The Intelligent Negotiator (27 page)

If possible, get the hiring person to make the initial offer by asking about the usual salary for this position. Even if the number mentioned is acceptable to you, don’t hesitate to politely ask: “Is this the best figure you can offer?” Personnel officers generally begin with lower offers and expect job candidates to bargain for higher salaries. They may ultimately provide you with a more generous offer that will benefit you for the entire time you are with this firm. If they reply that this is the compensation level for this job, you may be able to modify their offer by suggesting any unique personal skills you possess that will enhance your value to the firm. You may also ask whether the firm would be willing to reconsider the compensation level in six months, after they have had the chance to observe your work.

The hiring person will normally provide you with a brochure describing the fringe benefits available to firm employees. Review the benefits package carefully. Be sure it includes the health coverage, retirement plan, and other options you and your family need. Don’t be afraid to ask whether there are other fringe benefits the firm might cover completely or include with supplemental premiums that you pay. If you are already covered under your spouse’s health plan, you might be able to trade other benefits or a higher salary if you were to forego this firm’s health insurance.

If you would like to obtain additional perks, such as flexible work hours, reimbursement for professional dues, travel to conferences and conventions, reimbursement for
external training courses, or free or subsidized parking, include these on a list with several other more expensive items you don’t expect to get (a company car or a large corner office, for example). This enables the firm to offer you the extra terms you are seeking, while rejecting the items they consider inappropriate. They are pleased that you yielded on those terms, and you leave with the items you really hoped to obtain.

Specifics of the Position

Ask about the specific requirements of the job being offered. What are the exact job responsibilities involved? Is travel required and how much of it? Does the firm provide employees with special training classes or pay for the cost of professional development courses you may need to take from external institutions? What advancement opportunities should be available to qualified individuals? Can you anticipate regular reviews of your performance and of your compensation level? Can you expect continued employment if your performance is exemplary?

In the United States, almost all private sector employees are retained on an “at will” basis. Under this system, both the employer and the worker can terminate their relationship at any time for any reason that does not violate specific laws (such a civil rights statutes prohibiting discrimination). If you can get a prospective employer to tell you that you can expect future employment for as long as your work is good, this may provide you with some protection beyond “at will” coverage. A firm that has made such a specific promise would be hesitant to terminate you without a valid reason. It is particularly beneficial to obtain
promises of this type in writing to protect your future interests. In many cases, this information is bundled into the huge amount of information in the human resource manuals that are given to new employees.

Once you have obtained the answers to your questions, you must decide whether or not to accept the employer’s offer. Is the firm offering you an opportunity that is consistent with your professional goals? Be aware of the impact of
psychological entrapment
and be sure you are not seeking this position solely because you have not been able to find other positions you really want. If you have been looking for other employment for a number of months and this is the first offer you have received, carefully compare this opportunity with your present circumstances. Would it really improve your personal situation? If not, stay where you are and keep looking for appropriate opportunities. Never take a new job simply because it is available.

P
AY
I
NCREASES

Once you have an acceptable job, how should you seek compensation increases? Do not make the mistake of asking your superiors for salary raises based on your personal needs. Many employees do this, by saying that they want to purchase a larger house, their children are going to expensive private schools or colleges, or they have to provide financial assistance for their ailing parents. Company officers are rarely moved by such arguments. Business firms are not charitable organizations; they are primarily motivated by a desire to make money. Employers don’t advance their profit-maximizing objective by giving their employees
the money to buy new homes, educate their children, or take care of aging parents; they pay compensation for what employees bring to the organization.

When you seek a salary increase, you have to provide your superior with reasons
the firm
should want to improve your compensation level. You can cite the dollar amount of new business you have brought in to the company since your last raise, the improvements you’ve made in existing systems, or the successful implementation of a valuable new program, to name a few. Prepare for the impending interaction as thoroughly as you would any other important bargaining encounter. Gather relevant information from coworkers and personnel at similar companies. Economic data may be available from newspapers, magazines, trade publications, and Internet sites. The more information you have supporting your requested raise, the more likely you are to be successful.

If your firm has regular performance reviews, you can bring up the matter of a salary increase at the time you are preparing for the review. If possible, put it in writing. If you are not anticipating a review, try to select a propitious time to ask for the desired increase. If your superior has been extremely busy lately, wait until things calm down if possible. It may be beneficial to wait until the firm issues positive financial information indicating increased revenues. Try to schedule a personal meeting at his or her office or your office so that you will have his or her undivided attention. It is exceedingly difficult to discuss your particular request with a supervisor who is simultaneously taking phone calls or conducting unrelated business at the same time you are stating your case.

In the meeting, mention the work you have already performed. You could also detail your current skills—and those you have recently acquired through special courses
or advanced education. Mention that you are planning to enhance your skills in the coming months, if this is so. Have you accepted additional responsibilities that make you more valuable to the firm? Would you be willing to accept new responsibilities if this would enable you to advance within the organization? The answers to these questions will be especially important if you are already being paid what comparable employees are earning, because you have to demonstrate the greater personal potential that warrants a higher salary. You have to establish why
you
are important to your employer.

If you have learned that comparable employees at this firm are being paid higher salaries, casually mention this factor. Most businesses try to maintain equitable compensation levels among employees performing similar work. They may not realize that you have fallen behind your colleagues. This can be particularly useful for you if you initially accepted a salary in the lower end of the firm’s salary spectrum and are now hoping to eliminate this existing inequity. If you have learned that competitor firms are paying their employees higher salaries for similar jobs, this may also support your request. When you mention compensation levels at other companies, be careful not to state this information so affirmatively that your superior suggests you look for work elsewhere.

Always state your reasons for a requested salary increase positively. Never suggest that the firm is treating you unfairly or is behaving irresponsibly. Superiors rarely appreciate such criticism from their subordinates. State your case in terms of the reasons
you deserve
an increase. This is more likely to generate the desired response. Some supervisors attempt to dodge dealing with pay increase requests by refusing to provide definitive responses to raise requests. If this occurs, ask when you can expect to
receive an answer to your inquiry. If your supervisor does not give you a specific date, ask to schedule another meeting at which you can discuss his or her decision.

What should you do if you are only given part of your requested increase? Politely ask if there might be additional room for movement by the firm. If not, ask whether your superior would be willing to reassess the situation within a certain amount of time, such as six months. Don’t hesitate to ask what else you could do in terms of your job responsibilities and/or professional development that would increase your chances for advancement within the company. Tell your superior how much you enjoy the opportunity to work at this firm, and indicate your eagerness for personal growth. You might show initiative and team spirit by suggesting that your supervisor tie future compensation increases to the performance of your department or of the firm. Never threaten to move to another company if your requested increase is not approved—unless you are truly prepared to change employers. You never know when the firm will call your bluff and let you go.

Nothing makes an employee appear more valuable than offers from other organizations. If you decide to explore external job opportunities, be careful not to so offend your current employer that he or she decides to get rid of you, the disloyal employee. Approach other companies discreetly. Ask them not to contact your present firm unless absolutely necessary. If you are approached by your superior about rumors that you have been talking to other companies, never lie about the matter. Indicate that you are happy in your present circumstances, but are desirous of greater professional opportunities. This is the perfect time to ask whether you might be given greater responsibilities in your current position. If you make it clear that you would prefer to remain with your immediate employer
but hope to improve your situation, you may obtain the opportunities you desire.

Even when you decide to leave a current employer for another, never burn your past bridges. Explain what a difficult decision it is and how much you will miss your present employer. If appropriate to your position, write an exit memo emphasizing these points as well as the positive aspects of your work experience at this company. You never know when you might become dissatisfied with your new position and contemplate a return to your former employer. In addition, in future years, you may require references from your current firm. If you depart in a negative manner, you would be likely to receive less generous recommendations than you would if you left in a pleasant way. Consider also the possibility that your current superior or your co-workers may eventually leave this firm and relocate to other companies for which you would love to work. If you are remembered fondly and are able to stay in touch with key allies as you build your career, you may get a call that could lead to further advancement.

S
UMMARY
P
OINTS

• The paths to employment and advancement involve a series of critical negotiations.
  

• You must negotiate effectively to obtain a job interview.
  

• Every employment interview is a negotiation, and prepared candidates do better than unprepared applicants.
  

• Create a good first impression with interviewers.
  

• Avoid the discussion of specific salary demands before you are offered the position. After you receive a job offer, you are in a good position to negotiate salary because the firm wants to hire the person it has selected.
  

• When you seek pay increases, the onus is on you to convince your employer that you are worth more money.
  

• Be careful not to burn bridges when you leave any firm, and make the effort to stay in touch with key allies as you build your career.
  

C
HAPTER
10
S
ITUATION
2: B
UYING
C
ARS AND
H
OUSES

C
ar and house purchases are two of the most significant financial negotiations most people undertake. Yet, despite the enormous costs involved, many consumers enter into these bargaining encounters unprepared. Lack of preparation is the primary reason these encounters are often unpleasant. The average buyer approaches car- and house-buying transactions with two reasons for dreading the encounter:

1. He or she is lacking definitive price information.
   

2. He or she knows that car salespeople and real estate agents are not working to protect his or her interests. The second factor can rarely be helped. Car dealers generally want to sell cars for the highest prices possible, just as most real estate agents, who are usually working for the home sellers, hope to obtain generous terms for those individuals.
   

The first factor, however,
can
change.

Prospective car and house buyers would do better if they had a better understanding of the selling process and knew how to determine the true values of the items they were purchasing. They would also save substantial sums of money by avoiding excessive deals. Instead of viewing these interactions as unpleasant, they might even look forward to them. After all, isn’t it nice to obtain a new car or a new home—both of which should enhance our enjoyment of life?

B
UYING
N
EW
C
ARS