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Eighth Commandment: Thou Shalt Not Worry about Earthly Economy

December 30, 2008 – 3:07 pm

A lot of people wonder whether they should negotiate at all when the economy is slow and companies are feeling the pinch. Particularly, the unemployed, having been out of work for too many months, they are relieved to have an offer — any offer. They fear that if they negotiate, they can upset the trust that has been built up over the interviewing process. They cringe at the thought of being told, “There’s a long line of people who’d love to have this job. If you don’t like my offer, we can always hire another.”

It feels like groveling is the order of the day. But fear not.  You’re not negotiating with the economy, you’re dealing with a hiring decision maker who needs you.

Of course, the amount of “needs you” has changed dramatically over recent years. For example in the heyday of the dot-com 90’s, completely inexperienced new college grads were negotiating hefty comp packages. Companies were so desperate to get “techies” on board that they would agree to practically anything. Negotiations sounded like this: “You want a masseuse to give you a rubdown twice a week? No problem. You want to bring your parrot to work? Sure, how does the bird like his steak cooked?”

Today, even people with years of experience and sterling track records are having a tough time getting any offer. Still, that doesn’t mean you shouldn’t negotiate. Just because the playing field has changed, doesn’t mean that you should just meekly accept whatever they offer. Negotiations are part of the hiring game.  If you meekly say “OK” to whatever they offer, it will hurt your paycheck (obviously), and may also make the employer value you less.

Think of what happens in another setting where negotiations are expected: the garage sale. Suppose you’re selling an item that isn’t hard to find, say a clock. It works. It’s not a bad-looking clock, but it’s a common item. That’s like the low-demand job market. You put a low price tag on it, you don’t negotiate, and maybe even offer to throw it in for free with another purchase. Your communication affects the potential buyer’s feelings about the clock, and the buyer may even refuse to take it if you offer it for free.

On the other hand, if you’re selling that great-looking expensive leather jacket that’s in mint condition but doesn’t fit you any more, you will be a tough negotiator. You’ll pad the price a bit to give you a little wiggle room because you know people like to bargain at garage sales. By tough negotiating, you communicate that the item has high value. If you set your price too low or come down in price too easily, the buyer may wonder if there’s something wrong with the jacket.

Likewise, by tough negotiating, you communicate your own worth. Good companies expect you to negotiate for your value. Far from hindering your job search efforts, the ability to negotiate helps you get the respect you need to get hired for good positions or to get better raises.

Now, in flush times, you’re more likely to get what you ask for than lean times.  it’s probably true that in a tight economy you won’t get everything you ask for.  But you can count on one thing being the same in both good times and in bad: if you don’t ask, you won’t receive.  It’s never improper to ask.  The employer may cry “poor,” and decline but that doesn’t mean don’t ask.

Sometimes asking now will pay off later.  I coached a particularly energetic entry level bank branch manager named Victor to ask for $5,000 more than the average salary for that position.  The president said he couldn’t go that high, but said that he pays for performance.  Three months later he was impressed with Victor’s results and added five grand to his salary.  Would that have happened if Victor had just said, “OK” to the first offer?

So you’re not negotiating with an economy, you are talking to a human being who’s trying to get ahead in his/her career.  If you can do the job, you deserve to be compensated.  Ask for what you deserve.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (0)

Seventh commandment: This Is the Job Thou Coveteth, Do not Put False Jobs before It.

December 23, 2008 – 6:58 pm

Don’t Play it Cool.

Most people have the erroneous assumption that in job interviews and negotiations they should “not appear too eager.” “I don’t want to look desperate,” they say.  In some types of negotiations, purchasing a car for instance, “playing it cool” pays off. Showing how much you really want those wheels costs you some negotiating leverage.

In job search however, people hire enthusiasm over cool.

Does it motivate an employer to offer you less if s/he knows that you’re eager to take the job?  It could, but mostly it doesn’t.  An employer knowing that you really want a job can even make them increase the offer in hopes of attracting and retaining such enthusiastic help.

Similarly, knowing an employer is sold on you gives you leverage. It’s important that your attitude is well matched to your natural personality and express it in a way consistent with that personality.

Some people are lovable.  Some people are funny.  Some are quiet as a mouse.  Any type can be “just the right” style for a given Hiring Decision Maker [HDM].  Hiring is a haphazard, prejudiced, imprecise art — certainly not science.  Hardly anyone is actually trained in how to do it.

This means that emotions will play a big part in getting hired and getting paid well.

This short, real life story illustrates the point:
Bret noticed three telltale signs his currency ran high with the HDM.  He spoke as if Bret was already a part of the company; he returned a couple times in the interview to talk about their common alma mater; he said that the combination of graphics and teaching was rare and a great fit.  Bret joined in the “Hallelujah Chorus” sharing how excited he was about the fit, too.  Then he used the “What’s the best you can do?” strategy to capitalize on that personal chemistry and pushed the HDM another $4,800 to the top of his range.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (0)

Sixth Salary Negotiation Commandment: Thou Shalt Covet Thine Own Bennies and Perks

December 15, 2008 – 11:21 pm

Geri doubled her salary by negotiating a perk.

The job, as advertised, paid $50,000 to be a full time librarian.  In 40 hours a week, the librarian hire was expected to keep this small legal library functioning from 7 a.m. to 7 p.m.  Her job was to see that the corporate patrons got the information and guidance they needed all 66 hours a week.  Two clerical employees helped out, 40 hours each, and they covered the 26 hours the main librarian was not there.

Geri claimed that she could upgrade the two clerical staff’s capabilities so that they could give much better service all 66 hours the library was open.  She claimed she could develop their skills to the point where the three of them could meet the firms requirements and Geri would only be needed 20 hours a week.  This effectively doubled her hourly rate by negotiating a perk: time off.

Many compensation packages can be substantially increased by negotiating benefits.

Here’s a starter list of possible benefits and perks. Medical, dental, life, disability insurance; wellness days; profit sharing; training; deferred compensation, tuition reimbursement, paid holidays, vacation, general education, specific training, certification reimbursement, paid sick leave, child day care, 401K contributions.  Gym, health club, fitness membership.  Transportation, travel per diem, laptop, cell phone, internet access, company car.  Casual dress, flex-time, corporate housing.  Stock options, stock grants, profit sharing.  First class travel.  Attendance at conventions, comp time off around conventions and other long-hour days.  Office (vs. cubicle) space, administrative assistance help, certain software to make your job easier.

Relocation benefits have about 10 components so if that’s in the cards, check it out thoroughly.

Remember that money decisions are best made in the cool climate of logic and impartiality. Give yourself time to think.  When you’ve finished your salary negotiations, put all your enthusiasm back in gear and say, “This sounds terrific!  I think we have a match here.  I’ll get back to you as soon as you need to know.  When do you need to know?”

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (0)

Employee Attitudes

December 8, 2008 – 5:29 pm

Just as IT salaries and bonuses are in a growth stage, uncertainty about the economy has begun to cast a pall over the employment market

Most IT professional and management positions saw, at a minimum, modest year-to-year increases in base salaries, a trend that began mid-decade as the industry pulled out of the post-dot-com slump. Bonuses in the last two to three years have been quite healthy as well. This may be a contributing factor in helping to boost satisfaction levels among both IT staff professionals and managers in this year’s survey.

However, the uncertainty that has shaken parts of the economy over the past year has also given rise to some anxiety over job security.

Along with salaries and bonuses, the latest Enterprise Systems survey of 691 enterprises covered general attitudes toward pay scales and jobs. While last year’s survey showed a greater willingness to move to new positions or companies that have greater opportunities, more IT managers and professionals are showing a tendency to stay put this year. The average length of time respondents have been employed in their current position is 7.9 years, up from 6.3 a year ago. The average stay with their current employer is close to 11 years, up from eight years in the 2007 survey.

There has also been less moving up the ladder as well. About 74 percent of respondents say they are in the same position as a year ago, up from 67 percent at the same time a year ago, and 65 percent the year before that. About 15 percent report that they have moved up or have been promoted in their organizations, down from 20 percent a year ago and 19 percent the year before. Another seven percent report they made a lateral move — down from nine percent last year and 11 percent in the 2006 survey.

Tanya | Human Resources | Comments (0)

Salary Negotiations, Fifth Commandment: Honor Thine Skills and Talents

December 3, 2008 – 7:39 pm

Your skills and talents are worth something. You can get an objective appraisal before going into the job interview. You can easily research the job’s salary range. Your goal is to find typical job salaries for people with similar experience and skills in your industry.

In other words, answer the question, “What range would the company have to pay to find someone like you?” Put another way, “If you don’t take the job what would the company have to offer to find someone as good as you?” Without having this kind of salary data you won’t be able to substantiate your case for the salary you want.

Your fair market value is not one tidy number but a range. It is a composite of three components: your Objectively Researched Value, your Individual Value, and your Future Value.

Once you know the job title and perhaps the job description, you’ll be able to home in on your Objectively Researched Value (ORV$) or simply put, the present going rate.

The internet in general, augmented by your library’s subscriptions to data, should give you enough data to get a fix on the competitive rate.

Specifically, five sites can give you a well-rounded opinion:
•PayScale.com – collects ongoing salary data directly from visitors.
•Salary.com – collects salary data from companes and customizes it to location, size of company, etc.
•JobStar.org – links you to 300+ salary survey sites.
•CareerJournal.com – has articles about salary trends.
•Indeed.com – gleans salaries from millions of online help-wanted ads and presents a summary for you.

You won’t get one simple numeric answer, but with an hour or so of effort, search, and printouts, you can get a range for the pay level comparison. Once that’s done, the two other factors, above, should be added in. For your Individual Value, assess your special training, assets, skills, competencies, etc. that are of value to your employer.

Finally, take into account any long-term rewards like profit sharing, performance bonuses, raises, stock options, etc. that are part of your package. This gives you an idea of your Future Value.

Blending these three numbers gives you negotiation power. Instead of “Here’s what I’d like,” you can say, “Here’s the range of what others are paid, and why I should be paid the top of the range.” Negotiating Your Salary: How To Make a $1000 a Minute has more internet research resources for you.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute. Used with permission. For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (1)

Salary Negotiations: Fourth Commandment: Thou Shalt Not Blabber

November 25, 2008 – 11:52 pm

Nothing beats confidence when you’re going after the job you want. You will need to project enthusiasm, answer questions and ask questions of your own. Your listening ability and your show of interest in the company are important factors in getting you the job. It is especially important to convey your skill experience and willingness to do the job. Your aim is to establish your value to the company to your potential employer.

However, after months of preparation, getting your resume fine-tuned, answering ads, utilizing internet information, following up leads and networking with numerous people to find the right job for a job, one word can throw away thousands of dollars.

Believe it or not, the word is “Okay.” It may be inexperience in dealing with salary negotiations, or just an anxious moment, that makes you say OK.  Either way, blurting OK when a compensation offer is made can leave thousands of dollars on the table.

Consider what you might do instead.  How about memorizing a one-word response that will work in every negotiating scenario?

Think of this as a riddle: What’s a four-letter word that has no vowels, is not in the dictionary, and makes money every time you use it with negotiating precision? Give up?

The word is “Hmmm” – a single word that buys 30 seconds of silence. A 30-second pause really amps up the pressure on employers to offer more.

Many of my clients have said this is the one technique that has made them the maximum amount of money with the minimum amount of effort. All you need to do is shut up – harder for some than others, eh? But it’s doable by anyone.

The move is called “The Flinch.” It works in salary negotiations, raise negotiations, flea markets, used car sales, sewer repair bill – just about anywhere financial transactions take place. When you hear the other person’s first offer, don’t say OK. Say Hmmm.

Take some time to really ponder it. Check your gut – are you delighted? Neutral? disappointed? worried? Give yourself some time and in the seconds of silence the other person’s offer will improve in some way.

Don’t blabber. Be quiet. Let silence do its work.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (0)

Creating Good Work Culture

November 12, 2008 – 5:53 pm

The work culture is the key to high performance.

More important, influencing the work culture is a manager’s best opportunity for creating high performance. “Culture” is a 24-hours-a-day training program that exists inside any organization. It’s teaching and influencing all the time. Sometimes it’s teaching what we like it to teach, and sometimes it’s not. It’s very difficult to “swim upstream” against the culture.

For example, you can teach value added and long-term relationships all you want, but if the work culture is really about short-term, adversarial relationships with clients, that’s what you’re going to get–that plus a lot of confusion.

The best of all possible worlds is a consistent, positive, reinforcing culture–and good sales managers are discovering that the best way to leverage their efforts is to manage the culture. After more than 10 years of research, we’ve come up with five factors that are critical to creating and maintaining a high-performance work culture. Listed in order of importance, they are:

1. A Shared Sense Of Mission Or Purpose. It’s the culture equivalent to purpose. It answers the questions “What’s expected around here, what do we do, and why do we do it?” If the only answer that you have is “making money,” be prepared for your people to ask for as much as they can get for doing as little as they can. On the other hand, if you’ve taken the time to establish a mission–and especially if you’ve taken the time to involve your people in the process–that larger sense of mission will help people focus on achieving their part of the mission.

2. Clear And Attainable Goals. People perform best when they have specific goals. Goals that are reachable yet that stretch them. Don’t tell people what to do, or how to do it, but give them the map, the destination, and sometimes the general direction in which to start.

3. Frequent Objective Feedback. People learn quickly and work well when they are told how they’re doing. Debrief and summarize every joint call you make. Don’t assume that people know how they’re doing or know what you think. Lead with positive information first, but always be honest, objective, and specific. Help your people learn from every selling experience.

4. Positive Rewards For Appropriate Or Approximate Performance. Selling is like playing tennis: Very few people get it right the first time. Sincere, positive reinforcement (”You did that really well.” “You really understand this.” “You’re doing a great job.”) helps people learn. Catch people doing something right, and tell them about it.

5. Timely Support And Help When Requested Or Needed. This is an issue of priorities for most sales managers. It’s deciding what your job is. Are you there to track numbers and quotas, or are you there to support your people? Clearly, both jobs have to be done, but the job of coach is the critical job in creating a high-performance team.

Tanya | Human Resources | Comments (0)

Sometimes Resumes Don’t Work…

November 11, 2008 – 6:31 pm

Job seekers spend more time fretting over their resumes than any other process during a job search. This is because most believe that the resume serves as a magic bullet. But no matter how great you sound on paper, the reality is that a resume can get you only so far in the job search, even if it is well written.

The job search is made up of several key components including your outlook, job search activities, and interview performance. Each component builds on the next and if you lack strength in one area, your search will be handicapped. Below are reasons, why your job search may be in jeopardy?, and the solutions you can incorporate to increase the chances so that your job search will be successful.

Don’t Have an Unenthusiastic Outlook

  • When you are quick to dismiss someone’s advice by making statements such as, “That doesn’t work. I tried it.”

Solution: Keep an open mind when someone is offering you guidance, even if you have heard the advice before. Sometimes it takes a few times for a message to penetrate.

  • After an interview you find yourself making comments such as, “The moment the interviewer saw me, I could tell he wanted someone younger.”

Solution: No jobseeker is the perfect candidate. Some are too old, others are too young; some don’t have much experience while others have too much.

  • You send out emails that read, “I sent a resume early last week and followed up, and you never returned my phone call. Are you ignoring me?”

Solution: When you feel overwhelmed, frustrated or just plain angry, take a walk and clear your head before you send an offensive email.

  • You aren’t taking personal responsibility for your own job search, instead blaming external factors for your lack of progress.

Solution: There are some aspects of your job you can’t control, but the ones that you can (e.g. the number of calls made per day, networking events attended), take seriously.

Take the Passive Approach

  • You haven’t developed a job search plan and are flying by the seat of your pants.

Solution: Don’t wing it. Take the time to map out a strategy and write it down. Don’t rely on your memory. There is something about writing down thoughts that makes you more accountable.

  • You’re going it alone without the guidance of an interview coach and/or career coach.

Solution: Partner with someone who will provide objective and constructive feedback. In doing so, you will be able to identify areas of strength and those that need improvement.

  • You adopt the if-they-are-interested-they-will-call-me approach and never follow up.

Solution: Take the initiative to call employers to inquire about the status of your application.

Your Interview Skills Could Use Some Work

  • You are always second best.

Solution: Call past interviewers and ask them why you didn’t receive an offer. When you make it that far in the process, interviewers are more likely to disclose the reason you weren’t selected.

  • You walk out of an interview saying, “Darn it! Why did I say that?” or “I wish I had mentioned my experience in ________.”

Solution: After each interview, jot down everything you said that didn’t work, and how you would rephrase it for the next interview. Then, when you get home or back to the office, write a thank-you note to the interviewer(s) that mentions the lacking information or carefully revisits what you wish you hadn’t said.

  • Every time you leave an interview you believe your performance was strong, but you never receive a job offer.

Solution: Work with a Certified Interview Coach or a professional who specializes in interview training who will be able to assist you in discovering and correcting the problem.

Tanya | Human Resources, Recruitment | Comments (0)

Third Commandment: Remember to Keep Holy the First Place

November 10, 2008 – 10:41 pm

Employers want know your most recent salary for one main reason: to screen you out. When faced with a lot of applicants they use the salary as a quick shorthand way of assessing the fit and narrowing down the list. They will want you to “go first” in the compensation discussions, and they’ll ask you to reveal your expectations or salary history. Going first is “sacred ground.” Don’t give it up or you can get screened.

Is it ever in your interest to get screened? If you’re qualified for the job, (or if you think the job can be altered to fit you),, no! Your first objectives are to discern whether this job is a fit for you and to establish what you can do for your employer.

Once they’re serious, let them make the first move. That way you lock in an offer and you’ve got the job — and you can negotiate from that place of security.  Let them offer you the job and raise the question of salary.

If you go first, you’ll be either too high, too low, or just within their range. But since you won’t know ahead of time which of those three numbers applies to you, you can lose the offer by coming in too high or too low.

You can also leave money on the table if you’re too low or within the range, so usually the best strategy is to let them go first. That way, you know you have an offer, and you have a solid base to negotiate from.  Two exceptions.

• Exception 1: Above I said that employers use salary as a screening tool. If you have already passed the screening and if you’ve gotten to the point where they definitely want you, not your competitors, you can “keep holy the first place” by naming a figure first. In other words, if you have the job locked up, then going first with a high number can act as a magnet and pull their offer up higher without risk of getting them upset and moving to the next candidate in line.

Looked at another way, the going-first place offers either safety or momentum. If it’s the safety/secure-ness of the offer if that’s most important, let them go first because if they go first you have an offer, it’s secure.

Letting them go first gives you security; you going first can give you momentum to a higher salary, if that’s your priority. Going first with your top number will act like a magnet, pulling up the employers offer.  It’s easier to negotiate down from a high number than to push up from a low number.

• Exception 2: Also, this rule does NOT apply to conversations with a headhunter. You score “Candidness Points” with third party recruiters for disclosing all accurately. Try to get their estimate of your market first, though, so you know where you stand; then fill them in on your salary history and expectations.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (0)

Second Commandment: Thou Shalt not Regret Disclosure.

October 31, 2008 – 5:03 pm

Oops, I already told the interviewer what I am making. Now what?

All is not lost! Just because they know your current salary or salary expectations doesn’t mean you can’t negotiate for a fair market value.

Once you’ve broken the sound barrier, so to speak, on your salary, you at least have one advantage: no more tug-o-war between you and your potential employer about revealing salary.

If salary bumped you out of interviewing, it will be hard to gain reentry at all, and even if you do, it might be at the price of an informal pre-interview agreement that if chosen, you’ll consider a pay cut.

If you’re still in the running, however, your “disclosed” circumstances make it doubly important to do your research well. In this case, you don’t need to address salary again until there’s an offer. At that point use researched facts, not your past salary, to substantiate your salary request.

When they’ve decided on YOU, that is, when they’re making you the offer, not your competitor(s), then it’s time to make the move away from the number you disclosed to your ideal compensation. Don’t let your past salary be the starting point for negotiations. Let your own satisfaction and joy of receiving great pay be the motivating force behind you at this point.

Remember that what you negotiate now is what you’ll live with for a long time. A minute or two here can engender months and months of satisfaction – or the opposite if you miss this opportunity. Let’s assume they’ve made an offer. What do you say?

Respond with: “I know I’ve discussed my [current] salary / salary expectations. I want to make sure from this point forward that we’re looking for a compensation package that is not just a ‘raise’ from my previous job, but rather a motivating, fair, value-based salary we will both be satisfied with. Can we agree on that principle?”

You’ll find 15 phrases to help you prevent spilling the beans in the Negotiating Your Salary: How To Make a $1000 a Minute.

Once you have your agreement on that, then follow the rest of the Ten Salary Negotiation Commandments.

(c)2008, Jack Chapman, “The Salary Coach,” and author of Negotiating Your Salary: How to Make $1000 a Minute.  Used with permission.  For more information about salary negotiations, visit www.SalaryNegotiations.com.

Jack | Uncategorized | Comments (1)