Salary Negotiations That Win

"BRING ME THE MONEY!"

By R. Gaines Baty

As Featured in the May 10-16, 1998 edition of the National Business Employment Weekly,
a publication of the Wall Street Journal

In this "me" generation, it seems to have become fashionable to "Get all you can!"

A recent career article in the Wall Street Journal alluded to ways and reasons to negotiate for the maximum amount of money possible. And while we all would like the most we can reasonably attain, it's very important to keep cash compensation in perspective and balance with other,, and perhaps more important, career considerations.

As executive search professionals, career advisors and strategists, and observers of thousands of careers (past. present & future), we strongly advise against greed. Instead, allow for a win/win agreement with your new employer...good for both parties. Reasons for this approach include:

  • No one should have hard feelings. If you feel underpaid, you're mad. If the company feels it paid too much you may be subject to replacement or layoff if your performance is less than stellar, or in a business downturn.

  • Pricing yourself out of the market for similar positions is dangerous because it locks you into that employer (golden handcuffs) which may not be the best company or career opportunity for you. And again, you're more expendable.

  • Taking the "what's in it for me?" attitude does not win much respect or loyalty from anybody, much less a prospective employer. Too much self interest may cause the company to terminate interviews/discussions prematurely, or leave serious second thoughts.

  • Slotting yourself in too high above your proven capabilities is dangerous due to elevated performance expectations. This could result in higher potential for failure or weak results, possible termination and/or black marks and therefore slower ascent to ultimate goals. If the to-be-boss (assuming good intentions) feels you'd be better off stepping in at a slightly lower level for grooming and development purposes, it’s worth consideration.

  • Many employers must maintain internal pay scale equity. You may not like it going in, but you'll surely appreciate this integrity after you've been on board for some time and an unproven candidate with less or equal experience wants to earn considerably more than you.

Some companies HAVE to pay more because they can't attract and/or keep people otherwise. If it seems too good to be true, it may be. The best job is not always the one that pays the most money!

"Money focus frequently clouds other critical career considerations,," says a veteran of the executive search profession. "Candidates frequently, after having previously ranked salary lower on the career decision priority list, become obsessed with compensation to the exclusion of their 'higher priority' issues."

It's best to optimize (not necessarily maximize) compensation. But what could be more important than money? Invariably, the more successful career professionals prioritize and categorize such issues as:

  • CAREER: long-term career path and opportunities, a logical next career step in a longer term plan, future marketability of your skills (your ultimate security), rapid promotion potential, potential learning curve, potential for long term employment (stability), mentor relationships, etc.

  • POSITION: job content, challenge and level of responsibility, importance and potential impact of position/department, potential for success, variety, etc.

  • COMPANY/INDUSTRY: history and direction of company, size, future of and excitement about industry or service, etc.

  • LIFESTYLE ISSUES: location, travel, family balance, stability, etc.

  • INTANGIBLES: culture, quality of potential fellow employees, chemistry with supervisors, peers and/or subordinates, alignment of philosophy and values, ethics, fun, is it what you want to do?

  • COMPENSATION PACKAGE: salary, realistic incentive bonus potential, future earnings potential, current or future equity potential, deferred compensation, benefits, relocation package, etc.

It’s advisable to determine and prioritize these and other issues for yourself, and use the decision matrix as a general guide. No job is perfect, so some give and take will inevitably occur. Decide on the best position/career step, create a win/win mentality in compensation negotiations, and do a great job once you report. Do what's right and good things will happen.

R. Gaines Baty is President of R. Gaines Baty Associates, Inc. (est. 1977), a Dallas-based retained executive search firm.  Mr. Baty, who started his career with IBM Corp., is formerly a two-term President of both the Society of Executive Recruiting Consultants (SERC) and the Dallas Independent Recruiters Group (IRG), and is a well-known author, trainer and practitioner in executive team building, executive evaluation, executive search and career management issues.  Mr. Baty can be reached at gbaty@rgba.com.

  

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