The finance industry is highly competitive and as such negotiation should be one of your well-polished skills. Negotiating in person may land you the job, provided you know what you’re looking for and what the position is about. Nevertheless, stand your ground when it gets to the salary discussion. You never know what may come out of it.
Be prepared on position and company
Before getting to the interview make sure to have thoroughly researched the firm. The better prepared you are, the more chances you stand to win in the negotiation. Never approach a new employer without finding out how much the market pays for the position offered based on your experience and qualifications. An online research will be extremely helpful as well as talk to professionals and recruitment consultants. Use any data that can be helpful to justify your opinion.
Provide a range
Once you know what the market considers reasonable for your position and qualifications, provide a range that involves your current salary in that bracket. Depending on what your employer suggests and what you are willing to accept, make sure to include your most recent earning level in the suggested range. Otherwise, you stand no chances to negotiate because of a too-high salary requirement.
Never start a salary discussion
Do not initiate the salary discussion early on in the game. This will expose your inexperience and will make your employer believe that you are more interested in the salary than in the position per se. Let the employer talk about salary first. Employers ask about your most recent salary to screen you out and narrow down the list of applicants. Do not fall into this trap. Let them quote a figure and negotiate from there. It can only go upwards.
Don’t use the last salary as a hook
Most candidates are bullied by the hiring manager, who will try to match the new offer to your last salary. However, this won’t give you a fair market correction. Also, do not negotiate on the grounds of how much money you need. Make your hiring manager realize why you would be an asset to the firm and why you deserve a better deal.
Present a solid value proposition
Sometimes, you may go well prepared for an interview and still fail to negotiate. Some hiring managers expect you to prove what you’re worth. In other words, it’s not just enough to say you deserve a better deal; you have to present a solid value proposition. If the firm finds that you possess a higher perceived value, they will negotiate a better salary. But, it’s up to you to strengthen your negotiating position by presenting facts that support your value proposition.
Never accept the first offer
A research conducted from Salary.com reveals that only 20 percent of candidates don’t consider the first quote after they receive a job offer and they practically negotiate. In fact, the Society of Human Resource Management found that nearly 80 percent of participants in a poll have answered that they didn’t like to negotiate employment terms. Furthermore, female candidates find it even harder to negotiate than their male peers. According to Linda Babcock and Sara Laschever, authors of “Women Don’t Ask: Negotiation and the Gender Divide,” women feel more than men “a great deal of apprehension” about negotiating, whereas only 30 percent of women report that they “always” negotiate their salary as opposed to 46 percent of men.
Accept only offers in writing
Get every commitment in writing. If the hiring manager offers a review in six to ten months and a guaranteed bonus of 15%, do not accept it. Obviously, the firm is trying to eliminate you or is looking for a better candidate or they have no intention to follow up on their promises. Nevertheless, accept only offers in writing. And do not leave your current job until you have signed a written offer.
Know your options
If you don’t like the offer, know your options. The best deal is to have a backup plan so that you can negotiate without fearing that you will lose everything if plan A fails. Take a fair compensation structure and try to stand your ground. Do not leave your job until you manage to get a new one. Be confident during the negotiation process.
All in all, negotiating your salary in the finance industry can be challenging. There are many candidates out there who share similar characteristics and knowledge and you have to figure out if there is truly an opportunity for you in the position under discussion. On the other hand, appearing overconfident can break your strategy to meet your long-term goal, which is to get hired.
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