The Art of Salary Negotiation

If you're looking for inspiration to get you through the last act of the job hunt - salary negotiations - the most obvious solution lies on the shelves of your neighborhood video store. You can rent Proof of Life and see Russell Crowe work his magic as a hostage negotiator or check out The Negotiator and watch Kevin Spacey do the same. Problem is, in Hollywood's version, the bad guy dies. In real life, you go to work for him.

A better source of inspiration might be found in orchestra seats at the ballet. Like dance, fine negotiation combines strength with flexibility and determination with finesse. For both, the performance is only as good as the artist's preparation, timing and style. To end up with an ovation -- at least from yourself, for getting compensation you're pleased with -- try heeding this advice from executive recruiters.

The Rehearsal

There should rarely be any question as to whether or not you should negotiate. These days, most companies expect candidates to try to amend their initial offers. Still, you don't want to breach the subject of money until the job has actually been offered to you. A candidate who brings salary to the table too soon will be rewarded on par with a waiter who asks for his tip during the first course.

If an interviewer inquires about your salary expectations, be honest but avoid being too specific. Chances are the interview process will leave you feeling a little vulnerable, and you don't want to risk blurting out a number that's below your true expectation. (Nor do you want to ask too much before the firm makes up its minds up about you.) Instead, keep the conversation focused on how much of an asset you'll be to the company; let the interviewer consider the liability part later. Besides, most would-be employers are seeking the best person for the job, not the best value.

Talking about how much you expect is one thing. Thinking about it is another. You'll want to start planning for the negotiation the same time you begin preparing for the interview. Outline both your ideal offer as well as your minimum offer early on. Although salary will likely be a deciding factor, there are a dozen additional points to consider including bonuses, profit sharing, stock options, 401(k) matching, flex time and a laundry list of executive perks. You might, for example, even identify factors that do not have direct or explicit costs for your employer, such as titles, but have high value for you. Behind every one of your requests, be it a signing bonus or company car, you should have a fact-based reason for why it should be granted to you.

Once you have identified all of these requests, you might consider conducting a mock negotiation with your spouse or a friend. As silly as this seems, it can alleviate stage fright and help you better understand exactly what it is you're after.

While you are working on polishing your act, it's also wise to find out as much as you can about the company's compensation policies. Some firms have extremely structured salary tiers, in which case you will want to be much more delicate in your negotiations. Other firms regard salary negotiation as the final test of a candidate's worth. Remember that success in negotiation is not about simply getting what you want. It's also about convincing the person on the other side of the table that he has gotten what he wants. Your best bet is to follow the lead of Baryshnikov rather than Crowe.

The Performance

Fast forward. You've just been told you're the one for the job. While some employers present a written offer immediately, others prefer to start with a verbal tender before taking the time to draft a document. Salary may be the main point of conversation, but this is when you will want to discuss the package as a whole. If you cannot come to an agreement on a particular item, skip it and move on to areas where you do agree.

Your style of negotiation will depend on who is sitting across the desk from you. If you're working with a recruiter, there is less risk of your jeopardizing the job by asking for too much. He will act as a buffer between you and the company and even help you tweak your request before bringing it to the employer. Naturally, more diplomacy is required when you are dealing directly with the person who could be your immediate superior. You still need to try to get what you believe you deserve, but you do not want to act as if you have been handed carte blanche.

Once both parties have come to an agreement, the details of the offer should be put in writing. Unless there is a severe discrepancy between your verbal terms and those on paper, you should try to make very little if any amendments to the offer before signing on. While it is very rare that an employer withdraws his offer because of an overzealous negotiator, it has happened.

POINTS OF NEGOTIATION (In alphabetical order)

• 401K- eligibility requirements
• Bonus structure
• Business travel
• Car/Allowance
• Cell phone, PDA, laptop, etc
• Child care
• Club memberships
• Competitive work clauses
• Dental
• Disability
• Educational reimbursement
• Equity
• Flexibility and influence in hiring decisions
• Funding for research, start-ups or other discretionary projects
• Hours or work schedule
• Insurance coverage
• Job functions
• Life Insurance
• Location of work
• Medical
• Office or contents of office
• Optical
• Parking
• Pensions (if applicable)
• Profit sharing
• Relocation assistance
• Retirement provisions
• Salary
• Support structure (e.g. administrative support)
• Termination clauses and terms
• Title
• Training programs or mentoring
• Vacation time