Tampilkan postingan dengan label Salary Negotiation Tips. Tampilkan semua postingan
Tampilkan postingan dengan label Salary Negotiation Tips. Tampilkan semua postingan

Strategi Bernegosiasi Gaji

Yang perlu diketahui saat melakukan negosiasi gaji

Cari tahu berapa kisaran gaji di tempat-tempat lain – sesuai posisi yang anda dapatkan

Persiapkan kisaran gaji yang bisa menutup kebutuhan anda. Putuskan kisaran ini sebelum anda pergi untuk melakukan interview

Bersikaplah realistik: ketahui berapa gaji yang paling rendah dibagian manajerial ataupun bagian eksekutif

Cobalah berlatih bernegosiasi dengan teman anda, atau cari tahu bagaimana orang lain melakukan negosiasi

Ketahui keahlian dan prestasi anda, jangan ragu mengutarakannya pada mereka



Tips untuk menanyakan berapa gaji yang mereka tawarkan :

Jangan pernah mengatakan, ”Setidaknya saya membutuhkan x rupiah”

Jangan berbohong dengan jumlah gaji anda saat ini

Bersikaplah santai

Setelah terjadi persetujuan tentang pekerjaan dan gaji yang didapat, pastikan anda mendapatkan perincian secara tertulisnya.

Cara mengetahui kisaran gaji di posisi tersebut :

Cari informasi dan catat hasil survey tentang gaji di berbagai perusahaan dari bursa pencari kerja

Carilah data gaji dibidang lain yang mempunyai indikasi sama dengan jabatan anda

Tanyakan pada teman-teman ataupun relasi

Tanyakan pada pencari kerja yang lain – mungkin mereka sudah lebih siap dengan kisaran gaji rata-rata

Cari tahu dari surat kabar atau pun media lainnya, yang mungkin memuat iklan lowongan maupun informasi tentang kisaran gaji di beberapa posisi

Tanyakan keuntungan-keuntungan lainnya :

Asuransi kesehatan – termasuk perawatan gigi atau kacamata, maupun asuransi kecelakaan kerja

Asuransi jiwa

Jatah cuti atau sakit (tanpa pemotongan gaji)


30 Kesalahan Dalam Melakukan Negosiasi Gaji!

Jika anda berencana melakukan negosiasi atau meminta kenaikan gaji, Konsuler Manajemen Caryl dan Ronald L. Krannich Ph.D menyarankan anda tidak melakukan 30 kesalahan berikut ini :

1. Menghindari perbincangan tentang masalah gaji hingga perusahaan menanyakan tentang “Berapa jumlah gaji yang anda inginkan”

2. Gagal saat melakukan tawar menawar gaji akibat kurangnya pengetahuan dan penelitian tentang perbandingan gaji pada jabatan yang sama dengan perusahaan lain

3. Tidak tahu seberapa berharga keahlian anda bagi perusahaan

4. Menjelaskan satu contoh gaji, saat ditanya “Berapa gaji yang anda inginkan”

5. Perasaan sudah “cocok” dan “berhasil” – otomatis akan menghambat gaji anda meningkat

6. Berpikir kalau gaji anda sudah ditetapkan oleh perusahaan



7. Percaya kalau perusahaan akan menaikkan gaji anda kelak, dibanding resiko kehilangan pekerjaan

8. Merendahkan kemampuan diri sendiri

9. Terlalu “besar kepala” dengan kemampuan diri – yang memungkinkan diri anda tidak akan digantikan oleh perusahaan

10.Merasa perusahaan adalah orang yang mengendalikan segalanya, saat negosiasi dilakukan

11.Cobalah untuk membuka kemungkinan untuk melakukan negosiasi, daripada sekedar hanya menceritakan kualifikasin dan kelebihan-kelebihan anda pada pewawancara

12.Tempatkan masalah gaji sebagai hal yang anda bisa meningkatkan kemampuan anda, dari pada sekedar mendapatkan posisi tertentu

13.Fokuskan pada kebutuhan anda, bukan pada rata-rata gaji yang ada

14.Gagal memberikan “keyakinan” akan kemampuan anda, saat melakukan negosiasi

15. Terlalu cepat menanyakan gaji, sebelum pewawancara mendapatkan cukup informasi dan kualifikasi anda

16.Tidak tahu caranya memulai pembahasan gaji dan melanjutkannya menjadi sebuah situasi tawar menawar

17. Lupa menanyakan tunjangan apa saja yang diberikan oleh perusahaan

18. Terlalu banyak berharap pada tunjangan, dari pada berkonsentrasi pada gaji rata-rata posisi anda

19. Membuat imej kalau gaji bukanlah hal yang utama saat melakukan wawancara

20. Terlalu memandang tinggi perusahaan, tanpa melihat berapa gaji yang mereka tawarkan

21.Memberikan gaji yang benar-benar anda inginkan didalam surat lamaran atau pada CV

22.Melakukan negosiasi gaji dan tunjangan lainnya melalui telepon

23.Terlalu cepat menerima tawaran gaji pertama atau kedua dari perusahaan

24.Tidak tahu memanfaatkan waktu sebagai bagian dalam memantapkan nilai-nilai anda di mata pewawancara

25.Gagal memberi kesan yang diinginkan perusahaan dan membangun strategi untuk menemukan kesamaan persepsi, yang bisa meningkatkan penawaran anda

26.Tidak tahu bagaiman menjawab pertanyaan tentang gaji atau salah mengatakan jumlahnya

27.Tidak memberi mereka banyak waktu untuk melakukan negosiasi

28.Tidak tahu kapan harus meninggalkan pekerjaan atau perusahaan lama, untuk mendapatkan gaji yang lebih tinggi ditempat lain

29.Melakukan aksi “jual mahal” saat anda sedikit atau sama sekali tidak memiliki kelebihan

30.Berbohong tentang jumlah gaji anda sebelumnya atau penawaran alternatif gaji lainnya


Tips Menentukan Gaji dalam Interview

Setelah berhasil melewati beberapa tahapan wawancara kerja, besar kemungkinan anda akan diterima di perusahaan tersebut. Maka yang harus anda lakukan adalah mempersiapkan diri untuk menerima pertanyaan, "Berapa gaji yang anda inginkan ?"

Negoisasi gaji adalah salah satu bagian tersulit dalam mendapatkan pekerjaan. Jika meminta jumlah yang terlalu besar, perusahaan mungkin akan mengurungkan niatnya merekrut anda. Sebaliknya, jika jumlah yang anda minta terlalu rendah, mungkin anda akan diterima, namun gaji yang didapatkan dibawah standar yang seharusnya dibayarkan perusahaan tersebut.

Setelah bekerja selama beberapa waktu, lalu anda mengetahui fakta tersebut, pastilah anda akan merasa kecewa. Dan solusinya adalah meminta kenaikan gaji, dan hal ini bukanlah proses yang mudah. Untuk "memenangkan" negosisasi gaji pada saat interview, ikuti petunjuk berikut :


PERATURAN NO. 1 : Dapatkan Informasi

Sebelum wawancara, manfaatkan networking anda. Anda bisa mendapatkan informasi dari teman atau senior anda yang bekerja di perusahaan tersebut/industri serupa, terutama untuk divisi atau posisi yang sama. Sumber lain adalah internet atau tabloid yang memuat mengenai survey/informasi gaji.

PERATURAN NO. 2 : Mendengarkan

Di awal wawancara, jangan pernah langsung menyebutkan berapa gaji yang anda inginkan. Semakin lama anda "menunda", maka semakin banyak informasi yang bisa didapatkan untuk "memenangkan" negoisasi gaji.

Langkah awal, pada saat wawacara, anda sebaiknya "mencari tahu" dari sang pewawancara, ada berapa banyak kandidat untuk posisi tersebut, dan telah berapa lama lowongan tersebut dibuka. Jika lowongan tersebut telah dibuka dalam waktu yang lama, ada kemungkinan perusahaan kesulitan untuk mendapatkan kandidat yang memenuhi kualifikasi. Jika anda high qualified, mungkin anda bisa mendaptkan nominal yang dinginkan.

PERATURAN KE 3 : Berlatih

Anda boleh menyebutkan sejumlah angka pada saat bernegoisasi. Tetapi jangan terlalu tinggi dari standar gaji yang berlaku untuk industri/perusahaan tersebut. Jika ini terjadi, pewawancara malah menganggap anda tidak serius. Ini berarti anda kehilangan kesempatan.

Jika anda menginginkan sejumlah nominal yang tinggi untuk gaji anda, katakanlah sejumlah gaji pada top range, tunjukkah bahwa kualifikasi anda memang pantas untuk itu. Sebelum hari wawancara, anda bisa mempersiapkan "pidato" selama 1-2 menit yang mendeskrisikan apa yang anda bisa berikan untuk perusahaan jika anda diterima bekerja di tempat tersebut.

Satu hal yang harus dingat, pada saat perusahaan memberikan penawaran, anda tidak harus memberikan jawaban saat itu juga. Anda bisa minta waktu untuk mempertimbangkan semuanya dalam mengambil keputusan. Jika tawaran perusahaan lebih rendah dari yang anda harapkan, anda bisa saja menolak.

Apalagi pada saat bersamaan, ada tawaran yang lebih menggiurkan dari perusahan lain. Namun, ada hal lain yang patut dipertimbangkan, apakah posisi yang ditawarkan nerupakan langkah strategis untuk perkembangan karir anda.

BEBERAPA SITUASI DALAM NEGOSISASI GAJI

--- . Perusahaan melakukan "secreening phobe call"

Yang harus anda lakukan adalah bertanya dengan sopan mengenai kisaran gaji untuk posisi tersebut.

Jika si penelpon tidak memberikan informasi untuk hal tersebut, anda sebaiknya merespon dengan mengatakan, "Berdasarkan informasi yang saya dapatkan mengenai standar gaji untuk industri ini, mencakup gaji pokok, lembur, training, dan fasilitas yang ada, asuransi kesehatan, biaya perjalanan, jenjang karir, bonus, komisi, dan jenis profit sharing lainnya, gaji yang saya inginkan berkisar Rp xxx,- sampai dengan Rp yyy,- (berikan kisaran yang luas). Saya bersedia datang untuk wawancara pada hari X jam Y. Apakah Bapak/ibu bersedia mempertimbangkan ?.

-- . Jika pewawancara mengajukan pertanyaan mengenai gaji pada saat awal wawancara, anda punya 3 pilihan :

* Berusaha menunda negoisasi dengan mengatakan, "Saya melamar untuk posisi ini karena sangat tertarik akan bidang ini dan perusahaan anda. Tetapi saya rasa saya baru bisa membahas masalah gaji dengan anda setelah kita berdua "yakin" bahwa saya memang memenuhi kualifikasi untuk posisi ini."

* Memberikan respon yang tidak spesifik dengan mengatakan, "Selama saya dibayar sesuai standar perusahaan anda dan tanggung jawab yang harus saya penuhi untuk posisi ini, saya rasa tidak ada masalah."

* "Membalikkan" pertanyaan kepada pewawancara. Jika pewawancara melontarkan pertanyaan di awal wawancara , "Jika anda diterima bekerja di sini, berapa gaji yang anda inginkan ?". Maka anda bisa menjawab seperti ini, "Saya sangat tertarik untuk berkerja di sini, menjadi bagian dari perusahaan ini. Tetapi sebelumnya saya ingin mengetahui, untuk kualifikasi kandidat dengan latar pendidikan dan keahlian seperti saya, berapakah standar gaji di perusahaan ini ?".

-- Negoisasi gaji di pertengahan wawancara --

* Perusahaan menawarkan gaji dalam kisaran yang sesuai/bisa anda terima. Pewawancara mengatakan, "Gaji untuk posisi ini berkisar dari Rp xxx,- sampai dengan Rp yyy,- Apakah anda bersedia menerima tawaran ini ?. Yang harus anda katakan, "Saya sangat menghargai tawaran ini.

Saya sangat tertarik untuk mengaplikasikan yang telah saya pelajari selama kuliah di perusahaan ini. Jumlah yang anda sebutkan tadi adalah yang seperti saya harapkan untuk gaji pokok, ditambah dengan beberapa aspek lainnya seperti asuransi, uang lembur, dan fasilitas lainnya.

* Anda hanya tertarik pada top range dari gaji yang di tawarkan. Yang harus anda katakan, "Terimakasih atas tawaran anda untuk bergabung dengan perusahaan ini. Saya yakin berbagai keahlian yang saya miliki merupakan benefit bagi perusahaan ini. Berdasarkan apa yang saya ketahui mengenai standar gaji dan penawaran dari perusahaan lain, saya harus mengatakan bahwa saya hanya bisa mengatakan "ya" untuk kisaran atas dari jumlah yang Bapak/Ibu sebutkan tadi.

* Jika anda sama sekali tidak tertarik dengan gaji yang ditawarkan. Yang harus anda katakan, "Terimakasih atas tawaran Bapak/Ibu untuk bergabung dengan perusahaan ini. Saya sangat tertarik untuk mengaplikasikan yang telah saya pelajari selama kuliah di perusahaan ini.

Namun ada beberapa perusahaan lain yang juga memberikan tawaran kepada saya, untuk posisi yang sama dan gaji yang lebih tinggi. Tentu saja, uang bukan faktor penentu utama, saya juga mempertimbangkan faktor-faktor lain seperti training, jenjang karir,dan sebagainya.

* Pewawancara tidak menyebutkan jumlah kisaran gaji. Yang harus anda katakan, "Dari apa yang saya ketahui, berdasarkan standar industri, gaji pokok untuk posisi ini adalah sebesar Rp xxx. Dan berdasarkan pendidikan dan keahlian yang saya miliki, saya mengharapkan gaji pada middle range, katakanlah Rp yyy. Baagimana menurut Bapak/Ibu ?".

* Jika pewawancara memberikan penawaran di akhir wawancara. Ini berarti pewawancara sangat tertarik untuk merekrut anda. Yang harus anda katakan, "Saya siap untuk menerima penawaran terbaik dari perusahaan ini." Dan jika gaji ditawarkan memang seperti apa yang anda inginkan, katakan, "Hal terpenting bagi saya adalah kesempatan untuk bergabung di perusahaan ini, dan saya yakin gaji yang ditawarkan sangat kompetitif."

Petunjuk untuk "FRESH GRADUATES".

- Perusahaan memilih anda karena kualifikasi yang dimiliki, bukan gaji yang anda sebutkan. Perusahaan menerima anda bekerja adalah untuk meningkatkan profit mereka.

- Dalam wawancara, anda harus meyakinkan bahwa anda mampu mengerjakan tugas/tanggung jawab untuk posisi tersebut. Jika tidak, mereka tidak akan memberikan penawaran apapun bagi anda.

- Jika anda belum memiliki pengalaman kerja, ingat akan kualitas anda yaitu pendidikan dan keahlian. Dua hal itulah yang akan membuat anda sukses di dunia kerja.

- Apa yang membuat perusahaan memutuskan menerima anda ?. 95% nya berdasarkan kepribadian, antusiasme, dan keahlian anda. 5% nya adalah karena keahlian khusus yang anda miliki.

PERATURAN NO. 4 : Jika Penawaran Resmi Telah Dibuat

Jika penawaran resmi telah dibuat, ajukan pertanyaan sebagai berikut :

- Apakah ada kesempatan promosi untuk posisi ini ?. Untuk posisi atau level apa ?.

- Kapan dan bagaimanakah penilaian kinerja pegawai untuk posisi ini ?.

- Apakah penilaian tersebut termasuk untuk review gaji ?.

- Seperti apakah peningkatan gaji yang ditawarkan untuk 3-5 tahun mendatang ?.

- PASTIKAN BAHWA PENAWARAN GAJI TELAH MENCAKUP KESELURUHAN DAN DALAM BENTUK TERTULIS.

- PASTIKAN ANDA TELAH MENGEVALUASI KESELURUHAN KOMPENSASI YANG DITAWARKAN, BUKAN HANYA GAJI.

Selain gaji, biasanya perusahaan juga memberikan kompensasi dalam bentuk :

* Asuransi kesehatan (dengan atau tanpa mencakup perawatan gigi & mata) .Walaupun perusahaan tidak meng-cover semua biaya, fasilitas ini akan membuat anda membayar lebih murah.

* Asuransi jiwa.

* Asuransi kecelakaan, terutama untuk pegawai yang sering bepergian/jenis pekerjaan dengan risiko tinggi.

* Peningkatan gaji untuk 3-5 tahun pertama. Apakah hanya peningkatan pertahun ?. Atau ada peningkatan gaji/pemberian bonus berdasarkan prestasi kinerja ?.

* Fasilitas cuti.

* Biaya pensiun (berlaku untuk perusahaan tertentu).

* Profit sharing.

* Stock option. Beberapa perusahaan menerapkan sistem pembagian saham kepada karyawan.

* Training atau pendidikan tertentu.

* Uang lembur & transportasi.

* Fasilitas kredit kendaraan/rumah.

PERATURAN NO. 5 : Hal lain yang harus diperhatikan

- Ucapkan terimakasih atas penawaran yang diberikan.

- Jangan langsung bernegoisasi pada saat pewawancara menyebutkan penawaran. Mintalah waktu untuk mempertimbangkan kompensasi secara keseluruhan, bukan hanya gaji.

- Pada saat bernegoisasi, jangan katakan, "Saya meminta …". Yang terbaik anda harus mengatakan, "Saya mengharapkan..,".

- Terkadang gaji yang ditawarkan mungkin lebih rendah dari yang anda inginkan. Sebelum meng-iya-kan atau menolak, pertimbangkanlah faktor lain seperti reputasi perusahaan, budaya perusahaan, suasana kerja, macam asuransi yang ada, training dan pendidikan, dan sebagainya.

negotiation techniques for sales, contracts, debts, buying, selling and training

source : businessballs.com
These negotiation techniques are primarily for sales, but apply also to other negotiations, such as debt negotiation, contracts negotiating, buying negotiations, salary and employment contracts negotiations, and to an extent all other negotiating situations. Negotiation is vital for an organization's overall effectiveness. Organizational effectiveness is a product of activities within a system - internal and external. Negotiation is critical to establishing the internal system (structure, people, functions, plans, measures, etc), and the organization's relationship to the external system (markets, suppliers, technology, etc). Negotiation is also critical to optimising the performance of activities internally and externally (principally through communication, by people).

Good sales negotiation - the rules of which feature below - can easily add 10% to sales revenues, which arguably goes straight to the bottom line as incremental profit. Good purchasing negotiation can easily save 10% of the cost of bought in products and services, which again arguably goes straight to the bottom line as extra profit. Good negotiation by managers in dealing with staff can easily reduce staff turnover by 5-10%, which reduces recruitment and training costs by at least the same %, as well as improving quality, consistency and competitive advantage, which for many companies is the difference between ultimate success and failure. Good negotiation by executives with regulatory and planning authorities enables opening new markets, developing new technologies, and the choice of where the business operates and is based, all of which individually can make the difference between a business succeeding or failing.

Successful debt negotiation with creditors enables a business to continue trading. Failure to negotiate debts often leads to business closure. See the notes on debt negotiation for business creditors and personal debts such as credit cards, in the debt negotiation article below.

Salary negotiation affects individuals and organizations, and good negotiation skills on both sides produce positive outcomes for all. See also the tips on asking for a salary rise, and dealing with salary increase requests on the pay rise page.

These negotiation techniques deal mainly with sales negotiation and are written from the point of view of the 'seller'. If you are 'buying', or want to know how buyers tend to behave look at the note alongside the headings. Sales negotiation is an increasingly important part of the sales process. Negotiation starts when buyer and seller are conditionally committed to the sale (not sooner if you are the sales person; the sooner the better if you are the buyer). Negotiation generally results in a price compromise between seller and buyer - ie., the seller reduces and the buyer increases from their starting positions. Clever buyers will attempt to negotiate before giving any kind of buying commitment. Clever sales people will resist this. Here are the rules of sales negotiating, which imply also the rules for successful negotiating when buying.


modern collaborative approaches to negotiating

In modern times, the aim of negotiation (and therefore in training negotiating and negotiation role-plays) should focus on creative collaboration, rather than traditional confrontation, or a winner-takes-all result. The modern and ideal aim of negotiations - which should be reinforced in training situations - is for those involved in the negotiation process to seek and develop new ways of arriving at better collaborative outcomes, by thinking creatively and working in cooperation with the other side. Negotiating should develop a 'partnership' approach - not an adversarial one. As such, negotiating teams and staff responsible for negotiating can be encouraged to take a creative and cooperative approach to finding better solutions than might first appear possible or have historically been achieved in practice.

Every negotiation, when viewed creatively, entrepreneurially and collaboratively, provides an excellent opportunity to develop and improve synergies between and benefiting both sides, within the negotiated outcome.

You might find it useful to refer to Sharon Drew Morgen's concepts regarding collaborative facilitation, which although developed primarily for front-end of the selling process, are also extremely useful for cooperative negotiating. Each side is uniquely positioned to see how the other side can more effectively contribute to the combined solution - it can be a strange concept to appreciate initially, but is extremely powerful in any situation where two people or sides seek to reach agreement to work together, which is essentially what negotiation is all about.

That said, it is still important to understand and to master the traditional techniques and principles of negotiation, if only to provide a defence and strategy where the other side is firmly committed to an old-style confrontational approach, and these techniques are explained below:


negotiation tips, techniques and principles

First and most importantly, positioning is everything in negotiation. The way that the situation is initially approached, and when, are more influential on outcomes than all of the other negotiating tactics and techniques combined.

Rules 1 and 2 are absolutely critical even before you start a negotiation.


1. have an alternative - negotiate with freedom of choice

If selling be unique, and have lots of other potential customers, and so be able to walk away; if buying definitely be able to walk away.

Whether you are buying or selling, if you can't walk away because you need the deal so badly or because the other side is the only game in town, then you are at a serious disadvantage. If the other side believes you are the only game in town then you have the advantage. No other factor is so important: the more you need to secure the deal, the weaker your position, so avoid negotiating when you need the business badly (for the same reason, never find a new house and fall in love with it before you sell your own). The same will apply to your customer, which is why buyers almost always give you the impression that they can go somewhere else - even if they can't or don't want to.

This also means that when selling you must create an impression that there is no alternative comparable supplier. You have to create the impression that your product or service is unique, and that the other person has nowhere else to go. The way you sell yourself and your product must convince the other person that he has nowhere else to go, and that he cannot afford to walk away.

This positioning of uniqueness is the most important tactic, and it comes into play before you even start to negotiate.

If your product offer is not unique remember that you are part of it. You can still create a unique position for yourself by the way that you conduct yourself, build trust, rapport, and empathy with the other person.

Establishing a position (or impression) of uniqueness is the singlemost effective technique when you are selling, whereas denying uniqueness is the most powerful tactic of the buyer.


2. negotiate when the sale is conditionally agreed, not before (if buying the opposite applies)

Negotiate when the sale is conditionally agreed, and no sooner (buyers tend to try to negotiate before giving you any commitment - don't let them)

Or, put another way, don't get drawn into negotiating until you've got agreement in principle to do business.

If you start to negotiate before receiving this commitment you'll concede ground and the customer will attain a better starting point. This would put pressure on you to find more concessions later, and ensure a better finishing point for the customer.

If you are not sure that the customer is conditionally committed to the sale, then ask (a conditional closing question), eg "If we can agree the details will you go ahead?"

If you're buying, then the opposite applies: start to negotiate for concessions before agreeing you want to buy (try this when you next buy something - you'll be amazed at what you can secure without giving any commitment in return).


3. aim high

Aim for the best outcome (buyers aim low, and they tend not to go first either)

(If you're buying, aim very - even ridiculously - low - but do it politely.) Whatever you're doing, your first stake in the sand sets the limit on your best possible outcome. There's no moving it closer to where you want to go; it'll only move the other way. Your opening position also fixes the other person's minimum expectation, and the closer your start point is to the eventual finishing point the more difficult it is to give the other person concessions along the way and ultimately arrive at a win-win outcome.

Many negotiations are little more than a split-the-difference exercise. They shouldn't be, but that's often the underlying psychology and expectation. So it's logical that to achieve the best possible finishing position you should start as ambitiously as you can (without losing credibility of course).

If you have the option to hear the other person's offer first, then do so. It's a fact that whoever makes the opening offer is at a disadvantage. If you go first, the other person can choose to disregard it and ask for a better offer. And the other person avoids the risk of making an offer themselves that is more beneficial than you would have been prepared to accept. It's amazing how often a buyer is prepared to pay more than an asking price, but avoids having to do so because they keep quiet and let the seller go first.

Vice-versa, the seller can often achieve a higher selling price than he anticipates if he hears what the buyer is prepared to offer first.


4. let the other side go first

Try to avoid 'going first' on price if you can. (Buyers will often be trying the same tactic.)

If you know the other person's starting point before you have to give your own, then this is clearly an advantage to you. For example, if selling, ask the other side if they have an 'outline budget'.

Sometimes you will be pleasantly surprised at what the other side expects to pay (or sell at), which obviously enables you to adjust your aim. Letting the other side go first is a simple and effective tactic that is often overlooked.

Letting the other side go first on price or cost also enables you to use another tactic, whereby you refuse to even accept the invitation to start negotiating, which you should do if the price or cost point is completely unacceptable or a 'silly offer'. This then forces the other side to 'go again' or at least re-think their expectations or stance, which can amount to a huge movement in your favour, before you have even started.


5. list all of the other side's requirements before negotiating

Get the other person's full 'shopping list' before you start to negotiate (buyers usually do the opposite - they like to pick concessions up one by one - indefinitely)

Establish in your own mind what the other person needs, including personal and emotional aspects. Everything that is part of or related to a deal has a value. Everything has a cost to you or your organization, even if it's not on the price list. Negotiation isn't just about price and discount. It's about everything that forms the deal. It's about specification, colour, size, lead-time, consumables, contract length, penalty payments, get-out clauses, delivery dates, stock-holding, re-order lead-times, after-sales support product, product training, technical back-up, breakdown service, call-out costs, parts costs, parts availability, payment type, payment date, payment terms. All these and more are called variables, and each one affects the cost. Some affect the cost more than others, and buyers and sellers nearly always place a different value on each. It's critical therefore to know exactly what your buyer wants before you start to negotiate. Get the full list of issues written down and commit him to it. This is vital if you are to keep a track on the values of the deal and the eventual outcome. You also avoid your position being eroded bit by bit by the late introduction of concessions required.

Your buyer's personal and political requirements are important too, and the bigger the deal the more significant these factors are. You need to understand what they are, particularly the political and procedural needs within the other person's organization or situation that affect the deal. These issues will concern the way that the organizations relate to each other; who talks to whom; how justifications and reports are prepared; arrangements for future reviews; provision of information; product development collaboration; issues involving intellectual property, future mutual business opportunities, etc.

Remember that when you sell to someone in an organization or group, your buyer is staking his personal reputation within his situation on you, and will not do so lightly, so you need to understand all of his needs and concerns.

Only then you can begin to understand what the implications, costs and perceived values are.


6. trade concessions - don't give them away

Never give away a concession without getting something in return (buyers tend to resist giving any concessions at all)

This is a matter of discipline and control. It's simple. Never give anything away without getting something in return. If you do you are not negotiating you are simply conceding.

A commitment from the other person can be a suitable concession to get in return for something of relatively low value. The simplest and most elegant concession to secure is agreement to proceed with the deal now - use it to close.


7. keep the whole picture in your mind

Keep the whole package in mind all of the time (buyers tend to divide and erode your position, bit by bit)

The buyer's tactic will be to separate out single issues, or introduce new ones later. If you allow this to happen your position will be eroded.

Think about the knock-on effects to the whole situation every time a concession is requested. The overall value and profitability of a deal or contract depends on it's component parts. When you change one element, you change the whole, so keep the whole situation in mind - keep assessing effects on the total arrangement, understand the effects, and explain how each change or demand affects the whole thing.


8. prepare and keeping looking for variables (tradable concessions for both sides)

Keep searching for variables, concessions, 'bargaining chips', incentives. (Buyers will look for your concessions but will tend not to offer their own)

A variable or tradable is any factor that can be altered and which has a real or perceived value. You are not a mind-reader and the other person may not be totally open, or even fully aware of all the possible variables that are of interest, so keep looking for them.

Prepare and estimate values of real and perceived variables before the negotiation, and keep looking for new ones during the negotiation.

If the other side is cooperative involve them in looking for variables too - for both sides.

The more variables you find the less you will have to give on price, and the more added-value you can build into the deal. The buyer will not offer his own concessions normally, so you can look for his possible concessions as well as your own (ie variables within the buyer's situation as well as your own).


9. keep accurate notes

Keep accurate notes, and show that you are doing it (the buyer stands to benefit from any lack of record, and some buyers conveniently forget things that are not in their favour, even concessions you've won from them)

Controlling the negotiation is vital. the other person may forget, misunderstand, or attempt to distort interpretation of what was discussed and agreed. Keeping notes shows that you are in control, professional, can't be out-flanked, and enables you to summarise and assess continually.


10. summarise and clarify the negotiation as you go

Summarise and confirm understanding continually (see above - it's your loss, not the buyer's, if you allow misunderstandings to develop)

This avoids misunderstandings developing, accidentally or otherwise. Misunderstandings can be catastrophic, not so much because of the way they affect the financial structure of the unfolding deal, but because they undermine the rapport and the trust, which is critical to being able to do business in the first place.

Getting positive agreement throughout the process also is psychologically important; it strengthens trust and commitment, and helps to ease the other person into an agreeable frame of mind.

After the negotiation obviously it is essential to give the other person clear written confirmation of the deal.


negotiation - more information

These days we are much more determined to press for concessions and the best possible price. Buyers, particularly consumers, are more confident and financially aware.

Where competitive pressures exist, prices are driven downwards. Where one supplier offers a certain concession or discount, customers expect all others to follow suit.

Suppliers' prices are more visible, so customers know what's on offer elsewhere, and they use this knowledge to secure the best possible deal.

In the face of these increasing pressures we need to have:

  • very good negotiating skills
  • commercial understanding (to appreciate the value and implications of each element within a deal, and for giving justification and explanation, etc.)
  • very good communication skills - empathy - (so as to able to communicate a commercial position whilst maintaining a good relationship)
  • a consistent corporate policy and authorisation structure covering discounting and giving concessions

Organizations that have several points or people through which negotiations can take place must perform well in these areas. A chain is only as strong as its weakest link.

Organizations with inconsistent or vague negotiation practices are vulnerable. Customers are able to find and exploit weaknesses and precedents to drive prices down, force concessions and discount levels up, resulting in erosion of margins for the company. This happens because the company loses control over its starting positions (first stance), and unwittingly provides precedents for generous finishing positions.

Negotiating a deal, whether you are buying or selling, is a strange business.

In a selling role for a company, good negotiation requires a careful combination of empathy for the other person's situation and feelings, with our own responsibilities to secure the best possible commercial outcome for the company.

On occasions there can be a personal dilemma, particularly if our selling style is one that uses a lot of relationship-building and trust. We can feel torn between the interests of the customer - with whom it is of course essential to build an understanding - and the needs of the company.

So it is essential to remember our fundamental responsibility as a sales person, which helps to avoid being drawn into the dilemma territory; remember:

You work for your company, not for the customer.

By the same token, the customer is out to secure the best possible deal for themselves and their organization, not for your company. (Have you ever known a customer refuse a discount or concession on the basis that it isn't in the best interest of the supplier? Of course not.)

Another factor is our responsibility to existing customers. We undermine our relationships with existing customers if we offer preferential terms to new customers, just to get the deal.

Giving too much away, or referring a negotiation to a higher authority has a demoralising, undermining effect, and customers don't respect it - they take advantage of it. The urge to sustain a friendly, highly amenable relationship with the customer above all else is a trap that we must be alert to, it's human nature, but lots of customers will use it to their advantage. It is entirely possible to maintain a friendly helpful relationship while at the same time being very firm in negotiating the business.

Deep down we all respect someone who takes a firm approach to business, as long as it is delivered in an understanding and empathic way, with proper explanation and justification for the stance taken.

Good negotiating builds our own confidence and natural authority, not to mention the fun we can have outside work, when we are the buyer.

It's extremely important to make an assessment of where the other person is coming from; what the real and perceived issues are, and to separate the psychological factors from the practical ones.

A person's need to feel that they've succeeded in squeezing out a good deal is far different from the practical issue of simply whether they have enough money to afford the transaction, or whether the timings and availability can possibly fit together.

The purpose of negotiation is to reach a fair and reasonable compromise, not to try to do the impossible.

If a reasonable and commercially acceptable compromise is within reach we must use all our skills to achieve it through negotiation.

If the other person's demands are not reasonable, commercially acceptable, or if any aspects of each side's position do not fit, negotiation is not the answer.

This is why at times the most important word to use in any negotiation is 'NO'.


when not to negotiate (ways of saying 'no')

People say a lots of different things when they really know the answer is "No."

"I'll see what I can do."

"I'll let you know.""

"Maybe."

"I'll ask."

"I'll find out."

"You could call head office and ask; they have more authority than me."

If the demand or request is not possible, too commercially demanding, or not reasonable for any reason we must kill it there and then, or it will come back to haunt you. Do not negotiate if there are unrealistic demands being made at any stage. This is for three reasons.

  • It prevents you having to concede substantial ground unnecessarily.
  • It avoids raising false hopes, which would make it difficult for us later to satisfy later.
  • It stamps your personal authority and professionalism on the situation.

A clear and honest "No, I'm afraid not," with suitable explanation and empathy for the other person's situation is all it takes.



notes on debt negotiation

Whether debts are business or personal, these debt negotiation skills should help you to improve your situation. Negotiation of debts for business, or personal debts such as credit cards, or debts with other creditors, start with one simple rule that is often overlooked:

debt negotiation skill 1:

negotiate!

Amazingly many people who find themselves confronted by personal or business debts and pressure from creditors fail to think of negotiation as an option. Understandably fearful or embarrassed, people and businesses with debt problems usually fail to confront the situation until it's too late. Fear not - most people and businesses get into serious debt at some stage in their lives. Many of the most successful business owners and tycoons have been bankrupt or presided over insolvent businesses at some time - getting onto debt is part of experience and risk-taking in business, and it's part of life in the process of growing up. You are not alone. The important thing is what you do about it. When you know you have a problem, start negotiating. Debtors often think there's no point, that negotiation isn't an option, but it is, and here's why:

Creditors most fear losing their money and having to write off the debt altogether. That's why creditors generally are very happy to begin the negotiation process when debts have become a problem for the debtor. To a creditor, negotiating a debt means that they have a chance of recovering some or all of the debt. If a creditor fails to begin a debt negotiation with the debtor, the creditor faces costs of debt recovery (solicitor's letters and debt collection agency fees, etc), and a real risk that the debtor will for whatever reason be unable to pay any of the debt (insolvency, bankruptcy, deliberate avoidance, etc), which leaves the creditor no option other than to write off the debt, losing everything, and having to pay debt recovery costs. Where there is negotiation there is hope of partial or complete debt recovery, and the avoidance of debt collection costs, which is why creditors generally welcome the offer to negotiate from a debtor in difficulty.

debt negotiation skill 2:

Seek advice and help. Whether for a personal or business debt, don't try to do it all by yourself. Getting into debt can be a lonely and threatening experience, so seek a friendly shoulder to cry on, someone to share your thoughts with, and ideally someone who has a bit of experience and wisdom, who can help you see a way forward. Try to avoid paying for this sort of help - avoid the unknown, especially the pariahs out there who will take advantage of your vulnerability given half a chance. If you have personal debts such as credit cards contact an advisory service - there are plenty who can help depending where you are in the world. If your business has debts, contact your trade association, or local business support centre, again there are various organizations depending on where you are. At the very least call on a friend to help find some support and advice. Linked to the points above and below, the creditor is often a really good source of help and advice - remember, the creditor wants you to succeed, not fail.

debt negotiation skill 3:

The third skill is to ask the creditor for help. Options usually appear straight away when a creditor realises there is a debt problem, because the creditor wants to help keep the debtor solvent. Options typically extended by creditors include:

  • renegotiated credit and supply terms, enabling the business debtor to continue to trade.
  • extension of the period by which the debt has to be settled.
  • price, product and supply arrangement review, to determine whether future economies can be found for the debtor, to avoid increasing the debt any more than absolutely unavoidable.
  • debtor stock-holding review, to assess possibility of returning stock to the creditor, and reducing the debt.
  • Creative creditors may come up with more ideas - the important thing is to talk and work together to resolve the problem constructively.

debt negotiation skill 4:

The third debt negotiation skill is about behaviour and style. Work with the creditor. Be open and positive, and build trust with the creditor. If the creditor trusts you and believes that you wish to resolve the debt honestly and as fully as you can, then the creditor will be positive and flexible in return. They want to help you work your way through the difficulties, because if you fail, the likelihood is that the debt will have to be written off altogether. The people negotiating for the creditors spend their lives dealing with debtors who are dishonest, elusive, and distrustful. When a debtor demonstrates willingness to co-operate and negotiate fairly the creditor will respond in kind. Debts are a threat to the creditor's business too, which is why debt recovery people can be firm and aggressive. You will reduce the creditor's need to be aggressive if you co-operate and build trust.

debt negotiation skill 5:

Make changes. Debts build up because something has gone wrong, so understand what it is and take steps to prevent it happening again or continuing. Debts don't generally happen by accident, they happen because plans are wrong, controls are too relaxed or non-existent, or because spending isn't properly monitored and measured. Identify what's wrong and put it right. Tell the creditor what you are doing so they they understand you have taken steps to ensure the problem won't get worse or re-occur.

debt negotiation skill 6:

Keep smiling. Not easy, but try to keep things in perspective. Aim to honour your commitments and obligations as best you can, but keep things in proportion. Do your best for the creditor(s), but be fair to yourself. If you are still reading this you'll not be the sort of person who deliberately and maliciously gets into debt and then seeks to avoid responsibility. So try to keep a calm detachment, and don't eat and sleep your debt difficulties. Do what you can to resolve your debt problems, but make sure you spend time re-fuelling your spirit and strength. Business is a bit like a game, it's a means to an end. It's not life and death. Money is a means to an end too. It's not life and death.



A negotiation story (light relief for negotiating training sessions or debt negotiation meetings)

A sales-woman is driving home in the rain when she sees a little old lady walking by the roadside, heavily laden with shopping. Being a kindly soul, the sales-woman stops the car and invites the old lady to climb in. During their small talk, the old lady glances surreptitiously at a brown paper bag on the front seat between them. "If you are wondering what's in the bag," offers the sales-woman, "It's a bottle of wine. I got it for my husband." The little old lady is silent for a while, nods several times, and says ........ "Good trade."

(ack C Byrd)


factors which affect salary negotiation

  • how well paid you are at the moment compared to the market norms
  • the rate of inflation
  • where you live and work and the costs of living associated with the area, and in relation to other geographical locations where company employs people
  • the company's position concerning staff turn-over, retention, recruitment and head-count (ie increasing, reducing, or static; in accordance with planned levels or not)
  • the company's trading performance (relative to budgeted costs and planned sales and profitability)
  • the available budget your company has for pay rises (which is usually none, apart from annual salary review time)
  • the company's last company-wide salary review, and the range of % increases awarded
  • the company's next company-wide salary review, and the likely range of % increases
  • what precedents would be set for other employees by giving you a rise (this is often a significant issue for the company)
  • how valued you are to your boss and company
  • how easy it would be for them to replace you with someone of similar capability and value at the same or less salary
  • how much extra responsibility and/or you are prepared to take on
  • how much extra effort you are prepared to put into the job and how ambitious you are
  • and, very importantly, what you will do if you don't get a raise or salary increase (ie., how much you want to stay with your present company and how confident you are that you could find a better job elsewhere)


You need to understand all of these factors before you decide how to approach the situation. The stronger your position the more firm you can be in asking for a salary increase.

Ask yourself why, honestly, you want or need a salary increase. Some ask because they feel under-valued. Some people are genuinely are under-paid. Are you being fair and realistic? Stepping back and taking a truly objective view is so important. Put yourself in your boss's shoes. How would they see the situation?

If you believe that you have a strong deserving case, then write it down, which will help you to see things objectively, and will provide you with a prepared position, enabling you to keep control and present your case fairly and professionally. Find out what you can about the company's position, referring to the above factors. If you can find references from the market that indicate you are paid less than the norm then prepare to use them.

Always remember that you are one of several or many hundreds or thousands of employees. Each one would take more money if offered it. The company has had to plan and budget for employee head count and salary along with all other costs and revenues, and it's not easy for a manager or director to change things outside of the normal time to review these budgets.

Nevertheless, if you present a strong case the worst you will do is increase your chances of receiving a more favourable review when the next review time comes around. At best, if the company has sufficient flexibility and reason, you may be able to achieve a pay rise before then.

Having prepared your case, ask for a meeting with your boss, but don't state the precise reason for the meeting. Say it's to discuss a personal matter, or to discuss your development, or to present a proposition. If you say you want to ask for more money your boss is likely to say no there and then, or to warn you that the answer will be no, and you've lost the chance to present your position properly. You need instead to keep control of the situation and that includes crucially controlling the timing and basis of the decision.

Present your case, unemotionally, and try to understand your boss's and the company's perspective. The case you present should emphasise what you are prepared to do for the company - what's in it for them (see WIIFM). Avoid making a case that's wholly centred around what you want. Present as much objective information (ie., not your own opinion) and evidence that you can - you are trying to build a case, not merely make a request. It may be that if the decision has to be referred upwards by your boss that your boss will agree to present your case on your behalf, in which the clearer and stronger it is the easier this is and the greater the chance of success.

Ask your boss to explain the company's position if you do not understand it. Try to understand your boss's own role within this and how decisions are made. This information may give you ideas about how best to progress the situation from here on.

It is unlikely that your boss will be able to agree to your request at this meeting. The bigger the company and the further removed your boss is from the CEO the less likely a quick answer will be.

Often your immediate boss will not be empowered to agree salary increases for anyone. In this case it's important to gain agreement in principle from your boss to the case you are presenting. Try to secure your boss's agreement that they will pursue the matter and they they will support your claim.

If your boss is the CEO or a director with suitable authority to agree to your request, the process is more straight-forward. This situation is more likely to apply in smaller companies and/or if you hold a senior position with the company.

If the company is not able to agree to your request ask for reasons why, and consider them carefully. Try to see things from your boss's and company's point of view - they may have no option but to refuse your request. If your request is denied for reasons of budget and timing you should seek a commitment that the increase will be given or at least considered at the next suitable opportunity for the company. This will normally be at the next annual salary review for all staff, at which time you would obviously be expecting to receive an increase greater than the general level or range for all employees.

There may be circumstances that prevent the company from offering any performance related increase, or linking an increase to greater responsibility. You must decide if you think the company's position is right and fair.

If, despite your your best efforts at presenting a reasonable case objectively, and discussing it professionally, the company will not consider or agree any way for you to achieve an increase in pay, you have no option other than to conclude that they do not value you as much as you value yourself.

This happens sometimes. It's not the end of the world, and this may be the time to seriously think about moving on. If you decide to look for another job don't do it with a bitter heart - aside from anything else it will show in your discussions with new prospective employers and you will not be offered the jobs you want. If you decide to move on do so with a glad heart and with the minimum of fuss. Certainly avoid telling your employer that this is what you intend to do. Some, not all, employers can become defensive or even aggressive towards people whom they consider have become disaffected. This is particularly so for anyone working in a sensitive role who could damage their employer or waste resources while continuing to work while seeking another job.

Retain your dignity. Integrity has an immense value and you never know whose paths from your past you will cross in the future. Falling out with a boss or employer over salary rarely profits anyone.

If you find yourself looking for another job in response to being undervalued by your current employer, you are very vulnerable to being seduced by what's on the other side of the fence, simply because it provides an escape and a chance to prove certain people wrong. The grass will appear greener on the other side of the hill, but often it's not. Some people embark on a bad marriage on the rebound, and the same thing happens with job changes. Think carefully about the new opportunities you find, and consider everything properly. Write things down so as to evaluate the pro's and con's objectively. Often you will find that after really thinking properly about things that your current position compares very favourably with everything else available out there.

When and if the time comes to leave, you should ensure you have a written job offer before you resign. Discuss your intentions and reasons with your boss in a grown-up, professional and polite manner. You must also give written notice. It is very important to behave with dignity.

Do not be surprised if your boss responds to your resignation with an offer to increase your salary. You may even be offered a promotion. It's the way that a lot of companies work - they don't do anything until and unless they absolutely have to; it's simply the way a lot business is - decisions and activities are all based on priorities. A salary request is regarded as relatively low priority by most organizations - they simply dare not give any other impression or they'd be deluged with requests every day. A resignation of a valued employee is potentially very high priority -it has implications of job coverage, productivity, continuity, recruitment and selection time and costs, induction and training costs - all very expensive and disruptive, which is why people resigning are often suddenly asked to stay and offered suitable incentive. If this happens think carefully about it. Don't say no for pride's sake alone. Don't say no for fear of letting down your prospective new employer (they'll get over it). It is after all what you were seeking in the first place.

It is often said that the only true way to find out how much your company values you is to resign, and this may be so. Some have even gone so far to say that if you think you are underpaid, resign and re-apply for your own job when you see it advertised at the higher salary you were requesting. I'd never advocate such a risky tactic, not only because most times life goes on without you and they'll find somebody who can do your job acceptably well for the same or less money, but really for this reason:

If you are unhappy about your salary, and you feel underpaid and undervalued, you will do your reputation and future a lot of good by approaching the matter in a professional, well-prepared and objective way. People that can handle their own difficult situations are seen by their employers as people who can handle other difficult situations well too, and as such your value and potential increases.


asking for a salary negotiation or pay rise in the same job

If you feel the need to ask for a raise, the most positive way to approach this is to ask for extra work and responsibility and link this to a pay rise, if not immediately then in the future. This is a grown-up approach that employers respond to better than simply asking for more pay for doing the same job.

Another positive approach is to ask for a performance related bonus or pay increase subject to achieving more, based on standards or output greater than current or expected levels. This again should be received positively by the employer because you're offering something in return, and not simply asking for more money, which most people tend to do.

If you do not understand the organization's method of awarding pay increases, your first step should generally be to discuss this with your boss. Pay is normally linked to performance, which allows the company to increase your grade, or promote you, or to award a bonus. Discuss with your boss how you can improve your performance and contribution to the organization, in a way that will enable promotion and grading and pay improvement. At times of low inflation any significant annual pay increase is not automatic or a 'right' of the employee - a pay increase will generally be given in return for achieving agreed objectives or standards and an increased contribution to organizational performance. Find out what process exists in your organization to enable this exchange to happen. It's always essential to keep your boss informed of your position, so talk to them first. If your boss doesn't know then you should ask your personnel department, or person responsible for personnel and human resources, but always keep your boss informed, because their opinion will usually be sought before your employer considers improving your job and remuneration package. You need your boss's support.

Ask for a face to face meeting rather than try to present your case in a letter, which is just a one-way communication and doesn't allow you to develop a mutual understanding of the situation and what to do about it. Simply ask your boss for a review meeting to discuss your responsibilities and remuneration. In the meeting ask what the opportunities are and/or process by which you can improve your salary package. Follow the principles described here - the process needs to be two-way discussion. Approach it positively and constructively. Ask what flexibilities exist and what the rationale is for setting and increasing pay levels. Who does your boss have to make a case to? Will he/she support you? What would improve your case? What commitments would the company want from you? What exchanges can be agreed - what you can put in and what can be given in return. It's a discussion, not a demand.

Separately, before the meeting you must get an objective view and measure of your market worth. Look at other similar jobs outside as well as inside the company and compare them to your own responsibilities and rewards. Personal views about reward and job-load can become very subjective and need to be validated or it's difficult for you (or anyone else) to decide how deserved the claim is.

If you are so nervous about asking verbally for a meeting and therefore need to write, keep it very simple, particularly do not include any details of your position or justification or financial claim. Here's a sample letter for a review meeting request:
sample letter asking for a pay review discussion
(Alternatively an email or memo - but make sure it's kept private and discreet.)

Dear.......

Can we meet please to discuss my role and development? I'd appreciate your advice.

Please let me know a time and date that suits you.

Best wishes, etc

Stay positive and constructive - look for opportunities to make your boss's task in dealing with your approach as easy as possible, especially given that resolving salary raise requests are difficult for your boss too.

As an employee, at any grade, it's important to understand the company's position, and to understand your own properly. Taking an instinctive or emotional approach rarely works, and will often lead to conflict and early rejection. Try to avoid thinking and presenting your position in terms of 'I want' or 'I need'. Instead try to present an objective, neutral view, as if you were an observer, which should provide a good platform for sensible discussion, and will also enable you to present a stronger case.

Obviously threats of any kind (resigning or reducing commitment or effort) are likely to provoke the boss and the company.

Achieving a salary increase depends on many factors, and it's important to understand as many of them as possible before you make your move.

salary negotiation during and after new job interviews - tips for employees (and managers)

source : businessballs.com

While these tips and techniques are ostensibly for employees, they also serve as a helpful guide to managers who are recruiting staff, and want to ensure that people joining are doing so happily and on a sustainable basis. People who join happy that they've been given a fair deal are more likely to stay, and less likely to harbour grudges or feelings of being 'bought' for less than they deserve.

Employers who recruit people at less than their market worth might think they've done a good deal, whereas in fact such employees are likely to become frustrated and feel 'cheated'. Again, see the earnings survey example report below. Help employees to make good, right, and fair decisions about their careers, and they will respect you and your organisation for doing so.



That said, from the employee's viewpoint, changing jobs is a very good opportunity to increase your salary level. Critically, to take advantage of this opportunity you must negotiate before you accept the new job offer, whether the job is an internal or external move. Any manager who fails to give this opportunity to a new recruit is likely to be putting a problem into store for the future.

The most important thing from the employee's perspective is to secure the job offer first. There is no point in negotiating until then.

The employer's initial offer will be based on their own budget and internal pay-scale reference points, and what level of reward they feel is necessary to secure you (or a suitable alternative candidate), and this salary/package level is nearly always negotiable.

The stronger you convince the interviewer and employer that you are the best person for the job - in all respects that need to appeal to them - then the more likely you are to do well when it comes to negotiating the package.

If the employer asks you before or during the interview to confirm your salary/package expectations, give them a broad indication at the top of the range that has already been indicated or discussed for the role (plus 10-20 per cent for good measure if you wish), and say that ultimately your decision will be based on comparing your options (think and behave as if you expect to have more than one).

Tell them 'Let's see if you like me first - then we can discuss/agree the detail.'

It's a matter of personal feeling as to where you set your target salary level for a particular job, ie., how much you'll eventually be happy to accept, and how firmly you hold out for it and anything above it. This will be a combination of what you want, need, whether you have another real offer, and generally what your market value is - these are the reference points.

In terms of negotiating salary and package, your best position is always to secure two job offers from two different employers, which gives you the huge advantage of choice. If you can't or don't, (which is normal), then behave as if you have other options, which of course you do, if not right now.

Do not allow the interviewer/negotiator to set, suggest or argue for a salary level based on your previous one (assuming it's lower) - be very firm about this. It's not relevant. What you earned before and why you worked for that wage is not their business and has no bearing on your value to them and the market now (make that point politely not aggressively of course).

What's relevant is your value in the market, and how much the employer wants you compared to other candidates and their respective salary expectations. It's important to give them the feeling that you are entirely confident in being able to go elsewhere if the deal's not right. Bear in mind also that you can always buy some time to 'think about it' whatever they offer you. Time will generally work in your favour if they want you. They will worry that they'll lose you, perhaps even to a competitor, and so will be more likely to increase their offer, and to justify some extra budget if required.

You do not need to give them a rushed answer whether to accept their offer just because they'd like one. Of course they'd like one quickly because they know they'll get a better deal that way, and they'd like to finalise the recruitment ASAP.

Generally a good manager and employer will respect you more, and feel you are more valuable, if they get the impression that you are in demand elsewhere.

During the negotiation be sure to maintain a positive and committed view towards the prospective new company and the job (assuming of course you feel that way about them). This will prevent the risk of their coming to the view that you are wasting their time or stringing them along. It's important to be fair and right with people, even while negotiating.

While acknowledging the appeal of the opportunity, conduct your discussions professionally, firmly, confidently, and at the same time ask for their understanding that you have a responsibility to yourself and your family to achieve the best 'price' for what you can do in your particular job market.

See the job interviews page if you are changing jobs.

And see the earnings survey example report if you've not already done so.


salary, pay and contract negotiation for a new job

If you are changing jobs, the best time to negotiate salary is after receiving a job offer, and before you accept it - at the point when the employer clearly wants you for the job, and is keen to have your acceptance of the job offer. Your bargaining power in real terms, and psychologically, is strongest at this point, and is stronger still if you have (or can say that you have) at least one other job offer or option (see the tips on negotiation). A strong stance at this stage is your best chance to provide the recruiting manager the justification to pay you something outside the employer's normal scale. The chances of renegotiating salary after accepting, and certainly starting, the job are remote - once you accept the offer you've effectively made the contract, including salary, and thereafter you are subject to the organization's policies, process and inertia.

A compromise in the event that the employer cannot initially take you on at the rate you need is to agree (in writing) a guaranteed raise, subject to completing a given period of service, say 3 or 6 months. In which case avoid the insertion of 'satisfactory' (describing the period of service) as this can never actually be measured and therefore fails to provide certainty that the raise will be given.

If you are recruiting a person who needs or demands more money or better terms than you can offer, then deal with the matter properly before the candidate accepts the job - changing pay or terms after this is very much more difficult. If you encourage a person to accept pay and terms that are genuinely lower than they deserve, by giving a vague assurance of a review sometime in the future, then you are raising expectations for something that will be very difficult to deliver, and therefore storing up a big problem for the future.




Salary Negotiation Tips

Salary negotiation (asking for a salary increase, a pay rise, or simply more money) affects everyone from time to time. Salary negotiation can be difficult, and many people handle it poorly, causing frustration and ill-feeling. There are constructive ways to approach salary negotiation, and techniques to achieve good outcomes.

If you are a manager, you will need to handle salary negotiation positively. If you encourage people to adopt a constructive approach to salary negotiation, you will help to minimise upset and to achieve a positive outcome. As a manager dealing with salary negotiation or a pay increase request, it's important to encourage a grown-up, objective, emotionally mature approach. These ideas and techniques will help achieve this whether you are giving or receiving the salary increase request.

There is no 'proper' or standard way to ask for a raise or salary increase. It's not something that people are trained to do, and little is written about it. People use various approaches: they can write; discuss informally; discuss with colleagues and hope the boss gets to hear; they drop hints to test the water; they ask the boss politely; demand firmly; go over the boss's head, or maybe even threaten to resign, secure another job offer, or simply resign.

Largely people do not look before they leap; they are often under pressure, and they feel uncomfortable and stressed asking, so they fail to plan and control the situation, which makes achieving anything difficult. Simple planning and keeping control makes a big difference.

Knowing relative market rates helps objective assessment of situations - for employers and employees. Here is an example of market information about salaries of the sort that you can find in relevant media (newspapers, magazines and websites, etc). Having a good amount of information about the market, and not just your own situation, is helpful for employers and employees alike, and can avoid discussions centering on opinion or emotion. Of course situations vary and industry averages are just a guide, but it's generally better to have some external perspective than to approach pay and earnings issues in complete isolation.

The techniques here might not secure a salary increase immediately - there are usually very good reasons why this is not possible anyway - but these ideas will eventually bring a better reward and outcome than doing nothing, or doing something the wrong way. As a manager receiving a request for a salary increase, encourage people to follow this approach, and then respond fairly sensitively and openly. Only make promises you can be sure to deliver, and always try to understand the person's needs and feelings before you explain the company's position.

It is important always to recognise the difference between the value of the role that you perform (or any employee's role if looking at this from a manager's perspective), and your value as an individual (or the employee's value). The two are not the same.

If you continually feel frustrated about your pay levels despite trying all of the techniques and ideas for achieving a pay rise, it could be that your boss or employer has simply reached the limit of the value that they can place on your role, which is different to your value as an individual. You could have a very high potential value, but if your role does not enable you to perform to your fullest extent then your reward level will be suppressed. For example does a professor who sweeps the street deserve a street sweeper's salary or a professor's salary?

Salary levels are largely dictated by market forces (notably the cost of replacing the employee), and the contribution that the employee makes to organisational performance (which is particularly relevant for roles which directly impact on profitability). When you acknowledge this principle you begin to take control of your earnings.

Aside from issues of exploitation and unfairness, if you find that the gap between your expectations and your employer's salary limit is too great to bridge, then look to find or develop a role which commands a higher value, and therefore salary. You can do this either and both with your present employer by agreeing wider responsibilities and opportunities for you to contribute to organisational performance and profit, and/or perhaps with a new employer.

Focus on developing your value to the employer and the market-place, rather than simply trying to achieve higher reward for what you are already doing. Again, see the earnings survey example report below.