Negotiating What You're Worth- The Human Resource Management Way
Should you be the first to mention money? What is your main goal in negotiating a salary raise? How do you prepare for negotiation obstacles? A negotiation expert gives tips in this article from the Harvard Management Communication Letter.
Mark Gordon has helped businesspeople, governments, and educators understand the intricacies of successful negotiating. A founder of the negotiation consultancy Vantage Partners, he has negotiated in difficult situations around the world, including Nicaragua, the Middle East, and South Africa. Gordon spoke with HMCL about strategies for negotiating a starting salary or a raise.
Is it true that you should never be the first to mention money? What do you do if they ask you first for a figure?
There is no hard-and-fast rule as to when to bring up salary during a job interview. In most cases, the prospective employer initiates the conversation. You would ordinarily expect the employer to go first both with a specific set of terms and in raising the salary issue. For most regular, full-time employment positions, there are clearly established job descriptions and salary ranges, so it would make sense for the employer, who has access to all those data, to go first.
On the other hand, when a lawyer or accountant seeks an engagement, they would normally go first in indicating the fee basis for their engagement. Similarly, a senior executive or manager seeking employment in a temporary position or for some special purpose like a corporate turnaround might go first because they are not filling a regular employment slot for which there are well-established criteria and a clear job description.
What should your main goal be when negotiating salary or a salary increase?
Broadly speaking, your main goal is always to meet your interests as well as possible. Most of us have an interest in money, but our interests are very diverse. One employee may be concerned primarily with regular, guaranteed current income. Another may be concerned mostly about potential upside and be willing to take a much lower base compensation with an upside potential for bonuses, commissions, or profit sharing. Another may be mostly concerned about building value for retirement, and be willing to defer short-term compensation in return for building a big nest egg with equity for the future. Another may be concerned about deferring income as much as possible and minimizing current tax consequences, and would find options or warrants more attractive than current cash compensations. Another may trade off current compensation for other nonsalary benefits and perks that he or she finds more valuable.
Complete article at : HBR
Intresting articles on KM click here
Mark Gordon has helped businesspeople, governments, and educators understand the intricacies of successful negotiating. A founder of the negotiation consultancy Vantage Partners, he has negotiated in difficult situations around the world, including Nicaragua, the Middle East, and South Africa. Gordon spoke with HMCL about strategies for negotiating a starting salary or a raise.
Is it true that you should never be the first to mention money? What do you do if they ask you first for a figure?
There is no hard-and-fast rule as to when to bring up salary during a job interview. In most cases, the prospective employer initiates the conversation. You would ordinarily expect the employer to go first both with a specific set of terms and in raising the salary issue. For most regular, full-time employment positions, there are clearly established job descriptions and salary ranges, so it would make sense for the employer, who has access to all those data, to go first.
On the other hand, when a lawyer or accountant seeks an engagement, they would normally go first in indicating the fee basis for their engagement. Similarly, a senior executive or manager seeking employment in a temporary position or for some special purpose like a corporate turnaround might go first because they are not filling a regular employment slot for which there are well-established criteria and a clear job description.
What should your main goal be when negotiating salary or a salary increase?
Broadly speaking, your main goal is always to meet your interests as well as possible. Most of us have an interest in money, but our interests are very diverse. One employee may be concerned primarily with regular, guaranteed current income. Another may be concerned mostly about potential upside and be willing to take a much lower base compensation with an upside potential for bonuses, commissions, or profit sharing. Another may be mostly concerned about building value for retirement, and be willing to defer short-term compensation in return for building a big nest egg with equity for the future. Another may be concerned about deferring income as much as possible and minimizing current tax consequences, and would find options or warrants more attractive than current cash compensations. Another may trade off current compensation for other nonsalary benefits and perks that he or she finds more valuable.
Complete article at : HBR
Intresting articles on KM click here
posted by Siddharth Nagpal at 2:05 AM
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