In the job search process, this area is perhaps the most misunderstood and confusing. Frequently, job seekers are so pleased just to get an offer that they end up accepting much less than they are worth. In some government positions or hourly wage positions the wage level is fixed. However, in most circumstances the salary will fall within a range. The employer has the flexibility to offer the high end of the range to get the person they desire. Assuming you have reached the point where the company wants you—how do you obtain the maximum?

Knowledge is the key ingredient to successful salary negotiations.

Before you enter into negotiations, you should conduct as much research as possible to get your best estimate of the current salary range. Also develop an understanding of the different elements of a salary package (and what they are worth). Finally, analyze your own needs so that when an offer is made, you can make an honest decision if it is satisfactory.

Visit your library: Federal, state and local governments frequently publish wage and salary surveys for hundreds of different types of jobs. Industry and trade associations also publish surveys for positions unique to their area. By comparing government surveys for your region and trade surveys for the industry, you can quickly develop a good picture of the salary range.

Search Firms and Employment Agencies: Call or visit the employment firms. In the search process you may have already established a contact within these firms. Do not reveal the company you are negotiating with, but ask what the salary range is for the job description. Also ask what makes up the typical salary package.

University Placement Offices: They probably have about the same information that you can find in the library. Depending on the size of the school, its database may be even greater than the one at the local library (and more readily at hand).

Industry and Company Contacts: Contact friends in the industry or perhaps even in the company where you have applied. They may have first-hand knowledge of the company organization and salary structure—or they may know how to obtain some information for you.

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Car Expense: Depending on the circumstances, this benefit can be worth up to $12,000. annually. Negotiations centered around company car vs. personal car, mileage, maintenance, and insurance.

Continued Education: Will the company contribute to any additional education? What percentage? Grade requirements? Time off from work? Some companies require a non-termination contract. In other words, if the company agrees to pay for your education, then you must agree to stay with the company for "x" number of years or you will become liable for the expense.

Vacations: Depending on your level, this can be negotiated. What is standard policy? Can it be accrued from year to year? Restrictions on when it can be taken? Does it suit family requirements?

Expense Account: Exactly what is allowed and what is your responsibility. Review expense allowances with your accountant.

Salary/Performance Review: How often are reviews conducted and by whom (i.e., your immediate supervisor or the personnel manager). Are salary adjustments made on the basis of merit, cost of living, or both?

Relocation Expense: Will the company reimburse you for relocating and to what degree? If they do not, check with your accountant, the expenses may be tax deductible.

Interview Expense: If you had to travel a considerable distance for the interview and incurred transportation and hotel expense, most large firms will reimburse you. Prior to traveling for an interview, ask the company about their policy.

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From your financial budget, you should know where you stand. Don't accept a job that doesn't meet your minimum requirements. If you do, you will soon face financial difficulties and only become frustrated in your job. Through your research, define the maximum that can be expected for the position. Establish a realistic target based on your abilities. Determine the rock bottom offer that you would accept if all else fails.

Principle: One standard, used by a number of employment counselors, is the 40/20 principle. In essence, the rule says that you should never leave a position for anything less than a 20 percent increase in your current salary. Anything less and you will be losing ground due to loss of seniority and hidden costs associated with a job change. A 40 percent increase should be the maximum you can reasonably expect in a job change. The only exception is if you have acquired a special skill or knowledge that warrants a significant jump.

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Avoid discussion of your former salary.

"As I was in a different industry with somewhat different responsibilities, I would prefer to discuss the value of this opportunity. What is the current range of salary for this position?"

"I would not like to influence our discussion by trying to compare this job with my former company's compensation package. Let's discuss your salary range and other benefits and I am certain we will come to an agreement."

If the interviewer persists along this line, indicate the approximate total value of your compensation package including all benefits. You want to begin discussions from your highest income point.

Attempt to have the employer make you an offer rather than indicating what you expect or require. You might be pleasantly surprised; the offer you receive may be higher than your target.

"Based on my qualifications and experience, what salary level do think is justified?"

If the interviewer insists you state your requirements, than fall back on your research. State an amount that you believe is at the top end of the range and is in line with your experience. Don't shoot too high over the range or you just may talk yourself out of a job. Depending on the interviewer’s response, you may have to compromise somewhat. If he accepts your requirements, complete benefit negotiations and then go out and celebrate.

If the interviewer makes you an offer that meets your target, don't jump out of your chair with excitement and immediately accept. Pause, with a moment of contemplation. Wait for the interviewer's response . . . it just may result in an increase. It the offer is firm, indicate that it sounds reasonable and then negotiate the benefits.

If the offer is at or below your minimum, with some concern indicate that, based on your qualifications, you believe that a somewhat higher offer would be justified and wait for a response. If there is no movement, indicate you would like some time to consider their offer. Evaluate based on other possible job offers or opportunity to grow in this position. If it is below your minimum, don't accept it.

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Lower Pay/Growth Opportunities. Evaluate this carefully. If you accept the minimum salary that you can live with, ask what the realistic expectations are for growth. If the opportunity for growth is excellent, it may be wise to accept this position even over a higher paying one.

High Pay/Limited Opportunities. This also requires careful evaluation. The money might sound good, but do you want to be stuck here for a considerable period of time? You may want to accept with the realization that in a few years you will begin another job search.

Multiple Offers. Do not play one company against another. It is a small world, and this practice is frowned upon. However, there is nothing wrong with evaluating several offers if you have the time, and then selecting the best one. Do not wait too long before accepting an offer if you are interested. Delay may cost you the job.

Accepting the Offer. First, get the offer in writing if possible. Upon acceptance, if you do not have a written offer, confirm the offer in a letter of acceptance. Your letter of acceptance should include the base salary and the terms of the benefits. This could prevent any misunderstandings from occurring.

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Now that you have found your job, don’t throw everything away. Send out appropriate thank-you notes and continue to develop good contacts. It is a great way to build friendships and provide security and opportunity for the future.

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