Salary Negotiation, Compensation,
and Job Offer Quiz -- Answers
by Randall S. Hansen, Ph.D.
Are you prepared handle salary and compensation negotiations whenever they arise during your
job interivews? Are you confident in your ability to negotiate the best salary job offer? Then go
take our
Salary Negotiation, Compensation, and Job Offer Quiz
to test your salary negotiation readiness before reading these answers.
I have conducted a sufficient amount of research to know what I am worth
(given my experience, skills, education, and geographic location) in the marketplace.
TRUE. Knowledge and information are the absolute power bases in salary negotiation,
which is why employers are always attempting to determine your salary history and/or
salary demands. Take the time to research salary levels, not only by job title, but by
industry, by geographic location, by level of demand for job-seekers with your skills.
Research the company's salary practices. One place to start looking for information
is in the salary calculators section
of our Salary Negotiation Tutorial.
To get the best salary offer, I need to prove my value to the company in
a way that leverages my skills and abilities over all other job-seekers.
TRUE. This strategy should be your goal the entire time you are job-hunting -- to
show you are uniquely qualified for the position. Once you are the final candidate,
the higher your potential stock and the greater your potential impact (or at least
perceived impact), the better job offer you will receive and/or negotiate.
A good starting point when thinking of a new job is to try to negotiate at
least a 20 percent increase over your current salary.
FALSE. Because salary is such a driving force behind so many job-seekers,
it's fairly easy to be blinded by the desire for a specific increase in pay from
what you are currently making -- and a much higher percentage than the typical
employer awards in annual raises. However, you need to look beyond your current
salary and focus on the demands of the new position -- and base your decision
on salary on sound research, not an emotional tug.
If I really want the job offer -- and I think the employer will make
an offer -- I should feel confident in raising the salary question first.
FALSE. Keep saying to yourself, the longer the salary discussion is put off, the
better my negotiation power. When it is down to just you and the employer, you
have much more power to command a better compensation package than earlier
in the process where the employer still has other choices in your fellow job
candidates. However, as we state in our
Salary
Negotiation Tutorial, you must be prepared for the salary discussion to
arise at any time in the interview process -- from the salary screening phone
call (or request for salary requirements) to the final interview. Also remember
that some employers take offense when a job-seeker appears too
presumptuous (or worse, money-hungry) by asking about salary too
early in the process.
Going into any interview situation, I should have a strong idea
of exactly the range of salary and types of benefits I want, given the
company, industry, and type of job.
TRUE. It may sound a bit like a broken record, but we cannot emphasize
enough that the rewards you'll reap from spending some extra time
conducting compensation research early in the job-search process.
Each job and each company will have a different mix of salary ranges
and benefits, depending on a number of factors -- and you need to know
those factors and know what to expect, what to negotiate, and what to accept.
I should avoid giving direct answers to salary requirements or
salary history when asked for them early in the interviewing process.
TRUE. Employers ask about salary history and salary requirements because
that's how they conduct their research on you - on what you've made in the
past and what you expect to make in this next position. Try to delay any and
all salary negotiations until the very end by avoiding these types of discussions.
Be forewarned, though, that ignoring such an employer request may lead to your
not being considered for the position, so tread carefully. Experts suggest masking
your specific salary requirements by stating that “you expect competitive or fair
compensation” or that your salary request is “flexible.” Read more in how to deal
with this issue in our article, Responding
to Requests for Salary Requirements or Salary Histories: Strategies and Suggestions.
When the employer raises the issue of salary or compensation
during the interview, it's a good sign the company is interested in making me an offer.
FALSE. Obviously, the later in the interview process that this issue is brought up,
the more true this statement becomes. Early in the interview process, however, interviewers
simply raise the issue of salary to test your reaction and try and gain valuable information
about you. Read more about how to deal with this issue at each stage of the interview
process in our Salary Negotiation Tutorial.
If the employer makes an offer that is acceptable to me during the
interview, I should accept it on the spot to show my commitment to the company.
FALSE. No matter how great the offer, it is always better -- as with any major life decision --
to set it aside for some length of time and then review the offer objectively, away from the
stare or glare of the interviewer. And if you have a significant other, it also makes sense
to discuss the full offer with him or her. It's also important to remember that your greatest
salary negotiation leverage is the time between the initial offer and when you accept the
offer. So, once back home -- and after some reflection - if you determine you do want to
see if the offer can be sweetened, you'll have much better chances if you have not
accepted the offer. Read more about this and other negotiation strategies in our article,
Job Offer Too Low?
Use These Key Salary Negotiation Techniques to Write a Counter Proposal Letter.
I should always request getting the full job offer -- the entire
compensation package -- in writing before making a final decision.
TRUE. All reputable employers want you to have full information about a job
compensation package before you make your final decision. Why would an
employer want to hide information, just to end up with a disgruntled new
employee, who brings down the morale of coworkers and others? Be extremely
wary of prospective employers who will not put the complete offer in writing.
One trick some experts recommend for job-seekers when the employer will
not put the details in writing is for you to write a follow-up letter to the employer
outlining the compensation package as you understand it. Finally, you should
also feel free to ask questions about any parts of the job offer you don't
understand; get clarification when you need it.
It's almost always possible to negotiate some aspect of a
job offer -- if not salary, then other compensation benefits or incentives.
TRUE. Most studies show that a large majority of employers are flexible on
at least some element of the compensation package -- even if salary is “off the
table.” On the other hand, these same studies show that only a small
percentage of job-seekers actually try and negotiate a better job offer. Of course,
there is some inherent risk of trying to negotiate with an employer who does
not negotiate, but even in those situations, the offer is rarely rescinded. Just
be sure you know the key rules of negotiating, as outlined in our article,
Job Offer Too Low?
Use These Key Salary Negotiation Techniques to Write a Counter Proposal Letter.
Salary negotiation should be treated like buying a car --
it's all part of a game employers and job-seeker play.
FALSE. One of the worst mistakes a job-seeker can make is to think for a moment
that salary negotiation is some kind of game, such as the haggling done when
buying a car. Salary negotiation is a serious business that can have a major impact
on your future earnings, but it has to be taken seriously and entered with the correct
attitude and frame-of-mind. Approach salary negotiation with a win-win philosophy;
that is, the best negotiated offer is one where both the employer and job-seeker are
happy with the results.
Even if the job I am offered is my dream job, if the salary offer is below my
minimum acceptable amount, I should decline the offer.
FALSE. There are a couple of issues going on here. First, if the job really is your
current dream job, then there may be some greater intangibles working here than just
the salary. Second, if this position is a stepping-stone (perhaps in a career-change
situation), then a lower salary might be acceptable in the short-term for the greater
payoff expected in the next position. Finally, from a salary negotiation standpoint,
you may be able to negotiate a higher starting salary - and if not a higher salary, perhaps
some other forms of compensation, such as a signing bonus or higher performance
bonuses. Read more about negotiable elements of a job offer in our article,
Job Offer Too Low?
Use These Key Salary Negotiation Techniques to Write a Counter Proposal Letter.
If the employer makes an unacceptable job offer, I should be prepared
to begin the negotiation phase immediately.
FALSE. Whether the offer is acceptable or not, emotions are typically more on
edge during interviews, and your strategy should be to thank the employer for
extending the job offer to you, and then asking for time to consider all aspects of
the offer. It's never a good idea to negotiate at the time of the initial offer. You'll
want the time to objectively look at the offer and decide whether it is even worth
attempting to negotiate with the employer.
If the negotiations seem stalled over one or more compensation
issues, I should give the employer an ultimatum to finalize the negotiations.
It is still possible for me to negotiate a better compensation package
after accepting the employer's original offer.
FALSE. Once you've accepted the offer, your negotiating power diminishes rapidly.
You can certainly attempt to negotiate, but you'll not only risk negotiating from a
weak position, but you may also be seen as someone who is not true to your
word or indecisive (or simply greedy) since you had accepted the original offer.
As we mentioned earlier, your strategy, once an employer has made you an offer,
is to thank the employer for the offer, express your interest and enthusiasm in the
job and the company, but ask for time to review the specifics.
To really get the compensation I want, I need to be a master negotiator.
FALSE. Perhaps this idea is the reason more job-seekers do not negotiate job offers.
You risk very little, but have much to gain - in future compensation, retirement benefits,
and various perks. Why spend all the time and effort to conduct the research on salary
and benefit information, if not to use it to your benefit. Have confidence in yourself and
your research. All you need to negotiate a job offer is to know the rules and etiquette of
negotiating; you do not need to learn how to be a master negotiator. And there should
be very little gamesmanship in negotiating, so it should not be intimidating or irritating,
as negotiating to buy a car is for many. And remember, you have two options when
negotiating, depending on your personal preferences and style; you can schedule a
follow-up meeting and negotiate face-to-face, or, you can write a
counter proposal letter.
I know when it's time to stop pushing and end negotiations.
TRUE. At least you had better know when it's time to call an end to negotiations
and either accept or decline the offer. What are some of the signs that the employer
is done negotiating? During negotiations, the typical response to your counter
proposal will either be acceptance of at least some of your terms -- or refusal to
negotiate at all. But once negotiations have successfully begun, here are the signs
the employer is done negotiating:
The employer has stopped responding to your counter proposals
The employer's concessions are becoming minuscule, if at all
The employer says “enough!”
It's okay, if I have two or more job offers, to get all the
prospective employers in a bidding war for my services.
FALSE. Remember that interviewing is kind of like dating. Both the employer and
the job-seeker are testing the waters, deciding how much they like each other and
whether chemistry is right. To bring another potential suitor into the mix is just
asking for trouble. You run the risk of quickly losing stature in the eyes of all the
employers who have an interest in you. Keep all negotiations separate. You can
certainly tell employers you are talking with other companies -- even as far as to
say you are fielding offers -- just do not go into specifics, and do not let the negotiations get messy.
If the salary offer is in my minimal range, and I'm told that salary
is "off the table," I should consider asking for a signing bonus to make up the difference.
While it's not required for all jobs, having a graduate degree in your field, with a specialization on international
issues, makes you a much stronger job candidate.
TRUE. What do you have to lose by asking? You stand to lose quite a bit more by
not asking for a signing bonus or some other form of compensation beyond salary.
And if the employer responds to your request by stating that the company does not
offer signing bonuses, what have you really lost for asking? Read more about
negotiable elements of a job offer in our article,
Job Offer Too Low?
Use These Key Salary Negotiation Techniques to Write a Counter Proposal Letter.
When an employer makes an “exploding” job offer -- one
with a specific time element such as “this offer is only good for the next 10 days” -- I
should feel free to ignore the time element as part of the negotiating process.
FALSE. When employers make these specific kinds of deadlines, they are quite serious
about them. Make your move within the timeframe -- to negotiate or accept -- otherwise
the offer will most likely be withdrawn. Why do employers use this tactic? It's often times
when job-seekers with similar talents are in high demand, thus forcing you to make a
choice between potential future job offers and the one you have before you. Of course,
it could also just be a power play by the employer -- and you may want to think twice
about working for an employer that is so controlling.
When reviewing multiple job offers, the offer with the highest
starting salary is always the best choice.
FALSE. The offer with the highest salary could be the best choice, but it is far
from always being the best choice. If you are lucky enough to be fielding multiple
job offers, please do not be blinded by salary alone. While salary is important in
the short-term, the other forms of compensation and benefits employers offer
may have a much longer and deeper impact than salary. Bonuses, stock options,
pension plans, low-cost insurance plans, relocation packages, flexible working
conditions, and other benefits may make salary not quite as important as
you think. Here's one example:
Comparing Two or More Job Offers.
Questions about some of the terminology used in this quiz? Get more information (definitions and links) on key college, career, and job-search
terms by going to our Job-Seeker's Glossary of Job-Hunting Terms.
Dr. Randall S. Hansen is founder of Quintessential Careers,
one of the oldest and most comprehensive career development sites on the Web, as well CEO of
EmpoweringSites.com. He is also founder of
MyCollegeSuccessStory.com and
EnhanceMyVocabulary.com. He is publisher of
Quintessential Careers Press,
including the Quintessential Careers electronic newsletter,
QuintZine. Dr. Hansen is also a
published author, with several books, chapters in books, and hundreds of articles. He's often
quoted in the media and conducts empowering workshops around the country. Finally, Dr. Hansen is
also an educator, having taught at the college level for more than 15 years. Visit his
personal Website or
reach him by email at randall(at)quintcareers.com.
