Could be jumping ahead of myself but better prepare now than later. I am in the process of interviewing for a position and wanted to know if any of the more experienced AFers have tips or suggestions on the best way to negotiate your starting salary?
I read a few websites that offered some insight but would prefer those in the finance industry to lend their thoughts.
Essentially these negotiation websites keep mentioning the "don't be greedy" mantra but what is considered greedy? Asking for a 20% raise from your current salary? 30%? or 40%?
I understand there are many other factors that go into this decision but for now we can keep it general and I would like to hear what you have to share.
Thank you in advance.作者: canadiananalyst 时间: 2011-9-30 22:52
Well, rule 1 is to not mention salary until after you get an offer. If they do give you an offer, it really depends on what their number is.作者: soverby 时间: 2011-9-30 22:58
^ agree with above, you are at too early of a stage to be thinking about salary negotiations.
But if you are looking to make a switch b/c you feel underpaid, be prepared to support the reasons that your new salary level should be X% above what you are currently making.作者: Zestt 时间: 2011-9-30 23:04
I've always had luck laying out my argument in terms of opportunity cost. It's pretty hard for your employer to argue with. This strategy doesn't work super well for your very first job because determining your opp.cost can be difficult as you'll be getting lowballed by everyone.作者: cfalevel2011 时间: 2011-9-30 23:09
Pad your current salary to the point where a 10% raise = 30%, assuming it's reasonable for your title/background/employer.
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-My friend QQQbbe, we will never forget you.作者: ohai 时间: 2011-9-30 23:15
I understand the point of not discussing salary until I am given an offer. I was simply looking for advice when/if that opportunity comes up. So far good advice. Thank you.作者: therecruit 时间: 2011-9-30 23:21
don't go too crazy right now - there are a lot of talented people out there so don't blow yourself up.作者: laurab 时间: 2011-9-30 23:27
I recently wrote an article for a regional magazine about this topic and it was well-received.
To start, find out what the position pays (glassdoor is a great tool). Don't go by the 10%, 20%, 30% rule. Get paid what you deserve. Tell them you are looking for a salary that compliments your skill set and that you have done a lot of research on the industry and what their competitors are paying in the same geographic market.
Make sure to mention at some point that you are in advanced discussions with other firms as well. If they press, simply say that at this point, you'd rather not discuss which companies, but that THEY are your number one choice. Higher demand = higher perceived value.
If they press you to give them a number, give them a range that is higher than what you are looking for. Do not give a range that includes the lowest amount you will take to accept the offer. That is what they will ultimately give you. If you would be happy with $80,000 but are really looking for $90,000, tell them your range is $95,000 to $105,000 but that you are flexible and would be interested in hearing an offer. When they come in at $90 to $95, you win and they THINK that they won as well. Also, depending on how well you sell yourself, they may come in at $100,000 or more.
Are you currently employed? Yes there are a lot of talented people looking for jobs, but being employed right now allows you to command more than someone who is currently between jobs. Do not hesitate to be confident in your skills and abilities. Companies are going to feel more comfortable with a strong confident individual who made it through the financial crisis (layoffs, etc.) than a talented worker who is between jobs.
Finally, if they come in with a number lower than what you had hoped for, ask them if there is a possibility for a signing bonus. A bonus of 10% to 20% can go a long way and doesn't mess up the company's payscale/ paybands.
Best of luck Burji.作者: LorrinCFA 时间: 2011-9-30 23:32
The real money in finance comes when most of your compensation is bonus based and therefore not part of the salary negotiation. If you're concerned about money then go for positions, regardless of pay within reason, that will get you to those spots.作者: MarginofSafety 时间: 2011-9-30 23:38
@RadBiker: This helps a great deal.
Appreciate all the advice and will def. follow-up for those who are interested if I end up getting the job. (Hopefully this Cart before the Horse mantra won't bite me in the...)作者: soverby 时间: 2011-9-30 23:44
the employer should be willing to pay "market". they've done research to find out what that # is and so should you -- glassdoor and salary.com are pretty good. also if you know people doing similar work, try to get their range. They are going to bid at the low end of the range and you should ask at the high end. where you end up depends on who wants whom more. if this is your dream job probably a good idea to not push too hard.
my advice is to be forthright in whatever market research you come up with. Lay out what you think is market using market data and have an open discussion about why your number should be higher or lower. always be cordial. be rational, not emotional.作者: smuggycfa 时间: 2011-9-30 23:50
Good advice from jbaldyga.
Just remember that "market" is defined both by the job duties and the level of experience and authority that the position entails. So just looking at the position name, they can say "well, yes, but you're not going to be a *complete* portfolio coffee assistant, and so this job shouldn't pay as much for that.
But remember that that knife can cut both ways, you can argue, "well, thye market is paying PM bathroom assistants around X-Y, but you also are asking me to do flush attribution, which involves an extra set of skills, so that really demands an extra Z."
Your first salvo should be your "best defensible offer." It doesn't have be your "most reasonable offer," but it should have some kind of justification for where these numbers are coming from. Generally, you choose the higher of:
"My market research for positions like this is X-Y, and I'm in the high range of that because of Z, and you're also asking me to do A, so that really requires an extra B on top of that."
or...
"I'm currently making X, and I can reasonably expect to make X + Y% next year. I'm fairly happy where I am, so it would take X+Z% to make it appealing to move." Z% is higher than what you would truly settle for because they will very likely counteroffer less.
Also, have a sense of 1) what you think a fair offer is, 2) what is your lowest acceptable offer, and 3) what is your BATNA (Best Alternative To a Negotiated Agreement). This informs you of how to respond to their counteroffers.作者: spreads 时间: 2011-9-30 23:55
Just to be clear, I'm not making fun of the OP, just trying to make it fun to read.作者: eoin 时间: 2011-10-1 00:05
Here's a question, when dealing with recruitment consultants and they want to know your current salary in that pre-meeting conversation (i.e. when they are sizing up whether or not you are suitable for the role), what do you say? Add 20% to your current salary??作者: hoangvu90 时间: 2011-10-1 00:11
If you are being adequately paid at your current job, be honest. If you are being underpaid, give them the salary/bonus/benefits total number. That way, honest mistake if they catch you on it. At that point, you can say it more accurately reflects what you should be making as a base as you feel you are currently under-compensated.作者: former 时间: 2011-10-1 00:17
Lying about your compensation is a terrible idea.作者: zephyranalyst 时间: 2011-10-1 00:23
ohai Wrote:
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> Lying about your compensation is a terrible idea.
Lying in during interviews is a terrible idea, period!作者: troymo 时间: 2011-10-1 00:34
absolutely. NEVER LIE! they can and will check. Imagine this scenario: you lie about your salary, inflating it. You get the job offer. You accept it and quit your current job. When you join the company, they complete the background check and find that you lied. You are immediately fired, not only that, your name will go around (it's a small world!) You WILL have to verify your salary with tax returns if not pay stubs .... I didn't get
