Let’s Talk Comp! A guide to effective salary negotiation for six-figure executives.

By Wayne Pagani, MCRS, MCIS, MCCS
Senior Consultant and Strategist, Graham Management Group

As you approach the end of an exciting job search and a rigorous recruitment process, you feel yourself closing in on your goal – a potential offer. It’s exciting. You know that you are a good fit for the company and you feel rapport with the decision maker. In your final meeting, the inevitable question arrives – “What are your salary expectations?” You stumble with your response, worried that you will either low-ball and forfeit your worth or over-bid and miss an opportunity.

Being prepared to discuss compensation starts long before the question is asked. A strategic approach to the compensation discussion will make you more confident when the question arrives. If you are six-figure professional, your negotiation calls for much more than a response with your starting salary. You need to consider many perquisites (incidental payments, benefits, privileges, or advantages over and above your regular salary) or “perks” for short. Used effectively, these can be powerful negotiating tools.

Know yourself and your value

Your preparation is critical to a well-executed career transition. First, you must know yourself – be clear about your values, passions, direction, goals, and target. Next, define your value proposition – your unique offerings that set you apart from any competition. Ensure that you have many specific examples of achievements in your career where you have produced measurable bottom-line dollar results. These key components will help you build a business case.

Conduct your due diligence

Use online tools such as Twitter or LinkedIn to follow professionals in recruiting and human resources. Gain a better understanding about what they think makes for a successful recruitment process, effective salary discussion, and a great candidate. Then, when the time comes and the employer brings up the question of salary, you’ll be ready to respond with confidence.

Conduct your due diligence and get to know the potential employers as well. By doing so, you will have an advantage when it comes to understanding their needs. Research the industry, the market, their products, competition, and customers. Take into account the corporate size and context related to compensation that is appropriate to an eventual agreement. Understand the impact that the current market and economic conditions have on your target.

Determine the parameters and perquisites

Once you have built your business case and conducted your evaluation of your employer’s needs, you are ready to prepare a checklist of all the conditions that you are seeking in your next offer. Far before your first interview, you should already know those things that are significant to you about the company and the role.

List everything from your hours, work environment, travel requirements, training and professional development, employee shareholders plans, and retirement contributions, to all the potential benefit and compensation options. As you proceed from networking and other job search activities through to the recruitment process, you will be able to better gauge what the company offers and start assessing the fit for both parties.

For a comprehensive list of perks that you might leverage in your negotiation strategy, go to:

http://sharongraham.ca/2009/11/negotiating-a-six-figure-salary-don%e2%80%99t-forget-the-perks/

Know your numbers

Before your first salary negotiation meeting, know your number and, more importantly, know your audience. Take advantage of the many Canadian compensation and salary reports at your disposal and establish your salary expectation with a reasonable range that can be adjusted to meet the criteria you uncovered in your research.

If your hand is forced early in your discussions, you might say: “Based on my research, here’s a range $X to $Y that I am comfortable in negotiating for this position with (Company Name). I’m interested in hearing more about the offer and conditions of employment.”

Listen to the offer

When you start your discussions in earnest, customize them to fit your needs and to suit the potential offer. Pay close attention to the offer. Let the interviewer do the talking. Do not be too ready to jump in during awkward gaps or moments of silence. Instead, take notes. Only when you have heard the entire offer and given the interviewer ample time to consider other ways that might sweeten the deal, provide your response. Often, this requires asking for a reasonable amount of time to consider the offer.

Never verbally agree or sign anything until you are 100% certain that you are ready to accept. Pay attention to cues and know when it’s time to reply, provide a number, or open the door to negotiation. Not every offer is negotiable and this is why doing your homework in advance is key.

Present your business case

Should an in-depth negotiation ensue, present your business case formally. This will demonstrate your level of professionalism and merits. Your business case should take into account all your research while demonstrating what you can do for this organization in the future. Here is an example of what a fully branded Business Case might look like:

http://www.grahammanagement.com/Resume_Packages_Business_Case.xpg

Remember, as with any negotiation, try to consider all pertinent factors in preparing your case. The economy and recent recession have created a buyers market where many employers have trimmed incentive packages. So make sure your expectations are realistic and well supported by your value proposition. Finally, the employer should always introduce the subject of salary. So, the next time this question arrives, you will not only be ready to reply, you will also be ready to close the deal.

Wayne Pagani is known for connecting people with people, resources, and opportunities. He is an award-winning, master certified resume, interview, and career strategist. As senior consultant for Graham Management Group, Wayne assists executives, managers, and six-figure professionals. You can contact Wayne and find further information and articles directly at www.GrahamManagement.com.

Copyright ©  S Graham Management Solutions Inc. All rights reserved. You may reprint this article with permission only if you provide full credit to the author  and company by including the paragraph above