Avoid These Mistakes While Negotiating Salary

Everyone loves getting a job offer, but few job seekers like negotiating salary. The process is fraught with worries that you'll ask for a number that's too low or too high, that the employer will try to lowball you in their offer or that you won't even know how to evaluate their offer effectively. But salary negotiation doesn't have to be so tricky. Avoid these eight mistakes and you'll be significantly better off than most salary negotiators.

Ø  Being unprepared. At some point, nearly every employer will ask what salary range you're looking for and this could happen as soon as their very first phone call to you. You want to be prepared for this in advance, because if you're caught off-guard, you risk low-balling yourself or otherwise saying something that will harm you in negotiations later. Be sure to do your homework ahead of time so that you're ready with an answer when the question comes up.

Ø  Letting the employer base their offer on your past salary history. Your salary history is no one's business and employers are perfectly capable of figuring out what your work would be worth to them without needing to know what you've been paid previously. To avoid having future offers tied to past ones, consider declining to discuss your previous salary altogether. If you can't do that, try pointing out that you took a lower salary previously because you were working for a mission you cared about, or learning new skills that would make you more marketable in the future or whatever other context you can provide. Instead, keep the focus on what you want to earn now and why you think you're worth that. But if you ignore this piece of advice, don't make the next mistake on our list.

Ø  Lying about your past salary. Job seekers sometimes claim that they're currently earning more than they really are, figuring that will help them get a higher offer from a new employer. But this can backfire because plenty of employers verify salary history, either by asking to see a recent pay stub or W-2, or by checking with the previous employer directly. And even worse, it's common to do this after you've already accepted a job offer, which means that you risk having the offer pulled over the lie, even after you've already accepted it and resigned your previous job.

Ø  Not verifying your research. While online salary sites can seem like the most obvious way to figure out what to ask for, the reality is that these sites are often unreliable, partly because the job titles they list often represent vastly different scopes of responsibility - and besides, salary can vary widely by geography. Professional associations in your industry might do more reliable salary surveys, but an even better option is to talk to people in your field and bounce figures off of them.

Ø  Giving a salary range when you'll be disappointed if you're offered the lowest end of it. If you give a wide range like "$40,000 to $55,000," don't be surprised if you're offered $40,000, because that's what you told the employer you'd accept. Instead, choose your range carefully, realizing that the employer may only focus on the lower end of it. (This isn't too different from candidates who focus only on the high end of a range given by an employer and are then disappointed when they're offered the lower end of it.)

Ø  Playing games. While job search experts used to advise absolutely refusing to name a salary figure first, even if pressed, that advice often doesn't work today and can hurt your chances. If an employer is asking you directly what salary range you're looking for and you categorically refuse to answer, the employer is likely to just move on the next candidate, someone who might be willing to have a more open conversation.

Ø  Worrying that if you negotiate, the employer will pull the offer entirely. As long as you're pleasant and professional and aren't adversarial in your manner, a reasonable employer isn't going to pull your offer just because you try to negotiate. That's not to say that there aren't unreasonable employers out there who do pull offers, but it's rare and the sign of such a dysfunctional employer that you're typically better off not working with them. Sane employers understand that people negotiate.

Ø  Not considering factors other than salary. Obviously everyone has a bottom-line number that they won't go below, but it's a mistake not to factor in things other than salary. A generous retirement or health care contribution might mean that less of your paycheck needs to go to savings or health insurance. Conversely, a job where you'll be miserable might not be worth even a significant bump in salary.

Some More Points need to be take care:

Money can be a highly sensitive topic to discuss in any context, but even more so during the interview process. With a quality job on the line, you may hesitate to press a hard bargain for the salary you want.

A lot of people who are reluctant to negotiate who think they'll lose the job if they do. But hiring managers anticipate attempts by candidates to secure a higher salary, and talks can be peaceful and productive, as long as both sides respect each other's preferences.

Ø  Do your homework in advance

Before reaching the negotiation stage, research industry salary norms for the position you're applying for. Salary comparison websites such as Glassdoor and PayScale let you tailor your salary search by company, position, experience and city and request a personalized salary report.

Ø  For direct insight on how a company has handled matters of salary, contact a past or present employee through a mutual friend or social networking website like LinkedIn. Employees who have worked there are the best source of that information

Ø  Avoid or ask the question yourself If salary is raised during the early phases of the interview, it's best to table the conversation

Ø  A figure on the high end of the salary spectrum could leave you in the too-pricey category. But a low-end figure could lead a hiring manager to conclude you're too junior for the position.

Ø  To respectfully turn the tables on the inquiring hiring manager, recite the average salary for the position and ask if the company adheres to that norm.

Ø  Don't short change yourself

Your eagerness to work for the company could blind you to a raw deal. Most hiring managers avoid making their best offer right off the bat. Hiring managers have a range that they're working within, and they want to have some wiggle room in case the candidate wants to negotiate.

Ø  Unemployment shouldn't soften your stance

You may think being jobless puts you at a severe disadvantage or eliminates your leverage. People feel that they can't ask for anything because they're unemployed. While you may feel like you're bargaining from a position of desperation, remember the value that you bring to an organization compared to another candidate is the same regardless if you're currently using your skills.

Ø  Take other perks into account

A salary coupled with other financial incentives could put you on par with or surpass what you're currently bringing home.

Ø  Start-up companies in particular, will partner salary with various forms of equity such as restricted stock units, shares, performance shares and options. If a financial stake in the company isn't offered, you might want to negotiate some things that are not directly related to the position but will make it a better offer for you.

Ø  Picking up the tab for your Internet or cellphone bill and membership fees to professional associations are benefits that can sweeten the pot. More vacation time, the option to work from home, relocation benefits and career counseling for a spouse who's recently lost his or her job are other items you can request.

Ø  Be delicate, but convincing, in your dialogue

Approach the talks, like a long-term romantic relationship that you care about and don't want to trample on. Opt for carefully calibrated words rather than desk-pounding theatrics. You can't be demanding - you have to be persuasive.

Ø  Emphasize your value

Having attracted the company eye with your resume, bring the document's words to life by detailing how you're different from the pack. You want to be talking about what you've done successfully in the past and how that's transferable to the new position.

Ø  Leave nothing to chance

Presuming a positive company review six months or a year after being hired, you calculate you'll gain later what's been lost upfront. With the expectations of a pay raise, you take a no-need-to-negotiate mentality. Do not have such assumptions, especially if the prospective employer is a large corporation. If it's a large company, the chances of getting an earlier review are lower than if it's sort of a smaller company that maybe has more flexibility and less rules.

Ø  Rule nothing out

      Even after lowering your initial price tag, the company comes back with its original offer. The burden of a decreased paycheck, particularly if you have a family or live in an expensive city, may be too much to bear. But the duties of the job would enrich your skill set in a way your current job never could.