Discussing money can be awkward, especially when it comes to compensation negotiation with a potential employer. I am frequently asked questions about when and how to approach compensation discussions during interviews. Some job seekers even wonder how much control they have when it comes to compensation negotiation.
The Art of Compensation Negotiation
In this tough job market, it can be tempting to accept the first compensation package you are offered. However, it is my goal (and my job) to make sure that my clients receive the full compensation they deserve! Here are five tips that can help you as you engage in the art of compensation negotiation.
1. When it Comes to Compensation Negotiation, Timing is Everything
A potential employer will be extremely turned off by a candidate who immediately jumps to compensation negotiation in an initial interview. Likewise, if a potential employer mentions compensation early on, it is a red flag: if they quote a specific amount, there might not be room for negotiation in their offer, even if you have extensive experience. The primary concern for all parties involved in an interview should be finding out if the candidate is the best fit for a position. Only once this has happened and a job has been offered should compensation negotiation begin.
2. Don’t Ask, Just Answer
As outlined above, it is unattractive for potential employees to raise the question of compensation. The potential employer should be the first to discuss a potential salary and initiate compensation negotiation. Then, depending on where you are in the hiring process, you can answer questions they have about your desired compensation. In general, it is best to defer questions until you have officially been offered the position.
3. Avoid Specifics
If your potential employer presses you for information on your desired salary, you should avoid specifics. First, explain that you would rather discuss the position further to help you better understand the roles and responsibilities you would take on in that capacity. If they continue to ask you about compensation, give a range surrounding what the position pays. You should use a salary estimator to help you in compensation negotiation. It will help you determine what similar local positions are paid before your interview so that you feel comfortable discussing your range and engaging in compensation negotiation.
4. Look Forward, Not Behind
Sometimes a potential employer will ask what salary you had at your last job. If this question comes up, avoid giving them a specific number, as your previous compensation should not be a benchmark for you. Explain that you were well-compensated for your job because you are good at what you do, and if you received any raises, let them know when and how many. Then turn the discussion from compensation negotiation back to your interview by saying “I am sure we will be able to agree on proper compensation if the position is offered to me. I would love to learn more about how I might fit into the company.”
5. Have Realistic Expectations
While it is good to be confident about your compensation prospects and to research similar salaries of those in your industry, you should also be realistic about the compensation you will receive. Unless you are an extremely high achiever and you are taking a position in the same industry, you should expect to start in the 25th to 35th percentile of salaries. This does not mean that you should not engage in compensation negotiation if you are switching industries, but you should also know when it is right to accept the compensation package offered to you. If you are offered the job but play hardball when it comes to compensation negotiation, the potential employer could rescind the employment offer in favor of someone who accepts the starting salary.
Getting Help with Compensation Negotiation
Even with these tips on compensation negotiation in mind, it can be very difficult to engage in this delicate art. For more information on the art of compensation negotiation, contact me directly at (816) 600-2478.
