Salary Negotiation Smarts for New Grads

Posted by JobStreet.com Singapore on Aug 16, 2013 in Job Search Tips, Resume & Career 101 |Comments Off
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Discussing the compensation aspect is undeniably one of the most embarrassing and awkward phases of the job search process. For the greenhorn in particular, it can also be a lopsided faceoff due to his or her lack of bargaining experience and expertise. Fresh college graduates may think that with little or no work experience to speak of, they are at the mercy of hiring employers when it comes to salary negotiation. Banish the thought. You can definitely increase the odds of getting a fair pay package if you understand how the process works, know bargaining dos and donts and have a good idea of industry going rates. 1. Pre-bargaining stage And the first lesson work world newbies have to learn is that the salary negotiation process doesnt start only after you pas s the interview. It starts even before that with a self-assessment of your financial needs and situation so that you can arrive at what you consider a workable initial salary scale. Calculate the amount youll need to support your lifestyle, factoring in your monthly expenses including tran sportation costs, work clothes, food expenses, etc. The secret is to come up with three figures: the minimum, midlevel and maximum acceptable salary. When asked your compensation range, articulate the last two figures, never the minimum salary, which should only serve as your guide for the absolute bottom line offer youre willing to entertain. This stage also requires comparative research on prevailing salary trends so you dont underprice or overprice yourself out o f the market. How to conduct a salary survey? Inquire from friends, network contacts, professional associations or other job seekers. You may also give your school career center a try, as well as trade publications and job websites (JobStreet.com has a salary survey box featuring average wages for various positions in different industries). Conduct a discreet study of the hiring company as well. Ask from inside contacts if you have them, visit its website or gather company brochures or profiles. This should help you in coming up with your desired salary spectrum. By the end of this stage, you should have answers to these questions:

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What is the salary range for the job according to industry standards? What is the salary range the company is likely to offer for this position? What makes me worth a higher salary? The interview During the interview, you can raise your worth in the recruiters eyes by stressing your strengths, talents, knowledge, accom plishments and skills. In lieu of work experience, you can discuss your school projects and undertakings, using such control words as took charge, initiated, developed or implemented to indicate successful completion of a program or activity. A word of caution: Resist attempts at this stage to discuss salary. Simply state that you are open to negotiation and willing to consider a competitive offer. If the employer insists on more specific information, provide a salary range rather than a definite number. The rationale here is that the less you divulge about what offer will make you bite, the more you re likely to receive a best offer.

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The negotiation stage Now comes the tricky part. Admittedly, salary ranges for most entry-level positions are set and leave you little room for negotiation. But understand that most employers would probably quote the lower end of the salary scale, so your goal is to shoot for a high-end offer. To reiterate, try not to be the first to mention money so as not to shortchange yourself by inadvertently revealing a low salary expectation. Below is an example of a salary offer and your possible responses to it. To avoid sounding arrogant or demanding, experts suggest framing your response in question form. The salary is P12,000 per month, the employer says. You might reply: I am happy about the job offer and I am very interested in the position. But considering todays high cost of living, Id like to be making around P17,000. Would that be possible? Or, Im delighted in your interest in me and I really believe I could contribute, but I have other options in the P17,000 range (say this only if true). Is there a way we could work this out? There are other negotiation gambits employers may take. But the important thing to remember in giving your answer is to quote the higher part of your salary scale based on your research after youve made a convincing pitch that youre worth that much. Here, variations of the salary question that may come your way:

How much do you hope to receive? What kind of salary do you think youre worth?

Do you believe people in your occupation should be paid more? We cant pay you what you think you should get. How do you feel about this? And what do you do if the employer raises objections to your salary request, citing among others: your lack of experience the lower salaries of other employees the budget ceiling the fixed range for new hires You can best answer these by coming up with a follow-up question on what the range is and what it would take to get to the higher level. Another tactic is to have an alternative plan, like asking for a salary incr ease at a later date if you dont get what you asked for. Careerists say this is where your preliminary research into the company will come in handy. If youve done your homework, you should have prior knowledge of their benefit and compensation package and can pick up clues if youre pushing your luck. Remember that youre negotiating for the upper end of their salary bracket, not squeezing the company dry, a strategy thats sure to boomerang.

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The job offer Once you receive a job offer, never accept or reject it on the spot. Take this opportunity to ask about their other fringe benefits above the 13th month, vacation leave, SSS contribution and other government-mandated perks. Then ask for at least 24 hours to think it over. When making a decision, consider all factors including:

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opportunities for growth, promotion, training and skills enhancement company stability and management style advice from your mentors, family and friends the total pay and benefit package Acceptance The primary rule in accepting an offer is to get everything down in writing, particularly if youve succeeded in getting special considerations such as a sign ing bonus or other perks, so that you have something concrete to hold on to. Salary negotiation is considered by most applicants as the most embarrassing and awkward part of the job search process. For the new entrant to the workforce in particular, it can also be a lopsided faceoff due to his or her lack of negotiating experience and expertise. Thus, it is vital that you acquire the bargaining skills set because the payoff is tremendous and long lasting. Pulling off a favorable deal can produce a domino effect considering that any future pay hike would be dependent on your current salary. That should make you shed your inhibitions about haggling for a better pay, so long as you remember that it should be done with restraint, taste and finesse.