Pay Negotiation Tips...

Do your best to not negotiate or discuss pay too early.  Until you have gone through the complete interview process, determined that you want to work at this company, and they have given you a written offer, do not negotiate or discuss pay.  In fact, do your best to avoid the topic, even if it is brought up by the company during the interview process, which it probably will be.  When asked what pay are you looking for, keep your answer simple.  I am flexible, I am open, would like to learn more about the position, etc.

Turn the question around by saying that you would consider all competitive offers, and then ask what the range is.  They may or may not tell you, but either way that will usually end the pay topic for now.  There is basically no upside in having in-depth pay discussions with anyone at this company until both sides want each other.

You may have the philosophy, because you read it somewhere, that you will never tell a prospective employer your current pay situation.  This approach will backfire, or make you not look very good.  Be up front and share your current pay, but only if asked.  You may say, well that is not their business.  Like it or not, and whether it is technically the company's business or not, you need to share this information.  Not sharing, and being untrusting to a future employer and hiring manager, will often end or hinder future discussions, or at least drop you down a few notches since most people will disclose this willingly.

Remember, you can ultimately, if you get the job, turn the offer down or negotiate it.  At least put yourself in the position to negotiate.  The key, which will be repeated, is to make them want you first.  So if you take the hardball approach about not writing in your application or not telling them your situation when asked, don't expect a positive outcome.  Think about it this way.  If you tell them your situation, the company will now have some idea if they will be able to compete for your services.  Let them end it, not you.  Think about it from the hiring manager's perspective. You have someone who is not open and trusting enough to share their current pay.  Is that kind of employee they want on their team?  Probably not.

Mostly, the people who are adamant about not sharing their current pay believe they are paid too low, or they have heard a story about a guy making such and such doing the same thing at XYZ company.  This may be true, but you must have some trust that employers in your industry have an idea as to what the current pay standards are.  If not, you will have plenty of time to educate them after they offer you the job.  You may say, well won't I be wasting my time if I do not know upfront what the pay is.  Do not worry about wasting your time if you do not know exactly what the current pay is prior to an interview. Often you will know, sometimes you will not.  That is the risk you take interviewing and trying to better your current situation.  There is no plug in formula for pay, and many factors discussed later cause it to vary.

You may notice that the advice we are offering has to do with you GETTING THE JOB FIRST, before making pay an issue. This is the best negotiation tip we can give you.  You are in a position to negotiate and make demands only when the company and hiring manager wants you.  Of all of the things to be concerned with during the interview process, pay should be towards the bottom.  Focus on skills that make the the company and hiring manager like you. Could you possibly see a situation where a hiring manager offers a job to someone that they do not like?  Make them want you badly, because if you do not accomplish this, pay is irrelevant.

Even if you know the pay range and think it is too low, nothing is set in stone.  You may really like the company, industry, market, etc.  We have witnessed numerous occasions where a pay range is known, and the company goes way beyond it.  Why? Because the really wanted this person.

When the offer arrives, review it thoroughly.  Make sure you truly understand all of the terms and conditions.  Do not react, but study and let your mind absorb it.  Ask yourself what your initial thoughts are.  Too high? Low? Seems fair? Wish this was in it?  You need to be clear about what you really want and are willing to ask for in addition.  Also, do not feel like the negotiation Gods are going to strike you down if you just decide just to accept it.  If you factor in the position, company, pay, etc., and it all seems like a nice deal and you feel good about everything, go for it.

If there is a component missing that you were hoping for, then ask for it, but do it professionally.  Stay calm.  There is absolutely nothing wrong with negotiating an offer.  You will not offend and most companies expect it.  You can do this informally, by letting the hiring manager, HR person or recruiter know specifically what you would like changed.  If they require a formal response, or if you would feel better doing this in writing, then go that route.  Ask the employer how they would like you to respond.

Keep this in mind, studies have shown that the a high percentage of offers would be negotiated on the employer's end, yet only 1/3 of candidates ever ask for more or better terms.  You will benefit yourself immensely long-term if you get better terms now.  Find a simple future value of money calculator and you will see just how important it is.  As mentioned, there is no plug-in formula for pay, so you need to look at other factors such as the following.

Business factors - What is the current state of the industry you are in?  What is the general state of the economy (avoid watching the evening news for good mental health).  Is the unemployment rate high in your area?  Is the supply and demand for your skills high or low?

Employer situation - Is the company doing well? Profitable? Losing money? Are they a start-up, mature, or in a turnaround situation?

Position / hiring authority factors - Is the position urgent? How long have they been looking for this person?  What is the competition and availability of other candidates for this position?

You factors - Do you have other offers? It is certainly okay to share this information during negotiations, since it will often lead to a better offer.  It is probably the best and easiest way to negotiate an offer.  NEVER lie about this.   What are your technical or non-technical expertise?  Is your skill set, knowledge, experience unique?  What is your financial situation?

Key tip number one: Make them want you, badly.  This is the best tool you have for negotiating.