from the Amazon book by Mike McNamara "Your Struggle is Reel: Career Tips and Life Hacks from a Talent Management Guru"

One of the reasons that ‘the salary’ question is so dreaded in the interview process is that your answer is likely to frame the negotiating process, that is if you get that far. The reason for concern is that because the first number thrown out during a negotiation is called an ‘anchor’ and usually where the process starts. However, don’t get discouraged by this initial exchange because that’s not necessarily where it ends if you approach the process wisely.

The best place to start our conversation is to understand and acknowledge that you see salary as just one component of total compensation. Health insurance, vacation, PTO, clothing, hair, and make up allowances, relocation, sign-on bonus, mid-year reviews, year-end performance bonus, and retention bonuses are many other items that can be discussed as part of your negotiation.  We must also acknowledge that some of these items can be precedent setting and many organizations won’t budge because of the larger organizational impacts.  These benefits can be calculated if you slow down and take the time to acknowledge each add value to you, you will be taxed on them, and finally, they could add up to 30%-40% of your total compensation.

In the end, nothing is more powerful than a fact-based conversation about your value in the role and in the marketplace. If you’ve done your research, you have a fairly solid idea of what the market salary range is for the role. You also should know the mid-point of the range and where you sit to that mid-point in terms of experience and accomplishments.  I have literally taken a market/role salary report into a negotiation to establish what my expectations were for the role. Game. Set. Match. I haven’t encountered many hiring managers that insist that their lower than market value offer is competitive when you present them with the actual market data. The hiring manager is not alone in the process of putting your offer together. In fact, the hiring manager may have little or no decision on the compensation in the offer. If you hand over hard data to them about the market comp range and where you sit in the range, they are more likely to get involved in the process and advocate on your behalf. Remember, your hiring manager is the greatest internal voice you have at this point. They want you!

The two best sources for salary data come from PayScale.com and Salary.com, both of which are linked to on the TalentBlvd.com Resource Library tab. PayScale collaborates with third party payroll systems providers like ADP or Equifax as well as their own direct clients which could include your future employer, to help establish ranges for payroll based on experience, responsibilities, and the specific market.  They are literally collecting millions of live payroll records on a weekly basis. This data is accurate and timely. The only piece that might be open to interpretation is the definition of what is ‘the market’. Typically, it’s geography but you also might draw conclusion that DMA # is a better definition of market. Either way, you now have the same data they have when approaching a negotiation and no employer wants to be known as the worst employer in terms of total compensation.

Pro Tip: If you can’t find data on your market, look at DMA markets directly above or below the market you’re interested in. BUT, make sure you understand differences in cost of living like income taxes, housing, or utilities like water and electricity. Marry the PayScale or Salary.com data with a reliable Cost of Living calculator. See the Resource tab at TalentBlvd.com for more information and helpful links.

It’s widely believed that an agent can get you more money when it comes to negotiating your contract and that’s probably true. Why? They know what to ask for and how to structure a conversation around total compensation. All successful negotiations involve ‘gives’ and ‘gets’. If you give up something (like salary) you should be expected to gain an allowances or sign-on bonus (gets). Agents and people like me that have negotiated contracts for a living are looking for the win-win and it usually involves a lot of ‘give’ and ‘get’ conversation. Remember that some of the components of your total compensation are not negotiable. Understand going in what the employer may have flexibility to ‘give’.

The best agents understand the ‘give’ and ‘gets’ for each company they work with. When I approach a negotiation on behalf of a client, I’ve done my homework and built a fact-based case for what I expect on my client’s behalf. It’s fair and a ‘win-win’ for all parties. I have years of experience negotiating contracts, both large and modest. It’s from this experience that I’ve drawn an important conclusion.

I don’t believe agents that are going to ask for 8%-10% of your annual salary are going to get you enough to cover the expense of that agent’s contract when you are early in your career. In your first couple career roles, you’ll likely do better with a coach or mentor to help you through the process with a focus on crafting your conversations with the hiring manager. Hopefully you’ve read more about my insights on Talent Agents in a previous chapter.  

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