Top 10 Salary Discussion Tips
Sacha Cohen

Printer-friendly version

1. Know What You Are Worth

As with all other aspects of the interview, preparation is essential. You must go into the interview anticipating a discussion of salary history and your future expectations. One of the best ways to make sure that you're not blindsided by the question, "How much are you expecting to make at this job," is to know how much you're worth in the first place. A great place to start your research is with Chemical & Engineering News's annual salary survey article. This will help you determine your fair market value.

The American Chemical Society Department of Career Services conducts annual salary surveys of the membership and annual starting salary surveys of new graduates in chemistry and chemical engineering. These surveys present data by highest degree, employer type, employer size, work function, and other demographic data. (For more information, contact ACS Career Services, 800-227-5558, ext. 6153).

2. Have an alternate plan

Elizabeth Austin, co-author of The Good Girl's Guide to Negotiating: How to Get What You Want at the Bargaining Table recommends that you walk into any interview situation with an alternative plan. "Figure out what you'll do if this job opportunity doesn't work out. What will you do if the starting salary is below your minimum? Look at worst-case scenarios-look them square in the face. You might find that you do have some alternatives," says Austin. She also advises against putting all of your eggs in one basket. Don't hang all of your hopes and dreams on one job opportunity without making sure you have a backup plan. Without a plan B, you may come off as desperate, which will not help when it comes to negotiating.

3. Make them talk money first.

When they give you a number, repeat it back to them, recommends Austin. "Don't say yes and don't say no. Repeat the number in a thoughtful tone. That way, they know you heard it. Then take a moment, sometimes silence will get them to throw out a higher number." Austin says that if at all possible, let the employer give a number or range first. Avoid the question of salary as long as possible.

4. If pressed, always give a range.

Most career experts suggest that interviewees avoid giving a hard number when asked what they expect to make at their new job. Negotiation coach Michael Chaffers says, "In selecting a salary figure, avoid tactics that lead to arbitrary numbers. Whenever you put a figure out there, you have to prepare a persuasive answer for the question 'Where does that number come from?' In many cases, a random increase over your last salary feels like an arbitrary number. You will be more persuasive, and probably feel better about the figure, if you do your research."

If you quote a range, be certain that the lowest figure is still a fair salary, advises Chaffers. "One way to lessen the danger of being tied to the lowest number in the range is to make clear why you believe the higher figures are more appropriate for you, given what the market pays for your distinctive abilities and experience."

5. Alternatives to a higher salary.

Sometimes, an employer won't negotiate salary. If this is the case and you aren't pleased with the offer, consider other perks and benefits that might offset a less-than-stellar offer. For example, you might negotiate more vacation time, flextime, transportation reimbursement, or the chance to telecommute.

If you do agree to take certain benefits in lieu of salary, make sure that what you are getting is useful and valuable in the short and long-term. "Don't let yourself be dazzled by meaningless incentives," warns Austin. "Also, think about the benefits long term. A benefit that might not be useful to you today might be important down the road, such as family dental insurance when your kids need orthodontia in a few years.

6. Ask for frequent salary reviews.

When all else fails, if you're would-be employer isn't budging on salary, you might want to ask for regular performance reviews with an option of a salary increase. Ask for a six-month review; keep your resume out there. This way, an employer can evaluate you before doling out big bucks for unproven skills.

7. Tell the truth

Don't lie about your current salary; you could be asked to produce a W-2 as confirmation. At the same time, however, try to avoid answering this question by turning it around and asking the employer what range they expect to pay for this particular position.

"If pushed to the wall, tell the truth about your current salary, but don't reveal if at all possible," says Austin. Sometimes, there's more to a salary than meets the eye. It's important that you explain why the numbers don't necessarily reflect your current situation. For example, you may have been taking a lower salary in exchange for more time at home with kids. But once your kids go a way to college, you won't need that extra time.

8. Weigh stock options & signing bonuses carefully.

A few years, some companies were able to lure talent with the promise of getting rich overnight with stock options. But people have wised up in light of the stock market roller coaster and now aren't as eager to take stocks in lieu of fair pay. Simply put: Stocks are a perk, not a substitute for a competitive salary. Stick with the salary you had in mind in the first place and don't let the possibility of quick wealth cloud your good judgment.

In addition to the lure of stock options, another way that employers sometimes sweeten the pot is with signing bonuses. David Jensen of Search Masters International says that frequently companies use one-time cash bonuses, or hiring bonuses, to offset costs-of-living differences and other setbacks that a person might have to make in order to take the new job. Signing bonuses are nice, but that money is not added into your base salary and will not be figured in for your year-end review. Because future raises will be based on your actual salary, you want to come into the job with as high a salary as you can negotiate.

9. Take some time.

Once a salary offer has been made, it's in your best interest to think it over for at least a day before getting back to the interviewer with an answer. When the employer makes an offer, tell them that you are very interested in working for them but will need a little time to consider the offer.

10. Put yourself in the employer's shoes.

"Think of your salary from your employer's point of view," suggests Austin. "It's your job to show them that the benefits outweigh the costs." She suggests preparing a cheat sheet that you can bring with you to the interview that outlines what skills and experiences you bring to the table that justify the salary you are expecting. For example, did you save your last employer a certain amount of money on a project? Or, did you help institute a process that helped the company make more money over the long term? Be as specific as possible so you can show the employer why you'll add value if they hire you.

Take a win/win approach to the negotiations; your attitude can affect the outcome. Be enthusiastic about the job and restate your ability to do it well. Ask about the overall compensation package and policy versus actual practice, and then inquire about the salary. Let the employer know that you are very interested in the job and ask whether there is room to negotiate on the salary and/or benefits. Don't reject an offer out of hand because the dollars or other parts of the offer may not be exactly what you expect.

Sacha Cohen is a Washington-based business and technology writer. Her work has appeared in The Washington Post, Kiplinger.com, Fast Company, Oxygen's ka-Ching and other print and online publications. Cohen has been covering Internet trends and culture since 1996.