Salary negotiation is one of the most dreaded parts of the new hire process. Most people detest it so much, they don’t even do it. But with just a little bit of understanding, you can be very effective at increasing your compensation for every job you’re offered.
In how to negotiate a salary part 1, I discussed the employee and employer psychology of new hire salary negotiation. I also examined some key questions to help you target how much to ask. Now let’s address how to formulate your compensation argument and finally how to ask for it.
Strategize your Argument
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Have a figure in your head that would satisfy you. Just saying you want “more” is not going to help anyone. You need to understand what amount ends the negotiation.
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Is there anything you would be willing negotiate on? Would you take more money in a signing bonus, or a higher performance bonus? How about stock options? Would you be willing to take a higher bonus for a lower annual salary (maybe not in this economy).
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How important is the additional compensation? Would you be willing to decline the offer if they don’t hit your target? If you know that up front, explaining that to your prospective employer is a powerful negotiating tool.
Make the Pitch
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Stay Positive. Your attitude and approach may be the single biggest factor for your success. Do not approach this as a confrontation or a zero sum game, i.e. I win you lose. That will not endear you to your employer. You want your employer to WANT to give you more money. This is a win-win situation. You compensate me equitably and I will make your company better. That’s it. Remember you are still wooing your employer. You don’t want to insult your date when you’re about to share your first kiss. Speak about how excited you are about the opportunity. How wonderful you think the job and the company are. Be specific about what you hope to accomplish. You need to sell the vision of yourself, how wonderful this new marriage will be. This is not a sign of weakness or desperation. Employers want excited new employees.
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Sell yourself. This may be obvious, but even though you have been offered the job, you should continue to sell your potential employer on your strengths and value to the company.
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Be precise in your terms. Respond with a specific proposal of what would make you sign on the dotted line. Explain where your total comp needs to be for the year, and which areas you are flexible. If you can be flexible on salary in exchange for performance based pay, you have a much better shot of achieving your goal.
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Thank your employer for listening, regardless of the outcome. If your demands are met, of course you will thank them. But even if they don’t change their offer at all, you should still thank them. “I understand that you can’t increase your offer, but I appreciate your willingness to hear my request. Thank you.” This acknowledgement demonstrates your professionalism and your employer will notice.
And if you do it right, negotiating your salary may make your employer want you MORE. I once was hiring a product manager who I was only lukewarm to hire. After I gave him my initial offer, he countered with an offer that was pretty far beyond what I wanted to pay. But he kept selling how he was going to impact the company, how perfect his skills were for the position, his competing offers, and he convinced me he was worth it. His negotiations skills were so good, it made me want him more, and he went from a lukewarm hire to a “we gotta have him” hire. I eventually met his compensation requirements and I was glad I did. You can certainly do the same.
