idea.")
- Researching the company beforehand so that you can tailor information to its needs. ("I see the company is interested in becoming 'greener.' Here are some ways I might be of help.")
- Pointing out any extras that set you apart (advanced training, special certifications, knowledge of a second language, etc.).
Ideally, both sides should have similar expectations regarding salary by the time an offer is issued. Yet sometimes there are surprises.
Finally, try to view negotiations as seeking a win-win situation for all involved. An employer with enough interest to go through all the stages leading up to an offer has already invested a fair amount of time and energy. The company may be just as eager as you to make things work.
Interview Tips: Provided references are no guarantee
Though the majority of employers do check references, others skip this step. Not only is it labor-intensive to check references for people who might not be poised for a job offer, but Jack Harsh, adjunct professor at the University of Richmond Robins School of Business, says that many employers worry about the risk of liability in rejecting a candidate based on poor references.
"[Hiring] decisions cannot be based on information that is discriminatory in nature, so to avoid any liability, the checks are forgone," Harsh says. "Sadly, the first reference the employer gets in such cases is from colleagues after employment has begun."
Steve Langerud, director of career development at Depauw University, adds that sometimes, the quality of references is benign.
"Everyone wants to be helpful and supportive to former employees, but in the end, they offer little substance to a new employer," he says. "Legally, they are limited by what they can or want to say about former employees. I think the old formal system of references is dead in most professional fields."
Langerud warns that just because an employer isn't checking personal references the traditional way doesn't mean he isn't checking references at all.
"Employers are more likely to check the informal, but tangible, behavioral reference sources like LinkedIn, Facebook, credit history [or] criminal history than the more subjective references provided by candidates," he says. "Candidates should be much more intentional about crafting a professional identity that serves the role of a 'reference' but within the context of the work, profession and colleagues you seek to engage. It eliminates the weaknesses inherent in the old style of references that become so watered down they are useless."
Do References Really Matter? Helpful hints!
1. Include references only when requested by an employer.
2. Carefully consider whom to provide after discussion with the prospective employer. The time to check references is before an offer is made, but after the candidate is either the final candidate or among the final few for the job.
3. Seek references from people who actually know you and your work. Ask for permission to list them as a reference.
4. Ask directly if they can provide you with a positive reference for the position(s) you are seeking. If they hesitate, move on!
5. Prepare your references about who will be calling them and what to focus on when talking about you. Always ask them to call you after they have been called.
6. Prepare your references to speak consistently about your skills, but not identically. Suggest a different highlight for each person. Have 100 percent confidence in what they will say and how they speak about you, or cross them off the list.
7. Provide accurate contact information about your references, and ask your references how they prefer to be contacted (e-mail, phone, etc.).
8. Let your references know what happens to you and the position(s) you applied for. Thank your references.
9. Prepare a LinkedIn site to demonstrate your skills and interests.
10. Participate in professional blogs to create a history of professional involvement in your field that is independent of your work history.
3 Ways to Negotiate a Better Job Offer
1. Get a potential employer to "fall in love" with you before you talk about money.
The time to be asking for things is after an employer has decided to hire you. Focus on what is important to the employer and what you can do for them. In tough times, making or saving money is always important. So is your ability to make your prospective boss look good.
Employers want to hire people who bring value, and they are willing to pay what is necessary to hire them. Once the employer has decided to make you an offer, then, and only then, should you start discussing the terms of employment. Until that time, whenever the subject of money comes up, talk about the job. Be enthusiastic about wanting the job. Show that you really want to work there. Ask for the job. No one wants to hire a person who is only looking for a paycheck.
If asked what you are looking for in terms of compensation, say something like "I am sure that if I am the right person for the job and the job is right for me, something that is fair will be readily worked out." Then ask some questions about the job. You will look good to the employer and defer the conversation until a time that is more appropriate.
2. The only difference between being employed and being unemployed is your self-confidence.
You are same person when you are unemployed as you were when you were working. You have the same skills and same experience. The value you can bring to an employer doesn't change just because you don't have a job. The only difference is your confidence. If you exhibit confidence you not only can negotiate effectively, you probably can land the job you want.
Competition for your services will also make you seem more valuable in the eyes of a prospective employer. Talking with several prospective employers at the same time will not only increase your confidence but will enhance your bargaining leverage.
3. Don't act like you are negotiating.
While you want to arrange the best possible deal, you should do so in a way that doesn't look like you are negotiating. Remember, once the employer has decided to offer you a job, they are trying to recruit you. Let them. Tell them what your concerns are. Ask for the things you want without ever suggesting that you won't accept the job if you don't get them. "Would it be possible..." or "Could you..." or 'Other companies I have been talking to have offered, is it possible...." are non-threatening ways for you to ask. Don't make "demands." Throughout the process, and especially when you are asking for something, let the employer know how excited you are about the opportunity and how much you want the job.
What will do if the employer ask for credit report?
I have answered many help wanted ads and have gotten very little response. Some of the responses are questions regarding my credit score. Is this something new? I did talk to a friend of mine and she told me her previous employer asked before continuing the application/interview process. I don't feel that that has any bearing on my qualifications, experience and education. Is it legal for employers to ask this information of people applying for work?
Alas, it's entirely legal for a prospective employer to request your credit report. But they can't do that without your explicit permission.
If you refuse to give the hiring manager authority to pull your report because there's stuff on it you don't want them to see, or you just think it's an invasion of privacy, you have every right to do that.
Unfortunately, the employer also has every right not to give you a job.
If you do agree to let them see the report, and they base their decision not to hire you on something in it, you have the right under the Fair Credit Reporting Act to see it, says EFL's Meschke. This will give you an opportunity to try to explain or rectify any issues or errors that may be on there.
The best thing to do is to get a copy of your credit report right now and make sure there's nothing on it that could derail your chances of landing a gig.
Under the Act, the credit reporting firms – TransUnion, Equifax and Experian – are required to give you a copy of your report for free once a year.
Also, if you do have stuff on there that may make an employer nervous, tell them upfront so there are no surprises when they see it, says Tim Mohr, a certified fraud examiner and partner with BDO Consulting.
Interview Tips: Negotiate a Job Offer in This Economy
About salary history and expectations often elicit feelings of anxiety, particularly when times are tough in the job market. Many who have been unemployed for several months worry their power to negotiate has diminished. Others know they are overqualified for the positions they seek and fear their salary history will screen them out of consideration. Here are some suggestions after a job offer:
· If the offer is more than you expected, congratulations! But you may get an even better one if you don't jump at the first offer. Pause long enough to give the employer the impression you may be expecting more. You may even ask for time to think over the offer.
· If another employer has made a better offer, that's the most powerful argument you can use.
· If you have no other offers, but your research tells you the going rate is higher than what the employer is offering, say so. Keep in mind that the employer probably has also researched the employment market, so be sure you have good sources to point to.
· If the employer won't raise the offer enough to suit your expectations, ask the employer to agree to review your salary sooner than normal.
· Employers who won't budge on salary offers sometimes are willing to make concessions on benefits or perks that you want. Maybe you can get stock options, extra vacation, use of a company car or the ability to work at home part of the week. Sometimes you can argue that you both will gain from the benefit; for example, if the company pays your tuition expenses for night classes, it will profit from your improved skills.
· You may also be able to get concessions on certain work responsibilities you either want or want to avoid. For example, you might ask to be given a managerial task that's not normally part of the job, and this eventually could lead to a higher-paying position. Any tasks you ask to avoid should be lower-level so that ruling them out would not interfere with your growth in the job.
· If possible, do all your negotiations face-to-face, rather than by telephone, because you can gauge people's reactions better in person. Sometimes, candidates will say and do everything right during the interview process and during negotiations and still won't achieve the job offer they were seeking. In these instances, Shatkin suggests telling the employer, "that the job is one you would like if the salary were appropriate, and thank them for their time and consideration. It is possible that they will not find someone else to fill the position and will reconsider hiring you at the salary you asked for."
