Now that the economy is on the rebound employees are on the move once again! People are changing jobs to get themselves on a better career trajectory, a more aligned job, a more compatible company culture and even a better salary. Although those looking for a change do not initiate it with the primary objective of making more money to start with, it does not take them long before they think that they might as well ask for it; those who plunge into making a transition realize that changing jobs is not that hard to begin with! This is true even in a supply-driven market, where there are more candidates than open positions, if you know how to do this right.
Many professionals find it difficult to negotiate a better salary. Somewhere in the selection process they invariably give out their last salary and then they feel awkward asking for a jump, because they believe that asking it may compromise their transition. Then there are others who believe that you get what you deserve. Nothing could be further from the truth: In business you get what you negotiate!
This article is presented for those who are contemplating a move and who do not have a clear strategy for making most out of this transition, including getting more money at the new job.
The following steps are suggested to increase your chances of getting more money when you make a transition, including using this transition as a springboard for getting something more from your current employer, should you decide to stay.
- Before you plan to make a job or a career change, be clear about why you are making the change. It helps to write down what you are unhappy about at the current job and what you would want the new job to offer so that the transition is worth making. Do not make a change unless you have this clarity and that you feel that the emotional investment you are about to make in this change is worth the effort. Job and career change are one of the most stressful times in one’s life.
- If higher salary is one of the prime motivators for the change, do not wait till the offer is tendered to bring up the salary that you’d want in your new job. Often, it is too late and making an end-run around your compensation without proper positioning from the get-go can lead to disappointments at best, and set backs at worst.
- Good positioning starts with a compelling resume. Make a resume that is forward looking and a one that clearly articulates your value proposition in an unambiguous way to the target employer. Starting your resume with a Summary statement at the top defeats this objective. A Summary statement conveys to the reader that you do not know what you want and that you do not have a clearly articulated value proposition for the target company.
- It is to your advantage to be “employed” when you are looking for a job. Those who are out of work are often seen as less desirable employees, especially by many recruiters. Many recruiters pride in their ability to “poach” from their clients’ competition. Being out of work and looking also impacts your desirability and self-esteem. This redounds in compromising your candidacy and impacts your bargaining power. One way to protect your employment status even after a layoff is to request your employer to “carry” you, without pay, so that you are seen as an employee by anyone calling you from the outside. Also, your resume chronology will have your first entry as “Current,” which also helps your marketability. This can be done by keeping your voice mail, email box, and by negotiating with the HR that anyone calling for a reference is told that you are still employed at the company. Getting this consideration for at least three months beyond your termination date can allow you some latitude, otherwise not possible. This is free for the asking if you do this in a timely and proper way.
- If you are working full time it is difficult to launch a full-fledged campaign. Many job seekers send out resumes in fits and starts or one at a time. This is a big mistake. This approach invariably results in sporadic offers, precluding you from making a selection from a portfolio of offers. Such an approach also results in your taking a less-than-desirable job. The best approach is to launch a full-scale campaign in a short time and to get multiple offers in a relatively narrow time window. If this means having to be away from work, it is worth taking a few weeks off to accommodate this need. Once the campaign is launched the follow-up and other activities can be done as a part of your daily routine.
- During the initial stages of the job search avoid giving raw salary numbers to anyone. When a company recruiter calls and asks about your salary, do not lie, but give a range that covers your position at your current company. For example, if you are team lead and your annual salary is $125K, mention that your salary is in the $115K-$155K range. If they really press hard then you must disclose your actual salary (without lying!), but in majority of the cases this is unnecessary. If asked what salary you would be looking at, respond by stating that the job responsibilities and your fit for that job would drive that consideration and that it is now premature.
- As you make the interview rounds with your team, including your hiring manager, do not discuss salary with anyone. If your hiring manager asks about the salary figure, defer the discussion by saying that you have not fully explored the fit yet and that you will have a better sense after completing your exploration.
- When the hiring manager asks you after you have assessed the opportunity about your salary expectations, smile and ask if that means that they are offering you the job. If the answer is affirmative then ask what position is being offered. Do not assume that the position for which you initially applied is the position that is being offered. Even if it is the same position, ask the hiring manager (or one asking for the salary) what the salary range is for that position. The person must be able to answer that question. Once you know the range, you can state that it is within your expected compensation and that you consider yourself a top performer. Never throw out a number. Once you give out a number you are stuck with it! This number must come from the one who is offering you the job. That way you can negotiate it.
- Once the number is offered, thank the person and ask them if they could put that in an offer letter so that you can look at the whole package before getting back to them. Any number offered has about a 10 percent leeway.
- If you have done your positioning correctly from the outset you have an advantage. Your resume, your interviews, and how you have navigated up to this point, speak much about your caliber and chances are good that you are seen as a top candidate. This allows you to negotiate the salary you want. A good way to open this discussion is to call back the person who made the offer and ask them if there is any room for negotiating. Then explain to them why you bring such superior value to the position and state that you consider yourself a top performer and wish to be compensated accordingly. Done well, this dialog will push you past the midpoint of the salary curve. Also have data about local salaries for similar positions at competing companies. In # 5 we mentioned having a broad campaign. If this campaign results in multiple offers (even just one more) then you have that as a benchmark. Once again never lie about the salary. Having another offer is far more compelling than having just the salary data when negotiating your offer.
- Yet another insight you can leverage strategically during this phase of the process is leveraging all the learning you have accrued from the various interviews. You must translate what you have learned during the interview process into opportunities that you can discuss at the time of negotiation that clearly show that you can hit the ground running, once you are on board and that you can make a difference in the way you will bring about change. This alone is extremely valuable in differentiating yourself from the pack and tagging yourself with a superior value proposition, which can be translated into a higher starting salary.
- After you have reviewed the employment agreement, regardless of what has been offered, it is a good idea to thank your manager (or the recruiter, whoever offered the package) and ask if there is any room to negotiate. If the response is affirmative then the best approach is not to mention a number (if you still want a higher salary) but to say that with the salary range for the position your salary is still below the mid point. Then you want to make an argument that since you consider yourself a superior performer you would like to see being compensated commensurately. At this point the manager may respond with a number (immediately or a bit later). Usually, this number is higher than the one if you had suggested it. Once a fair salary is reached do not stickle over other items and accept the package. During negotiations chose one parameter to negotiate and settle it. Do not move to another if one does not play out. It is appropriate to make a trade-off between salary and stock or bonus but nothing more.
- If you still want more time ask for it and then decide if you want to leverage the new package to get other offers including negotiating with your current employer, if it is still appropriate.
- Once you accept the offer, confirm it in person by phone and then send the signed acceptance with the start date.
When changing jobs getting a higher salary should not be a mystery. If you follow the process outlined here you can stay in control and get what you are seeking without breaking a sweat!