Salary Negotiation Smarts for New Grads
Discussing the compensation aspect is undeniably one of the most embarrassing
and awkward phases of the job search process. For the greenhorn in particular,
it can also be a lopsided faceoff due to his or her lack of bargaining
experience and expertise.
Fresh college graduates may think that with little or no work experience to
speak of, they are at the mercy of hiring employers when it comes to salary
negotiation.
Banish the thought. You can definitely increase the odds of getting a fair pay
package if you understand how the process works, know bargaining dos and don'ts
and have a good idea of industry going rates.
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Pre-bargaining stage
And the first lesson work world newbies have to learn is that the salary
negotiation process doesn't start only after you pass the interview. It starts
even before that with a self-assessment of your financial needs and situation
so that you can arrive at what you consider a workable initial salary scale.
Calculate the amount you'll need to support your lifestyle, factoring in your
monthly expenses including transportation costs, work clothes, food expenses,
etc. The secret is to come up with three figures: the minimum, midlevel and
maximum acceptable salary. When asked your compensation range, articulate the
last two figures, never the minimum salary, which should only serve as your
guide for the absolute bottom line offer you're willing to entertain.
This stage also requires comparative research on prevailing salary trends so
you don't underprice or overprice yourself out of the market. How to conduct a
salary survey? Inquire from friends, network contacts, professional
associations or other job seekers. You may also give your school career center
a try, as well as trade publications and job websites (JobStreet.com has a
salary survey box featuring average wages for various positions in different
industries).
Conduct a discreet study of the hiring company as well. Ask from inside
contacts if you have them, visit its website or gather company brochures or
profiles. This should help you in coming up with your desired salary spectrum.
By the end of this stage, you should have answers to these questions:
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What is the salary range for the job according to industry standards?
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What is the salary range the company is likely to offer for this position?
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What makes me worth a higher salary?
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The interview
During the interview, you can raise your worth in the recruiter's eyes by
stressing your strengths, talents, knowledge, accomplishments and skills. In
lieu of work experience, you can discuss your school projects and undertakings,
using such control words as “took charge,” “initiated,” developed” or
“implemented” to indicate successful completion of a program or activity.
A word of caution: Resist attempts at this stage to discuss salary. Simply
state that you are open to negotiation and willing to consider a competitive
offer. If the employer insists on more specific information, provide a salary
range rather than a definite number. The rationale here is that the less you
divulge about what offer will make you bite, the more you're likely to receive
a best offer.
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The negotiation stage
Now comes the tricky part. Admittedly, salary ranges for most entry-level
positions are set and leave you little room for negotiation. But understand
that most employers would probably quote the lower end of the salary scale, so
your goal is to shoot for a high-end offer.
To reiterate, try not to be the first to mention money so as not to shortchange
yourself by inadvertently revealing a low salary expectation.
Below is an example of a salary offer and your possible responses to it. To
avoid sounding arrogant or demanding, experts suggest framing your response in
question form.
“The salary is P12,000 per month,” the employer says. You might reply:
--“I am happy about the job offer and I am very interested in the position. But
considering today's high cost of living, I'd like to be making around P17,000.
Would that be possible?”
Or,
--“I'm delighted in your interest in me and I really believe I could
contribute, but I have other options in the P17,000 range (say this only if
true). Is there a way we could work this out?”
There are other negotiation gambits employers may take. But the important thing
to remember in giving your answer is to quote the higher part of your salary
scale based on your research--after you've made a convincing pitch that you're
worth that much.
Here, variations of the salary question that may come your way:
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How much do you hope to receive?
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What kind of salary do you think you're worth?
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Do you believe people in your occupation should be paid more?
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We can't pay you what you think you should get. How do you feel about this?
And what do you do if the employer raises objections to your salary request,
citing among others:
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your lack of experience
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the lower salaries of other employees
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the budget ceiling
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the fixed range for new hires
You can best answer these by coming up with a follow-up question on what the
range is and what it would take to get to the higher level.
Another tactic is to have an alternative plan, like asking for a salary
increase at a later date if you don't get what you asked for.
Careerists say this is where your preliminary research into the company will
come in handy. If you've done your homework, you should have prior knowledge of
their benefit and compensation package and can pick up clues if you're pushing
your luck. Remember that you're negotiating for the upper end of their salary
bracket, not squeezing the company dry, a strategy that's sure to boomerang.
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The job offer
Once you receive a job offer, never accept or reject it on the spot. Take this
opportunity to ask about their other fringe benefits above the 13th month,
vacation leave, SSS contribution and other government-mandated perks. Then ask
for at least 24 hours to think it over.
When making a decision, consider all factors including:
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opportunities for growth, promotion, training and skills enhancement
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company stability and management style
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advice from your mentors, family and friends
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the total pay and benefit package
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Acceptance
The primary rule in accepting an offer is to get everything down in writing,
particularly if you've succeeded in getting special considerations such as a
signing bonus or other perks, so that you have something concrete to hold on
to.
Salary negotiation is considered by most applicants as the most embarrassing
and awkward part of the job search process. For the new entrant to the
workforce in particular, it can also be a lopsided faceoff due to his or her
lack of negotiating experience and expertise.
Thus, it is vital that you acquire the bargaining skills set because the payoff
is tremendous and long lasting. Pulling off a favorable deal can produce a
domino effect considering that any future pay hike would be dependent on your
current salary. That should make you shed your inhibitions about haggling for a
better pay, so long as you remember that it should be done with restraint,
taste and finesse.
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