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3 Biggest Mistakes People Make When Negotiating Pay
3 BIGGEST MISTAKES PEOPLE MAKE WHEN NEGOTIATING PAY
Catherine
Conlan, Monster Contributing Writer | May 20, 2013
Many people find that
one of the most difficult parts of any job search is talking about money. When
the conversation turns to compensation, many job applicants get nervous or
uncomfortable and are reluctant to talk about the kind of salary and benefits
they expect for a position. These mistakes can cost you millions over the
course of your career. Here are the three most common ones -- and tips on how
to avoid them.
Mistake No. 1: Take
Everything Personally
While it's important to
understand the value of the skills you bring to a position, keep in mind that
your salary is just a number. "People get hung up on cliffs or plateaus or
magical numbers," says Mark Jaffe, president of Wyatt & Jaffe in
Minneapolis. "They tend to take negotiation personally because they're
reacting to it from an emotional place."
Instead, Jaffe
recommends that an applicant stop thinking of a specific salary as a status
symbol, and simply recognize that it's an amount of money that pays the bills.
If the salary is borderline on what you're willing to take, ask about adding
benefits, equity or a sign-on bonus to get closer to the number you had in
mind.
Mistake No. 2: Rely on
Oral Discussions Only
Asking a company to put
something in writing can feel like you're making big demands, or you may think
it makes you look like you don't trust them. In fact, it's an important part of
the negotiation process because it makes both parties get serious. "Getting
it in writing takes it out of the realm of buying potatoes off the back of
someone's wagon and crystalizes it into a formal offer to get you to join a
team," Jaffe says.
When the company makes a
compensation offer, ask for it in writing and say you'd like a day or so to
think about the offer and talk it over with other decision-makers in your life,
such as your spouse. Don't accept or reject an offer as a reaction -- give
yourself some time to consider it. The employer will understand.
Mistake No. 3: Jump at
the First Offer -- or Refuse to Negotiate at All
Many people get so
nervous about talking about compensation that they do one of two things: They
refuse to negotiate at all, or they accept the first offer the company makes
without countering. "You need to be a little bit of a poker player,"
Jaffe says. "Do your research in advance to make sure what they're
offering is in range. Understand that there are three or four components to
every offer -- base salary, bonus if there is one, short-term and long-term
equity -- and all of these things need to be factored into the total
package."
During the negotiations,
if you're asked, be honest about your current compensation. Don't round up or
make it sound like more than it is.
And while negotiating
your compensation is important, "make sure going back to the well is a
one-time thing," Jaffe says. "Come back and say, 'if you're able to
add this, I'll happily accept.' You want to communicate that this will not be a
protracted thing. They offer X, you come back and offer Y, they say 'we
couldn't do Y, but we can do Z.' At that point, it's yes or no."
Most employers expect
some back-and-forth in discussions about compensation. Job applicants who know
how to avoid big mistakes can feel more confident about getting the best
compensation package possible.
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