25 salary negotiation mistakes that proved costly


There are many things job hunters do wrong that prove costly. Here are 25 mistakes people have made.

25 Salary Negotiation Mistakes Job Hunters Make That Prove Costly | JobSearchTV.com

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hi i'm jeff open the big game hunter and
today we're going to talk about 25
mistakes
job hunters make when negotiating salary
now i used to work on recruiting i did
it for more than
40 years
i felt like 100 or more
and
you know i helped a lot of people land
in roles like 1200 full-time positions
plus consulting assignments some of you
think that's a big number some of you
will go yeah
doesn't sound like a lot
it is a lot and a lot of people i spoke
with wound up in roles where they
regretted how they handled their own
negotiation and they come to me
afterwards looking for advice for what
they could have done differently
so over the course of time i've compiled
the list of mistakes job hunters have
made
some of them i've released as individual
videos this one is a compilation video
that i think will help a lot of you
so
the first mistake is
mentioning money in the cover letter
and i say that for the simple reason
that
so often
you're going to look at it from the
receiver side of this don't they don't
have a way of judging your capabilities
at that point all they're doing is
seeing a resume and a number and that
becomes easy for them to reject or say
i've gotten i have a bargain here
so don't mention
what you're looking for in your cover
letter it's pointless
and it only gives them a reason for
saying no to you
second one is over or undervaluing
yourself
you need to know the value for what you
do
and if you overvalue yourself you're
going to wind up in adversarial
situations with an employer and if you
undervalue yourself as so many people do
you're going to wind up
you know compromising on i shouldn't say
compromising but selling yourself short
you're worth more the market in your
geographic area
pays more than what you're asking for
you're giving away money that you're
going to resent having given away
so i'll give an example if you accept 5
000 less than your real value that
doesn't sound like a lot until i say
that's 25 000 over five years it
raises into that even minus two percent
raises
it's more than twenty five thousand and
if you're sacrificing for ten thousand
dollars
that's more than 50 000 over five years
and that gets compounded over your
career so don't
undervalue yourself don't over value
yourself
the next one is becoming intimidated by
the employer's prestige
their title
what they've accomplished things along
those lines so you walk into the
interview and you're kind of psyched out
and allow yourself to compromise much
too readily because this person is oh
they're the senior vice president
they're the managing director it's such
and such company
and thus
in being intimidated by that company
name or that person's title
you're willing to sacrifice yourself
in order to go to work there
you don't recognize this is number four
you don't recognize that the first time
that they're asking you about salary or
money
they've started to negotiate and they're
negotiating before you've had a chance
to evaluate them
or them get to know you
so
with this is number five you don't hedge
your answer to that question how much
are you looking for i'm looking for such
and such
and thus
you don't hedge by saying but i really
don't know anything about the job other
than the job description i haven't met
my future manager i haven't met the team
i don't have a sense of the work other
than what's in the job description
there's a lot i don't know so i may ask
for more i may ask for less
once i get to know more so don't take
this as a hard answer
take this as yeah possibly but i need to
know a little a lot more in order to
commit to that number
number six
being overly influenced by
precedence statistics
you know cultural things
taboos that an organization has and thus
when they say things to you like we
never offer more than a three percent
raise
you don't respond by saying maybe this
should be the first time
right
maybe this should be the first time
you know after all if you're a hundred
thousand dollar a year person the three
percent raise is three thousand dollars
and after taxes and now after inflation
that's not really a lot of money is it
you know even a five percent raise isn't
a lot of money so
you have to kind of flip that stuff back
at them so that they're not thinking
that they can get away with even more
later on
number seven acting desperate
yeah being
appearing desperate
gives away all your leverage because
they know
they can push you around and make you
take what what they want to offer i
remember there was someone i was
coaching
and
you know when he would interview it
seemed like it went well
but kind of appearing desperate caused
him to get turned down many times for
the money he was really asking for
because
they wouldn't give it to him they would
offer less than that because they knew
he's out of work for a long time and
thus his desperation oozed through his
pores
along with that is appearing nervous or
anxious
you know
well um
yeah and you know
they get the feeling
that
you're going to cave in
because you're anxious about this you're
nervous about the negotiation
that signals to them that they can get
you
number nine
you know on the other extreme is
approaching negotiations like a cage
match rather than a collaboration
even if you get the money you want you
may damage your relationships with
people once you come on board because
this wasn't the collaboration this was a
or else scenario and you wore that on
your sleeve
ten
not considering the total compensation
you know there were firms i represented
when i did search and they maxed out at
salaries of 200
but their bonuses were 300
and their benefits were completely paid
for
and lunch was delivered to your desk
yes you worked through lunch but they
were delivering it to you and you'd
receive a menu every day as to what the
lunch offerings were
so
there was a lot more than base salary
that went into it and with these firms
that i'm talking about these firms
always did this stuff there was never a
break in what they did
number 11
practicing what you do going to say in
your head and not out loud
and thus the corollary with this is not
practicing at all
or just well not practicing at all
and thus
by not saying things kind of like on
interviews when i tell people you've got
to practice it and the words have to
come out of your mouth
you know
what winds up happening is you make
mistakes
when it really counts because you
haven't made the mistakes when it
doesn't count next is winging it
you know winging it is doing things ad
hoc
which again is you've never thought it
through
and you just go into this and just say
you know whatever comes into my into
your mind
yeah huge mistake
next one is and
this one is
the beginning is
attributed to a woman i interviewed
named kate dixon
who has a book out called pay up
that deals with salary negotiation when
i interviewed her for for job search tv
and no bs job search advice radio
she referred to this as listening to
your uncle hank
and i'll add in or your aunt henrietta
because
these are people who may have been out
of the game for a long period of time
and are out of touch
go to experts go to people who negotiate
regularly or have negotiated regularly
even if you talk to a hiring manager
a friend of yours they're in the
position where they've handled their
negotiations
but they haven't seen a broader spectrum
so they can give you a few ideas but
many of their ideas may not work because
they just they don't do it very often
you know
if they've hired 50 people they've hired
15 negotiate done 50 negotiations for
themselves
from the buy side where they had the
power
not from the sell side when they didn't
they may have had three jobs or five
jobs
where the pressure feels different
number 13 is settling and not
negotiating
whatever they say you feel compelled to
go okay
i'm sorry that's number 14. okay
and agree to whatever has been said
because um
you're afraid to negotiate
next one is getting hung up on the
little things like
there was a someone i was
coaching
and he had an offer for a 60 increase in
salary and it was not a 40 000
job just to be clear about that a 60
increase in salary a huge bonus fully
paid for relocation
he could work where he was
while his wife was about to deliver
their their second child
and his wife kept nudging him to bring
up this relatively small item
because she wanted everything
and
his response was to say hey look they're
giving me a hundred thousand dollar
raise at this point
and
you're getting hung up on a few hundred
dollars if they don't give it to me i'm
still taking it because why would i turn
down a hundred thousand dollars for a
few hundred dollars
number 16 being unclear or having fuzzy
thinking
you don't understand what's really
important to you
and as a result
you go into this not knowing where
you're
absolute must-haves are
and
give away things that are unimportant
i remember a time i was being audited by
the internal revenue service when i
started a business
100 years ago
and
you know there was an auditor there
who had been to my home to do the audit
on five occasions and was being
transferred
to another location
and needed to close the case
and my accountant came to me and said is
there anything you can give this person
so that
you know they feel good that they
um
that they're clearing the case
and i offered up something that was
worth 200 to the government
uh they took it and the case was closed
so i'll simply say
you know
not understanding what's important to
you
is a mistake
17 you only spend a few
minutes on the offer materials
and don't really go through them current
conclusively
so the offer material may just be the
offer letter where's the benefits
invitation
information
without the benefits information you
don't know how much you're really
getting in the way of a salary increase
do you
after all there are situations where the
benefits package may be fine but the
cost of the benefits package is a
problem
so suddenly you're going from 100 paid
for benefits or 90 percent paid for
benefits to 50.
you know that doesn't sound like a much
but benefits can cost 25 or 30 000 a
year these days and
you know having fully paid for benefits
has value to you so
make sure you understand
you know everything that's being offered
to you what the title is what the
vacation policy is what the
reimbursement policy is going to be on
tuition and on expenses what the
benefits are and what the cost of
benefits are these are some very basic
things
and if they try and sneak in a
non-compete
on you
hire an attorney if necessary on any of
this because sometimes there are clauses
that just don't make sense to you and
the person who's going to explain them
to you has a vested interest in
convincing you that there's no problem
we've never done anything like this
and having represented someone who had
signed a non-compete before i met them
he wound up being out of work for a year
when he tried to take a position with
another organization
people who tell you that non-competes
are not enforceable
don't know the law in all 50 states
make sure if necessary you hire an
attorney
number 18 you give away your power so
you can be seen as being nice
now
the common thought about this is women
and people of color often do this
and i must tell you men these days do
this as well but they don't call it
being nice they
they
refer to it as going along
because their future boss asks them to
go i'll take care of you
and thus they sell themselves short and
leave money on the table
19
taking things personally
you know in the godfather movie the
classic statement is it's not personal
it's business
and
the more emotional distance you can get
from the negotiate in the negotiation
the better you're going to do
and that includes the pressure from your
husband wife or partner
because they've got anxiety too and they
dish it out on you and that's going to
affect your negotiating
20 accepting the offer on the spot
i'd like a day or so to think about it
what are you going to think about we
gave you what you asked for
you know
one thing i've learned over the course
of time is that if i say yes too quickly
i sometimes make mistakes so i'm just
asking for a day or two i hear you yes
you gave me what i asked for but
just give me a day or two i'll be back
in touch with you tomorrow the day after
the very latest with a decision
and thus
you lose that leverage of
the pressure of
them having to wait
so that when you circle back to them in
one to two days and say you know i was
thinking about it and yeah i shot a
little bit too low
could you do a touch better
and not
you know
not putting that pressure on them
21
well this is actually pretty early in
the process you're out of work because
you quit without having someone else
so you lose your leverage
and thus unless you have a large bank
account
you wind up showing is desperate
number 22
being too grateful oh thank you i really
appreciate this
this is wonderful don't be so freaking
grateful now it it shows you as weak
and
on their side they'll start to feel as
though maybe they did too well for you
and can push you around once you're on
board
23
you focus in your negotiation on need
or greed
rather than your value
i need this versus i'm worthless
becomes
is the mistake and your focus
no one cares what you need they care
about what your value is to them
number 24 you don't negotiate at all
you know you basically say thank you i
accept
now there are rare instances where
that's okay
but they're rare instances
instead always try and do a touch better
and
you know often the simplest way to do
that is
when they extend the offer
be silent
for a minute
and then say
huh
and let the silence do the work for you
because in doing that it puts pressure
on them and causes them to worry
number 25 and this is the last one
negotiating against yourself by asking
for a particular salary and following it
up by saying something like
but i'm willing to negotiate or i can be
flexible
because then you're signaling to them
that they can get you for less money
you're negotiating before they've had a
chance to draw value out of you don't
make that mistake so that's the top 25 i
see i hope you found this helpful don't
make these mistakes before you go into a
negotiation contact me in schedule time
for a coaching session
you know it's very simple go to my
website the big game hunter dot u s
and in the subject law home and there
you there's a drop down where you can
schedule time for a coaching session
if you choose the discovery call section
and try and get me to reveal how to
negotiate i'm going to bounce it out
i'll simply say schedule time for a
coaching session with me i'll help you
with the negotiation also connect with
me on linkedin at linkedin.com forward
slash i n forward slash the big game
hunter imagine that you saw this i like
knowing i'm helping some folks and once
we're connected
you know
you know
there's a lot that you'll get from me in
the way of information
hope you have a terrific day and most
importantly be great
take care

ABOUT JEFF ALTMAN, THE BIG GAME HUNTER

Jeff Altman, The Big Game HunterJeff Altman, The Big Game Hunter is a coach who worked as a recruiter for what seems like one hundred years. His work involves career coaching, as well as executive job search coaching, job coaching and interview coaching. He is the host of “No BS Job Search Advice Radio,” the #1 podcast in iTunes for job search with more than 1800 episodes and “The No BS Coaching Advice Podcast” and is a member of The Forbes Coaches Council. “No BS JobSearch Advice Radio” was named a Top 10 podcast for job search. JobSearchTV.com is also a Top 10 YouTube channel for job search.

Are you interested in 1:1 coaching, interview coaching, advice about networking more effectively, how to negotiate your offer or leadership coaching? Schedule a free Discovery call.

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