Avoid This Salary Negotiation MistakeBy J.T. O’Donnell

Failing to Manage Employer’s Expectations

If you want to know where most people go wrong when negotiating a salary, it’s in their failure to make it clear during the interview process they understand their worth and are looking to create a business-to-business partnership.

You don’t want to work “for” the company, you want to work “with” the company - and that means helping them understand up front not only what value you can bring, but that you’ll want to be paid fairly for it.

Step I: Assess the Employer’s Problem

Before you can determine what a fair rate for your services would be, you need to go on the interview(s) and assess the company’s issues.

The most savvy businesses-of-one know how to turn a one-directional interview (i.e. employer asks you questions and you cross your fingers you answer them right), to a two-directional conversation.

[NOTE: Becoming proficient at this approach to interviewing takes work. Many people attack the interview the wrong way. Especially, more seasoned workers.

Step II: Offer Salary Range & Explain Why

You tell them your salary history (if asked), and then you give them a nice big range regarding your salary expectations. [ For more on how to do this, I wrote in detail about it on LinkedIn.] The key is to force them to ask, “Why such a big range?” In which case you get to say,

“Compensation isn’t my only factor of consideration in a new position. Other things like benefits and the opportunity to grow and work on interesting projects matter just as much. So, based on what I’m hearing so far, I could see trading off some income for those types of perks with your company.”

In doing this, you let them know that if/when the offer comes, there will be a discussion around their entire employment package and how matches with what you need to make the partnership seem equitable.

Step III: Bring it Back to the Opportunity to Solve Problems

Once you and the employer have had the salary heart-to-heart, move the conversation back to their pain points. Remember, they are the customer!

Return the discussion to the problems they have and how you would be excited to leverage your skills and abilities to solve them. Don’t be afraid to show your enthusiasm about working for them. Given how much they are going to spend on hiring you, they want to know you appreciate the potential opportunity.

The more you can help them see you understand the challenges they are struggling with and how you can solve them in a way that will help them justify your salary, the better. This is the time when you get them to realize they can’t succeed without you.

Step IV: Negotiate on the Facts

It’s important you be clear in both how much you want and why you want it. Employers don’t want an extended back-and-forth. And, if they can’t meet your salary demands, be prepare with one backup request.

For example, you could ask for more vacation time to start. Or, you could get in writing that they’d do a salary review in 6 months instead of a year.

As long as you can get them to agree to some additional provision that can help you offset the lack of an increase, it will help you justify taking the job.

Step V: Map Out Plans for Your First Raise!

The first day on the job is the first day you start prepping your employer for your plans to develop your skills, increase in value, and eventual justify your request for a raise. While you won’t say that on day one, you should be thinking about it. That’s the first step in setting yourself up for promotion!

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