Jason Monastra

My life and thoughts out on the web

Negotiation.  A concept where two people present two perspectives, normally coming to meet in the middle with a consensus that meets the needs of both parties.  Compensation negotiations are discussions that offer the most time for someone to impact their financial well being previous to accepting an offer.  The key in these discussions is not to keep this material to the end of the process.  I have reviewed numerous scenarios where companies have interviewed and offered positions to professionals, only to have them turned down or countered with compensation expectations that are outside the budget capabilities of the company.  If you are truly interested in the position, compensation expectations should be enumerated earlier than the day of the offer.

Understanding when, where and with whom that these discussions should take place is a key part of the process.  If you have a recruiter assisting in the process, that can be a strong voice in your corner to assist with getting your point across without upsetting the client.  If not, knowing the manager or the HR professional and their personalities can be beneficial for the compensation discussion.  Information during the discussion is key as most companies have internal grading structures that they use to earmark positions and the compensation.  Here are a few steps to think about during the conversation discussion:

1. Determine the need of the position.  How long has the company been looking?  Is this a critical role for the success of the org?  What happens if they do not fill the position?  Is the skill set you provide in high demand currently?
2. Position fit in the company.  Learn how this role fits into the company hierarchy?  What grade or level has this position been assigned and why?  Are there people reporting to this position?
3. Hiring Manager.  Personality is key here.  How is the rapport between you and him/her?  What is his/her personal value on the role?  Is he/she impacted directly with extra work if the role is not filled?
4. Budgets.  What can they pay and why?
5. Peer comparison.   What are people in other companies making?  What are people in similar roles within the company making?  What are people in your geographical area making?

All of these components you might not know but you will be able to gather a good amount of these facts during the interview process and you can do salary comparison information on the internet.  Lets take into consideration the above mentioned facts.  The position within the company.  If this is something the company has been looking for over the past 6 months, their need might be high realizing they have not been able to locate the right person.  You provide the skill set, leverage that to get the best possible offer.  One of the best is position fit in the company.  A great deal of companies have rankings or grade levels for roles that have assigned compensation metrics.  Rather than re-inventing the wheel to get a out of scope offer, discuss the position and how your skill set offers more than the position requires therefore providing the argument to grade the position higher (much easier process than getting an out of scope salary).  Know the person hiring for the role.  If the hiring manager is working extra hours and dragging behind due to the role being not filled, discuss it.  He/she is much more likely to consider negotiating to get some of the work off their plate.  Money is key, if the budget can’t afford it - no amount of negotiating will effect the final decision.  You might need to look at other non-cash compensation like extra vacation or personal days, maybe even flex time.  Peer comparison is a large factor when it comes to HR.   HR does not want to be the lowest paying folks in the neighborhood and if you can present raw data showing their competitors paying what you are looking for, you can develop a solid case for yourself.

This is an ongoing process and should be something you begin when you are aware that the position is real and the company has interest.  Gather the information you need as soon as you can get it.  Understand where the company is targeting and if the compensation is not aligned, address it with your recruiter or manager when the appropriate time presents itself.  Do not let it get down to the 9th minute and throw this on them, they will think you have been holding back on them and are trying to leverage your position.  That is never a good strategy.  Discuss compensation mid way through the process.  Build value in yourself and your ability to do the position, then compensation is easier to discuss.  Enter the conversation too early and it appears that all you care about is money and the interview ends.  Use HR and your recruiter when you can to gather information outside of the interview, learning about the position and the company so you can be prepared for the conversation when it surfaces.  All in all, be prepared and professional in your presentation letting the employer know you are looking for market value and a fair offer based on the skills and the position they are recruiting for.