How to Tackle Salary Negotiation With a Job Offer

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Salary negotiation takes careful footwork, especially on the current economic terrain. Even at the worst of times, however, senior managers can create opportunities to negotiate a better deal. Using a competing job offer as a bargaining chip may be one of those opportunities - but handle with care.

Let's be clear: Companies are still willing to discuss raises even in a recession. Many firms have already gone through layoffs, so the remaining employees are the ones that are the most highly valued. Professionals with the right skills and experience in key projects still have leverage.

Are you contemplating using a job offer as a salary negotiation tool? First, get a sense of how much your current company can give even if it wants to. Take a look at the course the company has taken over the past 12 months. If compensation has been shrinking and benefits are being taken away, this is a clue to how successful salary talks might be. Whether negotiating the salary for a new job or asking for a raise in your current position, these tips can help you secure the salary you deserve.

Don't Bluff

Never, ever pursue a counteroffer unless you're prepared to leave. Understand that there is a chance that the current employer may take offense and let an employee go on the spot. And if you're compelled to back down, you've already marked yourself as a flight risk.

Therefore, never use an undesirable job as leverage; a potential raise is not worth the trade. On the other end, remember that the company extending the competing offer actually wants to hire and not just be used as a bargaining chip. Offers can be rescinded; it is best to weigh each situation individually and only take on a comfortable level of risk.

Why Are You Negotiating?

More money is always nice, but it should not be the sole focus of your negotiation. Being able to change responsibilities, work with different colleagues or managers, shift projects and develop a career path are all excellent reasons for coming to the bargaining table.

Set goals before you go into a salary discussion and establish acceptable results on a scale. Don't refuse an offer out of spite just because the numbers may not be as high as you'd hoped; see if you can balance the gap by negotiating other goals.

Forms Of Compensation

Base salary is not the only negotiable element of a compensation package. Performance bonuses, milestone payouts and signing bonuses are also common forms of payment. Other big-ticket items include healthcare and their premiums, 401k programs and employer match amounts, stock options, and company discounts. Don't forget other tangible benefits such as gym memberships, company cars, travel expenses and allowances.

You should always come prepared to take something off of the table. Decide in advance what's most important to you; that way, you can plan to scale back your other conditions in an orderly fashion.

It Is All About Attitude

Negotiations should be a dialogue, not a confrontation. It's a two-way street: Professionals deliver value to a company through their expertise and performance, and they want to be fairly compensated for that added value.

Use a competing job offer as a metric of market value rather than a threat. Combine it with other market metrics, such as national compensation figures for your position, so the discussion is a compressive evaluation of an employee's worth, not simply a debate about the position currently on the table.

In the end, using a job offer as a part of bargaining has its own set of risks and rewards. With a good job offer in hand, professionals have a good deal of leverage and a viable backup plan. Be aware of the pitfalls before entering any salary negotiation while focusing on getting what you want.

Source: http://business-negotiation.blogspot.com/2012/07/how-to-tackle-salary-negotiation-with.html

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