Silence is golden in pay wrestle
By Marcella Bidinost
The Age
When the offer's on the table, keep quiet and make them sweat, writes Marcella Bidinost.
Of all the things that should make you go "Hmmm", it's the precise moment when a salary offer is made, says US wage negotiation expert Jack Chapman. He calls it The Flinch and it goes a little like this.
"We'd like to offer you a salary in the range of $60,000-$65,000." Only repeating the upper figure, you respond with: "Sixty-five thousand. Hmmm." Then silence. That's right, silence for as long as you can bear.
"Typically, while you're stroking your chin and staring into the beyond, the interviewer will fill the silence with: 'What were you expecting?' or 'We can go a little higher' or 'Is that not worth it to you?' or 'Here's the reason behind it,"' Chapman says.
"At that point, if they're making you an offer, they want a smile on your face that says yes and they won't get that unless you get through that period of silence, of which the likely outcome is a raise."
While it sounds painful and a little staged, such a tactic is designed to give you time to consider the offer while putting pressure on the employer. And it's all, potentially, extremely worth your while.
The title of Chapman's book, Negotiating Your Salary: How To Make $1000 A Minute, comes from the theory that if you spend a minute or two or more on salary negotiations, it gives those numbers more chance of multiplying by thousands and ending up in your bank account.
That's along with, of course, a good dose of pre-negotiation research, including knowing your value, your market, the company and what you need.
Many salary experts agree that the exact point to negotiate a salary is between being offered the job and accepting it.
"That's your highest point of negotiation, so long as you negotiate in a professional manner," careers management expert and the chief executive of job website sixfigures.com.au, Kelly Magowan, says. Like any negotiation process, she adds, whoever shows their cards first is at a disadvantage.
If the salary isn't explicitly fixed, there's a good chance the employer will open salary discussions with the likes of: "How much will you require for this position?"
It's here that the experts suggest turning the table with: "What range do you have in mind?"
"And it's a fundamental mistake to accept the offer straight away," Magowan says. "Surveys suggest that 85-90 per cent of hiring managers do not make their best offer first and counter-offers are generally 10-15 per cent above the original offer, so never be overeager. Leave the recruiter guessing."
Chapman agrees: "When you have a deal you like, don't say yes yet. On the other hand, don't say 'maybe'. Give a conditional yes with enthusiasm. Your goal at this point is to give yourself time to think it over, to look at a contract, time to make sure you haven't forgotten or overlooked something but you don't want the employer to think you're not excited. Enthusiasm is what the interviewer wants to see and hear."
Magowan is particularly concerned about women's discomfort with salary negotiation and, as a result, how they can be overlooked and underpaid.
"Even when we do enter into a salary negotiation, as women we don't actively seek out the best deal for ourselves but rather look to a positive outcome for both parties."
In their book Women Don't Ask, Linda Babcock and Sara Laschever point to some revealing statistics on negotiation and the gender divide.
They say men initiate salary negotiations about four times as often as women and that women typically ask for and get, on average, 30 per cent less than men when they negotiate. In one survey, when asked to pick metaphors for the negotiation process, men picked the likes of winning a wrestling match while women picked going to the dentist.
"It's foolish not to speak up if you don't feel what has been offered is fair," Magowan says. "Nor is negotiating only on what has been presented. If there is the opportunity to introduce new elements to the negotiation, such as asking for a sign-on bonus, further education or even a golden parachute, then why not?"
Negotiating such fringe elements comes across less adversarial than settling on a salary figure and it's where good gains can be made. For companies feeling the economic pinch, you could even suggest delayed bonuses or pay rises for when times are good.
Assertive language is also vital, Magowan says. Rather than approach the salary negotiation discussion with: "Would you mind if?" or "Sorry, however, I was wondering," aim for: "I would like to discuss X with you today" or "Let's make a time now to ..."
Other tips include practising negotiation wherever possible (try it at the market, on a big-dollar purchase or with a teenager), taking control of your needs and avoiding being a victim of the process. If a recruitment agency is the go-between, Magowan recommends seeing whether you can deal directly with the employer on the topic of salary.
"The responsibility rests with you to negotiate your salary according to your worth in the marketplace," she says.
"If you don't feel the skills, education, experience and personal qualities you bring are of value to a workplace, or worth drawing attention to, then it is unfair to expect others to."
Published: 15 March 2009
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