Negotiating Pay Rates

The most impactful thing you can do to strengthen your leverage for negotiating pay is Make the Hiring Manager Want You.

You do that with a strong resume and a winning interview.

Once the hiring manager has decided in favor of your candidacy your leverage will be at its peak. That's the best time for negotiating salary. It's in your best interest to delay negotiating pay until that happens.

Name your Rate

You will already have some idea of the hiring range from the screening conversation. If the interviewer won't name a rate confirm your previous understanding of the hiring range. "When I spoke with (screener's name) she indicated the hiring range was 'this'. Is that correct?"

Keep in mind that her ability to go beyond the hiring range will be limited. Unless she owns the business or otherwise has more unilateral authority, it's not likely to happen.

Have realistic expectations but don't be afraid to ask for what you want. It's better to state a range rather than a hard number. "I'm looking for the mid $40's." Don't name a single figure unless the interviewer insists on it. (Remember too that it is too soon to actually begin negotiating pay.)

When you finally must name a figure go 10% to 15% above the amount you actually want if that figure is still within the hiring range as you understand it.

In negotiating pay you won't be able to go up once you've actually named a figure. (Being able to come down a little while gaining a possible trade off for doing so can make this a win.)

If your minimum is at the hiring authority's top end hiring range it can still work. But you have to be worth it. State a rate you can live with given the other considerations of the position.

You need to understand that naming your figure and receiving an offer are two very different things.

So...Wait for It...Wait for It...Wait for It...Go!

Negotiating Pay

An offer should include the position title, a pay rate and a start date.

Offers are often made verbally before anything is put in writing. When you are offered the position with a corresponding pay rate your leverage to negotiate is at its greatest.

Once you've received an offer the first thing to do is ask for time to think it over. Give yourself at least 24 hours. Do this even if the offer is everything you had hoped it would be.

In certain situations the offer that comes back may be less than you might have hoped. This could happen if a hiring authority has been burned in the past by paying someone more than she ended up being worth. It could also occur if an up-line manager is less than cooperative or if there's an 'HR knows best' management style.

If this happens don't immediately reject the position or offer. Take your 24 hour window to consider the entire package including paid time off, 401K and insurance benefits along with the intangible benefits. Examples of intangible benefits include flexible working arrangements, position location or level of authority.

Recognize that whenever possible negotiating pay should be done face-to-face. If the offer is made over the phone, and you're disappointed with the amount ask for a meeting.

"I'm pleased you would like to have me work for you. But I'm a bit disappointed in the offer. Would it be possible for us to get together to discuss a solution that works for both of us?"

Once you're together remind the hiring manager about your unique attributes then make a counter offer. (You can do this over the phone if you have to.) Start by asking for a higher starting salary.

If there is no room for an increase in salary. You may be able to sweeten the deal by asking for other perks or benefits as a trade off for accepting a lower salary.

Things like a car allowance, mileage allowance or additional / earlier paid time off might be possible. Or perhaps you can gain a commitment for a formal review and an earned pay increase once you've proven your worth in 3 months time. The only way to get more is to ask for it.

Try not to give up anything without getting something in return. Only you can decide whether you're willing to consider a trade off and what would be acceptable.

If you have to walk away do so knowing you did the right thing. Do not accept an inferior offer just to have a job until something better comes along.

This mentality leads to burning bridges which is never advisable. (It would be much better to consider contract or temporary work to keep money coming in while you look.)

Accepting an Offer

Most often the answer will be yes. If that's not normally the company's policy ask if you can get an email outlining your agreement.

If the company operates "informally” or the opening is a lower level position getting the offer in writing may not be likely.

If you don't get the offer in writing send a follow-up thank you email to the hiring manager. Outline your understanding of the offer and ask for return (written) confirmation.

You can do this by ending the email with something like, "If I've misunderstood something or left anything out, please let me know." This usually results in some kind of response that you can keep for your records.

Negotiating pay that works for you both is win-win. But only if you both perform as agreed. Position yourself for success by holding up your end of the bargain. Make the hiring authority glad she chose you by exceeding her expectations.