HOW MUCH ARE YOU WORTH?

Isn’t that the question that comes to mind when it comes time to negotiate your salary? Yes, that is the question. * And, the answer is, "It depends." It is a variable answer because it depends on a variety of factors.

• What is the state of current market;
• How many people have your skills, knowledge, abilities and experience;
• What is the employer’s position in the market, field; and
• What is the size of the company?

All of these factors come together and impact the value of your market worth. Your skills and abilities might be variable by as much as $50,000/year. That’s a significant difference. Let’s figure out how to get you more of what is available.

THE BASICS Let’s start at the beginning. Two parties decide they want to do business together. Then, in the negotiation, the seller starts high, because they obviously want to make as much money as possible. The buyer starts low. They just as obviously want to pay as little as possible. They go back and forth, each moving towards the middle a little each time, until each is satisfied that they are getting "a good deal."

If you don’t negotiate regularly, or aren’t prepared with market knowledge, you will feel like you could have done better. Most people in the United States don’t negotiate on a regular basis and are uncomfortable with the process. Evidence of this is car buying. Very few people feel they got the "good deal" when they leave the dealership. This also explains the popularity of non-negotiating car dealerships.

HOW TO GET A GOOD DEAL Do you know how to spot a good deal? To negotiate with confidence, knowledge is power. You have to do your homework. Remember too, don’t begin to discuss compensation until after you have been offered the job.

• Use an online salary calculator (such as: homefair.com, salary.com, cbsalary.com, or Google you’ll get 53 pages of links). If you are relocating to a different part of your state or the country, find a salary calculator that will do both areas for you. Don’t rely on just one calculator. Use several to get a good idea of the ranges available for your job title, field and industry. Also look at the size of company in relation to the various salary ranges.
• The value of you. Be realistic in your assessment of your own skills and experience. Use the perspective of the employer – where on the salary range would they place your skills and abilities? This is the age of intellectual capital and the value of specialized knowledge is at a premium, even in this tough job market.
• What is demand for professional positions similar to yours at this point in time? And all that volatility among companies is not necessarily a bad thing — increasing fluctuations in corporate valuations actually enhances your value in the marketplace.
• Review your budget. Yes, look at how much it takes to run your household. What is the minimum? What would be more comfortable?
• What benefits do you need? What benefits would be nice to have? Review the company’s website to see the benefits they list there. What is missing that you need or want?

Let’s review: Through the online calculators, you have come up with a reasonable salary range for the position you have been offered. You have done a self-inventory to know where in the salary range you fit, in the eyes of the employer. You know where in the salary range you need to fit to run your household. You have a reasonable idea of how many people just like you are looking for this job AND how many employers are looking for people like you. These factors together create the foundation of the job market for you in this position.

Keep in mind the value of benefits. If the salary is high, but there are no benefits, be sure to evaluate the out of pocket cost for the benefits you will be buying. Add that calculation back into the salary. Is it still a good offer? Or will you need more money to make up for the lack of health insurance?

SOME NEGOTIATING TECHNIQUES Let the employer or hiring manager make the first offer. Why? The second person has the advantage. You want to be the second person. After you hear the offer you know where in the range that number is relation to what you want. If it is higher than the amount you would have asked for, just say, "Yes, that will be fine." If it is lower, make an offer somewhat above what you need or want for this position. That will give you some room to compromise down to their counter-offer.

Be nice. Be respectful. This will be your future boss. Be firm and confident in your research. They will respect you for negotiating. Ask to think about it overnight, or if it is Friday, over the weekend. This is an important decision. It is good to take some time. It shows you are serious and thoughtful.

* You have value beyond price. Don’t let salary, job title or any other external and artificial label create your value for you. You were created to let your light shine as a beacon for us all. "Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. … We are all meant to shine, as children do. … As we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others." (Quote by Marianne Williamson)

Let me know how your job hunt is going. What are your particular challenges. Share your experiences in the comments section. Or, send me an email to eal@EALCoaching.com . I’d love to know how you are doing and what strategies you are using. A dream with a plan is a goal. A goal without a plan is just a dream. Warmly, Elisabeth

Elisabeth Adler-Lund Executive And Life Coaching Telephone: 916 • 803•1494 E-mail: eal@EALCoaching.com