There are some basic commandments to help you negotiate the best possible deal in any economic climate when changing jobs. They are:
1. Be prepared. The more information you have about your market value and the prospective employer, the greater your likelihood of success. This is the first commandment because it's the most important. There's a wealth of information available on the Internet, at the public library and through professional associations and networking groups. Time spent learning how to negotiate and preparing for negotiations may be the best investment you'll ever make.
2. Recognize that employment negotiations are different. When the negotiations are over, you'll have to work with the person with whom you're 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 doesn't damage your image.
3. Understand your needs and those of the employer. To be successful in this type of negotiation, you need to examine your priorities. What do you really want? For example, are you comfortable with a low salary and a large equity stake? Are you able to handle dramatic swings in income from year to year? Understanding your needs also will help you determine the type of company you want to work for. By recognizing what an employer can do, you'll be able to determine what issues you should press.
4. Understand the dynamics of the particular negotiations. Sometimes you'll have skills that are in great demand. And sometimes, you may be one of several qualified candidates the company would be happy to hire. Sizing up the situation and understanding the relative position of each party will help you determine when to press your advantage and when to back off. Knowing when to ask is often critical to getting what you want.
5. Be creative. Consider the value of the total package. Look for different ways to achieve your objectives. Be willing to make tradeoffs to increase the total value of the deal. If you're creative, you can package what you want in ways that will be acceptable to the company. You'll also be able to find creative "trades" that allow you to withdraw requests that might be problematic to the company in return for improvements in areas where the company has more flexibility.
6. Focus on your goals, not on winning. Too often in negotiations, the act of winning becomes more important than achieving your goals. It's important not to make your future boss feel as if he's lost in the negotiations. You'll 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've achieved is to be greedy. There comes a point in every negotiation when you've 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 doesn't, you'll have done immeasurable harm to your career. This brings us to the 11th and most important commandment:
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're disadvantaged throughout your career there; push too hard and you can sour the relationship before it begins.
Understanding these principles will allow you to effectively negotiate the terms of your new job in good times and in bad. 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.
