Salary Negotiations: advice from an HR Director

I just finished hiring a new person for a very specific role within my company. As usual, the most complicated part was the salary negotiation, and I have some advice (noticably less snarky than my job-application advice from a few weeks ago).

1. Ask for what you are worth. This is a problem for women more than men, and is one of the reasons women still make less than men in the workforce. I like to ask my applicants for their salary expectations at the outset (and get irritated when they don’t comply) because I –HATE — to play the bargaining game. Give me the number you think you are worth and give me the respect of being able to have a rational conversation with you about that number. I, being a good person, will not pay you less than I think you are worth just because you are low-balling yourself. This is a very good place for you to test your instincts. If you get screwed at the outset, how long will it be before you are loking for a new job?

2. Know what you are worth. Knowing your value is essential, and shows a specific interest in the industry — even if all you did was spend a few minutes on Salary.com, or asked current employees about salary ranges. That said, when negotiating, do not forget to include the total value of your compensation package in your value. Being paid an extra $5k a year is not nearly as valuable as not having to pay $500/mo in insurance and commuting costs.

3. Be professional.
Amazingly, I do need to remind readers of this. Be polite, be courteous, be positive. Know your facts and be prepared to be informed of new things you didn’t know. Being rude to me may get the job offer rescinded.

4. Don’t gamble past your zone.  You can easily lose the job if you push it too far. I once had an MBA (just-about-to-graduate) apply for a job with us. His wife was 8 mos pregnant, and they lived about 4 blks from our office. I pointed out our 100% paid healthcare program, the easy commute, the flexible hours policy, and the fact that he probably wouldn’t work more than 40 hrs/week … he still wanted about 2x what we offer for entry-level in that position. I still think he made a poor choice, but its just as well for us.

5. Be patient. It can take longer than you want it to to negotiate a compensation package.

6. Be creative. Be open to changing what you want to accomodate company philosophy or culture, or accept a different benefits package in lieu of more money. I’ve had people ask for (and get) more time off each year, or flexible work schedules. If you are accomodating you may find yourself in a much better situation than money alone can provide.

2 thoughts on “Salary Negotiations: advice from an HR Director

  1. roxy

    So often I read blogposts by or about job applicants who negotiated (or didn’t) their salaries, so it’s interesting to hear what a recruiter thinks about this process. I actually have a follow up question: What can somebody do when he/she makes the case for a certain salary (in point number one: ask for what you’re worth) to get a package the applicant is happy with, but not so high it turns you off? Meaning, is getting the best possibly salary mostly about doing research and knowing the market, or in the course of your conversation can the applicant highlight certain things to persuade you to pay the upper end of a certain range? I’m not asking because I’m greedy or want to exploit employers — I’m actually very inexperienced at negotiations, but soon I’ll start looking for my first full time job, so I’d like to get the best compensation package I can.
    Thanks,
    Roxy (The Daily Asker)

  2. lisa Post author

    Great question.

    Most people hiring have a very specific range they can hire within, and we really hate telling you what that range is because you’ll want to higher end, and we’re stuck not being able to give you salary increases once you’re hired.

    I hate playing games, so I prefer a candidate who knows herself and the market and places a logical value thereby. That said, negotiating me to a higher number can happen if the applicant logically (and eloquently) points out added value. BUT I might well counter with an initial salary no higher than orginally offered and an increase in 90 days based on demonstrated performance. Basically, “you tell me you are great and deserve more money; show me and I’ll give you more money.”

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