I enjoy Penelope Trunk’s blog but she is so incredibly and utterly wrong, I feel like it deserves some correction.
What she is right about:
- If you give a number lower than what they are willing to pay, you lose. Assuming you didn’t do your homework, you probably deserve it.
- The company has to give you an offer so even if the stalemate lasts, they will have to give you a number to start with. This assumes an offer is coming (100 applicants for a job, ten telephone interviewed, four interviewed in person, one getting the job…do the math).
What she is wrong about:
Everything else. And perhaps the worst are her examples of how to avoid answering the question. All of them are evasive and pathetic attempts to gain an upper hand. Any HR person worth their salt will see through these obnoxious answers and get to the heart of it very easily:
“What other information do you need to know to give me a salary range?”
If you are arguing about negotiation, I don’t know how you could miss this tie down. It is the easiest one to use. Basically, if they say “they want to know more about the job” you tell them to their satisfaction and then you’ve given them the information they said they needed. If they say they want more information on benefits, you describe it to them and give them a packet of information. If they balk at the question or continue to be evasive, you know their true intent is to never answer the question and you can move on.
Wait, hold on! Did I say “move on” as in “they don’t get the job”? Oh golly gee yes! Because the ultimate bargaining chip isn’t that “they have to get you a salary in the job offer” as that is assuming you will receive one. The ultimate bargaining chip that you may or may not get an offer. And if you’re playing salary games in the interview process, what’s to make me believe that you won’t play other games. Give me a reason I shouldn’t believe your entire persona is based on an ego that requires having the upper hand in order to play ball.
I never ever will understand career advice columnists that say you should be genuine and non-evasive during the interview process but then turn around and say that in one particular instance, you should be an evasive twerp. You’re doing a salary negotiation with someone who has done hundreds of them, you’re not going to turn it around on them and say “Haha, GOTCHA!” And I’m not saying I haven’t been tricked, just saying that it has been a while.
Ways to win at salary negotiation without being insufferable
While Penelope’s advice may be good in instances where an employer is begging for workers (and in areas with 2-4% unemployment, this may be the case). But let’s be fair in saying that businesses will likely suffer in 2008. Giving people advice that knocks them out of contention is fine when there are 15 other jobs out there ready for you. It doesn’t seem that is very likely right now. Here are ways to win:
- Come in with a high figure – That’s what negotiations are all about. I don’t know how you can lose here and I am confused about Penelope’s assertion. If you come in high and the employer says “You’re too high,” you already knew that. Now you can ask how out of range you are? All the while, you’re being honest. If you’re coming in on the high side, I am guessing that is more than your ideal salary. You want more and the employer knows you do. Now you can see how much the employer wants you (and can leverage that knowledge).
- Do your research – Not a single word about knowing what you’re worth. That’s tragic. And lazy. Know what you’re worth, research it and be prepared to argue it. If you want to show that you are a good negotiator, come in with full knowledge about the job market and what a person like you is worth. If they balk at your high number, you could say something along the lines of “Really? That’s what so and so is advertising for a position that is very similar to this one. What part of my experience doesn’t seem to warrant that kind of salary?”
- Sell yourself to close the deal – For someone who advocates personal branding, it seems weird that she would choose such a weak close (a.k.a. you decide). Sell your worth, minimize the price of your service and maximize the value you are bringing. “So it is a bit higher than you would like? What’s really important is the value you are getting out of the relationship. Here is what I am bringing to the table and I know I can easily add that increased value to your company’s bottom line.”
The best part about all of these is that they are all honest, straight-forward and strong stances.
Of course, people always dog on these sorts of articles for one of two reasons. Let me address those now:
“Companies have the upper hand in everything else, salary negotiation is an equalizer and your only chance to make them do something first.”
First of all, companies do have the upper hand (even in salary negotiation) so the best way of showing that you are strong is by demonstrating your ability to come out strong even in this scenario. Second of all, if you’re not giving a number, the company is going to start at the lowest number possible (why would they pay more if you’re vague about your requirements and we have all determined that all employers want to pay very little?). If you balk at it, you have two choices: go away or make a counter-offer. How are you getting an upper hand if you are making a counter instead of (as I suggest) a researched, high end initial offer?
“You are an HR person so you are going to advocate ways of lowering our potential offer.”
I am amazed at how often this argument comes up. I am not a finance guy so I don’t care how much you are getting paid unless it is affecting my ability to get a requisition closed. Also, I am evaluated on how well I can get requisitions filled so I want to see you get the job. I see negotiation attempts quite a bit so I know what works and what doesn’t. I am also a job seeker myself (or, I was) so I advocate techniques that work for me.
With that line of thinking, wouldn’t Penelope be advocating ways of keeping you in need of her services (i.e. keeping you searching for a job or ways to advance in your current position)? We could come up with ulterior motives for a long time, but it isn’t very helpful.
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It all depends on the company’s theory in regards to recruiting, compensating and retaining employees. The County is different from your local Office Depot which is different from Google which is different from Bank of America which is different from a publically owned utility. The bottom line is do you want a job or not and are you able to get one instead of being passed over for ticking people off? I don’t give a darn who gives a number first – but that is because the company I recruit for doesn’t care. They have a tight budget and the ranges are what they are, take them or leave them. This attracts less than the best talent (hey, they have ME doing HR for them so we already knew that!) but that is totally fine with them.
You’re right about that. Companies that have set ranges for positions and aren’t going to waiver from that range are probably much different. There is probably no negotiation there.
I think she spoke more to the fact that some jobs require negotiations. In those types of positions, I don’t think the method she prescribes is the best.
Columns like this are why I have YourHRGuy.com and Brazen Careerist side by side in my RSS reader, so I read one and then the other one, point and counterpoint, career-centric view and HR-centric view. Thanks for the reality check, and keep up the good work.
Michelle Rafter
Contributing Writer
Workforce Management
http://www.workforce.com
I think you have left out a couple of factors in your analysis. First, if you are interviewing for a position that was held by another person, the company is going to use that person’s salary as a benchmark for the replacement. Of course, you could have a candidate come in with more or less experience and knowledge that would either up the salary figure or decrease the salary figure. This, of course, would be determined by the hiring manager and would not be privy to the applicant.
Second, the company culture will also influence the going rate. Our company is in the retail industry and we pay a little lower than the going rate. If an applicant tries to dictate being paid what other retail organizations are paying and it is higher than we’d had in mind, we’ll pass on the applicant. Especially in the current environment, the balance of power is now in the employer’s corner. If a person needs a job, then they need to make sure they match up well with what the hiring manager is looking for, are a good fit for the company’s culture and is willing to consider the salary range that the company is offering.
If the candidate is the right fit for the company, then there should be a little flexibility on the starting pay rate, but there isn’t going to be much negotiation. The applicant must be careful not to run out their opportunity by making more of the starting pay than is necessary.
I love the negotiation part of the employment offer. It is really how you find out about the person you think you want to hire. I’ve seen them all – from the ones who do themselves harm by throwing out a number that’s too low, to the ones who think they make themselves more attractive by ‘playing hardball’ (we’re a sales company). The approach that’s worked best for me is to give them a choice: you can tell me what your expectations are, or I can tell you what the range is. Then we go from there. Almost always, they want to hear the range, which is the right option. They certainly don’t always accept the range, but I make sure they know negotiating doesn’t offend me and as long as we’re open and honest (where Ms. Trunk and I seem to differ), it will work itself out. I have had people say no, and I’ve said no to them. I shake my head at the new college grads – and the colleges themselves – who are told by their advisors and their parents that they’re worth $70k from the day they graduate. Alan and HRGuy are right – we’re in a ‘buyers market’ and some people should be happy with whatever they’re offered.
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