Negotiating Your Salary
By Sandie Taylor

Have you landed your dream job? If not, have you been offered a job you’d be happy to take if the price was right? Don’t let the fear of negotiating your salary force you into settling too soon.

Negotiation is an acceptable and expected step in the job search. “Skilled negotiators elicit from the other party what they want and need,” says Janet Dukerich, negotiations expert and chair of the Department of Management. “Then they structure a deal so that both parties maximize their outcomes.” Read on for issues and tips to consider before negotiating with a prospective boss.

Preparing the Way

To get ready for a negotiation, find out all the terms of the offer prior to your meeting. “Negotiation is information gathering, not persuasion,” Dukerich explains. Ask who to talk to if you have additional questions about the offer to ensure you’ll be negotiating with the decision-maker.

Stacey Rudnick, director of MBA Career Services, advises separating the “issues” discussion from the information-gathering process. “Call human resources to get your basic benefits questions answered before you start discussing the offer,” she says. “Learn as much as possible about the compensation policies of your company, such as how often your performance will be reviewed and how raises are tied to that.”

Set Priorities

Research the “going rate” salary for your industry, position and level of experience before entering the negotiation. Having this information demonstrates to the decision-maker that you are knowledgeable about the market value for top-20 MBA salaries and sign-on bonuses.

Also, consider economic changes, location, and your skills and experience relative to the job and other candidates. “Your discussion is not just about base salary,” Rudnick says. “There are many financial and non-financial terms of employment you may want to negotiate.”

She recommends prioritizing your wish list and being open to compromise. It may be best to negotiate a larger signing bonus or extra vacation days first because the employer may have more wiggle room on these items than on base salary.

Presentation is Key

Before your meeting, plan what you will say and practice making your points. “To be successful at negotiations, you have to practice,” says Dukerich. “Car salesmen do it all day long.” Reiterate how much you like and want the job, and then present an open-ended question such as, “Is there any flexibility with…?” This will give you an opening to describe your concerns and ask the employer to help find a solution or compromise.

Make sure to avoid commitment words (e.g., always, must have, deal breaker, never, won’t consider) and speak with a pleasant tone of voice. Listen to the employer’s concerns and don’t be adversarial. Stick to the items that matter most and try not to bring up personal issues. Instead, link your compensation requirements to job responsibilities and your potential or actual performance.

Keep It In Your Court

If the company asks you what your salary requirements are, tell them it’s negotiable and wait for them to offer a salary figure first. If you lead with a number or range, you lose leverage. If you are forced to make the first offer, pitch your ideal opening offer first. Some firms may ask about your bottom line number and expectations before they offer you the job—know your minimum.

Give them a fact-based range starting with the most important components. Also, restate your objectives and use your outside offers. For example, “The average McCombs consulting salary last year was $94,000, with a high of $115,000. Given my seven years of prior experience, I was thinking the offer would be above $95,000. I also have another offer at $100,000 and was hoping we could close the gap.”

Close Professionally

If the company responds to your expectations with a figure lower than your bottom line, leave a window of opportunity for them to come back with something better. You could say, “I just can’t accept an offer at that level.” If the company indicates this is their final offer, close professionally by letting them know it’s not what you preferred, but you understand. When you are not sure whether to accept the offer, you can also negotiate more time.

Whether or not you like the offer, don’t respond too quickly; take time to carefully consider it. Be enthusiastic and gracious, and keep your reply short.

Bottom Line: Negotiate only when you are fairly certain you will accept the job once the compensation package meets your expectations. Negotiating aggressively and then declining is “burning a bridge behind you,” says Rudnick. Do you want to be remembered as this type of person?