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Employees often have many salary-related questions. What is the most tactful way to broach this sensitive issue? When is it appropriate to raise questions about salary? What do you say? How can you prepare to answer questions about your compensation requirements?

Traditional wisdom holds that when interviewing for a job, you should avoid salary discussions until the very last stages of negotiation. This rests on the theory that your prospective employer operates in good faith, that he or she will at least meet that market and that the offer honors your experience and credentials. However, this is not always the case. Even assuming good faith, the pressures of limited budgets, an uncertain economy or shifting organizational priorities affect how and when salary issues arise.

Increasingly, employers require a salary history and compensation requirements in the initial letter of application rather than during offer negotiations. Some employers use salary requirements as a basis to screen out otherwise qualified candidates early in the search process. Usually, economics plays a role in this strategy as an employer with a clear-cut budget may, rightly so, want to limit the review to affordable candidates.

If pressed to make an early statement about salary requirements, how should you as a candidate present your needs? Keep in mind you are balancing a number of complex factors. If you present too low of a range, you may be indicating that not only are you willing to accept less than a fair wage for your efforts but that you have also done so in the past. If you bid too high, you may be perceived as lacking in judgment, are unrealistic or even are greedy. The organization’s economics are also factors to weigh as you make your bid.

Additionally, psychologists tell us that multiple self-esteem issues can be embedded in the number you quote. There is data to suggest, for example, women executives routinely undersell their experiences and credentials. Also indicated in data is that passive personalities of both genders may be less inclined to “negotiate up”. Reluctant negotiators are also more likely to accept a prospective employer’s first offer. Age, experience and credentials are independent, critical factors influencing compensation.

Given all of these variables, you may be left wondering, “What is the most effective way to approach making a winning bid?” Research and homework seem to yield the best answers. If you know someone who works at the organization you are investigating, it may be worth your while to get some general ideas about how employees are compensated. This way, you can test your “range” against the company’s actual operating patterns.

If you do not have a personal contact, download the organization’s annual report, or at least visit its website, to figure out how compensation issues have been previously managed. Also useful is getting a sense of how its senior leaders are compensated. There are numerous sites on the Web where you may compare earnings of executives in key sectors including not for profit. GuideStar.org and the Nonprofit Times provide useful salary data. Be careful to compare your organization with others of similar size, mission and resources. Some large non-profits compensate their leaders as lucratively as many private companies. Others, particularly smaller start-up operations, do not begin to meet private sector salaries. These more modest operations may rely heavily on volunteer input to keep operations afloat. It is crucial to know where your organization fits on the industry spectrum. This knowledge then allows you to assess where your salary should lie.

Be sure you go to the negotiating table armed with up-to-date data about the organization you are ready to join. Know your own limits and how much you need to maintain or exceed your current standard of living. On its part, the organization making the offer knows its capacity to fully and fairly compensate you. In the end, it is the organization with sufficient resources that should have the benefit of your expertise.

Our in-house consultants can assist you with negotiating your new salary. Contact Karen Alphonse at Karena@execSearches.com or get more info and request a resume review appointment.

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Last updated on March 10th, 2010 at 03:30 pm

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