Business

The Science Of Salary Negotiation

Don't ask the employer for more money, show them why they should give you more money. There is no surefire way to get more money in salary negotiations, but there are certain steps to take that can help you get more than the company originally offers.

By Matt Krumrie

September 8, 2008 at 1:55AM

Dear Matt: I'm in the process of looking for a new job. My question is - how do you really negotiate salary so you don't hear the dreaded, "I'm sorry, this is all we have budgeted for this position?"

Matt: There may not be one can't-miss method, but there are steps to take that can certainly help your chances. Here are two actual scenarios involving salary negotiations with a Twin Cities recruiter.

Example A: The candidate provided a detailed list of things he wanted to accomplish if hired for the position, along with suggested solutions, including specific numbers and figures on how it could get done. With this detailed information the company was able to quickly come to an equitable salary agreement with him.

Example B: The candidate came back with this counteroffer: "This is great. But it would be greater if you gave me a salary I couldn't refuse." He gave the company no guidance as to what that number would be, or why they should be paying it. They ended up giving him a small signing bonus, but the recruiter said if he'd actually provided detailed information and/or solutions to succeeding at the job, he would have likely received a better deal.

"When negotiating compensation, demonstrate the value you can bring to the company and then negotiate," says Tony B. Nelson, president of TBN Consulting, LLC, a Minneapolis search firm for professionals within the marketing profession (www.tbnconsulting.biz). "If you're negotiating for a higher salary, you need to be ready to explain why."

Katie Carty Tierney, the talent acquisition manager for nGenera, a software company specializing in on-demand business innovation, says it's important to understand and consider the entire compensation package before starting salary negotiations.

"Things like a shorter commute, a better work environment, better healthcare benefits, stock options or 401K-matching are important pieces of an offer, and you should carefully consider them as you're negotiating salary," says Carty Tierney.

The hiring manager is not in the business of hiring people. The hiring manager is in the business of getting a job done. Show the manager you can do the job better, faster, cheaper than anyone else. Make the hiring manager want you more than the 12 other candidates applying.

"Set yourself apart from all other candidates to demonstrate you're worth more than your typical candidate," says Nelson. "Do this by doing the job, as opposed to asking for the job."

Tips:

Come armed with knowledge. Understand the requirements of the position, and what they're really worth on the market. Websites like salary.com provide up-to-date salary information for a variety of positions, and these data can help you provide a strong counter-offer to your prospective employer.
The fact that you've taken the initiative and armed yourself with the facts will make an employer more likely to consider a higher salary. Make sure that any counter-offer you submit is detailed, along with specific salary numbers, benefits, and other perks you're requesting.
Determine what you want for compensation. Ask yourself the following questions for the job you are considering.
What is the absolute lowest compensation I would accept?
What compensation would make me happy?
What compensation would have me screaming with delight?

Don't accept a job unless you are able to negotiate an offer somewhere between number two and three. If the offer isn't going to make you happy, it's not worth accepting. You will end up a disgruntled unhappy employee. Now you have your walk away number. Anything below number two you should be able to walk away from as you know you would not be happy accepting it.

Matt Krumrie is a freelance writer from Inver Grove Heights, and has nine years of experience reporting on the employment industry. The first Sunday of each month this column will answer readers' questions. E-mail questions or subject ideas to askmatt@startribune.com.