lunch where talent is concerned. The relentless downsizing of the past two decades produced “lean and mean” companies where every single person’s talent and contribution counts. The proliferation of popular management books extolling the team-oriented approach to profitability also brings home the truth that human resources are the most valuable elements in a successful enterprise. On one hand, employers understand that they have to pay quality prices for quality personnel. On the other hand, since they are successful business people, they try to get the best quality for the lowest price.
Their job is to make good business deals. Your job is to see that they recognize your quality and pay you your best price. If you don’t, it can cost you thousands of dollars and a big chunk of your self-esteem.
Let me show you how much better your working life can be when you do it the right way.
Figure 1-1 . Entrenched in the Vicious Cycle
The Difference between Vicious and Virtuous Cycles
First consider the vicious cycle. Mr. Drone is overworked, underpaid, and undervalued. His attitude is less than 100-percent enthusiastic and his work of course shows it. His co-workers notice it, too, and the boss is secretly glad she didn’t give that extra 10 percent because, after all, Drone is performing only adequately.
“Raise?” she says. “Clean up these performance reviews and we’ll consider it.”
Maybe Drone says, “I quit!”
Perhaps the boss retorts, “You’re fired!”
Or maybe Drone just quietly shuts down. He does his job absent-mindedly, waiting for the moment when he, Walter Mittylike, can walk out on the place on the busiest day of the year. “Then they’ll miss me,” he says. “They’ll be sorry!”
Sooner or later, one way or another, Drone is out the door. To be polite, his employer gives him an innocuous letter of recommendation damning him with faint praise. Drone and his ego, a little worse for wear, hit the job market wondering, “Am I really worth that extra 10 percent?”
He sheepishly exaggerates when interviewers ask, “What was your last salary?” And since they weren’t born yesterday, they pick up that Drone either didn’t make that much or isn’t convinced he was worth it.
A few desperate weeks pass. Drone’s ego, once tall, is now barely crawling into interviews. Finally, someone offers him a job! Not quite what he expected, but it beats unemployment, and maybe this employer will notice his value and give him more money later.
The vicious cycle begins again, a little more entrenched.
Ms. Worth
Now consider the virtuous cycle, the story of Ms. Worth. She negotiated for top dollar in her first position. Her boss knew Worth was expensive, but convinced himself she was worth it, and placed serious responsibilities in her job. Encouraged by her boss’s trust and challenged by the work, Worth extended herself, putting out 120 percent while tucking success after success under her belt.
Figure 1-2 . The virtuous cycle of Ms. Worth.
The 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,”