Salary Negotiation 101
A colleague of mine was asking me about how to approach a potential new employer about their salary expectations, and the timing of the conversation. They were worried it might set the wrong impression or give the employer a negotiating edge if they discussed the salary too soon. My rule of thumb is to never lie to any employer about your salary history or salary expectations, but to avoid the discussion until you have nearly gotten the job.
In the past, I have been in the same situation, and have been pressured for a response to the tough questions on salary. My approach has been as follows.
1) The approach I would take would be to ask to table the question until later in the interview or for another day. It is important to me that we have first come to a common understanding on the roles and responsibilities of the job, and also, the type of experience I bring to the job, and what I will be contributing to the new company. I would prefer to be paid in line with the current job market and within the companies standards for this role.
2) If put on the spot to respond during the interview, and they insist on knowing my previous salary, I mention the total value of what I expect for salary and all compensation. That includes cash, as well as benefits and other perks. I will mention holiday time, quality of life factors, and other things like pension and health plans. I also explain that what is most important to me is that the job offer is fair within the market rather than based on what I made in the past.
3) While you may feel you are a high performer, you also may be somewhere above average but not commanding the highest pay. Know the salary range for the job you are applying to, but be realistic when setting your percentile level for your salary expectation. The majority of people are between the 25% and 75% level. Remember that the employer will confirm your performance level with your past employers at reference checking time.
4) No matter what you made at your previous jobs, your expectation should be set at the fair market value for the job in your region. You may have earned less money in the past than the current expectations, possibly even a lot less. The reasons are not relevant to the new job, and therefore you would prefer to be within the companies fair range. Aim to make it clear to the new employer that you want salary negotiations to be fair, regardless of your past salary history.
5) If you disclose your salary history information, remember to state your case about the relevance of the information. You may give your personal reasons for accepting the lower pay, but most important is to explain you want the outcome of the salary negotiation to be one where both parties are respected, and that they feel a sense of win-win in the outcome.
Whatever you to, be completely truthful during interviews. The employer has many ways of getting information and they will find out your true salary history if they are so determined. They will also learn about your past performance, and they may even ask you to produce a pay stub to prove your past salary. Remember you’re a highly skilled worker, and you bring a lot of value to the position. You just need the skills to communicate that value clearly and effectively to the new employer.
Filed under: Careers