Again, we don’t know the situation all that well. The following advice will be valuable if you’re dealing with a for-profit company, might work if you’re dealing with a non-profit, and is almost completely useless if you’re working for the government. I’m also assuming that you’re interviewing for a Sr. management job or higher, i.e., a position that requires education, training, and experience, and is relatively difficult for the company to fulfill.
So here goes…
For starters, go to a salary information website like www.salary.com, fill out the information requested and see the pay ranges for the position in your neck of the woods. DO THIS FIRST.
For example, an “Purchasing Manager” in San Antonio, TX makes from $60,000/year to $110k/year.
Now you know what to expect so the question changes to “How can I make sure it’s closer to $110k than $60k?”
Here’s a sample salary-negotiation conversation you should have for this position:
“We are budgeted for this position at $70,000/year.”
“$70,000? Hmmmmm.” (followed by silence - I let the salary negotiator make the next statement. Look like you’re thinking about it deeply and count to 30.)
“Of course, there is some flexibility allowed me and I can stretch that to $75,000/year.” (See? By merely being silent, you just got a $5k raise! If the negotiator doesn’t say anything, then you go into the next sentence. But do the “Hmmm”, pause thing first!)
“Well, let’s talk about what my ideal salary would be for the position that we’ve discussed. Keep in mind that this is only the ‘ideal’ salary, but I think the qualifications I bring will make it worth it. $100-105,000/yr.”
“gasp! Like I said, our budget is more in the $75k/year range.”
"I understand and appreciate that, however I think the qualifications I bring to the table will make me a bargain even at the higher range. Let’s go over them for a second:
- 20 years experience
- XXX
- YYY
- ZZZ
And, finally, the nature of the position requires negotiating to get the best value for the company. If a candidate for this position is unwilling to negotiate the best package for himself and, by extension, his family, then how can you expect that candidate to go to bat, on a day-by-day basis, to get the best prices for ABC Inc?"
So you go back and forth a bit and let’s say you get the guy to $82,500 (a $12,500 raise from the initial offer, btw - the past 10 minutes of conversation earned you $1,250/minute. Not bad!) Then you say
“Obviously, salary isn’t the only issue on the table and perhaps the benefits package can make up for it. Let’s talk about that for a while.”
Remember, your goal is to still get to $100k/year. You might not get it in salary, but you may get it in perks, benefits, free stuff, extra vacation days, etc.
- Vacation. With an $82.5 package, you are pulling in $1,586/week pre-tax. An extra week of vacation would make you happier.
- Life Insurance/Disability Insurance. Can the company purchase Life Insurance/DI for you, with your family/estate/trust/whatever as beneficiaries?
- Company car or travel allowance, especially if you’re driving a lot.
- Cell phone allowance, especially if you’re going to spend a lot of non-office time on the phone.
- Signing bonus.
- Athletic club, country club membership
- Stock options or profit-sharing participation
- Company paid-for training and certification programs. (for example, if you want to get your project planner certifications, why pay for it yourself?)
- Severance pay
Each of the above is additional $1,000+/year, minimum, and should be discussed on a one-by-one basis. You likely won’t be able to negotiate on health care as that is a standard group policy, but you may get the company to pay a higher percentage for yours.
HERE’S HOW YOU END THE CONVERSATION!
“Looks like we have a deal! When will I get the updated offer sheet which covers the items we agreed upon?”
In other words, you must get all this in writing. If you don’t get it in writing, you’re screwed if there are problems. Please note that whatever happens, whatever package you get, it’s not real if it isn’t in writing. Period.
You may wish to spend $15-20 on Negotiating your salary: How to make $1,000 a Minute by Jack Chapman, one of the best salary negotiating books there are, and much of the basis of my post. I’ve used this advice and, trust me, it works.
If you can rush to the bookstore and buy a copy and work on it this weekend, you’ll be much further ahead of the game by Monday than you dreamed. Life doesn’t wait, and neither should you.
Hope this helps!