Today, I want to talk with you about salary negotiation, discussing money, the job offer . . . Stuff along those lines but particularly in the area of money.
Now, let me just start by saying that most of the advice that you read on the web about discussing money is going to be a problem for you because it basically always tells you never to talk about money. Never tell them how much you are earning. Never discuss how much you are looking for . . . stuff along those lines.
For the typical job hunter (and, again, I'm not talking about Donald Trump), I'm talking about most of you who are going to be watching this video, that advice is going to get you escorted out the door act most organizations. Why? Because they want to know. Why? Very simply, they want to know that whether your compensation is within their budget. It’s really that simple. So, avoiding that conversation ticks them off and is 1 of the surest ways to get you the interview abruptly ended that I can imagine.
So, how do you deal with money? I want to differentiate between the employer and the recruiter as I answer this question. With the 3rd party recruiter, I always want to tell them how much I'm making and how much I will be earning. Why? It's not because I was a recruiter. Very simply, they need to know whether a job that they're working on is a fit for you potentially.
If you're making radically less than what that job is, you are going to need to justify why you're the right value for it. Let me explain why. Most the time, (I'm just to give an exaggerated example), the $40,000 person looking at the $80,000 job.
“Why are you underpaid you? Explain to me exactly how come your underpaid vis a vis this role.”
“I can do this job.”
“Well, I work at a company no is ever heard the name of before and I want to work at a big company that will pay me a lot more.”
It doesn't work that way. Small companies don't have the kind of environments the big companies do and, as a result, big firms devalue the experience of smaller firms. So, you are going to have to come up with a better explanation. If you're an IT person, you are going to talk about how your experience really fits the role and that because you worked in a smaller firm, they didn't have the budget to pay to that level, but other firms will and you want to be compensated fairly.
You may not get to the top end of the range, but you get close to it. But, in talking with the recruiter, that's really where you are going to practice know how you are going to pitch yourself as being worth such a strong salary increase.
With the Corporation, if you working with a recruiter, they've already covered that. The Corporation may try and test that a little bit but stick to your guns and stick to your explanation for why you're worth that money.
If you are an executive it's a different scenario. You really don't talk about money. I'm not talking about someone at a manager or VP level period I'm talking C level executives because, frankly, no one is going to argue with you over money and, if they do, this is probably the wrong organization for you.
But for those who were at a lower level, money always comes into play. And as I said, if you avoid discussing it, if you refuse to answer the question, frankly, the interview is going to end.
So, again, on the corporate side, you do something a little bit different than you do with the agency recruiter. You may talk with them about what you're currently earning. You may tell them that what you looking for is the strongest offer and if they decide that you're the right person for them (and this certainly seems like a great opportunity for you) you are going to encourage them to make their strongest offer. That is one way of broaching it.
Now, in the example of the $40,000 person looking for the $80,000 job, you have to be very calm as you answer the question and understand that some firms are just are not going to do it. That may not be an answer that you want to hear, but it's factually correct.
Some firms are just not going to give you the $75,000 that you may want if you making $40,000 and you need to be prepared to walk away from an opportunity might otherwise like because the money isn't right. If you our not prepared to do it, don’t make money the sticking point.
But as you talk with a firm, just simply tell them this is what you really looking for, but understand you are willing to be h flexible period you are not going to be a fool and take 45 knowing full well that they were prepared to pay more. You want to be treated fairly by them and you are willing to reduce the comp a little bit and give them a bit of a discount if you judge the opportunity is right for you.
At the same time, you want to hit the market value because, up until this point, you haven’t been paid that way.