boss is thrilled, but worries that, after a year of such performance, Worth, such a talented person, might move on. So the boss gives her a raise and a hefty bonus to keep her happy, but to no avail. One of Worth’s co-workers is impressed with her quality and praises her to a friend, who is connected to Mr. Jones, who is looking for someone just like Worth. Jones is willing to be flexible on the compensation if the quality is there.
“Sure, let’s talk,” says Worth.
And the virtuous cycle starts again—happily, a little more solidified.
Both scenarios hinge on salary negotiations. When you negotiate for your true value, both you and your company win.
Here’s what’s ahead.
FIVE LIGHTNING ROUNDS for those in a rush. Contains the Bare Bones Basics of the Salary Negotiations 5-Rule system. Read it if you’re hurried or if you want an overview before digging into the details and special situations. If you’re not in an eleventh-hour situation, skip to Chapter Two.
The next chapter gives you the three basic principles of effective salary negotiations, instilling greater confidence to venture into negotiations.
Then Chapters Three through Seven lay out The Five Salary Making rules. Sticking to those rules assures your best chance of getting every dollar and benefit possible.
Chapters Eight and Nine cover the most frequent special situations you’ll encounter, including stock options. For people with this book, www.SalaryNegotiations.com, has articles covering even more special situations. You can access those by using the password BoughtTheBook.
Chapter Ten contains vital advice on raises. You’ll learn how to maximize those.
Finally, coaching! The last chapter shows you how to reach me so my coaching can personally guide you to apply what you learn here. Interested? Call 847-853-1046. It pays for itself.
On to the principles!
Negotiating well results from following five rules. “Five?” you say, “That’s all?” That’s it. Pure and simple.
Here are the five Salary Making Rules ahead of you. You’ll get to know and understand each one as you progress through chapters two through six.
Figure 1-2. Preview of Things to Come
Why five Lightning rounds?
Some people call me in a panic. They want the book right away because negotiations are looming. This book has grown with each new edition over its 30 years, and now takes a lot more time to read.
So, for those ‘gotta get it now, and quick!’ people, and for anyone who wants a sneak preview of the salary negotiations Five Salary Making Rules, here’s a Five-Round synopsis of my negotiation system.
Lightning Round I
Salary Making Rule 1
Salary Making Rule 1: Postpone Salary Talk Until There’s an Offer
Your biggest leverage and strongest tactic in negotiations is to NOT show your hand to the employer. Rule 1 says to avoid discussing and disclosing salary information until they are actually making you an offer.
| Reason 1: | Otherwise you may be screened out of perfectly suitable interviews. |
| Reason 2: | Otherwise the employer may use your information as a way to make a low-ball offer when the time comes. |
| Reason 3: | As people’s desire for something grows, so does their flexibility about how much they can afford. |
Chapter Two explains how they can move from “Budget,” to “Fudgit,” to “Judgit.”
Initially employers are in a “budget” mentality. By waiting until they understand your value, you give the employer time to move to the “Judgit” stage. That’s a place where they are the most flexible, resourceful, and creative about compensation.
Problem: It’s tough to avoid salary talk. And employers are growing more and more insistent about knowing your salary parameters up front.
| Possible Solution 1: | Trade disclosing salary info for an assurance you’ll get an interview. |
| Possible Solution 2: | Preempt their question by asking them first what the position pays. |
| Possible Solution 3: | State an all-inclusive wide range. |
| Possible Solution 4: | Use any of the 15 phrases in chapter 2. |
What if you’ve already told them your salary history or expectations? Don’t despair. To make up for the blunder, do an extra special job researching your market value (chapter 5) so you feel very confident in asking for your full market value.
Read The Book To Learn
• Postponing phrases
• Stories about success using salary making rule 1
• A deeper look at Budget, Fudgit, and Judgit stages and how to use that for negotiating leverage
• Importance of salary negotiations to overall job satisfaction and success
Lightning Round II
Salary-Making Rule 2
I radically revised this rule for this 6th edition. It used to be: “Let Them Go first.” It’s now: “Let Them Go First Unless...”
Good negotiations achieve a happy medium between your ideal compensation package and what the employer is willing to offer. But being at the higher end of the medium is better for you than being at the lower end.
NEWS: Recent studies show that the final negotiated amount on this common ground tends to end up closer to the person who goes first.
The thinking behind the original Salary-Making Rule #2: “Let Them Go First,” was that you minimize the risk of botching the negotiation by coming in too high or too low. An added reassurance is that if the employer goes first, you have an offer. You have no doubt they’ve reached the make-an-offer point when it’s then okay to engage in money talk. You won’t go lower than the prospective employer’s initial offer, and following it with your researched response could add even more to the compensation package. All that is still true.
Not
