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Life at Work Column

Negotiating Salary: Four steps to Getting Paid What You Are Worth

Ever wonder why some people negotiate salary seamlessly while others end up feeling that they have been inequitably compensated for the job that they do? If you are one of the legions that belong to the latter group, how do you go about changing the "status quo"? That is, how do you go from the ranks of the underemployed to the ranks of the well compensated for a job well done? You can do this in four, not-so-easy steps. First, know what the job is worth. Second, know what your work is worth. Third, know what about the critical ingredients of "salary". Fourth, arm yourself with some assertive salary negotiation skills.

What Is The Job Worth?

Know what the job is worth. That is, what are others being paid to do similar jobs, under similar circumstances in similar places? You can find this out in many different ways. Most fields have salary surveys - and, often, professional organizations offer ready access to anyone interested in those surveys. As an adjuvant to this information, you can make use of your informal organizations - among your friends and colleagues in the field, in general, and in your own work place, in particular. As long as you haven't agreed to do otherwise, you can always make an "I'll show you mine if you show me yours" agreement. You can conduct a survey of persons in similar positions elsewhere. Promise to keep their individual information confidential but to share the results in the aggregate.

If your local colleagues are reluctant to disclose this information, conduct your survey among others in a comparable city, elsewhere. inally, if you are a college graduate or currently a student, consult your college career counseling center and talk with faculty in your department, find out what other graduates from your school are making as starting salaries. Hopefully your career center tracks this type of information. It would be great if you could find out how much money students, from your university, in your major were able to command last year. In fact, perhaps other graduates were recruited and hired from the same 15 companies last year. If so, what were they offered? If your career center is not tracking this information, you may want to see if they are willing to begin doing so.

What is your work worth?

Evaluate your paper credentials. Although life experience tells us that outstanding employees come from a wide range of settings, a solid preparation from a prestigious place can count for something. For example, if you are a recent graduate of one of the best computer science schools in the country, and you are applying for an information technology position, you may be more highly compensated than others. Why? Because past history counts for something! Success in the work arena may be correlated with success in the school arena (though, you can be sure that this is not always the case). However, if someone from your university already has a job, in the organization, and they have performed well, than you may be in luck. Your prospective employer may be willing to go the extra mile for you. Of course, the converse is also, unfortunately, true! And, what about doing well academically, wherever you are? If your grades are mediocre, leave them off your resume. But, if they are superb, make that explicit.

Going to college at a prestigious place is not the only type of credential that you can acquire. In fact, many very successful people have acquired skills and experience in other ways. Internship and job experience are often far more compelling than education, because those who have functioned, reliably, in the work world may have developed solid skills. As importantly, they may have already mastered the expectations of the work setting. So, be sure to carefully document all relevant work and internship experience. These can be critical, especially for those new to the work world. As the old adage goes, "in order to get a job, you have to have experience and in order to have experience, you have to have a job". One impressive credential is internship experience, particularly internship experience in which you have developed a specific skill set. If your supervisor can vouch for you, that is even better yet, evaluate your skill set.

In the ever-changing world of information technology, of course, more important than any of the above, is your skill set. That is, what can you do for your company? In what way is your contribution unique? Why should they hire you over others? Before going to any job interview, you should be prepared to answer this question. While you are evaluating your professional skills, don't forget to consider your interpersonal skills. Are you a good communicator? Do you get along well with others? Are you able to finesse business relationships inside and outside of the company? Even if your technical skills are not well-developed, these skills can be essential, especially in the IT world, where people are often, should we say, not known for these "softer" skills. Finally, consider your work ethic. This is perhaps your most valuable asset. Are you at work on time? Do you stay over time to get the job done? If there's a crisis, can you be counted on to go the extra mile? If so, you deserve to be compensated for this contribution. Now that you have taken stock of your assets, it's important to negotiate a fair salary. We live in a society, especially here in Washington, where people are evaluated by titles and salaries. Therefore, failure to effectively negotiate a fair salary can not only leave you feeling undervalued - it can result in others undervaluing your work.

Know About All of the Components of "Salary"

Before negotiating salary, it is important to know a few things. It is important to know about all of the possible or likely perks in your field. Most positions offer: health benefits, pension plans, paid sick days, paid personal days, paid vacation time. In some fields, companies offer professional training and educational benefits. It is important to find out about the range of benefits in your field prior to negotiating salary as these benefits can be quite valuable. I know of one former secretary with a Carnegie Mellon degree in Computer Science; the degree was one of her fringe benefits. So, depending on your career goals, benefits can be very valuable! Similarly, medical benefits, depending on your health needs, can be very valuable. When you approach negotiating salary, it is important for you to know about these possibilities and to know which ones are important to you. For example, if you are interested in pursuing an advanced degree, the education benefits may indeed be more important than the salary.

Negotiating Salary

In my opinion, one of the best sources of information on this important topic, is Jack Chapman's book, "Negotiating Your Salary: How to make a $1000 a Minute". Individuals concerned with improving their salary negotiation skills are encouraged to read it, memorize it and practice what it preaches. Consider following Chapman's advice. Do your salary research in advance. Armed with this information and Chapman's book, consider following his advice. When the prospective employer asks you how much you want to make, say, "does this mean that you are offering me the job?" If the employer says, "I am not sure, or well I need to know your salary qualifications, Chapman encourages you to say something like, "Hmmm. I am not quite ready to discuss salary. Right now, I would like to clarify, am I the person for the job? Can I be a top performer for you? Am I a good fit for your company? If so, you seem like a fair person and I am confident that we can work out a fair compensation arrangement."

The key is never to discuss salary until you have a clear, unambiguous indication that the company wants to hire you. Chapman advises, that you do not negotiate salary until you have been told explicitly, "we want you. What will it take us to get you here?" Then, you're ready, especially if you have done your research. You say, "well I am sure that the company has well established ranges for people in my role, what were you thinking?" The key is to let your employer state the range first. Then, according to Chapman, you reiterate the number: $80,000. Then, you just wait silently. It is amazing. People often increase their offer. Even if they don't increase their offer, you have let them know that you take your value seriously.

If you have a question or want to suggest a topic, contact Dr. Friedman at drlynnfriedman@mindspring.com.

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