Salary Negotiation 

By Barbara Limmer

Director of Career Management Programs

Thunderbird, The American Graduate School of International Management

Seeking a better job or higher compensation? The time to plan your salary negotiation strategy is well before the interview. Give yourself leverage by researching salaries for your desired position and planning your approach in advance.

Before The Offer: Know Your Priorities and Needs

Part of your salary negotiation strategy is knowing your bottom line and your priorities. Ask yourself:

•  What income do I need to meet my financial obligations and preferred lifestyle?

•  Do the economic benefits of a higher paying job offset the potential disruption to my work/life balance?

•  Am I willing to take a cut in pay to live in a city or country or work for the company of my choice?

Do the Research

Now, assess market and cost-of-living data for your chosen industry and geographic area. Check out the following websites listed at the right for salary information, including surveys with compensation data by job function, industry and even city or country. Remember that salary is also a function of supply and demand. For example, all of these factors influence what companies are willing to pay for a particular job:

· Is the market glutted with candidates, or are you a sought-after commodity?

· Are openings in your field plentiful or sparse?

· Is the company lucky to get you because you require little or no training? Or, conversely, is this position a step up on your career ladder, requiring a steep (and costly) learning curve with low initial productivity?

In conducting your salary research, don't overlook one of your most valuable resources--people. Talk to others employed by the company you are considering, and talk to other classmates - especially if they're familiar with the company. Ask about the structure of the salary system, the company's compensation philosophy, incentive programs, benefits and possible executive perks. (Keep in mind that most perks and benefits aren't taxable in the U.S. , but salaries and bonuses are!) Taking all of this information into consideration, you should be able to identify a desired salary range that is both realistic and justifiable.

You Get an Offer. Now What?

Show enthusiasm for the offer, then listen carefully to the details. Ask when you need to respond - you should be given a few days at minimum, one or two weeks maximum to mull your response. During this time, evaluate what you know about the job and the company, and consider information you may be lacking. Are you familiar with:

· The job responsibilities

· The work environment

· Your span of control

· The bonus plan (is there one?)

· Whether relocation expenses are covered? What are the tax ramifications?

· Frequency of merit increases?

You may need to speak to the firm's Human Resources department to get answers. Ask your interviewer whom to contact for the information you need to make a decision. If this isn't the job you want, politely decline the offer, and don't enter into any negotiations. The quickest way to burn a bridge is to get what you

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