December 2006

Negotiations: Handling Difficult Conversations

By Elizabeth Lions

Personally, I love negotiating salaries, because I keep emotion out of the equation. My view about money has always been combined with a feeling of play. Over time, I've gotten incrementally better at my own negotiations as well. Professionally, I've negotiated tens of thousands of dollars and never broken a sweat. Together, we strive to find the middle ground. The perception I leave with an employer is that I am fair, honest and direct. It's money — nothing more than a bunch of zeros on the end of a number. For years, engineers have asked me how I do it, and I'd like to share with you my techniques.

An Overview

Let's start at the very beginning and define negotiation. Negotiation is the process by which two parties with different needs and goals work together to find a mutually beneficial and acceptable solution. Make no mistake, successful negotiation involves business skills as well as interpersonal skills. Often, engineers look at the negotiating conversation as unpleasant, because it implies conflict and anger. Learning how to negotiate from a non-emotional point will greatly increase the chance that the outcomes will be positive for both parties.

Salary negotiations should never become hostile; neither party will feel good about the outcome if things turn sour. In such circumstances, fear can sometimes manifest itself as anger — a surefire negotiation killer. There is no reason to fear negotiations. Simply put: you have the right to ask for what you want. The prospective employer may or may not grant the request, but you should always ask. For you won't know unless you ask.

Research, research, research

Know in advance the salary range of the job you are applying for. IEEE-USA's Salary Calculator, recently ranked second among such online resources by About.com, is a good place to start. Or you can look up similar positions on  Monster.com. The ranges should be within $10,000 to $20,000 for comparable positions, depending on the organization. Such an analysis will help you determine if your current salary is too high or too low. Read the job descriptions carefully to see if you have all the qualifications necessary for that salary range. Cross reference the job descriptions to ensure that your resume shows all the skills that you have demonstrated.

Check Your Emotions at the Door

Often, I've suggested to engineers that when talking about money, to imagine that they are talking about someone else's money and not theirs. If your ego is engaged at any point of the conversation, it can quickly escalate into a tug of war. Bad move. Salary negotiations are about money and never about power. Allow your emotions to rule and, without warning, the employer might be talking about what you are not worth, rather than what you are worth.

First Person that Speaks, Loses

You should not be the one to bring up money during the interview process. Let the employer broach the topic, but be prepared to discuss specifics. Before you throw out a number, know what the position pays and what your skill set commands. In this market, don't be afraid to go tp the top end of the range, as employers will pay for top talent. The market is supply and demand — and guess what — you're in demand. Leverage your talent and start at the high end; you can always come down from there, if necessary.

When figuring the salary you wish to propose, go 5 to 10 percent (10 to 15 if you're comfortable) higher than your current salary. Expect the employer to say no. If your figure is rejected, explain briefly and concisely why you deserve the salary you requested, without anger and without begging. Don't be afraid of pregnant pauses after you state your requirements. Silence simply means that the employer is thinking about it. Take a deep breath and …wait…

Have a Plan B

I believe in always having a backup plan, and it has served me well. If, for whatever reason, a higher salary is out of the question, then it is often because the organization really doesn't have the budget to pay the salary. However, many items encompass a compensation package that don't require the employer to write a check. Think of it in these terms: what is a write off to their business is a benefit to you. For example, perhaps a class you would like to take totals several hundred or several thousand dollars. Ask for it up front during the salary negotiation. You can even ask for the class in lieu of a higher salary bracket. For an employer, it's a write-off. For you, it's tax-free money, with time off to learn, that will enhance your career.

Another negotiation strategy is getting more time off, or one day to telecommute. Again, such arrangements benefit you and cost the employer nothing. If you would like special hours, discuss it before the job offer comes across your desk. Time off, flexible hours and educational benefits should all be discussed and put in writing before your first day on the job.

Get It Up Front

Some think that if you go into the workplace and perform at a high level you will be compensated on your next review. Nice thought — but in reality, I have never seen a single case of that in all my time of employing engineers. My advice is simple: get it up front. Don't expect them to catch you up later on the money. More than likely, employers will have a lot of excuses as to why you won't get the salary increase. Some reasons are fabricated, because they do not have the budget. Go to the table once and once only. It's actually easier to negotiate when you aren't familiar with your boss, than after you've been in the department a year.

In a successful salary negotiation, you're both discussing and creating the terms of an agreement, so that each of you will receive the maximum benefit.

Elizabeth Lions is proprietor and president of Solid Staffing, in Portland, Ore., where she works with placing and counseling engineering talent. She can be found online at www.elizabethlions.com. Comments may be submitted to todaysengineer@ieee.org.