Negotiating your salary for a win-win solution

Pri Notowidigdo, The Amrop Hever Group, Global Executive Search, (e-mail: jakarta@amrophever.com)

When a prospective employer says "no" during negotiations over a salary, it may simply mean that he lacks the information needed in order to say "yes."

Thus, it makes sense in any negotiation to keep supplying proper information until an agreement is reached, and all alternatives have been explored. This is especially true when money is the issue.

By extension, the money you earn often not only affects your lifestyle, it also affects your self-esteem, identity, and how you see yourself progressing in your career.

From an objective point of view, consider the components of your current compensation.

These may -- or may not -- include medical insurance, a company car, travel allowance, cash bonuses, club membership, low-interest housing loans, and an entertainment budget, among a range of things.

You should also look at the negative side. Ask yourself, for instance, what it is costing you to work at your current job.

You might want to consider such things as taxes, insurance, car maintenance and petrol, toll charges, cost of living, reimbursable telephone charges, and other "tools of the trade" (like a personal computer, modem, fax, mobile phone, software, supplies, etc.)

Remember that these variables work both ways. For example, you may discover that a seemingly "low" offer from a prospective employer may actually represents an increase in real terms.

On the other hand, a "high" offer in a costly location may put financial pressure on you.

Most negotiations turn out quite well with little need for bargaining or creative financing. Sometimes, though, it takes a little imagination to satisfy yourself and your prospective employer.

What happens when your salary requirements exceed the published range for the position? Or lead to an inequity within the organization? Then, you've got a problem.

In fact, these types of salary equity issues are the problems behind most negotiations which stall for financial reasons.

To satisfy money matters, take the initiative and look for ways to increase your overall yearly compensation, rather than simply your annual, or monthly, base salary. One suggestion is a performance bonus to be paid after 90 days assuming that you have met clearly defined goals.

Another suggestion is an accelerated performance appraisal that would occur after three or six months, rather than after a year of employment.

The attraction of these options is the view that overall compensation consists of more than base salary alone.

I often see a candidate compare the elements of his current compensation package with that of the one offered by the prospective employer.

This approach limits the full potential and added value that the new position can offer in terms of career repositioning, new skills and knowledge acquired, new friends and business associates -- not to mention quality of life.

At the end of the day, ask yourself "what matters most in my life?" in terms of values, beliefs, and goals. Listen to your feelings and what makes sense to you, and let your heart guide you to make the right decision.