11 Commandments For Smart Negotiating
The article below will provide some real world tips and advice on how you can increase your salary. This article can also be read online at http://www.worktree.com/newsletter/salary-negotiation-tips.html
1 - BE PREPARED. The more information you have about your market value and prospective employer, greater your likelihood of success. This is first commandment because it's most important. There's a wealth of information available on Internet, at public library and through professional associations and networking groups. Time spent learning how to negotiate and preparing for negotiations may be best investment you'll ever make.
2 - RECOGNIZE THAT EMPLOYMENT NEGOTIATIONS ARE DIFFERENT When negotiations are over, you'll have to work with person with whom you're negotiating. Moreover, your future success may depend on that person. So, while you want to negotiate best possible deal, you need to do so in a way that doesn't damage your image. At same time, employer's primary concern isn't negotiating least expensive compensation package it can get away with. Rather, their focus will be on getting you to accept job.
3 - UNDERSTAND YOUR NEEDS AND THOSE OF THE EMPLOYER To be successful in this type of negotiation, you need to examine your priorities. What do you really want? Are you comfortable with a low salary and a large equity stake? Are you able to handle dramatic swings in income from year to year? Understanding your needs will also help you determine type of company you want to work for. For example, a family-owned company may be able to offer a competitive salary and a large bonus based on results, but may not be willing to offer significant equity to a non-family member. A start-up company, on other hand, may not be able to offer market salary, but will typically offer stock options. By recognizing what an employer can and can't do, you'll be able to determine what issues you should press.
4 - UNDERSTAND THE DYNAMICS OF THE PARTICULAR NEGOTIATIONS. Sometimes you'll have skills that are in great demand. And sometimes, you may be one of several qualified candidates company would be happy to hire. Sizing up situation and understanding relative position of each party will help you determine when to press your advantage and when to back off.
5 - NEVER LIE, BUT USE THE TRUTH TO YOUR ADVANTAGE. It's not only wrong to lie, but in employment negotiations, it's ineffective. If you lie during negotiations, sooner or later you're likely to be caught. Once you are, even if you don't lose offer, you'll be at a tremendous disadvantage, and your credibility will always be suspect. On other hand, total candor wont be rewarded. You're under no obligation to blurt out everything you know. You can determine what you want to say and how you want to say it, and try to put everything in its most positive light. One key element of your preparation should be to recognize areas of concern so you can rehearse how to handle them when they inevitably come up.
6 - UNDERSTAND THE ROLE FAIRNESS PLAYS IN THE PROCESS. The guiding principle for most employers when negotiating is fairness. Within constraints of their budget and organizational structure, employers usually will agree to anything that's fair and reasonable to hire someone they want. Appeals to fairness are your most powerful weapon. Thus, you should be able to justify every request you make in terms of fairness. For example, if other computer programmers in similar companies are being given sign-on bonuses, you should expect to be treated no differently. Your prospective employer will want you to accept it's offer and feel that you've been treated fairly. Understanding importance of fairness as a negotiating principle can make difference between success and failure.