Salary Tutor by Jim Hopkinson

Salary Negotiation for new job

At the end of your salary negotiation, you want to be able to answer yes to these two questions:
- Was I prepared?
- Did I do everything I could?
Step 1 - Do Your Homework
- you need to know the salary range for the job with someone of your skills
- use personal networking and online research
Step 2 - Network
- 80% of jobs come from networking
Step 3 - Prepare your IRS Document (Industry Research of Salaries)
- Ranges: Current | Lowest You Would Accept < Target Range < Target | Best case
- see pg. 41 for format
Step 4 - Don’t Get Eliminated
- defer all salary discussion until you are wanted for the job
Step 5 - Navigating the First Interview
- never state a figure first
- never state your salary, if asked say:
  - “How much am I making now? [mirror] I’m sorry, but the employment contract I’m under with my current employer does not allow me to reveal my compensation. However, I’m sure that when the time comes to discuss salary, we won’t have a problem settling on a fair number.”
  - “So i’m not sure if there’s a direct correlation between what I was making there and what my value would be at this current position. I’d like to keep learning more about what the responsibilities here would be.”
Step 6 - The No Win Question
- If you get offer over phone, say thank you and you will get back to them
- If they offer you the job but ask salary, still let them state a number first: whoever gives their number first has the most to lose
Step 7 - “Right Back At Ya” Method
- First time the ask you for range:
  - “Well I did some research into the general range for a position like this, but it was clear to me that it could vary widely based on the company. What type of range did you have budgeted for the position.”
- They push back:
  - "Well, I’ve done some research, and I clearly think that the skills that I would bring to this job will make it worth your while, but you’re in the best position to determine what a company like yours values for a position like this. What kind of range is ABC Corp. comfortable with?"
- If they still push back, give them “Crazy range”
  - “Based on my research, the salary range for a position like this varies greatly depending on the company, the responsibilities, etc…paying anywhere from $50k up to $100k or more
Step 8 - 30 seconds to glory
- If they give you a range (90-100k), say this:
  - "$100k. Hmm….[pause]”
  - Think about what working at that company for that salary would be like. Hold the silence.
- If they start to move at all:
  - Nod your head, keep thinking, and keep silent
Step 9 - According to my research
- Assuming they give you a range and make an offer:
  - “I appreciate the generous offer, and I’m excited about the position. But I’ve don’t a lot of homework in preparation and according to my analysis…”
  - Pull out your IRS document for the appropriate range
  - “For this position, the typical salary range is between x and y with an average of $76,544. Based on my responsibilities we talked about (x, y, and z) and the fact that I have (x, y and z) experience, I feel that I should be at the higher end of this scale. Is that something you can consider?”
Step 10 - Take ‘em for all they’re worth
- make sure to negotiate all the other parts of the offer, which my be more flexible
Accepting the Job Offer
- It’s important that both parties feel like they won
- send an email summarizing all the points you discussed

Get a raise in your Current Job

You don’t necessarily need to leave your job to get a large pay increase
It is much more difficult and expensive for your employer to find and train a replacement than keep you happy
You have to earn a raise, by doing one of the following:
- make the company money
- save the company money
- do a job no one else can do
Not reasons you deserve a raise
- having a baby….
Step 1 - Lay the groundwork
- maintain a simple list that documents your accomplishments
  - for me, combination of my review notes, and affirmation page
Step 2 - Learn the system
Step 3 - Decide on timing
- find out when budgets are timed and plan accordingly
Step 4 - Get notice and increase communication
- involvement in anything that will raise your profile is a good idea
- when review near, go a little “cc” to take advantage of the recency effect
Step 5 - Set a date
- mention causally that you’re going over your goals for the next six months and you’d like to discuss your next steps at the company
- send an email invite a couple weeks out, note which times are least hectic for your boss
Step 6 - Know their style
- know their style and be able to present to them in a way that works: your accomplishments, your value to the company, your goals, what you’re asking for in return
Step 7 - Know your options
- “one salmon I used to work with goes on at least one interview every six months, even if he’s happy in his current job to make sure he know his current worth, find out what skills are most valuable in his field, and has potential ‘escape routes’ should something come up at his current job”
Step 8 - Having the right mind-set
- focus on the fact that you have added value to the company and the company should compensate you for what you’ve contributed
Step 9 - Make your case
- Off the cuff
  - focus on effort (quantity and quality) and results
  - don’t make excuses or complain
  - give data to support your case
  - show that you’re aligned with company goals
- Supporting documentation
  - bring a document, similar to resume, listing accomplishments with numbers
  - share a story of the intangible qualities you have to help your manager justify a raise
- Digital portfolio
  - give a visually-compelling way for your supervisor to see your accomplishments
  - know your audience and know what the best platform would be
Step 10 - Keep your cool
- be ready with a range you would be willing to accept
- practice “right back at ya”
- use silent response
- ask for time to think over their offer if needed
- don’t give ultimatum, but pressure for date when it can be settled
- send email thanking for discussion and set reminder for follow-up
- keep your cool when you get a response
  - if you don’t get what you want, listen and try to glean more information

Negotiation salary in a bad economy

know the situation
it’s all about the money - put yourself in the position where you are directly improving net income
set the stage for recovery - sit down and explain that even if they can’t give you a raise you deserve one; ask for a higher title and review in six months
What it says about you - shows that you are forward thinking and aware of what’s going on in the business

Another chapter on freelance negotiations that I didn’t take notes on