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Category Archive: Salary Issues

Jan 24

Three Salary Negotiation Techniques That Work

The recession has forced thousands of professionals to forego salary increases in order to keep their jobs. Now with recovery underway and indications of hiring increases, those same individuals may find salary negotiation a growing possibility. If you’ve experienced a salary freeze, it’s possible that you may find yourself thinking about seeking a new, higher-paying job over requesting a salary increase.

If you decide to maintain your current employment, salary negotiation or restructuring may be in order. Negotiating salary and benefits can be complicated. It can also be emotional, so you need to be prepared. Here we’ll cover the “3 Ps” of negotiations. With these tips and the strengthening economy, there’s a great chance that you can gain a higher salary or better benefits.

Prepare for Negotiation:

  • Approach salary negotiation as an art rather than a fight. It requires a higher level of skill and patience than arguing or demanding.
  • Be prepared to ask for what you want: a higher salary, better benefits. More vacation days, or a different position are among the most negotiated topics. Remember: if you don’t ask for it, you’ll never get it. Stand tall, calm your nerves and go into negotiations ready to ask for what you want.
  • Arrive prepared and do your research. Employers review salary data from their competition and across the industry. Know where your request stands along the spectrum, accounting for your experience, education, professional training and relevant certifications.
  • Determine your ideal salary number, and then consider a “lowest-possible” figure. If the counter offer remains below your “lowest possible”, know what will your next action will be?

List your accomplishments and successes. This will help define your qualifications and back up your request for a raise. Did you bring in a big client, launch a successful new product or manage difficult projects well? Be sure to articulate your successes during negotiations.

Practice the Skills of Negotiation

For those of us who only negotiate car and home purchases, practice is in order. Talk to a friend or family member about what you want. Have them play “devil’s advocate.” Work out what you’ll say, what you’ll leave out, and the structure of your negotiation. For this, it’s best not to ask a co-worker.

Proceed Carefully

Successful negotiators employ important skills you may already have like active listening, diplomacy, creativity and courtesy.

  • Strive to understand the other person’s point of view. Listening is as important as making your case. Hear what the HR manager is saying, you may hear clues that can boost your position or stance.
  • Ask questions, don’t assume. Going in convinced your employer won’t give you a raise doesn’t accomplish anything. You may be right – or not. You’ll only know by asking. You may discover that your boss is willing to give you a higher salary to keep you happy and motivated. You may find out areas to improve in order to get a raise down the road. Or you may find out there’s an indefinite salary freeze which could be what you need to hear in order to begin seeking employment elsewhere.
  • Be creative. If a higher salary is unattainable, what else would satisfy your specific needs? Increased benefits, higher commission, extra vacation time or the ability to work from home one day a week can often enrich your life as much as a raise can. Remember, in salary negotiation, everything is up for discussion.

Successful Salary Negotiation

Negotiations are successful when both sides feel good about the outcome: the classic win-win situation. Go in looking for a fight and you’ll probably get one, resulting in a win-lose or lose-lose situation. If you approach salary negotiations professionally, meaning you’ve prepared, practiced and proceeded with care and caution, you’ll impress your employer, boost your confidence and increase your odds of becoming a winner.

This article was provided by University Alliance and submitted on behalf of Villanova University.  Villanova provides several human resources courses include human resources degree and HR certification programs.

(Note: Many elements of this article have specific pertinence to employment market dynamics in the US.  India’s job scenario is obviously very different – however, the guidelines for salary negotiation are universally valid.)


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Oct 03

How to Get a Pay Raise In An Economic Downturn

Think you deserve a bigger paycheck? Want to ask for a pay raise but not sure you’ll get one?

Plenty of employees are finding themselves in this predicament, because many recession-wary companies that stopped handing out raises during the economic downturn are still hesitant to open their wallets today. But career experts say that despite all the penny-pinching, a salary hike isn’t necessarily out of the question–so you might as well ask.

Asking for a pay raise is a delicate conversation and something you should not do without careful planning, says Dr. Katharine Brooks, director of Liberal Arts Career Services at The University of Texas at Austin “Being prepared can help you overcome your hesitation.”

Once you’ve determined whether it’s the right time to ask for a raise, here’s what you can do to get it:

Know your value. Do the proper research to figure out what you’re worth, even if it means going on interviews or using resources like Getraised.com, Payscale.com, or Glassdoor.com, If you find out you’re underpaid, you can use that to negotiate an increase.

“Look at salary surveys, cost-of-living comparisons, and rates of compensation within your organization, if possible,” Brooks says. “If you are aware that colleagues are earning more than you, tread carefully. You don’t want to put others in a negative light or violate a corporate written or unwritten rule about knowing what others earn. Simply present what the field generally pays, and why you believe your performance is at the top of your field.”

Know the number. Once you do the research, figure out what you think is a fair amount of money to ask for, says Thanasoulis-Cerrachio. “Have that number in your head when you ask for a raise.”

Schedule a meeting. Find a time that works best for you and your boss,Give your boss a head’s up that you want to chat about your career growth so that you both have ample time.

Practice salary negotiations. This can be a difficult or awkward conversation. Practice with a friend who can be a tough negotiator.

Start on a positive note. Lynn Taylor, a national workplace expert suggests kicking off the conversation with something like, “I really enjoy working here and find my projects very challenging. In the last year, I’ve been feeling that the scope of my work has expanded quite a bit. I believe my roles and responsibilities, and my contributions have risen. I’d like to discuss with you the possibilities of reviewing my compensation.”

Or, “I’d like to discuss my career and how I can do my best work.”

Tell them you know that the company isn’t handing out raises. Anita Attridge, a Five O’Clock Club career and executive coach, says, “Make the case of why you should be an exception to this policy. This will need to focus on the results you have achieved for the company.”

State your case, and then pause. Listen to what your manager has to say. “Give it your best case for why you should get a raise,” says Thanasoulis-Cerrachio. “Never use idol threats or mislead an employer to think you have an outside offer. Make your case based on your research and the results of your work. The worst they can say is no.”

Depending on the response, gauge how much detail you now need and how much back up support you require, Taylor says.

Be specific. Give your boss a range for the raise you want, and explain why. “Be prepared to say, ‘After a lot of research, which I have here if you’d like to see it at some point, and how I feel I have contributed to the company, I would ask for you to consider an increase of $5,000 to $7,000. It has been ___ (time) since my salary was last reviewed. I greatly appreciate your consideration,” Taylor says.

Bring your personal kudos file. Bring a list of your key achievements, and focus specifically on the areas of accomplishment that are important to your manager, Attridge says.

“Bring up your strengths and talents, your accomplishments, your desire to do even more, and your ideas and plans for the future in your role at the organization,” Brooks adds.

Don’t be aggressive. Be diplomatic, well-prepared and assertive, but not aggressive.

Don’t threaten your employer. Whatever you do, don’t threaten to leave if you don’t get the raise, Brooks says.

You also shouldn’t threaten your boss with other job offers, interviews, recruiter conversations, etc., Taylor adds. “You run the risk of your boss mistrusting you, or in the worst case, if you’re already on somewhat shaky ground, him saying, ‘maybe you should consider those offers.’”

Ask for endorsements. “One of the most powerful ways to demonstrate to your manager that you deserve a raise, or at least some form of recognition for your results, is to have other people endorse the work you have done and how it helped them,” Attridge says. This may be done through a phone call to your manager or an e-mail. The more your manager hears about how your work has contributed to organization goals and results, the stronger you will be positioned to be seen as someone deserving of consideration for an exception in the time of no raises or at least some form of recognition.

Don’t share your sob story. “Don’t bring up personal issues,” Brooks says. Don’t tell your boss that you can’t afford your rent, or that you need a raise to cover other personal expenses. Stick to your accomplishments and the value you add to the company.

Be patient. Remember, your manager may need a few days to think it over and get back to you, so don’t be disheartened if you don’t get an instant “yes,” Taylor says. There’s also a chance your boss isn’t the one to make the decision. He or she might have to go to the higher-ups with your request.

 
This post is written by Jacquelyn Smith and the complete article is posted on the Forbes Blog.It quotes Connie Thanasoulis-Cerrachio, a career expert and Lynn Taylor, a national workplace expert.
 

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Jappreet Sethi

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Sep 08

10 Salary Negotiation Mistakes To Avoid

Whether you’re new to job-hunting or a seasoned pro, whether you love the art of salary negotiation or dread it, the truth is that knowing salary negotiation tactics — and avoiding salary negotiation landmines — are key to obtaining the job offer you seek and deserve.

While much is written about the tactics of salary negotiation, this article focuses on negotiation techniques you want to avoid — salary negotiation mistakes that could result in a much lower job offer — or worse — losing the job offer you worked so hard to obtain.

These 10 mistakes can be easily have been avoided by following the advice in this article.

1. Settling/Not Negotiating.

Probably the biggest mistake you can make is simply deciding to settle and accept whatever offer you receive. Research shows that younger job-seekers and female job-seekers often make this mistake — either from not completely understanding the negotiation process or from a dislike or discomfort with the idea of negotiating. Settling for a lower salary than you are worth has some major negative financial consequences — you’ll earn less, receive smaller raises (because most raises are based as a percentage of your salary), and have a smaller pension (since pension contributions are usually a percentage of your salary). But settling for an offer that you feel in your heart is too low will not only set you back financially, but also eat at you until you finally begin to seriously dislike your job and/or employer. Of course, in certain professions (like sales), it is expected you’ll negotiate your salary.

2. Revealing How Much You Would Accept.

Information is the key to any kind of negotiation and a common mistake job-seekers make is telling the employer what you’ll accept. Sometimes it is hard not to offer this information — especially if the employer asks for a salary history or salary requirement. Some employers will also ask — in a preliminary interview — what salary you’re looking for. In all these situations, you need to carefully decide how you’ll handle the situation. The earlier you give up this kind of information, the less room — if any — you’ll have for negotiating a better offer when the time arrives. Always try to remain as noncommittal as possible when asked about your salary requirements too early in the interview process. (Read more about dealing with salary histories and salary requests here.)

3. Focusing on Need/Greed Rather Than Value.

A very common salary negotiation error is focusing on what you feel you need or deserve rather than on your value and the value you being to the prospective employer. Employers don’t care that your salary won’t cover your mortgage or student loan payments or even your living expenses. If you plan to negotiate a job offer, do it based on solid research (see next mistake) and a clear demonstration of your value to the organization. Don’t ever tell the employer that you need a certain salary.

4. Weak Research or Negotiation Preparation.

With the number and variety of salary resources available online — from salary.com and salaryexpert.com to professional associations — there is no excuse for you as the job-seeker to not know your market value. Of course, you should also attempt to conduct research on your prospective employer — their historical salary levels, negotiation policies, performance appraisals. Even if you decide you don’t want to negotiate salary, you’ll have a better understanding of the market for your services — and your value in that market.

5. Making a Salary Pitch Too Early.

The longer you wait, the more power you have. Yet, there are many job-seekers who jump in too early in the process and ask about salaries and compensation. The ideal time for talking salary is when you are the final candidate standing — and you get the job offer. It’s at that point when you can ask more specifics about salary, bonuses, commissions, health insurance, and other perks. Asking at any point earlier in the process can be perceived as being too focused on money — and can also lead to you having to reveal what you would be willing to accept.

6. Accepting Job Offer Too Quickly.

The job-search these days drags on longer and longer, and when you finally obtain that offer after weeks and weeks (and in some cases, months), it’s not unusual to want to accept it right on the spot. But even the best offers should be reviewed when you have clear head — and without the pressure of your future boss or HR director staring at you. Most employers are willing to give you some time to contemplate the job offer — typically several days to a week. It’s when you get the job offer that you have the most power because the employer has chosen you, so use that power to be certain it’s the job and a job offer for you — and consider negotiating for a better offer if you feel that it should be better. Just remember that whatever amount of time you ask for is the amount of time you have to make your decision.

7. Declining Job Offer Too Quickly.

Many job-seekers reject job offers very quickly when the employer offers a salary much lower than expected, and while in many cases you would be correct in rejecting the offer, it’s still best to ask for time to consider it before rejecting it outright. If the money is simply far below the average, you may have no choice but to reject the offer. However, if the money is good — but just not as good as you would like — take a closer look at the benefits. A big mistake is declining a job offer too quickly without looking at the entire compensation package. For example, some firms that have lower salaries offer larger bonuses or stock options or pay the full expense of health insurance. Remember, too, that you should be able to negotiate one or two elements of the offer to make it even stronger.

8. Asking For Too Many Changes in Counteroffer.

If you have a strong interest in the job and the employer is a good fit, but the offer is not what you expected, you can consider making a counteroffer proposal. If you decide to make a counterproposal, remember that you should only pick the one or two most important elements; you can’t negotiate every aspect of the offer. If the salary is too low, focus on that aspect in a counteroffer. If you know the firm will not negotiate on salary, then focus on modifying a few of the other terms of the offer (such as additional vacation time, earlier performance reviews, signing bonus, relocation expenses). Just remember that you cannot attempt to negotiate the entire offer; you need to choose your one or two battles carefully, conduct your research, and write a short counterproposal.

9. Taking Salary Negotiations Personally.

Whatever you do in this process, always stay professional in handling the negotiations. If the employer has made you an offer — then you are their choice, the finalist for the position — so even if negotiations go nowhere, or worse, keep in mind that you did receive an offer, even if it is not what you expected or deserved. And if negotiations break down between you and the employer, move on graciously, thanking the employer again for the opportunity — because you never want to burn any bridges.

10. Not Asking for Final Offer in Writing.

Once everything is said and done — and you have received a job offer that you find acceptable, the last thing you should do is ask for the final offer in writing. No legitimate employer will have issues with putting the offer in writing, so if yours balks at your request and accuses you of not having any trust and tries to bully you to accept the verbal agreement, take it as a MAJOR red flag that there is something seriously wrong.

This article appears on quintcareers.com. and is written by Dr. Randall S Hansen.

Dr. Randall S. Hansen is founder of Quintessential Careers, one of the oldest and most comprehensive career development sites on the Web, as well CEO of EmpoweringSites.com. Dr. Hansen is also a published author, with several books, chapters in books, and hundreds of articles. He’s often quoted in the media and conducts empowering workshops around the country. Finally, Dr. Hansen is also an educator, having taught at the college level for more than 15 years. Visit his personal Website or reach him by email at [email protected].

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Jappreet Sethi

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Aug 04

How To Handle The Salary Question in Job Interviews

This is one of the most difficult parts of the jobsearch process for many. Go in too high and you may price yourself out of the job, go in too low and you’ll be selling yourself short and be forever kicking yourself.

My advice is to discuss salary in a range rather than a single figure.

Before you can discuss salary, you need to have researched the market to ensure your wants are justified. There are a number of ways you can do this:

  • Speak to people in your industry or network
  • Research job adverts. Many indicate a salary range for the position.
  • Speak to recruiters. They know their industries well and current market rates.
  • Review salary surveys. Many recruitment firms release annual salary surveys, but remember there are differences in ranges dependent upon your location.

There are a number of things you need to consider in salary negotiations, not just the $ figure. Bonuses, vehicles, parking, leave entitlements, additional superannuation, salary sacrificing, employee benefit schemes such as reduced health insurance, discounted gym memberships, supplemented child care and even family friendly environments, all contribute to the salary package. You should factor these into the package when you are considering an offer.

When asked what your salary expectations are, be justified in your request. Don’t just state a figure and cross your fingers. Give a range rather than a set figure. For example, never say ‘I want $X’, always say something like ‘I am looking for a package in the vicinity of $X to $X. Don’t lock yourself in to one figure.

If you are seeking a salary increase, you should back up the request with a brief justification. For instance, “I am seeking a salary in the range of $X to $X based on the increased responsibilities of this role” and then further back it up with a line or two about your skills, experience and achievements.

When you get an offer, stop, take some time and consider the package. If there are benefits included in the package you will need to do your sums and factor it into the package. I know a lady recently who actually took a $5k drop in salary which on the surface seemed strange, but she actually had an increase in salary because of the day-care arrangements in place in the workplace. It saved her a fortune in out of pocket child care expenses.

Never discuss salary until the employer brings it up. Your aim is to sell yourself, your experience, the value you offer, your past success, before you discuss money. This is not always possible. If you are asked the question, you need to answer it. But let it be the employer who asks, not you.

This article is contributed by Michelle Lopez of One2One Resumes.

E: [email protected]

W: www.one2oneresumes.com.au

© Michelle Lopez, Owner/Career Consultant

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Sep 03

How To Give Yourself A Salary Hike

It’s not really certain which way the economy is heading right now, and saving money from your salary may currently figure high on your priority list. It should, because it looks like the global economy may go through more frequent and deeper recession cycles over the next decade.

This would mean that the regular yearly pay raises you may have been counting on could be out of window. There may be years of high payment and years of low or no bonuses. To add to the working joe’s woes, housing loan EMIs have risen astronomically in last 18 months. These are uncertain times for the middle-income group.

You’ve read enough about how companies can cut costs in such a scenario. As a salaried employee, you may even be feeling the pinch of some of those cost-cutting measures, yourself. What about you? If your monthly package just doesn’t seem to cut it even now and the increment scenario is uncertain, how do you manage? The best way is to give yourself a salary hike. This simply means becoming more savings-oriented and making your salary last longer.

You may be among those who have not already put certain important saving mechanisms in place. If so, it is high time that you did. This article will provide some practical advice on how to save money from your salary. Let’s start off with your debt burden and debt-inducing habits.

To begin with, stop using your credit card for anything but important online purchases – especially if it comes from the same bank that handles your salary account in. Banks managing companies’ salary accounts usually press a credit card on every employee as a direct incentive for reckless spending. They know that employees often tend to treat their salary accounts like Horns of Plenty that never really run dry.

Avoid personal loans. The high interest rates are not the only reason – the habit of taking personal loans to bail out of financial crises is an extremely self-sabotaging one. The personal loan system is simply not geared to work in your favour, so steer clear of it. If you need money before payday, ask for an advance or borrow it from friends or colleagues – as a last resort only. Ideally, you should not be in such a situation in the first place.

Now let’s talk about what you have in hand. First of all, don’t underestimate the power of small currency. You would be surprised at how much the stray cash in your wallet – and even the small change – can add up to at the end of the month. Try it out. Put every form of low-denomination currency in a designated container at the end of each day. Count it at the end of the month and see for yourself if it can pay at least one of those recurring monthly bills, such as the Internet or cable TV charges.

What about your monthly outgoings on entertainment? Are there cheaper options available? Most of the world’s stressed-out executives choose the quickest (read costliest) forms of personal and family entertainment. Do you really need to go bowling at that fancy new arcade? Do you really need to pay a premium for the privilege of booking those cinema tickets online? Can you live without ordering out for unhealthy fast food? Is spending enormous amounts on at the local amusement arcade the only way to keep your child occupied on weekends?

Invariably, the cheaper alternatives are not only more cost-effective but also more wholesome and rewarding. Included are all the things that the availability of instant entertainment keeps us away from – such as an evening walk or jog, a visit to friends or family and checking out a museum or art gallery. You may discover – like thousands of others the world over have – that making a decision to live cheaper also enriches your social life and improves your health.

Finally, let’s look at the essentials of daily living. As a mid-management person in your company, you may perceive it as being below your ‘standard’ to shop for your groceries and toiletries at Big Bazaar. Is there any sound logic to support this mind-set? Some of the richest people on earth attribute at least some of their good fortune to the fact that they did not lift their noses at bargains, discounts and bulk purchase savings.

Have the advertising world or a false sense of ‘upper middle-class’ dignity lured you into artificial lifestyle choices? Even if you are sometimes judged by the make of your shirt, nobody cares where you bought it. Moreover, where you buy your rice or razor blades from should certainly not be a ‘prestige point’. If you have fallen for the misconception that you are only as good as the places you shop in, correct the course now. The potential savings are very significant.

Jappreet Sethi

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