Salary Negotiating Tip
By Jack Chapman
Employers want know your most recent salary for one main reason:
to screen you out. When faced with a lot of applicants they use the
salary as a quick shorthand way of assessing the fit and narrowing
down the list. They will want you to “go first” in the
compensation discussions, and they’ll ask you to reveal your
expectations or salary history. Going first is “sacred
ground.” Don’t give it up or you can get screened.
Is it ever in your interest to get screened? If you’re
qualified for the job, (or if you think the job can be altered to
fit you),, no! Your first objectives are to discern whether this
job is a fit for you and to establish what you can do for your
employer.
Once they’re serious, let them make the first move. That way
you lock in an offer and you've got the job -- and you can
negotiate from that place of security. Let them offer you the
job and raise the question of salary.
If you go first, you’ll be either too high, too low, or just
within their range. But since you won’t know ahead of time
which of those three numbers applies to you, you can lose the offer
by coming in too high or too low.
You can also leave money on the table if you’re too low or
within the range, so usually the best strategy is to let them go
first. That way, you know you have an offer, and you have a solid
base to negotiate from. Two exceptions.
• Exception 1: Above I said that employers use salary
as a screening tool. If you have already passed the screening and
if you've gotten to the point where they definitely want you, not
your competitors, you can “keep holy the first place”
by naming a figure first. In other words, if you have the job
locked up, then going first with a high number can act as a magnet
and pull their offer up higher without risk of getting them upset
and moving to the next candidate in line.
Looked at another way, the going-first
place offers either safety or momentum. If it’s the
safety/secure-ness of the offer if that’s most important, let
them go first because if they go first you have an offer,
it’s secure.
Letting them go first gives you security; you
going first can give you momentum to a higher salary, if
that’s your priority. Going first with your top number will
act like a magnet, pulling up the employers offer. It’s
easier to negotiate down from a high number than to push up from a
low number.
• Exception 2: Also, this rule does NOT apply to
conversations with a headhunter. You score “Candidness
Points” with third party recruiters for disclosing all
accurately. Try to get their estimate of your market first, though,
so you know where you stand; then fill them in on your salary
history and expectations.
