Salary Negotiation
A colleague of mine was asking me about how to approach a potential new employer about their salary expectations, and the timing of the conversation. They were worried it might set the wrong impression or give the employer a negotiating edge if they discussed the salary too soon. My rule of thumb is to never lie to any employer about your salary history or salary expectations, but to avoid the discussion until you have nearly gotten the job.
When I have been pressured by HR for an response to that question in the past, my preferred approach is outlined in the following checklist.
1) First I'd just comment that I'd prefer to discuss the topic a little later on. It is too early at this time in the recruiting process to chat about this, and we do not know enough info about each other, neither about the job, nor about my work history. Also, my previous salary is not very relevant to the job I have applied to. I would rather be remunerated according to market conditions and the companies hiring guidelines for the job.
2) If put on the spot to respond during the interview, and they insist on knowing my previous salary, I mention the total value of what I expect for salary and all compensation. That includes cash, as well as benefits and other perks. I will mention holiday time, quality of life factors, and other things like pension and health plans. I also explain that what is most important to me is that the job offer is fair within the market rather than based on what I made in the past.
3) It is important for me to be aware before going into any interview what the standard salary range is for that position. I also want determine where my overall percentile would fall within that range. The vast majority of people are not at the top end of the salary range, so unless I know I have been a superstar, which I usually strive towards, then I wouldn't recommend expecting the absolute maximum salary, unless I know I can explain why I am worth it. This is almost always confirmed by reference checks, and also, when starting the new job, it will be obvious if I am not in the 98th percentile. The goal is to be generous with your self evaluation but honest if you are not at the total superstar ranking.
4) Even if you had been making a lower than average salary before, possibly even well below the average for that job in that market, you should expect to be paid within that fair market range when you go to your next career opportunity. You may have one of many reasons for accepting a job at a lower salary than at your previous job. It doesn't explain your value to the new company. The end analysis is that your value to the market is what the market is currently defining as the salary range for your talent, your level of performance and experience in the industry.
5) If you disclose your salary history information, remember to state your case about the relevance of the information. You may give your personal reasons for accepting the lower pay, but most important is to explain you want the outcome of the salary negotiation to be one where both parties are respected, and that they feel a sense of win-win in the outcome.
Never lie to a prospective employer. This is cardinal rule number one. The new company will find out facts and do their legwork to assess your history and past performance. You need to clearly communicate the value you bring and that your past salary history whether high or low is not too pertinent to the new job. You need to be met with fairness in the recruiting process, and that your value proposition is clear and well expressed. - 20759
When I have been pressured by HR for an response to that question in the past, my preferred approach is outlined in the following checklist.
1) First I'd just comment that I'd prefer to discuss the topic a little later on. It is too early at this time in the recruiting process to chat about this, and we do not know enough info about each other, neither about the job, nor about my work history. Also, my previous salary is not very relevant to the job I have applied to. I would rather be remunerated according to market conditions and the companies hiring guidelines for the job.
2) If put on the spot to respond during the interview, and they insist on knowing my previous salary, I mention the total value of what I expect for salary and all compensation. That includes cash, as well as benefits and other perks. I will mention holiday time, quality of life factors, and other things like pension and health plans. I also explain that what is most important to me is that the job offer is fair within the market rather than based on what I made in the past.
3) It is important for me to be aware before going into any interview what the standard salary range is for that position. I also want determine where my overall percentile would fall within that range. The vast majority of people are not at the top end of the salary range, so unless I know I have been a superstar, which I usually strive towards, then I wouldn't recommend expecting the absolute maximum salary, unless I know I can explain why I am worth it. This is almost always confirmed by reference checks, and also, when starting the new job, it will be obvious if I am not in the 98th percentile. The goal is to be generous with your self evaluation but honest if you are not at the total superstar ranking.
4) Even if you had been making a lower than average salary before, possibly even well below the average for that job in that market, you should expect to be paid within that fair market range when you go to your next career opportunity. You may have one of many reasons for accepting a job at a lower salary than at your previous job. It doesn't explain your value to the new company. The end analysis is that your value to the market is what the market is currently defining as the salary range for your talent, your level of performance and experience in the industry.
5) If you disclose your salary history information, remember to state your case about the relevance of the information. You may give your personal reasons for accepting the lower pay, but most important is to explain you want the outcome of the salary negotiation to be one where both parties are respected, and that they feel a sense of win-win in the outcome.
Never lie to a prospective employer. This is cardinal rule number one. The new company will find out facts and do their legwork to assess your history and past performance. You need to clearly communicate the value you bring and that your past salary history whether high or low is not too pertinent to the new job. You need to be met with fairness in the recruiting process, and that your value proposition is clear and well expressed. - 20759
About the Author:
Trevor Davide Grant is a project manager in the information technology industry and has considerable experience in salary negotiation. Trevor has worked for global telecom, power generation, software project consulting, and a prolific social networking website. He has learned how to negotiate a salary in the most effective way. Learn great tips on the topic of salary negotiating at www.HowToNegotiateASalary.com.
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