When it comes to salary negotiation tips people are always looking for the hidden tricks to command the bigger bucks.  In reality this process is really not about learning any hidden secrets but understanding what makes up your compensation and some simple strategies to get maximum results from your salary negotiation.

When a company makes you a job offer there are usually 2 factors that impact the level of salary they offer you.  The first is the perceived value you will bring to the company and the second is how much they have budgeted for that position.  The first is a variable you have some control over, the second is one you have absolutely no control over.  In my experience interviewing and hiring I would often come across quality candidates who would be wonderful additions to my team but there salary demands just exceeded what was budgeted for that position.  Even though there may have been some flexibility, it was within a certain range and after that it was beyond my control.  However there are some simple things you can do to improve your chances of higher compensation.

Don’t be afraid to ask – There is a verse in the Bible that says “you have not because you ask not”.  A company may just be willing to bump your salary but you won’t know that unless you ask.  Please be realistic in your asking.  If a job is advertised with a salary of $50,000 you may be able to move them a few thousand dollars but keep it within reason.

Demonstrate your history of success – Your paycheck is often based on an expected level of performance.  Most companies don’t mind paying for results, but they hate overpaying for potential.  If you have a track record of successes throughout every step in your career companies will be willing to reward you for that, because you can help their bottom line.  If you have received any awards, great reviews, any press coverage for things you have done then bring these to the table.  This is your time to shine and if you have the goods don’t be afraid to let them know that.  It’s ok to be confident but don’t be cocky, because I hated cocky people when I interviewed and most people usually do.

Be willing to accept performance based compensation – I have spent over 15 years in sales and one of the things I have always loved about sales is I can determine how much money I make.  If you are confident in your ability to improve the performance of the company, then ask if a clause can be added to your compensation that if I improve performance by a certain percentage than that would result in either a bonus or pay raise, preferably the pay raise.  Remember companies don’t usually mind paying for results.

Negotiate the non-salary aspects of your compensation – Remember salary is not the only thing that makes up your compensation.  Vacation time, personal days and other perks make up this as well.  Maybe a company has a smaller budget and they can’t increase the salary but maybe they can give you an extra week of vacation or flex time to make up for the salary.  In some instances in my career I have traded more time off for a little less money and I really didn’t mind because I enjoyed the time off.

Another key factor in negotiation is how much do you really want the position and how badly do you want to work for the company.  If it’s a place you really want to work then its ok to start a little lower because you will have plenty of time to grow and increase compensation along the way.  As I stated in the beginning there are no tricks but confidence and good performance history will go a long way to getting maximum results.

Here are some additional thoughts on the topic:

Tips for a Successful Salary Negotiation
The Career Doctor
Negotiate Your Salary in a Down Economy