Posts Tagged ‘How to negotiate salaries’

 

In my last blog on answering the salary question in the interview, so many people wanted to know how to get around the salary question when filling out an online application. The unfortunate reality is that if you are going fill out online applications, you will need to answer the salary question. The best way to do this successfully is to make sure you research the appropriate salary range for the industry, function and geography. Three resources for researching this are:

However, by doing this, you are still playing by HR’s rules, opening yourself up to disqualification before you ever get in the door, and if you get in, severely limiting any negotiating position you may have. So what are you supposed to do?

Don’t rely on online applications. Stop focusing your job search on the job boards. Focus on the hidden job market! Stop being a Job Seeker, and start being a Solution to the problems of your target companies. Most people who are looking for work, market themselves as job seekers, follow the job boards, and send their applications and resumes into the great black hole. Why? Because those are the “opportunities” that they see. But 80% of actual jobs are in the hidden job market. Going through the hidden job market, you may still need to fill out an online application, but by then, the application is no longer a screening tool, but a formality because they are already interested in you. So how do you access the hidden job market? Next week I will discuss strategies for hunting in the hidden job market.

 

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Last week in my blog, I discussed how HR’s question of “What are your salary requirements?” is counterproductive to finding the best employees to achieve the objectives and missions of the position they are trying to fill. Regardless of this fact, there is one thing you can almost guarantee. HR managers interviewing you will try to force the issue so that they can either eliminate you or pin you to a number so you lose any negotiating leverage. So how do you handle this? There are several issues to consider, and prepare for so that you can successfully navigate this area of the interview.

The first issue to resolve is, you need to know what your range is that you are looking for. While it should be irrelevant to the company what you need, you need to know for your own protection what your market value is. There are two components of knowing your market value:

  • Based on the objectives of the position, and based on your past achievements, what are you contributing to the success of the company? The best way to understand this is to look at your accomplishments in your past, and what did these contribute to previous companies in terms of helping the company generate revenue, reduce costs, or mitigate risks. Many professionals list these up in accomplishment statements often referred to as an acronym such as PARs – Problem, Action and Results. Identifying and understanding your previous accomplishments will help you understand your value to a company.
  • Research industry and function ranges for positions similar to the ones you are applying for. This will help you in responding to salary questions and also justifying your range you have determined for yourself.

In the interview itself, when HR asks this screening question, your goal is to defer this discussion until after both parties have determined that there is a good fit and they are prepared to offer the position. There are several ways to do this, and the key is to answer in a rational and non confrontational manner, along the lines of:

“There are so many components that go into my decision process of choosing a job, and salary is just one part. Once we determine that I am the best candidate to achieve the objectives of the position, I am extremely confident you will be able to offer a mutually beneficial and market competitive compensation package.”

If they do not accept this, but still press you, you can respond with:

I appreciate that you do not want to waste anyone’s time. What is the range you have budgeted for this position?” If they give you the range, you repeat the highest number and then be quiet.

If they still insist you give them a number, you can say something like:

Based on my current understanding of the position, objectives and expectations, I would expect the salary to be in the range of ______ to _______, which is within industry standards.”

Keep in mind that when interviewing, you are dealing with human beings. The only thing predictable about responses is that they will be unpredictable. While these types of responses are very effective in many cases, they do not always work. In addition, these are responses to salary questions early on in the interview process, and completely separate from negotiations at the time of an offer.

Finally, keep in mind that companies and HR are trying to commoditize employees and candidates. While this may make their job easier, as stated last week, it does not make their job more effective or efficient. The best way to get around this commoditization is to not approach as a job seeker but as a problem, and network your way in through informational meetings.

I am looking forward to getting your feedback.