KEY POINTS:
Twenty-three per cent of employees either didn't negotiate their salary, or negotiated it only haphazardly, a survey conducted last year by Robert Half Finance & Accounting has revealed.
Not only that, but 50 per cent of employees believed the only way to gain more bargaining power in salary negotiations was to move to another company.
The people surveyed were finance professionals - people who are used to negotiating; they negotiate regularly to get their company the best deal from suppliers. Yet they weren't doing the same for themselves.
And with one in every two employees thinking they had to change jobs to get a better salary, think of the money, time and effort saved if they could get what they wanted without switching employers.
It can happen, and it all comes down to negotiating skills.
Whether you're negotiating for a salary increase or for your salary and benefits in a new job, there are four similarities:
* If you don't do your research, you won't get the best outcome
* Salary negotiations always involve some conflict - handling that conflict well is the key to getting what you want.
* Unless you decline a job offer, you will have to work with the person you are negotiating with - don't do or say anything you'll regret.
* It is possible to satisfy both parties - this is not a zero-sum game.
Many people believe they have most negotiating power when they are offered a new job, but the skills and tactics they use then also apply to annual reviews.
In both cases, they will be in a much stronger position if they have done the legwork.
PREPARING YOUR CASE
The survey revealed that 42 per cent of employees do not do any research before negotiating salaries. So how do they know what they're worth? It's true that few advertised jobs include an indication of salary or wage, and people generally don't like talking about what they earn. But it is possible to find out what the going rate is.
Many industries produce salary guides - find one for your industry and consult it. If there's a collective employment agreement covering employees doing similar work find out what it offers. Or you can go online to job sites and investigate their job resources sections - several have salary guides.
But the best way to find out what you're worth is to ring an employment consultant, preferably one specialising in your industry. They know what employers are offering, and most will be happy to let you know what the market rate is.
You will also need to prepare your case: Why are you worth what you're asking for? How will agreeing to it benefit the company? Put yourself in your employer's shoes - you know you deserve it, but your employer wants to know what's in it for the company.
Think carefully about what your deal breakers are, if you're negotiating for a new position, and what you are prepared to give away to gain what you really want. This involves more than salary - it also involves other benefits. List all the salary and non-salary benefits and decide what's important, and what's nice but not worth haggling over.
And finally, be realistic about your leverage. Certainly, when you have been offered a new job you are in a strong position, because this company wants you. But that doesn't mean you are irreplaceable - the company may be prepared to go with its second choice. Be realistic about the particular job market you are in.
THE NEGOTIATION
Armed with the evidence from your research, you can begin negotiating. When you are asked what you want, state your figure confidently. Don't give a range - you'll be offered the lowest figure you mention.
We handle conflict in five ways - three of which are counterproductive in salary negotiations. The first way of dealing with conflict - avoiding it - is what those people who never negotiate their salary are doing, and it gets them nowhere. If you want to progress, it simply isn't an option.
The second method - accommodating the other party's every request - is also unlikely to get you where you want to be. You might get a salary increase, but if you agree to work every weekend, accept fewer holidays, never ask for time off to attend the children's sports days and take work home every night, are you better off? The opposite extreme is to compete - to try to bully your counterpart into giving you what you want.
In a very, very tight labour market, you might get away with this - once. But what happens when the skills shortage disappears? Will you be secure in your job if your employer resents you for playing so hardball? Collaboration and compromise, on the other hand, are likely to bring a result everyone is satisfied with.
Compromise involves splitting the difference. Let's say you want a 5 per cent salary increase, and have produced all the evidence to show you're worth it, but your employer claims to be able to afford only 3 per cent. The obvious compromise is four per cent - suggest it and see what happens.
Collaboration offers even more possibilities, because you both try to solve the problem to one another's satisfaction. What happens if you offer to work together to identify the productivity increases necessary to justify 5 per cent, and then accept 3 per cent up front with another per cent once you reach the agreed targets? You have a chance to get precisely what you want, while your employer benefits from a more productive business.
FOLLOW UP
Wherever your negotiations lead, remain gracious. You may not have got everything you wanted, but if you have negotiated well you will have got what's important. And even if you decline the job, do so graciously - you might be interested in another job with this employer some day.
* Kim Smith is a senior consultant at Robert Half International.
