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When the job offer is on the table, the time has come to negotiate a compensation package. The company is emotionally invested in you, believing that you will benefit their team. To vindicate their investment of time and resources in their employee search, securing you as an employee becomes their goal. All this means that the employer is willing to spend more on you than she would have been at the end of the first interview.

The prospect of negotiating the terms of employment surges through some like adrenaline and others like an imminent fainting spell. If you do not tend to get the results you want from negotiations, or the mere prospect of discussing money makes you squirm, consider these guidelines for more effective negotiation.

Know what you are worth.

You can almost guarantee that the person negotiating the terms of employment on behalf of the company knows your value. When you begin negotiations, you should also know how much your work is worth. Using internet resources, do research on the salary and compensation ranges for comparable jobs in the area. Be sure to use sources that account for differences in cost of living between cities. Glean information during interviews and from your network of sources that indicates the relative value of the position in the company. Are you applying to be a CFO or an entry-level accountant?

Set a clear goal.

Studies on negotiation consistently show that people who set clear and aggressive goals achieve more favorable settlements than those who aim low or do not set goals at all. If you want a salary of eighty grand and a total package worth 100 grand, shoot for it by throwing out an anchor worth more than 100 grand. Visit http://www.careerberg.com

Set a walk-away price.

You know your own financial goals, responsibilities and liabilities. If you cannot take anything under seventy grand and still make sense of accepting the position, do not pretend that you can. Your walk-away price depends not only on your financial needs, but also on the attractiveness of your alternatives to accepting the offered position. If you are currently making sixty grand and there are no other offers finding you, settling at sixty-eight grand might not be a bad idea. If, on the other hand, you have been offered a position for seventy-five grand and a generous benefit package, sixty-eight grand seems less reasonable.

Use fairness as your standard.

The idea of fairness strikes a cord in most everybody, even though people have differing perceptions of what that means. Obtaining a compensation package that both you and the employer consider fair is particularly important since you are entering into an ongoing relationship. If you discover four months into the job that you are making twenty percent less than your counterparts, your enthusiasm for your new job can sour. If your employer feels like you bullied him into a costlier package than the company authorized him to offer, he could easily become resentful toward you.

You must be able to make a case for why your self-serving version of fairness is appropriate. Are you worth more than most people because you have more experience or because you have a track record of attracting big clients? Perhaps the rationale for your standard of fairness has little to do with you personally, and everything to do with asking for the median market value of your work. Maybe you are asking for a salary that is commensurate with others performing the same role in the company. Remember: if your negotiating counterpart makes concessions, she needs to be able to justify her concessions to her boss. Reciprocally, it is helpful for you to identify what your employer considers fair.

Identify all your interests.

Both you and your employer probably have concerns or aspirations that are not strictly monetary. You might want CFP training without having to pay for it. The employer can satisfy this interest in more than one way: by building a cushion into the salary that would cover schooling costs or paying for the schooling on your behalf. You might also want one flex day per week or the ability to work from home a few times a month. You may value being able to leave by five o’clock consistently to pick up your children, rapid promotions, a gym membership or full health care.

>Before you walk in to the negotiation, prioritize your various interests and identify places where you are willing to trade one thing of value for something else. Is the salary more important than stock options? Is a gym membership more important than a review and likely promotion in six months?

When you negotiate the terms of the deal, discover what your employer’s various interests and reveal your own insofar as this would benefit you. Maybe the employer cannot go above sixty-five grand and still maintain equity of salary within the company. Find out whether the negotiator has full decision-making capability, or if he is representing someone else who makes the compensation decisions. Your employer may be able to offset a concession on your part by paying for your education, offering stock incentives, or giving you a signing bonus. Be creative.

Compete and Cooperate.

If your counter-part is using hard-ball tactics like being forceful, brisk or patently stubborn, you will do better not to lie on the ground and wait for him to stomp on your back. If you encounter someone who wants to play hard-ball, respond strategically. Do not allow the person to bait you. Remember your goals and why your requests are fair. Withhold information that might weaken your position. On the other hand, if your counterpart makes a concession, it is important that you also appear cooperative. You might need to make a concession as well. Negotiating is not about winning, so much as it is a dance towards a certain goal. Each person makes moves with reference to the moves of the other person. When both people dance together, it becomes less likely that either person will suffer bruised toes or damaged egos.

Whether you’re new to job-hunting or a seasoned pro, whether you love the art of salary negotiation or dread it, the truth is that knowing salary negotiation tactics — and avoiding salary negotiation landmines — are key to obtaining the job offer you seek and deserve.

While much is written about the tactics of salary negotiation, this article focuses on negotiation techniques you want to avoid — salary negotiation mistakes that could result in a much lower job offer — or worse — losing the job offer you worked so hard to obtain. These 10 mistakes can be easily have been avoided by following the advice in this article.

1. Settling/Not Negotiating. Probably the biggest mistake you can make is simply deciding to settle and accept whatever offer you receive. Research shows that younger job-seekers and female job-seekers often make this mistake — either from not completely understanding the negotiation process or from a dislike or discomfort with the idea of negotiating. Settling for a lower salary than you are worth has some major negative financial consequences — you’ll earn less, receive smaller raises (because most raises are based as a percentage of your salary), and have a smaller pension (since pension contributions are usually a percentage of your salary). But settling for an offer that you feel in your heart is too low will not only set you back financially, but also eat at you until you finally begin to seriously dislike your job and/or employer. Of course, in certain professions (like sales), it is expected you’ll negotiate your salary.

2. Revealing How Much You Would Accept. Information is the key to any kind of negotiation and a common mistake job-seekers make is telling the employer what you’ll accept. Sometimes it is hard not to offer this information — especially if the employer asks for a salary history or salary requirement. Some employers will also ask — in a preliminary interview — what salary you’re looking for. In all these situations, you need to carefully decide how you’ll handle the situation. The earlier you give up this kind of information, the less room – if any – you’ll have for negotiating a better offer when the time arrives. Always try to remain as noncommittal as possible when asked about your salary requirements too early in the interview process.

3. Focusing on Need/Greed Rather Than Value. A very common salary negotiation error is focusing on what you feel you need or deserve rather than on your value and the value you being to the prospective employer. Employers don’t care that your salary won’t cover your mortgage or student loan payments or even your living expenses. If you plan to negotiate a job offer, do it based on solid research (see next mistake) and a clear demonstration of your value to the organization. Don’t ever tell the employer that you need a certain salary.

4. Weak Research or Negotiation Preparation. With the number and variety of salary resources available online — from salary.com and salaryexpert.com to professional associations — there is no excuse for you as the job-seeker to not know your market value. Of course, you should also attempt to conduct research on your prospective employer — their historical salary levels, negotiation policies, performance appraisals. Even if you decide you don’t want to negotiate salary, you’ll have a better understanding of the market for your services — and your value in that market.

5. Making a Salary Pitch Too Early. The longer you wait, the more power you have. Yet, there are many job-seekers who jump in too early in the process and ask about salaries and compensation. The ideal time for talking salary is when you are the final candidate standing — and you get the job offer. It’s at that point when you can ask more specifics about salary, bonuses, commissions, health insurance, and other perks. Asking at any point earlier in the process can be perceived as being too focused on money — and can also lead to you having to reveal what you would be willing to accept.

6. Accepting Job Offer Too Quickly. The job-search these days drags on longer and longer, and when you finally obtain that offer after weeks and weeks (and in some cases, months), it’s not unusual to want to accept it right on the spot. But even the best offers should be reviewed when you have clear head – and without the pressure of your future boss or HR director staring at you. Most employers are willing to give you some time to contemplate the job offer — typically several days to a week. It’s when you get the job offer that you have the most power because the employer has chosen you, so use that power to be certain it’s the job and job offer for you — and consider negotiating for a better offer if you feel that it should be better. Just remember that whatever amount of time you ask for is the amount of time you have to make your decision.

7. Declining Job Offer Too Quickly. Many job-seekers reject job offers very quickly when the employer offers a salary much lower than expected, and while in many cases you would be correct in rejecting the offer, it’s still best to ask for time to consider it before rejecting it outright. If the money is simply far below the average, you may have no choice but to reject the offer. However, if the money is good — but just not as good as you would like — take a closer look at the benefits. A big mistake is declining a job offer too quickly without looking at the entire compensation package. For example, some firms that have lower salaries offer larger bonuses or stock options or pay the full expense of health insurance. Remember, too, that you should be able to negotiate one or two elements of the offer to make it even stronger.

8. Asking For Too Many Changes in Counteroffer. If you have a strong interest in the job and the employer is a good fit, but the offer is not what you expected, you can consider making a counteroffer proposal. If you decide to make a counterproposal, remember that you should only pick the one or two most important elements; you can’t negotiate every aspect of the offer. If the salary is too low, focus on that aspect in a counteroffer. If you know the firm will not negotiate on salary, then focus on modifying a few of the other terms of the offer (such as additional vacation time, earlier performance reviews, signing bonus, relocation expenses). Just remember that you cannot attempt to negotiate the entire offer; you need to choose your one or two battles carefully, conduct your research, and write a short counterproposal.

9. Taking Salary Negotiations Personally. Whatever you do in this process, always stay professional in handling the negotiations. If the employer has made you an offer — then you are their choice, the finalist for the position — so even if negotiations go nowhere, or worse, keep in mind that you did receive an offer, even if it is not what you expected or deserved. And if negotiations break down between you and the employer, move on graciously, thanking the employer again for the opportunity — because you never want to burn any bridges.

10. Not Asking for Final Offer in Writing. Once everything is said and done – and you have received a job offer that you find acceptable, the last thing you should do is ask for the final offer in writing. No legitimate employer will have issues with putting the offer in writing, so if yours balks at your request and accuses you of not having any trust and tries to bully you to accept the verbal agreement, take it as a MAJOR red flag that there is something seriously wrong.

Final Thoughts
Following the advice in this article — and using other proven job-hunting and salary negotiation tactics — should result in a new job and job offer that is just what you were seeking.