Negotiating Salary? Interviewing for a new job? Ace it!

You have an attractive new job opportunity, or maybe an annual performance review meeting, in either situation; the single most trait that is important to the best results is your ability to negotiate skillfully. Unlike in the past, success is not so much about your technical skills or what you know, it is about “how” you communicate. This “how” is your negotiation skills.

Here are some things to do to excel at the job interview or compensation review meeting.

1. Prepare

Who is better prepared for a salary negotiation meeting? Someone who had two weeks to prepare vs. someone with one-day notice? It depends upon who is better skilled at preparing for the negotiation. Your preparation should be as professional and thorough as it would be for a commercial deal. Do your homework. Research the market for your skill set. Review and understand similar or related positions advertised. Be aware of your market value. The negotiating skills will not change the fundamental market dynamics but can get you the best available deal in those markets. You always prepare when negotiating a commercial transaction, so why would you not prepare and take that risk with your own compensation?

Common pitfalls include not accurately assessing the power balance, failing to document and properly value your contributions, and approaching the deal pessimistically rather than optimistically.

2. Have clear, crisp, specific “intends.”

Be Specific about what you want. Do not just say that you want “more” money or “more” vacation. Quantify what you want. Be optimistic, but realistic. Instead of “Would you consider a higher salary?” say, “I would be more comfortable with a base salary of $125,000.” Be cautious here – I do not want to encourage you into any “career limiting moves”!

A comprehensive, creative yet realistic “Wish List” will enable you to sweeten the deal, get what you want and offer repackaging opportunities. Read, “The World Is A Bazaar – Life Is A Negotiation.” If you have attended my workshop, remember strategies for using the “Wish List.” Trade on value than cost – what is a learning advanced manufacturing strategies in Japan worth to you concerning career progression?

Title and paycheck are not the only potential currencies of the negotiation. Use the negotiation to explore currencies that are more creative. These might include development opportunities, including short-term assignments, leading (or participating in) new projects, move to another part of the organization, coaching and mentoring opportunities, study leave, flexible working arrangements, or that iPad or smartphone you’ve been eyeing. Your wishlist must be extensive and creative; it should add to your career opportunities – and contribute to your quality of life – both inside and outside the organization.

3. Beware: you may have a dupe as a client

You are your own client. This can have a dramatic impact on your negotiating skills. Visualize yourself as product/service package and try to stay emotionally detached. Investigate using an intermediary to negotiate on your behalf. If you cannot afford one, or it is awkward to retain one, act as any professional representative would: become an expert in yourself. There is no substitute for hard research on the job market, the role and your (current or prospective) employer. However, you also need to accurately document your skills, achievements and potential contribution to the enterprise and clearly communicate these to your boss. For a prospective employer, what skills, expertise, and outcome possibilities do you bring to the table?

Be specific and clear in your communication. Ambiguity complicates and slows the negotiation process.

4. Speak Up!

There is a natural tendency to be modest about your achievements. You can come across unpretentious yet relay your accomplishments by communicating them in the form of short but results producing experiential stories. Clearly, describe how you were instrumental for the winning outcome. This approach will also help you focus the dialog on areas of your strength.

The organization is interested in gauging the level of contribution you will make to its success. To that end, be ready to negotiate pay and conditions that show the value of your skills and the positive outcomes that are possible. Negotiating well is essential. The potential employer is assessing you in your ability to settle too.

5. Negotiate terms and conditions before the agreement

There is a tendency of people to remember what they are getting and not recall the conditions surrounding the agreement. Always negotiate the terms before accepting new responsibilities and opportunities. After the deal, your ability to negotiate diminishes.

6. Know the culture

It is essential that you understand the organization’s culture. What are the ground rules for succeeding in the organization? What are the constraints? Is the work environment consistent with your personality? If there is a gap, can you close it? Answer these questions before you negotiate your contract. It is essential that you understand your ability to make a meaningful impact on the organization.

7. View this as an ongoing process

Perceive salary review or the job interview as an event that will repeat many times. It is part of a process to assess your performance and build your career. Record your wins and be ready to speak about them. See the meeting as your opportunity to highlight significant contributions you have made and address career development plans. Evidence of your contributions gives you the basis to negotiate and make your case for a better deal.

8. Visualize the future

Your salary review is an opportunity to discuss your career path and the plans your manager has for your next level within the organization. This is your opportunity to structure the hiring manager’s expectations by sharing your vision for the future of your career. Make it your negotiation. Understand the power balance and value you bring to the table and what is at stake. Remember to manage the issues and spend time discussing what is most important to you, what are the Must Haves and Must Avoids.

9. Finally…

Revisit “The World Is a Bazaar-Life Is a Negotiation,” and review the concepts, tips, and tactics with a job interview or performance appraisal in mind. This will help you in preparing agenda, structuring expectations, analyzing the power balance, anticipating questions and negotiating professionally.

In the next issue, I will describe how to answer often asked questions in a job interview.