Navigating Salary Negotiations: The Elephant in the Room

Questions about salary negotiations are among the most common ones I receive from my clients. However, this often involves jumping the gun. Many haven't done the necessary work to figure out the best career path for themselves, yet they're eager to negotiate offers and counter-offers for a job they haven't secured.

Military strategist, Sun Tzu once wrote "Every battle is won before it's ever fought" and the same can be said when it comes to salary negotiations. Most candidates devote considerable amounts of time and energy toward this end-goal only to be disappointed with the result, even if the desired salary is achieved.

We frequently link professional success with financial gain, a notion ingrained in us by almost every aspect of society. However, although this initially appears logical, the results might not meet your expectations. Professions that offer high financial rewards often come with significant sacrifices, such as long hours, stressful environments, and a poor quality of life. These careers frequently lead to high burnout rates, failed relationships and other negative effects on both physical and emotional well-being. When selecting a career, try to consider various factors that will help you achieve a balanced lifestyle alongside the financial security you desire.

It's crucial to understand what constitutes an "acceptable" salary offer before you start your job search. Many people overlook the significance of career-clarity and the necessity of considering their personal interests, strengths, and values, which is vital and directly influences the salary figure you'll target during important salary negotiations.

The Cart Before the Horse: Understanding Your Audience

Understanding the financial constraint of a potential employer will play a major part in determining suitability on either side.

While it's obvious that researching industry salary benchmarks is necessary, it's also important to note that the average salary for a Director of HR at a small non-profit will significantly differ from that of a Director of HR at Goldman Sachs. Know your profession, industry, employment-sector and be familiar with their pay-structure in addition to their total compensation package. Most large non-profits (especially within higher education) offer outstanding benefits that can often save you thousands of dollars, annually, should you choose to take advantage of them. By planning carefully, you might achieve a comparable financial result without greatly sacrificing other aspects of your life.

For instance, if you want your next career-move to provide a better quality of life, more responsibility and tuition assistance for an advanced degree, prioritizing the highest salary offer may become less important. However, if you've completed the pre-work (using the Blackfire Method) and concluded that a major salary increase is necessary for your professional growth, there are several steps you should take before entering any salary negotiations with a prospective employer.

Engaging with Potential Employers: Set clear expectations

Most good recruiters will start the compensation conversation once they establish mutual interest. Being clear about expectations involves being upfront about the figure you have in mind and remaining open to discussion if that figure exceeds their budget for the position.

When a recruiter asks about your comp expectations, they are not trying to trick (or trap) you into saying something incriminating. It's the total opposite, they very much want that number to be within range so they can move forward with the process. They need to know they're not going to have the rug pulled out from under them in the eleventh-hour of trying to close a deal that took months (or years) to finalize. They have to strike a delicate balance between delivering a star-candidate (on-time and within budget) to the hiring manager, while being sensitive to the needs of their candidates at the same time. Being up-front about your intentions, needs and aspirations will go a long way towards building trust that will pay dividends when/if an offer is made because that recruiter will be your biggest champion behind closed doors.

Communication is Key: Don't Move the Goal Posts

Establishing and maintaining a positive relationship your potential employer during the interview process will be important come salary-negotiation time.

Regular communication during the interview process is beneficial, particularly if your plans shift. If you determine that securing a higher salary offer (than initially discussed) is a must for your next career move, you should communicate this directly to those involved in the recruitment process as soon as possible. Informing a potential employer of your changed expectations only after a formal offer is made is deemed highly unprofessional and could lead to the offer being withdrawn, entirely. In certain (extreme) cases where the new salary expectations far exceed what was initially discussed the employer could perceive this as a deliberate attempt to deceive, potentially causing lasting harm to your reputation. It's simply not worth risking the damage to your brand and future career prospects within that organization. Keep your interactions respectful, be honest and always stay professional.

The Offer & Counter Offer

Once a formal offer is made be and flexible with regards to the amount of time you take to either accept or make a counter offer. The more decisive you are the more efficient the process will be. Should you pose a counter-offer, it's advisable not to do so "just because" someone said so, but be strategic with your requests. Ask yourself will that slight increase be a major factor in your overall career development, or is it just an ego-boost?

Conclusion: Preparing for Successful Salary Negotiations

While it helps assume a positive and assertive approach during negotiations, know your limitation and don't overplay your hand. Over confidence in the final stages of a negotiation could very well convey a sense of entitlement, leading the employer to second guess your commitment to the process and look towards their "Plan-B" candidate who may be slightly less skilled, but willing to seal-the-deal with less drama.

Finally, don't overthink the process. You will be much better served directing that energy towards advancing your career strategy, practicing regular self-assessment, exploring new opportunities and expanding your current skill-set. Prepare to succeed, be decisive and stay the course so you can continue to do what you love, manage the risk and embrace the results.