How to Win Your Compensation Negotiation
A well-developed understanding and approach to the compensation negotiation process will not only gain you a larger compensation package, it will also spare you from rejecting the opportunities that look too small but could blossom to fit you. Effectively managing the compensation negotiation process is more entailed then most people realize. Saying the wrong thing at the wrong time about compensation can derail your ability to get what you are worth and even cost a job opportunity if you ask for too much at the wrong time the process. Discover the right things to say regarding your desired compensation package and when to say them during the interview process.
This Compensation Negotiation Webinar video is from the Proformative webinar "How to Win Your Compensation Negotiation" held on December 21, 2012. The webinar features a presentation from Moshe Kravtiz, Certified Career Coach, Five O'Clock Club.
Compensation Negotiation Webinar
"Okay. The most successful salary negotiation is when you never mention the salary. Now, it doesn't mean that it's effortless. There's definitely effort involved, but it has to be the correct effort at the right place. In fact, it begins when you build your resume. Your resume should be built so that a hiring manager will look and see your value. Besides seeing specifically what you've accomplished, he'll see there what you could do for him and how much you're worth.
He'll pick up a resume and whether he says it out loud to himself or it registers in the back of his mind, he'll say "Here's a CFO who's worth $150,000. Here's a CFO who's worth $2 million. This CFO is worth $1 million." It should say that on the resume. You don't put the dollar sign, but in presenting your accomplishments, in presenting your experience, that's what a person can see. That is where the process really begins.
The longer you can delay or never even mention the salary, the more successful your salary negotiation is. In terms of putting the information there on the resume, I have a little note hanging up by my desk. I try to follow it in my work, in financial planning and I give it to my colleagues that the job is to present the right data to the right people at the right time. I try to follow that in finance work, and I think that's applicable also in job seeking.
You want to get the right information on that resume in front of the right people who are at a level who can hire you and at the right time in the hiring process. The right information includes the stuff that will enable them to see what value you might have to that organization. That is where your salary negotiation begins.
Now you might ask, "If you're saying I want to delay the process, delay the discussion of salary, what if they ask me?" "How much are you currently earning?" That's a common question. Or they have maybe more polite ways of asking, "How much do you need? What are your salary expectations?" "What do I answer? How do I respond?" The goal is to delay as much as possible any discussion on salary.
What do you respond if this question is presented to you? It depends who asked you the question. Are you filling out an online application? Maybe you're in the company writing on a paper that you're handed by HR. Maybe you're on the phone with an HR screener asking you initial questions. Maybe you're sitting face to face with the hiring manager. It depends who asks the question, what your strategy should be for how to attempt to delay the discussion of salary as much as possible.
Editor's Note; You may also want to take a look at some of Proformative's many other recorded webinars, such Leasing & Revenue Recognition Webinar, Corporate Finance Technology Strategy Webinar, Time & Expense Accounting Webinar, Revenue Recognition Regulations Webinar and Corporate Budgeting & Forecasting Webinar.
You might try for a paper, an online application, just leave it blank. Submit it without any number in that box. Online it may not go through, you'll need a different strategy. Hard copy it might have asterisks, right? "You must fill in this space. Don't skip this space." Okay. So what? It's a free country. You don't have to fill in that space.
It reminds me when I was a kid the mattress used to have a tag on it that said, "Do not remove this tag under penalty of the law." I was scared to tear off that tag. Decades later I realized that they weren't talking to me. If it says, "Oh, you must fill this in," maybe. Like with most other things in the job search process, there's not a right answer and a wrong answer.
You think, "How should I play this? They're asking for my salary expectation on this paper. How should I play this? I could leave it blank." Get to know the organization. If it's a real buttoned up organization and if there's a blank over there that will toss your resume, they'll toss your application, okay, it's a no. Is that the type of organization you want to be in? If it is, you have to know how to work within that type of assumption. "How do I want to play it?"
What if it's spoken, on the phone, in person, with the hiring manager? Then you can talk to the person and you see their face. How they react and you say your mantra, "Salary will not be an issue," and you change the subject and you get back to discuss the position.
The more that you have the sense that salary might be an issue in this position, the more sincere and compelling you have to be when you say, "Salary will not be an issue. You're a fair company. I'm a fair person. I'm sure we'll come to some fair agreement. I'm sure you'll make an offer which is competitive, which is commensurate with the position. Salary won't be an issue." Make it as brief as you can and get back to discuss the responsibilities of the job.
It might be you're worried that, "If I don't discuss salary, how do I know they're going to offer me enough money? Will it be fair, be competitive, money left on the table? Will I get the best possible offer? Why should they offer it to me if I didn't even discuss it, didn't negotiate with them?" Okay, valid, and it's not like we're not addressing the issue. Just, we have to address it like we said, the right data to the right person at the right time. That right data is, discuss the position and not the salary. As the responsibilities of the position will grow automatically, the price tag on that job goes up without discussing the numbers.
John: Okay. Let me jump in real quick, Moshe. We've got the first of our three pulling questions. Once again this is for folks who are here for CPE credit but even if you're not, we'd love to see what everyone's experience has been on this front. What we want to do is turn these polling questions around so we can all see and discuss what folks' experiences have been.
This is the first of three. I'll leave this open for about 45 seconds, here. I'd also like to remind folks to ask questions at any point in time and we will get around to those questions when we're done with the presentation from Moshe which is what we'll lead our webinar with. I'll go ahead and leave this open for another five seconds, almost everyone has voted at this point. Thank you very much. I'll go ahead and close that down and, Moshe, back to you.
Moshe: Okay. The first of the four steps of salary negotiation process, is discuss the position. I'll tell you two stories which will illustrate this. These are some of my favorite stories here. Bob was a paper burster. Some of us remember back in the mid-1900s there used to be a thing called a mainframe computer. We used to submit a deck of punch cards and come back the next day, or maybe they'd have somebody deliver these huge stacks of computer print on paper light green and dark green with holes along the side and perforations between every page.
Bob was a paper burster. He used to tear the papers in between jobs, tear them off of the printer and he'd been doing this for 25 years. He was very experienced and he was applying for a job. He let them know that he had all this experience, and then he differentiated himself from probably all of his competition by indicating to them that he not only was very efficient, expert at bursting the paper, but when the machine broke down he could fix the machine. Ooh, that's a lot value. That's tremendous value that saves downtime.
Imagine all his clients, internal clients waiting for their reports. It saves downtime. That's really valuable to the company. It saves them bringing in an outside vendor for maintenance. It saves them time. It saves them money. Furthermore, he let them know that he's very good at training other people. Aha, an additional value. Well, obviously the price tag on his position went up without even discussing numbers, without discussing salary. Because he discussed the position, they saw what he could do for them. They saw the value that he comes with and they offered more money.
Another example, Mike was brought in for a finance position. The hiring manager had in mind he was looking for somebody to punch in the numbers to spreadsheets, not much more than data entry. Well, in the course of meeting, interviewing, and discussing, he found that Mike could produce the spreadsheets. He could design the spreadsheets. He could optimize the spreadsheets. Whoa. That was great value. What happened was, they..."
End partial; Compensation Negotiation Webinar