the compensation aspect of a job is undeniably one of the most embarrassing and awkward phases of the job search process. For many graduates, salary negotiations can be a difficult experience.

BY ADELINE CHUNG

How do you negotiate a higher salary or improved fringe benefits if, as a recent graduate, you have little or no experience?

The answer is that while you do not always get what you want, it is important to understand the negotiating process and how it works. Start integrating yourself into a more active role, be in control and hopefully get a better compensation package. The art of negotiation is based upon mutual agreement of issues, not confrontation. The end result should be a win-win situation for both parties.

A great deal of care is required when you are negotiating with your prospective employer. It is best not to appear greedy; rather, project yourself as someone who wants a fair level of pay for a fair day’s work. Negotiations may well founder over your salary and a certain amount of tact, skill and diplomacy may be required to get the best deal for yourself.

What affects your salary negotiation?

While salary negotiation begins after the interview process, it really starts with the initial job application stages i.e. resume, cover letter and interview. Because it’s what you tell the company about yourself, your accomplishments and what you can do for them that will increase your value when the time comes to offer you a job. Use active words in the interview to describe your accomplishments such as: I initiated, I oversaw, I created, I took charge of, I followed up on, I actively contributed to, and I developed. The ability to handle details, multiple projects or excellent time management and follow up skills will also contribute to your value.

At the interview stage your resume will form the basis of an employer’s questions. So, if it does not convey a highly favourable impression of you, it will severely hamper your salary negotiations. In fact, a good resume could add 10% or more to your next salary, as it will convey your full market worth to the employer.

The impression you give of yourself at the interview will play a major part in determining your salary. Make sure that you are smartly dressed and well groomed. You should prepare thoroughly beforehand. In addition to preparing for the actual interview itself, you should also prepare for the salary negotiations as well.

Steps to Smart Negotiation

1. Be prepared. The more information you have about your market value and the prospective employer, the greater your likelihood of success. Being prepared is the first commandment of a successful job search.

This stage should also include comparative research on prevailing salary trends so you do not under-price or overprice yourself out of the market. So how do you conduct a salary survey? Inquire from friends, network contacts, professional associations or other job seekers. You may also give your school career centre a try, as well as trade publications and job websites.

Conduct a discreet study of the hiring company as well. Ask from inside contacts if you have them, visit its website or gather company brochures or profiles. This should help you in developing your desired salary spectrum. Time spent learning how to negotiate and preparing for negotiations may be the best investment you will ever make.

2. Recognize that employment negotiations are different. When the negotiations are over, you will have to work with the person with whom you are negotiating. Moreover, your future success may depend on that person. So, while you want to negotiate the best possible deal, you need to do so in a way that does not damage your image. At the same time, the employer’s primary concern is not negotiating the least expensive compensation package it can get away with.

Rather, the company’s focus will be on getting you to accept the job. Even in a weak economy, a prospective employer wants you to feel good about taking the position.

3. Never lie, but use the truth to your advantage. It is not only wrong to lie, but in employment negotiations, it is ineffective. If you lie during negotiations, sooner or later you are likely to be caught. Once caught, even if you do not lose the offer, you will be at a tremendous disadvantage, and your credibility will tainted.

On the other hand, total candor is seldom rewarded. You are under no obligation to blurt out everything you know. You can determine what you want to say and how you want to say it, and try to put everything in its most positive light. One key element of preparing should be to recognize areas of concern so you can rehearse how to handle them when they inevitably come up.

4. Understand the role fairness plays in the process. The guiding principle for most employers when negotiating is fairness. Within the constraints of their budget and organizational structure, employers usually will agree to anything that’s fair and reasonable to hire someone they want. Appeals to fairness are your most powerful weapons. Thus, you should be able to justify every request you make in terms of fairness.

For example, if salespeople in other companies in your industry are typically being given expense accounts, you can expect to receive one as well. Your prospective employer will want you to accept its offer and feel that you have been treated fairly. Understanding the importance of fairness as a negotiating principle can make the difference between success and failure.

5. Use uncertainty to your advantage. The more information you convey to a potential employer about your bottom line, the more likely it will limit what you get. Before making an offer, a company typically tries to learn what it will take for you to accept the position. With that information, the prospective employer will be able to determine the minimum package it needs to offer.

An employer may not offer you as little as it can get away with. However, if you have divulged too much information, your offer will likely be smaller than it would have been otherwise.

6. Focus on your goals, not on winning. Too often in negotiations, the act of winning becomes more important than achieving your goals. It is important not to make your future boss feel as if he has lost in the negotiations. You will have gained little by negotiating a good deal if you alienate your future boss in the process.

7. Know when to quit bargaining. The one sure way to lose everything you have achieved is to be greedy. There comes a point in every negotiation when you have gotten everything you could have reasonably expected to gain. While most companies will want to treat you fairly and make you happy, few companies want to hire a prima donna. Being perceived as greedy or unreasonable may cause the deal to fall apart. Even if it does not, you will have done immeasurable harm to your career.

8. Never forget that employment is an ongoing relationship. Job negotiations are the starting point for your career with a company. Get too little and you are disadvantaged throughout your career there. Push too hard and you can sour the relationship before it begins.

The Negotiation Part

Try not to be the first to mention the issue of compensation so as not to shortchange yourself by inadvertently revealing a low salary expectation. If the salary question comes up soon, ask if you can discuss this later after the responsibilities for the job have been discussed. However if pushed into a corner it would be best to give a credible range based on the research you have done prior to the interview.

Below is an example of a salary offer and your possible responses to it. To avoid sounding arrogant or demanding, experts suggest framing your response in question form.

“The salary is SGD 1,500 per month,” the employer says.

You might reply:

--”I am keen on building a career in this company, I really believe I could contribute, but I have other options in the SGD 1, 700 to SGD1, 800 range (say this only if true). Is there a way we could work this out?”

Or

--”I understand that fresh graduates in this position are receiving SGD 1,600 to SGD 1,800. As I have this set of skills, I would like to be making SGD 1,700. Would that be possible?”

The important thing to remember in giving your answer is to quote a range of salary scale based on your research and personal needs -- after you’ve made a convincing pitch that you are worth that much. Here, variations of the salary question :

· How much do you hope to receive?
· What kind of salary do you think you’re worth?
· Do you believe people in your occupation should be paid more?
· We can’t pay you what you think you should get.
· How do you feel about this?

Employers can raise objection to your salary request, citing your lack of experience, low salaries of other employee, budget constraints and fixed range for new hires. You can best enquire the range that they are looking at and what it would take to get to the higher level.

After thoughts

Salary ranges for most entry-level positions are set and leave you little room for negotiation. However do not forget that there may be other compensatory factors besides salary. These may include: medical and dental cover, life and disability insurance, travel opportunities, bonuses, relocation allowance, stock options, and profit sharing. There is always more than one way to measure success and ensure compensation. Promotion possibilities should be considered as a compensatory factor.

Sometimes fresh graduates go for the highest pay offer, much to their regret later when they learn that they have no room to move vertically. If you cannot get the initial basic salary you want you may be able to persuade them to increase your salary level after a period of time. Once you are hired, do your job well and continually seek out new challenges. As you take on added responsibilities and learn new skills, there will be opportunities to negotiate further improvements.

Click here for jobs on JobsCentral!