Salary Negotiation Tips industry, position, starting, finance, offered

cross-ied

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.

canadiananalyst

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.

soverby

^ 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.

Zestt

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.

cfalevel2011

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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ohai

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.

therecruit

don't go too crazy right now - there are a lot of talented people out there so don't blow yourself up.

laurab

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.

LorrinCFA

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.

MarginofSafety

@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...)