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Don’t Be Fooled by Salary Negotiation Strategies Generated by the Unemployed: 6 Rules to Success

Countless unemployed individuals with plenty of time to write are emerging again with salary negotiation strategies.  While it is true that strategies should change with market conditions, in many cases, negotiation should disappear completely. While many form their viewpoint based upon experiences with one or a few employers which eventually “outplaced” them, our analysis is based upon statistical knowledge working with thousands of preferred employers plus extraordinary research concerning hundreds of thousands over three decades and adapted to present conditions.

The following is a proven 6-rule blueprint to getting the most from “employers of choice.”  Sure, there are plenty of bad bosses and exploitative companies out there who do not follow appropriate protocol. However, if you are a candidate worthy of a top employer, ignore what happens at substandard employers and subscribe to what works at top companies.

Rule #1:  Top employers offer compensation based upon compensable factors, internal/external equities and merit-based performance proven within the organization.  For top employers, the base compensation component is non-negotiable at organizational entry, except possibly at C-level. 

Rule #2: Top employers do not pay you for what you did for someone else, but rather what you will do for them.  Success in one environment is not necessarily transferable to another.  Top employers know this.  Top employers also know that overall organizational development is optimized by practices which favor merit advancement from within.

Rule #3: Top employers request salary histories up front not to set your pay accordingly but rather to evaluate equities and expectations before continuing the very costly pre-employment screening process. Failure to provide history when requested risks indication of unwillingness/inability to follow direction and/or indication of something to hide.

Rule #4: Salary negotiation is effective in a very limited sector. It can be effective only when handled correctly and in cases where the job description requires heavy amounts of negotiation implementation. Time, place and audience are paramount.  Don’t be the first to bring up money, and don’t wait too long after money is mentioned to reveal that your requirements are higher.  Attach compensation requests to your delivery of quantifiable results to the new employer.  “I respect that the company has valued this position based upon specific metrics and expected outcomes.  Based upon my history of success, extraordinary knowledge and my determination to succeed, I expect to deliver outcomes beyond those benchmarks.  Is there opportunity for me to share in those financial successes? Can we set my quotas higher?”

Rule #5: Attempting negotiation risks the entire deal. It expresses discontent with the company’s existing practices and with the immediate job.  Just as a counteroffer constitutes an offer rejection, negotiation of any types constitutes rejection of the “as is” opportunity. There is usually another candidate right behind you who is appreciative of the opportunity to earn rewards without staunch demands.

Rule #6: If the relationship begins with negotiation, expect that you have set the tone for continued negotiation.  Rather than being awarded what you have earned, expect that you shall need to always negotiate for it.   The best way to avoid constant negotiation with your company as an “opponent” rather than a “teammate” is to negotiate all at once a gain-sharing program with pre-determined financial rewards for the outcomes and results you facilitate.

When an offer is presented, please know that taking time to consider may risk the opportunity.  Some companies will volunteer a proposed timeframe for your decision. Many will not. It is a myth that immediate acceptance makes you look “desperate.”  Actually, failure to immediately accept makes you look “hesitant” and possibly “disinterested,” either of which can immediately sandbag the relationship. If you believe it is best to take time to consider, state your unwavering interest up front.  Consider a safe explanation of the rationale behind your decision delay.  If the screening process was thorough and involved multiple steps, you should have entered the offer stage ready to accept if offered.  Your questions should already be answered and your interest should not falter.

Company cost control, lifelong learning, succession planning and sustainability are key organizational goals.  Age discrimination can be a factor, and advancement from within is typically a preference.  Employers are reluctant to pay you for what you did for someone else, because too many over time have “rested on laurels.” Employers typically have more leverage than employees in this situation.  Know your power. Evaluate the dynamics of your specific situation and reject “cookie cutter” advice. 

 


Jessica Ollenburg - Monday, November 29, 2010