Document 179301

Jack welcomes comments and questions about this book or careerconsulting work.
Quantity Order Discount: for information about discounts on orders of
25 or more copies of this book, contact the author directly. 847-251-4727
Contact information:
Address: Jack Chapman, 511 Maple Ave., Wilmette, IL 60091
Voice: (847) 251-4727.
Fax: 847-256-4690
E-mail: [email protected]
Website: http://www.SalaryNegotiations.com
© 1987, 1992 by Ten Speed Press.
© 1996, Third Edition, by Jack Chapman.
© 2000, Fourth Edition, by Jack Chapman
© 2006, Fifth Edition, by Jack Chapman
All rights reserved.
Printed in the United States of America
No part of this book may be reproduced in any form without the written
permission of Jack Chapman.
Illustrations by Karen Barrie
C.I.P. data on file with publisher
ISBN: 1-58008-310-2
DEDICATION
To all the clients I have worked with over the
years; I learned my craft by helping you achieve
your own career satisfaction and success.
CONTENTS
Chapter 1: Million-Dollar Blunders ............................................................... 1
C
h
a
p
t
e
r
2
:
A
i
m
i
n
g
f
o
r
W
h
a
t
Y
o
u
’
r
e
W
o
r
t
h
................................................. 11
Chapter 3: Salary-Making Rule 1: When to Discuss Money .................... 17
Chapter 4: Salary-Making Rule 2: Who Goes First .................................. 31
Chapter 5: Salary-Making Rule 3: Your First Response .......................... 38
Chapter 6: Salary-Making Rule 4: Your Researched Response ............... 64
Chapter 7: Salary-Making Rule 5: Clinch The Deal, Then Deal Some
More........................................................................................................... 70
Chapter 8: Special Situations ........................................................................ 93
Chapter 9: Evaluating And Negotiating A Stock Options Package......... 120
Chapter 10: Raises and Salary Reviews ..................................................... 133
Chapter 11: You Go First Perspective ....................................................... 148
Chapter 12: Practice and Coaching............................................................ 153
ACKNOWLEDGEMENTS
Special thanks for helping me create this book go to:
Janet Butler, my faithful salary-business companion, who
has goo gobs (one of her favorite words; you'll see it in Chapter 5)
of faith in the power of this book to make money for its readers
and has kept my shoulder to the wheel in salary-coaching
endeavors. She genuinely enjoys seeing people prosper.
Mary-Ellen Mort, M.L.S., who helped me understand the
intricacies of getting online salary information.
Marti Beddoe and Robin Sheerer, who have been this career
consultant's career consultants and cheering section.
Chuck Sterbis, my colleague in career consulting, who
offered strategic criticism about the methods presented here.
D
a
nF
e
l
i
x
,
“
T
h
eE
x
e
c
u
t
i
v
e
'
s
A
t
t
o
r
n
e
y
,
”w
h
op
e
n
n
e
ds
o
m
e
good advice about when to use a lawyer.
Anne Troy, whose technical editing vastly improved the
readability. She took me to places in Microsoft Word few tourists
ever see.
And most important, Karen, my wife, whose vision
encouraged me to go for it, and whose practical love and support
made it possible.
PREFACE TO 2006 EDITION
For 22 years, now, readers have been using this book to
negotiate wonderful salary packages.
A special thanks to the many many people who have taken a
moment to call me or email me their success stories. I always
appreciate hearing them.
To upgrade to the 2006 version, new names, addresses, and
s
o
m
ee
x
t
r
aw
e
bs
i
t
e
sw
e
r
ea
d
d
e
d
.H
e
r
e
‖
ss
o
m
ev
e
r
s
i
o
n
.
2
0
0
6
highlights:
Telecoaching. Readers have been so enthusiastic about
the results they got from my salary-telecoaching service
that I have included some examples in Chapter 12.
[
Y
o
u
‖
r
e
i
n
v
i
t
e
dt
o
e
n
l
i
s
t
m
e
p
e
r
s
o
n
a
l
l
y
a
s
a
c
o
a
c
hi
nt
h
i
s
regard, too. Check out chapter 12.]
Internet Salary Research section is expanded, offering
you several websites with reviews.
When to get it in writing is expanded.
Negotiating by Email. Readers asked how to handle
salary communication by email—my thoughts in
Chapter 8.
Achieving Financial Independence: At the end of
C
h
a
p
t
e
r
1
2
,
y
o
u
‖
l
l
f
i
n
di
n
f
o
r
m
a
t
i
o
na
b
o
u
t
af
r
e
er
e
p
o
r
t
on three ways to get out of the salary negotiating
syndrome altogether by achieving financial freedom
without changing careers.
T
h
i
s
e
d
i
t
i
o
n
i
s
s
u
p
p
l
e
m
e
n
t
e
dw
i
t
h
a
r
t
i
c
l
e
s
y
o
u
‖
l
l
f
i
n
do
n
m
y
website www.SalaryNegotiations.com.Y
o
u
‖
l
l
a
l
s
of
i
n
du
p
d
a
t
e
s
o
n
internet resources and other goodies. The password for some of
that information is BoughtTheBook.
Chapter 1:
Million-Dollar Blunders
Calculating the Dollars You Can Make, or Lose, in Those Sixty
Seconds of Negotiations
We
s
p
e
n
d
y
e
a
r
s
t
h
i
n
k
i
n
g
a
b
o
u
t
w
h
a
t
w
e
‖
l
l
b
e
w
h
e
n
w
e
g
r
o
w
up. We put thousands of dollars and hours into school to get a
degree and then spend weeks on résumés, letters, and ads. We
schlep from city to suburb to city, talking to jerks, jokes, and
gentlemen about their job openings. We put hours of practice into
a sales pitch, hours of research into understanding the company,
and two or three nervous days into interviews, straining to beat
out the competition. The most important part, the whole reason
we started in the first place—getting paid—we often handle in
sixty seconds or less!
For months afterwards, we roll up our sleeves and give our
new job every ounce of brains and drive we can supply. But when
i
t
‖
s
t
i
m
e
f
o
r
a
r
a
i
s
e
,
m
o
s
t
o
f
u
s
j
u
s
t
a
c
c
e
p
t
w
h
a
t
e
v
e
r
w
e
‖
r
e
o
f
f
e
r
e
d
.
How many minutes do we spend negotiating the money? Zero.
H
o
w
e
v
e
r
,
s
i
x
t
y
s
e
c
o
n
d
s
i
s
a
l
l
y
o
u
‖
l
l
n
e
e
dt
o
n
e
g
o
t
i
a
t
e
e
i
t
h
e
r
a
s
a
l
a
r
yo
r
a
r
a
i
s
e
.Y
o
u
‖
l
l
l
e
a
r
ni
nt
h
i
s
b
o
o
kh
o
wt
om
a
k
e
t
h
o
s
e
sixty seconds count. Y
o
u
‖
l
l
l
e
a
r
nh
o
wt
om
a
k
et
h
o
u
s
a
n
d
so
f
dollars in that minute, and how to improve your whole sense of
work and worth.
Consider for a moment how that adds up.
1
2
How to Make $1,000 a Minute
A modest-to-low annual lifetime wage, beginning at, say, $15,000
a year and ending at $70,000, averages out to be $40,000 a year.
Over forty-five years, that totals $1,800,000! 1.8 Million! So even a
simple 10-percent original raise that provides a larger base for all
subsequent raises means an extra $180,000 over that time. You
could buy a home with just a 10-percent raise!
T
h
a
t
‖
s
j
u
s
t
t
h
es
t
a
r
t
.P
r
o
p
e
r
n
e
g
o
t
i
a
t
i
o
n
sc
a
ndouble your
income.
Mishandling negotiations can be a million-dollar
blunder.
A
n
di
t
‖
s
e
a
s
yt
ob
l
u
n
d
e
r
.I
nm
ym
a
n
yy
e
a
r
s
a
s
a
p
e
r
s
o
n
a
l
career- and salary-c
o
a
c
h
,
I
‖
v
e
s
e
e
npeople earning only half their
value just because they never correctly asked for more. How
would you handle these three situations?
Million-Dollar Blunders
Example 1: Mr. Eager Loses the Offer
Mr. Eager is bright, ambitious, and interested in working
hard. He expects to be paid fairly and at the top of his range. His
p
o
t
e
n
t
i
a
l
e
m
p
l
o
y
e
r
i
s
l
o
o
k
i
n
g
a
t
E
a
g
e
r
‖
s
r
e
c
o
r
d
.
T
h
e
r
é
s
u
m
é
l
o
o
k
s
good and Eager has just the kind of experience the company could
use and some solid examples of making things work right.
Desirous not to waste his time, Eager pops the question in
t
h
e
m
o
s
t
t
a
c
t
f
u
l
w
a
y
h
e
c
a
n
.“
We
l
l
,
l
e
t
‖
s
s
e
e
i
f
w
e
‖
r
e
i
nt
h
e
r
i
g
h
t
b
a
l
l
p
a
r
k
.
I
‖
ml
o
o
k
i
n
g
f
o
r
a
s
a
l
a
r
y
i
n
t
h
e
m
i
d
d
l
e
s
i
x
t
i
e
s
.
”
Mr. Employer figures the amount is okay, but is just a touch
put off. He thinks Eager should primarily be interested in longt
e
r
mw
o
r
kw
i
t
ht
h
e
c
o
m
p
a
n
y
.E
a
g
e
r
‖
s
a
p
p
r
o
a
c
hm
a
k
e
s
i
t
s
o
u
n
d
a
si
fh
e
‖
sm
o
r
ei
n
t
e
r
e
s
t
e
di
nt
h
em
o
n
e
y
. We
l
l
,t
h
a
t
‖
s
understandable, but Mr. Employer is also interviewing Mr.
Dedicated for the job.
A
l
t
h
o
u
g
hh
ed
o
e
s
n
‖
tk
n
o
ww
h
a
t
D
e
d
i
c
a
t
e
d
‖
s
p
r
i
c
e
r
a
n
g
e
i
s
,
i
t
c
e
r
t
a
i
n
l
y
s
o
u
n
d
s
a
s
i
f
h
e
’
s
interested
i
nt
h
e
c
o
m
p
a
n
y
.“
A
f
t
e
r
a
l
l
,
”
Mr
.
E
m
p
l
o
y
e
r
d
e
c
i
d
e
s
,
“
I
b
u
i
l
t
t
h
i
s
company from the ground up in the last ten years. I want team
p
l
a
y
e
r
s
.
”
Million-Dollar Blunders
3
“
We
l
l
,
”
Mr
.
E
m
p
l
o
y
e
r
t
e
l
l
s
E
a
g
e
r
,
“
w
e
m
i
g
h
t
b
e
a
b
l
e
t
o
m
e
e
t
t
h
a
t
;
l
e
t
‖
s
k
e
e
p
t
a
l
k
i
n
g
.
”
Sounds promising but, when all is said and done, Mr.
E
m
p
l
o
y
e
rp
i
c
k
sD
e
d
i
c
a
t
e
d
.“
Iw
a
n
tac
o
m
p
a
n
ym
a
n
,
”Mr
.
E
m
p
l
o
y
e
r
r
e
a
s
o
n
s
,
“
a
n
dI
‖
mw
i
l
l
i
n
g
t
o
g
o
t
o
t
h
e
m
i
d
d
l
e
s
i
x
t
i
e
s
t
o
get him. After all, Dedicated must be worth at least as much as
E
a
g
e
r
.
”E
a
g
e
r
l
o
s
e
s
t
h
e
o
f
f
e
r
.
Example 2: Ms. Polite Loses $7,500 a Year
Ms. Polite knows that women make just over seventy-nine
c
e
n
t
s
t
oam
a
n
‖
s
d
o
l
l
a
r
.S
h
eh
a
s
c
o
r
p
o
r
a
t
ea
s
p
i
r
a
t
i
o
n
s
,
t
h
o
u
g
h
,
and a solid background to build them on. Now that an M.B.A. has
b
e
e
na
d
d
e
dt
ot
h
et
o
po
f
h
e
rr
é
s
u
m
é
,
s
h
e
‖
sg
o
t
t
h
et
e
c
h
n
i
c
a
l
education to back up her ambitions. But the job market is tough
and competition amounts to survival of the fittest.
“
We
‖
r
eb
u
d
g
e
t
e
da
t
$
6
7
,
5
0
0f
o
r
t
h
i
s
p
o
s
i
t
i
o
n
,
P
o
l
i
t
e
,
”s
a
y
s
Mr
.
S
.
T
a
b
l
i
s
h
m
e
n
t
,
“
a
n
dw
er
e
a
l
l
ys
h
o
u
l
d
n
‖
t
t
a
l
ka
n
yf
u
r
t
h
e
r
u
n
l
e
s
s
t
h
a
t
f
i
g
u
r
e
f
i
t
s
y
o
u
r
r
e
q
u
i
r
e
m
e
n
t
s
.
”
“
H
m
m
,
”P
o
l
i
t
et
h
i
n
k
s
,
“
n
o
t
q
u
i
t
ew
h
a
t
I
e
x
p
e
c
t
e
d
,
b
u
t
n
o
use quibbling now; I want to stay in the running. I c
a
n
‖
t
r
e
j
e
c
t
i
t
.
B
e
t
t
e
r
g
i
v
e
i
n
h
e
r
e
a
n
d
n
e
g
o
t
i
a
t
e
l
a
t
e
r
.
”
“
T
h
a
ts
e
e
m
sf
a
i
r
,
”s
h
es
a
y
s
.“
T
e
l
lm
em
o
r
ea
b
o
u
tt
h
e
q
u
a
l
i
t
i
e
s
y
o
u
‖
r
e
l
o
o
k
i
n
g
f
o
r
.
”
T
h
u
r
s
d
a
y
,
P
o
l
i
t
e
‖
s
p
h
o
n
e
r
i
n
g
s
.“
Mr
.
T
a
b
l
i
s
h
m
e
n
t
c
a
l
l
i
n
g
.
”
He says his firm is offering her the job, but she should decide right
away because he has to contact the other candidates.
“
O
hm
y
,
”
s
h
e
t
h
i
n
k
s
,
“
i
f
I
p
u
s
hn
o
w
,
I
m
i
g
h
t
l
o
s
e
t
h
e
o
f
f
e
r
.
Better say yes and negotiate a raise later based on my
p
e
r
f
o
r
m
a
n
c
e
.
”
O
n
F
r
i
d
a
y
T
a
b
l
i
s
h
m
e
n
t
t
e
l
l
s
h
i
s
c
o
m
p
t
r
o
l
l
e
r
,
“
H
a
r
r
y
, I know
we had $75,000 set aside for the new position, but you can put
$7,500 of that into my travel-and-e
n
t
e
r
t
a
i
n
m
e
n
tb
u
d
g
e
t
.I
‖
v
e
f
o
u
n
d
s
o
m
e
o
n
e
w
i
t
h
r
e
a
l
p
o
t
e
n
t
i
a
l
,
a
n
d
s
h
e
‖
l
l
s
t
a
r
t
a
t
$
6
7
,
5
0
0
.
”
So Polite loses an annual $7,500, and all the raises based on that.
4
How to Make $1,000 a Minute
Example 3: Mr. Hardwork Loses His Raise
Mr. Hardwork is hoping for a substantial raise this year. His
accounts have perfect records and 10-percent-better profits than
last year. Several customers have written to the company to say
what a consci
e
n
t
i
o
u
s
j
o
b
h
e
‖
s
d
o
i
n
g
.
The raise is a week overdue, actually, because his boss has
been discussing raises and overall compensation with the board
since January. The grapevine has rumored that the raises will
surface on Groundhog Day.
On February 9, Hardwork finds a note in his mailbox
praising him for all his fine work the past year and
acknowledging his wonderful contributions. It also informs him
t
h
a
t
h
e
h
a
s
b
e
e
n
a
w
a
r
d
e
d
a
“
v
e
r
y
g
e
n
e
r
o
u
s
”
5
-percent raise.
Hardwork feels cheated. Complaining bitterly of how unfair
t
h
a
t
i
s
,
h
e
s
t
o
r
m
s
i
n
t
o
h
i
s
b
o
s
s
‖
s
o
f
f
i
c
e
s
a
y
i
n
g
h
e
d
e
s
e
r
v
e
s
a
t
l
e
a
s
t
10 percent for his outstanding work.
“
G
o
s
h
,
”s
a
y
st
h
eb
o
s
s
,
“
w
e
‖
v
er
e
a
l
l
yg
o
n
eo
v
e
ra
l
lt
h
e
records thoroughly. The board personnel have looked at them
and consulted indust
r
y
s
t
a
n
d
a
r
d
s
.
T
h
a
t
‖
s
t
h
e
b
e
s
t
w
e
c
a
n
d
o
.
B
u
t
t
e
l
l
y
o
uw
h
a
t
,
I
‖
l
l
t
a
l
k
o
n
e
o
n
o
n
e
w
i
t
h
t
h
e
C
E
Oa
n
dm
e
n
t
i
o
ny
o
u
s
p
e
c
i
f
i
c
a
l
l
y
,
a
n
d
w
e
‖
l
l
s
e
e
w
h
a
t
w
e
c
a
n
d
o
.
”
H
a
r
d
w
o
r
k
n
e
v
e
r
g
o
t
t
h
a
t
e
x
t
r
a
5
p
e
r
c
e
n
t
,
a
n
d
h
e
d
i
d
n
‖
t
t
h
i
n
k
to make it up by negotiating perks like vacation time, education,
car, health-club membership, bonuses, and IRA contributions.
H
a
r
d
w
o
r
k
l
o
s
t
h
a
l
f
h
i
s
r
a
i
s
e
.
D
o
n
‖
t
l
e
t
t
h
a
t
h
a
p
p
e
n
t
o
y
o
u
.
The Principle of Quality
Winning at salary and raise negotiations requires, first of all,
understanding the principle of quality.
“
Q
u
a
l
i
t
y
i
s
r
e
m
e
m
b
e
r
e
dl
o
n
g
a
f
t
e
r
p
r
i
c
e
i
s
f
o
r
g
o
t
t
e
n
,
”
I
w
a
s
told by an accomplished salesman who was a client of mine. He
r
e
m
i
n
d
e
dm
e
t
h
a
t
t
h
e
m
a
n
y“
b
a
r
g
a
i
n
s
”
I
‖
dp
i
c
k
e
du
pi
nm
yl
i
f
e
had worn out quickly, broken, or performed only after silent
p
r
a
y
e
r
s
o
r
l
o
u
dc
u
r
s
e
s
.I
t
h
e
nr
e
m
e
m
b
e
r
e
dt
h
e
t
i
m
e
s
w
h
e
nI
‖
d
p
a
i
dd
e
a
r
l
yf
o
r
t
h
e
“
t
o
po
f
t
h
e
l
i
n
e
.
”A
l
m
o
s
t
e
v
e
r
yo
n
e
o
f
t
h
o
s
e
Million-Dollar Blunders
5
tools, appliances, and articles of clothing is still with me. Each
time I use or wear one of them I relish the craftsmanship and care,
admire the fit and effectiveness, and appreciate the durability.
Compensation negotiating is about those kinds of purchases.
It is about the joy and satisfaction you will bring to employers
when they see their investment in quality—yours—compounded
daily, easing their minds, and making more money for their
businesses.
S
m
a
r
t
e
m
p
l
o
y
e
r
s
k
n
o
wt
h
e
r
e
‖
s
n
o
f
r
e
e
l
u
n
c
hw
h
e
r
e
t
a
l
e
n
t
i
s
concerned. The relentless downsizing of the past two decades
p
r
o
d
u
c
e
d“
l
e
a
na
n
dm
e
a
n
”c
o
m
p
a
n
i
e
sw
h
e
r
ee
v
e
r
ysingle
p
e
r
s
o
n
‖
st
a
l
e
n
ta
n
dc
o
n
t
r
i
b
u
t
i
o
nc
o
u
n
t
s
.T
h
ep
r
o
l
i
f
e
r
a
t
i
o
no
f
popular management books extolling the team-oriented approach
to profitability also brings home the truth that human resources
are the most valuable elements in a successful enterprise. On one
hand, employers understand that they have to pay quality prices
for quality personnel. On the other hand, since they are successful
business people, they try to get the best quality for the lowest
price.
Their job is to make good business deals. Your job is to see
that they recognize your quality and pay you your best price. If
y
o
u
d
o
n
‖
t
,
i
t
c
a
n
c
o
s
t
y
o
u
t
h
o
u
s
a
n
d
s
o
f
d
o
l
l
a
r
s
a
n
da
b
i
g
c
h
u
n
k
o
f
your self-esteem.
Let me show you how much better your working life can be
when you do it the right way.
6
How to Make $1,000 a Minute
Figure 1-1. Entrenched in the Vicious Cycle
The Difference between Vicious and Virtuous Cycles
First consider the vicious cycle. Mr. Drone is overworked,
underpaid, and undervalued. His attitude is less than 100-percent
enthusiastic and his work of course shows it. His co-workers
n
o
t
i
c
ei
t
,
t
o
o
,
a
n
dt
h
eb
o
s
s
i
s
s
e
c
r
e
t
l
yg
l
a
ds
h
ed
i
d
n
‖
t
g
i
v
et
h
a
t
extra 10 percent because, after all, Drone is performing only
adequately.
Million-Dollar Blunders
7
“
R
a
i
s
e
?
”s
h
es
a
y
s
.“
C
l
e
a
nu
pt
h
e
s
ep
e
r
f
o
r
m
a
n
c
er
e
v
i
e
w
s
a
n
d
w
e
‖
l
l
c
o
n
s
i
d
e
r
i
t
.
”
May
b
e
D
r
o
n
e
s
a
y
s
,
“
I
q
u
i
t
!
”
P
e
r
h
a
p
s
t
h
e
b
o
s
s
r
e
t
o
r
t
s
,
“
Y
o
u
‖
r
e
f
i
r
e
d
!
”
Or maybe Drone just quietly shuts down. He does his job
absent-mindedly, waiting for the moment when he, Walter Mittylike, can walk out on the place on the busiest day of the year.
“
T
h
e
n
t
h
e
y
‖
l
l
m
i
s
s
m
e
,
”
h
e
s
a
y
s
.
“
T
h
e
y
‖
l
l
b
e
s
o
r
r
y
!
”
Sooner or later, one way or another, Drone is out the door.
To be polite, his employer gives him an innocuous letter of
recommendation damning him with faint praise. Drone and his
ego, a little worse for w
e
a
r
,
h
i
t
t
h
e
j
o
b
m
a
r
k
e
t
w
o
n
d
e
r
i
n
g
,
“
A
mI
r
e
a
l
l
y
w
o
r
t
h
t
h
a
t
e
x
t
r
a
1
0
p
e
r
c
e
n
t
?
”
H
es
h
e
e
p
i
s
h
l
ye
x
a
g
g
e
r
a
t
e
sw
h
e
ni
n
t
e
r
v
i
e
w
e
r
sa
s
k
,
“
Wh
a
t
w
a
s
y
o
u
r
l
a
s
t
s
a
l
a
r
y
?
”A
n
ds
i
n
c
et
h
e
yw
e
r
e
n
‖
t
b
o
r
ny
e
s
t
e
r
d
a
y
,
t
h
e
yp
i
c
ku
pt
h
a
t
D
r
o
n
ee
i
t
h
e
r
d
i
d
n
‖
t
m
a
k
et
h
a
t
m
u
c
ho
r
i
s
n
‖
t
convinced he was worth it.
Af
e
wd
e
s
p
e
r
a
t
e
w
e
e
k
s
p
a
s
s
.D
r
o
n
e
‖
s
e
g
o
,
o
n
c
e
t
a
l
l
,
i
s
n
o
w
barely crawling into interviews. Finally, someone offers him a
job! Not quite what he expected, but it beats unemployment, and
maybe this employer will notice his value and give him more
money later.
The vicious cycle begins again, a little more entrenched.
Ms. Worth
Now consider the virtuous cycle, the story of Ms. Worth.
She negotiated for top dollar in her first position. Her boss knew
Worth was expensive, but convinced himself she was worth it,
and placed serious responsibilities in her job. Encouraged by her
b
o
s
s
‖
s
t
r
u
s
t
a
n
dc
h
a
l
l
e
n
g
e
db
y
t
h
e
w
o
r
k
,
Wo
r
t
he
x
t
e
n
d
e
dh
e
r
s
e
l
f
,
putting out 120 percent while tucking success after success under
her belt.
The boss is thrilled, but worries that, after a year of such
performance, Worth, such a talented person, might move on. So
the boss gives her a raise and a hefty bonus to keep her happy, but
t
on
oa
v
a
i
l
.O
n
eo
f
Wo
r
t
h
‖
s
c
o
-workers is impressed with her
8
How to Make $1,000 a Minute
quality and praises her to a friend, who is connected to Mr. Jones,
who is looking for someone just like Worth. Jones is willing to be
flexible on the compensation if the quality is there.
Figure 1-2. The virtuous cycle of Ms. Worth.
“
S
u
r
e
,
l
e
t
‖
s
t
a
l
k
,
”
s
a
y
s
Wo
r
t
h
.
And the virtuous cycle starts again—happily, a little more
solidified.
Both scenarios hinge on salary negotiations. When you
negotiate for your true value, both you and your company win.
Million-Dollar Blunders
9
H
e
r
e
’
s
w
h
a
t
’
s
a
h
e
a
d
.
The next chapter gives you the three basic principles of
effective salary negotiations and, hopefully, instills in you more
confidence to venture into negotiations.
Then Chapters Three through Seven lay out The Five Salary
Making rules. Following those rules assures your best chance of
getting every dollar and benefit possible.
Chapter Eight and Nine cover the most frequent special
s
i
t
u
a
t
i
o
n
s
y
o
u
‖
l
l
e
n
c
o
u
n
t
e
r
,
i
n
c
l
u
d
i
n
gs
t
o
c
ko
p
t
i
o
n
s
.F
o
r
p
e
o
p
l
e
w
h
o
‖
v
e
a
c
q
u
i
r
e
d
t
h
i
s
b
o
o
k
,
m
y
w
e
b
s
i
t
e
www.SalaryNegotiations.com
has articles covering even more special situations. You can access
those by using the password BoughtTheBook.
T
h
e
nc
o
m
e
sr
a
i
s
e
si
nC
h
a
p
t
e
rT
e
n
!Y
o
u
‖
l
l
l
e
a
r
nh
o
wt
o
maximize those.
Finally: coaching! The last chapter shows you how to reach
me so my coaching can personally guide you to apply what you
l
e
a
r
nh
e
r
e
.[
I
t
‖
s
n
o
t
c
o
m
p
l
i
c
a
t
e
d
,
j
u
s
t
d
i
a
l
8
4
7
-853-1046.] It pays
for itself.
On to the principles!
Negotiating well is simply foll
o
w
i
n
g
f
i
v
e
r
u
l
e
s
.
“
F
i
v
e
?
”
y
o
u
s
a
y
,
“
T
h
a
t
‖
s
a
l
l
?
”Y
e
s
—you can remember 5 rules, right?
H
e
r
e
a
r
e
t
h
e
f
i
v
e
S
a
l
a
r
y
Ma
k
i
n
g
R
u
l
e
s
a
h
e
a
d
o
f
y
o
u
.
Y
o
u
‖
l
l
get to know and understand each one as you progress through
chapters two through six.
10
How to Make $1,000 a Minute
Figure 1-2. Preview of Things to Come
Chapter 2:
A
i
m
i
n
g
f
o
r
Wh
a
t
Y
o
u
’
r
e
Wo
r
t
h
G
o
o
dn
e
g
o
t
i
a
t
i
o
n
s
,
l
i
k
e
Ms
.
Wo
r
t
h
‖
s
,
a
r
e
o
n
e
s
i
n
w
h
i
c
h
b
o
t
h
sides applaud the outcome.
Employees like Worth feel
a
p
p
r
e
c
i
a
t
e
da
n
dm
o
t
i
v
a
t
e
d
,
a
n
dt
h
e
i
r
b
o
s
s
e
sf
e
e
l
t
h
e
y
‖
v
eh
i
r
e
d
s
o
m
e
o
n
e
o
f
q
u
a
l
i
t
y
w
h
o
‖
s
w
o
r
t
h
e
v
e
r
y
p
e
n
n
y
.
O
b
v
i
o
u
s
l
y
,
i
t
p
a
y
s
t
o
f
o
l
l
o
wWo
r
t
h
‖
s
e
x
a
m
p
l
e
a
n
d
g
o
f
o
r
t
o
p
d
o
l
l
a
r
.
But how do you know what top dollar is? How will you
k
n
o
ww
h
a
t
‖
s
t
o
o
l
i
t
t
l
e
?I
s
i
t
p
o
s
s
i
b
l
e
t
o
r
e
a
c
h
t
o
o
h
i
g
h
?H
o
wc
a
n
you tell what you are really worth?
L
a
t
e
r
I
‖
l
l
s
h
o
wy
o
u
h
o
wt
o
z
e
r
o
i
n
o
n
y
o
u
r
o
b
j
e
c
t
i
v
e
m
a
r
k
e
t
v
a
l
u
eu
s
i
n
gi
n
t
e
r
n
e
tr
e
s
o
u
r
c
e
s(
i
nC
h
a
p
t
e
rF
i
v
e
)
;t
h
a
t
‖
so
n
e
measure of what yo
ua
r
e
w
o
r
t
h
.F
o
r
n
o
w
,
t
h
o
u
g
h
,
l
e
t
‖
s
e
x
p
l
o
r
e
beyond the objective market-value measure and ask, even more
fundamentally, how you can tell what you are really worth.
To find out, we need to look at the situation through
e
m
p
l
o
y
e
r
s
‖
e
y
e
s
a
n
d
b
r
i
n
g
u
p
t
h
e
t
h
r
ee principles employers have
in mind when budgeting a salary or raise.
Labor Is Intangible
Salespeople can tell you there are two kinds of products:
t
a
n
g
i
b
l
e
sa
n
di
n
t
a
n
g
i
b
l
e
s
.E
m
p
l
o
y
e
r
sc
o
n
s
i
d
e
rt
h
a
t
ap
e
r
s
o
n
‖
s
labor is among the latter. Note the contrast: While the price of a
tangible is easily determined by applying the formula:
11
12
How to Make $1,000 a Minute
Raw Materials + Production Costs + 10% Profit = Price,
For intangibles there are no raw materials or production
costs and the first two variables in that equation equal zero.
S
ot
h
ee
m
p
l
o
y
e
r
‖
s
f
i
r
s
t
p
r
i
n
c
i
p
l
ei
s
Labor is intangible. An
employer buys your labor. But your labor is even less like a
tangible TV or car because, after the deal for it is struck, your
labor can fall short of expectations, or constantly improve, since it
is entirely under human control—yours. The more you can do,
the more complicated are the problems you can solve for
someone, and the more your labor should be worth. Measuring
that worth can be a full-t
i
m
ej
o
b
.I
t
‖
sc
a
l
l
e
dc
o
m
p
e
n
s
a
t
i
o
n
analysis.
But employers know that, even when a compensation
a
n
a
l
y
s
t
h
a
s
s
e
t
a
f
i
g
u
r
e
f
o
r
a
p
a
r
t
i
c
u
l
a
r
j
o
b
,
i
t
‖
s
o
n
l
ya
ne
d
u
c
a
t
e
d
guess, a guideline. Some workers are worth several thousand
more because they do that much more, while others accomplish
less and therefore deserve smaller checks.
S
i
n
c
e
l
a
b
o
r
i
s
a
n
i
n
t
a
n
g
i
b
l
e
,
e
m
p
l
o
y
e
r
s
k
n
o
wt
h
e
r
e
‖
s
n
o
f
i
x
e
d
price, no number chiseled in granite; rather, there is a range.
Salary Relates to Level of Responsibility
T
h
ee
m
p
l
o
y
e
r
‖
ss
e
c
o
n
dp
r
i
n
c
i
p
l
ei
sThe main variable that
determ
i
n
e
s
c
o
m
p
e
n
s
a
t
i
o
ni
s
t
h
e
e
x
t
e
n
t
o
f
t
h
e
e
m
p
l
o
y
e
e
’
s
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
.
T
h
e
m
o
r
e
p
e
o
p
l
e
o
r
p
r
o
d
u
c
t
s
a
ne
m
p
l
o
y
e
e
‖
s
d
e
c
i
s
i
o
n
s
a
f
f
e
c
t
,
t
h
e
more money those decisions influence as well. Salary is merely an
indicator of that responsibility.
The typists in a law firm, for instance, have little effect on
business. Others decide what they will type, and still others check
t
h
e
i
r
w
o
r
k
.
T
h
e
p
a
r
a
l
e
g
a
l
‖
s
r
e
s
e
a
r
c
h
,
h
o
w
e
v
e
r
,
a
c
t
u
a
l
l
y
h
e
l
p
s
w
i
n
ac
a
s
e
.A
n
dt
h
ea
s
s
o
c
i
a
t
ea
t
t
o
r
n
e
y
‖
sc
o
n
t
r
i
b
u
t
i
o
ni
sc
r
u
c
i
a
l
t
o
getting the case resolved. But it is the experience, courtroom
savvy, and legal thinking of the partners who consult with and
direct the associates that ultimately pay all their salaries. If they
win the case, everyone will share the glory; if they lose, the
partners will take the blame. The partners shoulder the most
responsibility, so they make the most money.
A
i
mi
n
g
F
o
r
Wh
a
t
Y
o
u
’
r
e
Wo
r
t
h
13
Ac
l
a
s
s
i
c
e
x
a
m
p
l
e
f
r
o
mt
h
e
s
e
v
e
n
t
i
e
s
:
L
e
e
I
a
c
o
c
c
a
‖
s
d
e
c
i
s
i
o
n
s
won or lost millions of dollars for struggling Chrysler corporation
in an instant, and his salary reflected that colossal responsibility.
Experienced securities analysts, too, earn six figures, but only
because their decisions make seven or eight figures for the
portfolios they direct.
The Universal Hiring Principle Is Make Me a Buck
T
h
ee
m
p
l
o
y
e
r
‖
s third principle is very simple.
The
“
u
n
i
v
e
r
s
a
l
h
i
r
i
n
g
p
r
i
n
c
i
p
l
e
,
”
a
s
c
a
r
e
e
r
s
a
u
t
h
o
r
T
o
mJ
a
c
k
s
o
n
t
e
r
m
s
it, is Make me a buck.
This principle seems to say that, if you show employers
y
o
u
‖
l
l
m
a
k
e
t
h
e
me
v
e
na
d
o
l
l
a
r
m
o
r
e
t
h
a
ny
o
uc
o
s
t
,
t
h
e
ys
h
o
u
l
d
hire you. In actual practice, however, when you add up
telephones, desk space, support staff, equipment, hiring costs,
training costs, medical benefits, FICA, standard perks, vacations,
and other expenses, your decisions and labor must gross a company
several times your salary to make hiring you worthwhile.
I
‖
v
e
o
f
t
e
nh
a
dc
l
i
e
n
t
s
t
e
l
l
m
e
,
“
O
h
,
I
d
o
n
‖
t
k
n
o
wi
f
I
c
o
u
l
d
e
v
e
r
t
a
k
e
o
n
e
o
f
t
h
o
s
e
c
o
m
m
i
s
s
i
o
n
j
o
b
s
.
I
n
e
e
d
a
s
e
c
u
r
e
i
n
c
o
m
e
.
”
H
e
y
,
I
‖
v
e
g
o
t
n
e
w
s
f
o
r
t
h
e
m
!We
all work on commission.
We all earn only a percentage of what we make for the company.
Take a look at 1982 and 1991 and post 911, when recessions hit
e
v
e
r
y
o
n
e
‖
ss
a
l
e
s
. Wh
ol
o
s
tt
h
e
i
rj
o
b
s
? C
o
m
m
i
s
s
i
o
n
e
d
salespeople? No, they just worked harder. It was the middle
management, support staff, and CEOs who were no longer cost
effective and got their pink slips.
Either you make more for your employer than you cost, or
you go. Even charitable, nonprofit agencies pay on a type of
“
c
o
m
m
i
s
s
i
o
n
.
”E
i
t
h
e
r
t
h
e
i
r
e
m
p
l
o
y
e
e
s
c
o
n
t
r
i
b
u
t
e
w
o
r
k
t
h
a
t
o
t
h
e
r
people believe i
n
a
n
d
“
p
a
y
”
f
o
r
w
i
t
h
c
h
a
r
i
t
a
b
l
e
d
o
n
a
t
i
o
n
s
o
r
t
h
e
y
,
too, become nonprofit.
Wo
u
l
dy
o
ub
e
l
i
e
v
ei
t
‖
st
r
u
ei
ng
o
v
e
r
n
m
e
n
t
,t
o
o
?
Government is more nearly immune to the profit principle
b
e
c
a
u
s
e
i
t
‖
s
s
u
p
p
o
s
e
d
t
o
p
r
o
v
i
d
e
p
u
b
l
i
c
s
e
r
v
i
c
e
s
,
n
o
t
m
a
k
e
a
p
r
o
f
i
t
14
How to Make $1,000 a Minute
and if it runs out of money, it can just levy and collect more taxes.
How does Make me a buck apply there?
E
l
e
c
t
e
do
f
f
i
c
i
a
l
s
‖s
a
l
a
r
i
e
sd
e
p
e
n
do
nt
h
es
u
p
p
o
r
to
ft
h
e
voters. They will continue to get paid only if they are reelected,
which is their reward for delivering or promising services that the
people appreciate. To deliver those goodies from the public
coffers, however, government must either more or less balance the
budget or raise taxes. And raising taxes can be the easiest way for
politicians to fire themselves. If an official pushes for something
t
h
e
v
o
t
e
r
s
n
o
t
i
c
e
a
n
d
d
o
n
‖
t
l
i
k
e
,
p
o
o
f
!
H
e
o
r
s
h
e
i
s
g
o
n
e
.
So the political Make me a buck is more accurately expressed
as Make me a vote to make me a buck. Unless an employee is
doing work that is cost effective, within the budget, and likely to
get the boss reelected, bye-bye!
When it comes to putting an actual dollar figure on a
g
o
v
e
r
n
m
e
n
t
e
m
p
l
o
y
e
e
‖
s
c
o
n
t
r
i
b
u
t
i
o
n
,
t
h
e
f
e
d
e
r
a
l
g
o
v
e
r
n
m
e
n
t
a
n
d
most other governmental units have very rigid step and grade
systems for compensating their bureaucrats. Since public-service
employees do not produce money but merely transfer it from one
c
i
t
i
z
e
nt
oa
n
o
t
h
e
r
,
t
h
e
r
e
‖
s
n
op
r
o
f
i
t
a
b
i
l
i
t
yt
od
e
t
e
r
m
i
n
e
f
o
r
t
h
e
m
.
So government typically looks to the profit-making sector,
compares duties, chooses a salary, and locks it in. Therefore, even
those in the nonprofit sector get paid by the Make me a buck profitmaking principle.
E
x
a
m
p
l
e
4
i
l
l
u
s
t
r
a
t
e
s
t
h
e
e
m
p
l
o
y
e
r
‖
s
n
e
e
df
o
r
e
m
p
l
o
y
e
e
s
t
o
generate more money than they cost.
Million-Dollar Blunders
Example 4: Mr. Greedy Gets What He Deserves
Mr. Greedy has a technical and managerial decision-making
background he thinks is worth $65,000 a year. His education
supports that assessment, too. But he clearly has the potential to
handle work worth $125,000 or more in the long run, and he was
hard at work on his job search.
A
i
mi
n
g
F
o
r
Wh
a
t
Y
o
u
’
r
e
Wo
r
t
h
15
He approached a high-tech manufacturing firm to explore a
very competitive position. After a thorough discussion, the head
h
o
n
c
h
o
s
a
i
d
,
“
Y
o
ua
r
e
n
‖
t
q
u
a
l
i
f
i
e
df
o
r
t
h
e
b
i
g
-buck positions yet,
b
u
t
I
t
h
i
n
k
y
o
u
h
a
v
e
p
o
t
e
n
t
i
a
l
.
”H
e
f
u
r
t
h
e
r
h
i
n
t
e
dt
h
a
t
,
i
f
G
r
e
e
d
y
was willing to come aboard at a lower level and get some
exposure and experience, perhaps he would gain a competitive
e
d
g
e
f
o
r
f
u
t
u
r
e
o
p
e
n
i
n
g
s
.
“
O
f
c
o
u
r
s
e
,
”
t
h
e
p
r
e
s
i
d
e
nt misguessed,
“
t
h
i
s
l
o
w
e
r
-level production position would not pay you what
y
o
u
‖
r
e
w
o
r
t
h
,
b
e
c
a
u
s
e
w
e
c
o
u
l
dd
o
o
n
l
y$
7
5
,
0
0
0
t
o
$
8
5
,
0
0
0
o
ni
t
,
b
u
t
y
o
u
c
o
u
l
d
c
o
n
s
i
d
e
r
i
t
.
”
Greedy, of course, was ecstatic. The position paid $10,000
over his fondest hopes, for work that seemed very doable. Instead
of being cautious at being overpaid, he let it stand that the
seventies was the range for him.
G
r
e
e
d
y
‖
s
f
u
r
t
h
e
r
i
n
t
e
r
v
i
e
w
s
w
i
t
h
t
h
e
f
i
r
m
‖
s
s
e
n
i
o
r
m
a
n
a
g
e
r
s
left them less convinced of his long-term potential than the
president had been.
Why, they reasoned, should we hand over $75,000 for a
$
6
5
,
0
0
0
p
r
o
d
u
c
t
i
o
n
j
o
b
w
h
e
n
w
e
d
o
n
‖
t
k
n
o
wi
f
t
h
i
s
g
u
y
w
i
l
l
r
e
a
l
l
y
work out in the long term? They might have been willing to pay
him $55,000 to $60,000 and judge his performance over time.
However, the president had boxed the company in by committing
to at least $75,000, and Greedy had boxed himself in by agreeing
too soon to be overpaid. So instead they sent Greedy a TNT
(
T
h
a
n
k
s
,
n
o
t
h
a
n
k
s
)
l
e
t
t
e
r
s
a
y
i
n
g
,
“
We
d
o
n
o
t
s
e
e
a
m
a
t
c
h
b
e
tween
y
o
u
r
c
a
r
e
e
r
g
o
a
l
s
a
n
d
o
u
r
f
i
r
ma
t
t
h
i
s
t
i
m
e
.
”
G
r
e
e
d
y
,
s
a
y
i
n
gt
h
a
t
h
e
‖
dc
o
n
s
i
d
e
r
a
n
y
t
h
i
n
gt
og
e
t
i
n
t
ot
h
a
t
field, tried, of course, to defuse the salary issue, but it was hard to
do without sounding desperate. These people had no time to
review the five-person decision further. So it goes.
Greedy should have defused the salary question right away
instead of operating on a get-all-I-can principle. A quick comment
t
o
k
e
e
p
t
h
e
p
o
t
e
n
t
i
a
l
j
o
b
a
l
i
v
e
m
i
g
h
t
h
a
v
e
g
o
n
e
l
i
k
e
t
h
i
s
:
“
We
l
l
,
i
t
‖
s
really too early to discuss salary. I just want a fair salary for
w
h
a
t
e
v
e
r
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
I
h
a
n
d
l
e
.L
e
t
‖
s
f
i
r
s
t
d
i
s
c
u
s
s
h
o
wI
c
a
n
h
e
l
p
y
o
u
.
”
16
How to Make $1,000 a Minute
The Basic Principle of Effective Salary Negotiations
Three presuppositions for this principle are:
Labor is an intangible
Salary relates to level of responsibility
Employees must make more money for the company
than they cost.
We
‖
v
ea
l
s
on
o
t
e
dt
h
a
t
b
e
i
n
gg
r
e
e
d
yc
a
nb
o
o
m
e
r
a
n
g
.T
h
e
a
n
s
w
e
r
t
o
t
h
e
q
u
e
s
t
i
o
n“
H
o
wm
u
c
ha
mI
r
e
a
l
l
y
w
o
r
t
h
?
”
i
s
“
O
n
l
y
w
h
a
t
‖
s
f
a
i
r
a
n
dc
o
m
p
e
t
i
t
i
v
e
f
o
r
t
h
e
q
u
a
n
tity and quality of work
y
o
uc
o
n
t
r
i
b
u
t
e
.
”A
n
ds
i
n
c
e
y
o
u
r
c
o
n
t
r
i
b
u
tions can be greater or
l
e
s
st
h
a
na
n
o
t
h
e
rp
e
r
s
o
n
‖
si
nt
h
a
t
“
s
a
m
e
”j
o
b
,
w
h
a
t
‖
sf
a
i
ra
n
d
competitive is not a fixed price, but a range. You should aim for
the top of that range.
When you examine your present compensation or look at a
n
e
ws
a
l
a
r
y
,
h
o
l
dt
h
i
s
a
t
t
i
t
u
d
e
:
“
Wh
e
nI
‖
mp
a
i
dt
h
e
v
e
r
yb
e
s
t
m
y
s
k
i
l
l
s
c
a
ng
e
t
i
nt
h
i
s
c
o
m
p
a
n
yi
nt
h
i
s
m
a
r
k
e
t
,
I
‖
v
e
m
a
d
e
ag
o
o
d
b
a
r
g
a
i
n
.
”
T
h
a
t
‖
s
t
h
e
b
a
s
i
c
p
r
i
n
c
i
p
l
e
o
f
e
f
f
e
c
t
i
v
e
s
a
l
a
r
y
n
e
g
o
t
i
a
tions. It
helps insure that both sides will be happy. Good negotiations,
after all, are always win-win negotiations.
I
nC
h
a
p
t
e
r
5
y
o
u
‖
l
l
l
e
a
r
na
f
o
r
m
u
l
a
a
n
dm
e
t
h
o
dt
o
r
e
s
e
a
r
c
h
y
o
u
r
m
a
r
k
e
t
v
a
l
u
e
s
oy
o
u
‖
l
l
k
n
o
we
x
a
c
t
l
yw
h
a
t
r
a
n
g
e
t
or
e
q
u
e
s
t
f
o
r
a
s
p
e
c
i
f
i
c
p
o
s
i
t
i
o
n
.We
‖
l
l
d
i
scuss all current e-resources and
o
t
h
e
r
s
,
f
o
r
r
e
s
e
a
r
c
h
i
n
gy
o
u
r
r
a
n
g
e
.N
o
w
,
h
o
w
e
v
e
r
,
y
o
u
‖
r
e
a
b
o
u
t
to shake hands with Mr. Employer and step into his office.
Chapter 3:
Salary-Making Rule 1:
When to Discuss Money
Mr. Employer walks into the waiting room and introduces
himself. You smile and shake hands. He leads you to his office,
i
n
v
i
t
e
sy
o
ut
os
i
td
o
w
n
,a
n
dt
h
e
nd
e
s
c
r
i
b
e
st
h
ej
o
bh
e
‖
s
interviewing you for. Next he glances at your résumé and poses a
few questions about your qualifications. You do your best to
convince him of your quality. Now Mr. Employer looks you
s
t
r
a
i
g
h
t
i
n
t
h
e
e
y
e
a
n
d
a
s
k
s
,
“
B
y
t
h
e
w
a
y
,
w
h
a
t
s
o
r
t
o
f
a
s
a
l
a
r
y
a
r
e
y
o
u
l
o
o
k
i
n
g
f
o
r
?
”
What do you do?
Follow Salary-Making Rule 1, which instructs that one time
and one time only is appropriate for talking salary. In a moment,
I
‖
l
l
t
e
l
l
y
o
u
e
x
a
c
t
l
y
w
h
e
n
t
h
a
t
i
s
.
F
o
r
n
o
w
,
h
e
r
e
‖
s
a
h
i
n
t
:
T
h
i
s
i
s
n
o
t
it.
T
o
u
n
d
e
r
s
t
a
n
dw
h
y
t
h
a
t
‖
s
s
o
,
y
o
uf
i
r
s
t
n
e
e
dt
o
l
e
a
r
na
no
d
d
yet true piece of human nature that applies to all of us, including
Mr. Employer.
E
v
e
r
B
o
u
g
h
t
S
o
m
e
t
h
i
n
g
Y
o
u
C
o
u
l
d
n
’
t
A
f
f
o
r
d
?
O
n
eq
u
e
s
t
i
o
nI
a
l
w
a
y
s
a
s
ki
nm
ys
e
m
i
n
a
r
s
i
s
,
“
H
a
v
ey
o
u
e
v
e
r
b
o
u
g
h
t
s
o
m
e
t
h
i
n
g
y
o
u
c
o
u
l
d
n
‖
t
a
f
f
o
r
d
?
”
17
18
How to Make $1,000 a Minute
All in the audience pause, look blank for a moment, then
break into nods and smiles while remembering the things that
t
h
e
y
“
c
o
u
l
d
n
‖
t
a
f
f
o
r
d
”
w
h
i
l
e
b
u
y
i
n
g
.
T
h
e
y
p
a
u
s
e
b
e
c
a
u
s
e
t
h
e
l
e
f
t
s
i
d
eo
f
t
h
eb
r
a
i
n
,
t
h
el
o
g
i
c
a
l
s
i
d
e
,
k
n
o
w
s
i
t
‖
s
ac
o
n
t
r
a
d
i
c
t
i
o
ni
n
t
e
r
m
s
;
y
o
uc
a
n
‖
t
b
u
ys
o
m
e
t
h
i
n
gy
o
uc
a
n
‖
t
a
f
f
o
r
d
.I
f
you do, it
means that you really can afford it. But the right side of the brain,
the visionary side, remembers the painful struggle, the exciting
resolution, and the pleasure that had been gained from
unaffordable purchases.
Do you own a house? Could you afford it when you bought
it? Do you own a car? Could you afford it when you bought it?
T
h
i
n
ko
f
a
n
y
t
h
i
n
gr
e
a
l
l
ye
x
p
e
n
s
i
v
e
t
h
a
t
y
o
u
‖
v
e
b
o
u
g
h
t
:
a
s
p
e
c
i
a
l
vacation, for example. Before you decided to spend the money,
did you think of yourself as someone who could afford that kind
of thing?
How do people get to the point of buying something they
c
a
n
‖
ta
f
f
o
r
d
? U
s
u
a
l
l
yt
h
e
yp
r
o
g
r
e
s
sf
r
o
mb
e
i
n
gc
u
r
i
o
u
st
o
interested, intrigued, then wanting it, wanting it a lot, wondering
how they can get it, thinking about it almost all the time,
scheming, scrimping, saving, and finally buying it because they
j
u
s
t
c
a
n
‖
t
stand not having it any more! Then they wonder how
they ever get along without it.
My term for this process is budget bending. During this
process, as the urge to buy grows stronger, people make their
money supply grow, too, by making it more flexible. We can
divide its progressive flexibility into three stages that I call budget,
fudgit, and judgit.
The first stage is familiar to everybody. No matter at what
p
o
i
n
t
an
e
wd
e
s
i
r
e
c
r
e
e
p
s
i
n
,
i
t
‖
s
m
e
t
w
i
t
hm
o
n
e
y
‖
s
f
i
r
s
t
l
i
n
e
o
f
defense, the budget.
Salary-Making Rule 1: When to Discuss Money
19
Figure 3-1. An in-creeping spending urge is met by
m
o
n
e
y
’
s
f
i
r
s
t
l
i
n
e
o
f
d
e
f
e
n
s
e
:
T
h
e
B
u
d
g
e
t
.
A budget is the way we hold on to the illusion that we are
controlling our finances. In handling money, we all like to feel in
charge. The easiest way to do that is to count how many dollars
c
o
m
e
i
n
,
d
i
v
i
d
e
t
h
e
mi
n
t
ol
i
t
t
l
e
p
i
l
e
s
,
a
n
dn
a
m
e
o
n
e
p
i
l
e
“
r
e
n
t
,
”
a
n
o
t
h
e
r
“
f
o
o
d
,
”
a
n
o
t
h
e
r
“
s
a
v
i
n
g
s
,
”
a
n
d
s
o
o
n
.
S
o
a
t
t
h
e
e
n
d
o
f
t
h
e
20
How to Make $1,000 a Minute
m
o
n
t
h
,
w
e
‖
v
ep
a
r
c
e
l
e
do
u
t
t
h
ei
n
c
o
m
ea
n
dt
r
a
n
s
f
o
r
m
e
di
t
i
n
t
o
o
u
t
g
o
a
n
d
w
e
‖
r
e
a
t
z
e
r
o
a
g
a
i
n
.
We
f
e
e
l
i
n
c
o
n
t
r
o
l
.
N
o
w
,
t
h
a
t
‖
sn
o
t
r
e
a
l
l
yc
o
n
t
r
o
l
l
i
n
go
u
rf
i
n
a
n
c
e
s
.I
t
‖
sl
i
k
e
adding water t
o
t
h
e
s
o
u
p
u
n
t
i
l
i
t
‖
s
t
h
i
n
e
n
o
u
g
h
t
o
g
i
v
e
e
v
e
r
y
b
o
d
y
a
c
u
p
f
u
l
o
r
l
i
k
e
“
s
t
e
e
r
i
n
g
”
a
c
a
n
o
e
d
o
w
n
r
a
p
i
d
s
.
B
u
t
i
t
‖
s
v
e
r
yc
o
m
f
o
r
t
a
b
l
e
t
ol
i
v
e
w
i
t
h
i
na
b
u
d
g
e
t
s
t
r
u
c
t
u
r
e
.
L
i
v
i
n
gw
i
t
h
i
no
n
e
a
l
l
o
w
s
u
s
n
o
t
t
o
a
f
f
o
r
dt
h
i
n
g
s
w
e
‖
r
e
s
c
a
r
e
do
f
,
c
r
y“
p
o
o
r
,
”c
o
m
p
l
a
i
na
b
o
u
t the economy, and lead a simple,
o
r
g
a
n
i
z
e
de
x
i
s
t
e
n
c
ea
t
t
h
es
a
m
et
i
m
e
.T
h
a
t
‖
s
budget, or living
within our means, the most rigid stage.
Although we might yearn to own a Mercedes, our budget
w
o
n
‖
t
a
l
l
o
wi
t
;
s
o
w
e
l
e
a
v
e
i
t
u
n
t
i
l
t
h
e
d
a
y
w
e
w
i
n
t
h
e
l
o
t
t
e
r
y
.
But
our next-door neighbor gets a Mercedes, and then his neighbor
does. We find ourselves reading the Mercedes ads instead of the
business section of Time. Our desire erodes our budgetary
concern and slips us into fudgit,
t
h
ef
i
n
a
n
c
i
a
l
s
t
a
t
u
s
q
u
o
‖
s
n
e
x
t
defense.
In the fudgit stage we still think income is constant but are
willing to shuffle the outgo to make room for new things.
“
Ma
y
b
e
i
f
I
q
u
i
t
s
m
o
k
i
n
g
,
w
a
l
k
t
o
w
o
r
k
,
b
u
y
m
y
c
l
o
t
h
e
s
o
n
s
a
l
e
,
a
n
dd
e
d
u
c
tt
h
ec
a
r
‖
sp
r
i
n
c
i
p
a
la
n
di
n
t
e
r
e
s
ta
sb
u
s
i
n
e
s
s
expens
e
s
,
I
,
t
o
o
,
c
o
u
l
db
u
ya
Me
r
c
e
d
e
s
.
”T
h
e
k
e
yw
o
r
dt
h
e
r
e
i
s
“
m
a
y
b
e
.
”P
u
r
c
h
a
s
e
s
a
r
e
r
a
r
e
l
ym
a
d
e
i
nt
h
e
fudgit stage. Since
m
o
n
e
y
i
s
s
t
i
l
l
n
o
t
f
l
e
x
i
b
l
e
,
b
u
d
g
e
t
j
u
g
g
l
i
n
g
d
o
e
s
n
‖
t
u
s
u
a
l
l
y
p
r
o
v
i
d
e
all the extra cash needed, but it gets us closer. Working through
the fudgit stage gets us ready to take the plunge if the object goes
o
n
s
a
l
e
,
o
r
i
f
w
e
j
u
s
t
c
a
n
‖
t
s
t
a
n
d
i
t
a
n
y
m
o
r
e
.
However, the sure way to get from maybe to yes is to go
through the judgit stage.
Say one day we casually ask our neighbor with the Mercedes
h
o
wh
e
c
a
n
a
f
f
o
r
d
i
t
.
“
We
l
l
,
I
‖
mi
n
r
e
a
l
e
s
t
a
t
e
,
”
h
e
s
a
y
s
,
“
s
o
I
s
h
u
t
down the office. Now I run my business out of my car; computer,
fax, wireless internet, cell phone, files are all I the trunk; that way I
s
a
v
e
a
l
l
t
h
a
t
r
e
n
t
a
n
d
o
t
h
e
r
o
v
e
r
h
e
a
d
.
”(
T
h
a
t
‖
s
fudgit.)
“
B
u
t
t
h
a
t
d
o
e
s
n
‖
t
r
e
a
l
l
y
c
o
v
e
r
i
t
.
T
h
e
m
o
s
t
i
m
p
o
r
t
a
n
t
p
a
r
t
i
s
that when my clients see me in my Mercedes office on wheels,
Salary-Making Rule 1: When to Discuss Money
21
they are really impressed. My sales have jumped because people
take me seriously, and referral business has improv
e
ds
i
n
c
e
I
‖
m
a
l
m
o
s
t
a
l
w
a
y
s
t
h
e
r
e
t
o
a
n
s
w
e
r
t
h
e
p
h
o
n
e
.
”(
T
h
a
t
‖
s
judgit.)
Figure 3-2. Shuffling the outgo of money to make
room for new things: The Fudgit Stage.
Notice how the actual quantity of money available becomes
flexible. The judgit stage takes an objective but creative look at
the Mercedes and sees it not as a liability but as a money-making
a
s
s
e
t
.O
f
c
o
u
r
s
e
w
e
c
a
n
‖
t
a
f
f
o
r
di
t
n
o
w
,
b
u
t
t
h
e
o
n
l
y
w
a
y
e
v
e
r
t
o
22
How to Make $1,000 a Minute
afford it is to buy it! So in the light of long-term thinking, we can
be most expansive and flexible about the money. The same thing
happens when we decide to spend $5,000 on a new, efficient
h
e
a
t
i
n
gs
y
s
t
e
mw
e
“
c
a
n
‖
t
a
f
f
o
r
d
.
”I
t
w
i
l
l
p
a
yf
o
r
i
t
s
e
l
f
o
v
e
r
t
h
e
n
e
x
t
t
h
r
e
e
t
o
f
i
v
e
y
e
a
r
s
.
We
‖
l
l
b
u
y
a
n
i
t
e
mo
f
s
u
p
e
r
i
o
r
q
u
a
l
i
t
y
n
o
w
and save fuel and replacement costs later.
Waiting for the Right Moment
The best moment to talk salary with Mr. Employer is when
h
e
‖
s
r
e
a
c
h
e
d
t
h
e
j
u
d
g
i
t
s
t
a
g
e
.
L
e
t
m
e
s
h
o
wy
o
u
w
h
y
.
Employers are always curious about your most recent salary
for just one reason: to screen you. When faced with a lot of
applicants, they use salary as a quick, shorthand way of assessing
the fit and narrowing down the list.
T
h
e
yd
o
n
‖
t
w
a
n
t
t
o
w
a
s
t
e
i
n
t
e
r
v
i
e
w
i
n
gt
i
m
e
,
s
o
t
h
e
ys
c
r
e
e
n
o
u
t
p
e
o
p
l
e
t
h
e
y
“
c
a
n
‖
t
a
f
f
o
r
d
.
”T
h
e
y
a
l
s
o
c
r
o
s
s
o
f
f
p
e
o
p
l
e
w
ho are
below their range. They can afford those people, but, since salary
is related to degree of responsibility, employers think someone
e
a
r
n
i
n
gl
e
s
s
t
h
a
nt
h
eb
u
d
g
e
t
e
dr
a
n
g
ep
r
o
b
a
b
l
yc
o
u
l
d
n
‖
t
h
a
n
d
l
e
the job. Restricting interviews according to salary, therefore, is
intended to get the most competent help for the least possible
m
o
n
e
y
.
T
h
i
s
i
s
t
h
e
e
m
p
l
o
y
e
r
‖
s
b
u
d
g
e
t
s
t
a
g
e
.
While screening for the least expensive capable candidate,
however, the boss or personnel officer may scratch you off the list
regardless of whether you could really do the work or are even
the best person for the job. Even if you passed the screening,
y
o
u
‖
db
e
l
o
c
k
e
di
n
t
ot
h
e
f
i
g
u
r
e
y
o
uq
u
o
t
e
da
n
dw
o
u
l
dl
o
s
e
t
h
e
opportunity to get the best market price for your skills.
Is it ever in your
i
n
t
e
r
e
s
t
t
o
b
e
s
c
r
e
e
n
e
d
?I
f
y
o
u
‖
r
e
q
u
a
l
i
f
i
e
d
f
o
r
t
h
ej
o
b
,
n
o
!D
o
n
‖
t
t
a
l
ks
a
l
a
r
yy
e
t
.S
a
l
a
r
y
-Making Rule 1 is
Postpone salary discussions until you have been offered the job.
Salary-Making Rule 1: When to Discuss Money
23
Figure 3-3. In The Judgit Stage anything is possible,
even a real-estate office on wheels!
Wh
e
nMr
.
E
m
p
l
o
y
e
r
o
f
f
e
r
s
y
o
ut
h
ej
o
b
,
h
e
‖
s
e
i
t
h
e
r
in the
j
u
d
g
i
t
s
t
a
g
e
,
o
r
a
s
c
l
o
s
e
t
o
i
t
a
s
h
e
‖
s
g
o
i
n
g
t
o
g
e
t
.
H
e
‖
s
c
o
n
v
i
n
c
e
d
y
o
u
‖
r
e
t
h
e
b
e
s
t
c
a
n
d
i
d
a
t
e
.T
h
e
r
e
f
o
r
e
,
h
e
‖
s
m
o
r
e
w
i
l
l
i
n
gt
om
a
k
e
the pay scale flexible, and even practice creative budget juggling,
to get you.
T
h
es
a
m
ea
p
p
l
i
e
st
or
a
i
s
e
s
.T
h
e
r
e
,
t
h
er
u
l
ei
s“
Wa
i
t
t
o
d
i
s
c
u
s
s
a
r
a
i
s
e
u
n
t
i
l
a
f
t
e
r
y
o
u
r
p
e
r
f
o
r
m
a
n
c
e
r
e
v
i
e
w
.
”(
S
e
e
C
h
a
p
t
e
r
1
0
,
“
R
a
i
s
e
s
a
n
d
S
a
l
a
r
y
R
e
v
i
e
w
s
.
”
)
I
f
y
o
u
r
p
e
r
f
o
r
m
a
n
c
e
r
e
v
i
e
wh
a
s
been impressive, your boss will be poised at the judgit stage,
r
e
a
d
yt
ob
e
f
l
e
x
i
b
l
e
a
b
o
u
t
m
o
n
e
y
.S
i
n
c
e
y
o
u
‖
v
e
b
e
e
nc
o
n
v
i
n
c
i
n
g
24
How to Make $1,000 a Minute
about your quality, your raise is a new salary—a
s
i
f
y
o
u
‖
r
e
b
e
i
n
g
rehired at a new rate.
T
h
e
r
e
‖
s
a
n
o
t
h
e
r
r
e
a
s
o
nt
op
o
s
t
p
o
n
e
s
a
l
a
r
yd
i
s
c
u
s
s
i
o
n
s
u
n
t
i
l
the job has b
e
e
no
f
f
e
r
e
d
.L
e
t
‖
s
t
a
k
e
a
ne
x
a
m
p
l
e
f
r
o
my
o
u
r
o
w
n
shopping experience.
If you want to buy a DVD player, you check out several
stores. Suppose you get a price quotation from every salesperson
e
x
c
e
p
t
o
n
e
,
w
h
o
s
a
y
s
,
“
L
o
o
k
,
h
e
r
e
i
s
w
h
a
t
I
h
a
v
e
.I
t
h
i
n
k
i
t
‖
s
the
q
u
a
l
i
t
yy
o
uw
a
n
t
.S
oi
f
I
‖
mr
i
g
h
t
,
b
e
f
o
r
e
y
o
ub
u
ya
n
y
w
h
e
r
e
e
l
s
e
c
o
m
e
b
a
c
ka
n
dt
a
l
kt
om
e
a
b
o
u
t
p
r
i
c
e
.I
‖
ms
u
r
e
w
e
c
a
nm
a
k
e
a
d
e
a
l
.
”Wo
u
l
dy
o
ua
t
l
e
a
s
t
c
h
e
c
ki
nt
h
e
r
eb
e
f
o
r
eb
u
y
i
n
gi
f
y
o
u
thought he would give you the best price? Of course. But if he
had quoted $119, and in your fourth store you saw the equivalent
for $125, would you bother to go back for $6.00? Probably not.
Keeping a price flexible and open motivates people to check back
before deciding.
So if you table salary negotiations until you have a nod from
p
o
t
e
n
t
i
a
l
e
m
p
l
o
y
e
r
s
,
t
h
e
y
‖
r
e
l
i
k
e
l
y
a
t
l
e
a
s
t
t
o
c
h
e
c
k
b
a
c
k
w
i
t
h
y
o
u
before their final round.
B
u
t
w
h
a
t
i
f
t
h
ej
o
bd
o
e
s
n
‖
t
p
a
yi
ny
o
u
rr
a
n
g
e
,
a
n
y
w
a
y
?
A
r
e
n
‖
t
y
o
uj
u
s
t
w
a
s
t
i
n
gy
o
u
r
t
i
m
ea
n
dt
h
e
i
r
s
b
yi
n
t
e
r
v
i
e
w
i
n
g
?
Yes. But what in the world are you doing interviewing for a job
below your level of responsibility?
Y
o
u
‖
db
e
t
t
e
r
d
o
s
o
m
e
h
o
m
e
w
o
r
k
o
r
h
i
r
e
a
c
a
r
e
e
r
c
o
n
s
u
l
t
a
n
t
to get yourself focused on the right kinds of positions. You
should be able to screen the job with respect to how much
responsibility it requires. If the job challenges you comfortably,
the right money should follow.
How to Postpone Salary Talk: Part I
B
yn
o
wy
o
um
a
yb
e
t
h
i
n
k
i
n
g
,
“
O
k
a
y
,
i
t
s
o
u
n
d
s
l
i
k
e
a
g
o
o
d
i
d
e
at
op
u
t
o
f
f
d
i
s
c
u
s
s
i
n
gs
a
l
a
r
yu
n
t
i
l
I
‖
v
eb
e
e
no
f
f
e
r
e
dthe job.
But how do I do that? When Mr. Employer asks me right away
w
h
a
t
s
a
l
a
r
y
I
‖
ml
o
o
k
i
n
g
f
o
r
,
I
c
a
n
‖
t
j
u
s
t
i
g
n
o
r
e
t
h
e
q
u
e
s
t
i
o
n
.
”
Salary-Making Rule 1: When to Discuss Money
25
T
r
u
e
.
H
e
r
e
‖
s
w
h
a
t
y
o
u
c
a
n
d
o
.
Y
o
u
c
a
n
r
e
s
p
o
n
d
c
o
n
f
i
d
e
n
t
l
y
t
o
a
n
y
p
r
e
m
a
t
u
r
e
s
a
l
a
r
y
g
a
m
b
i
t
w
i
t
ht
h
e
r
e
p
l
y
,
“
I
‖
ms
u
r
e
w
e
can
c
o
m
e
t
oag
o
o
ds
a
l
a
r
ya
g
r
e
e
m
e
n
t
i
f
I
‖
mt
h
e
r
i
g
h
t
p
e
r
s
o
nf
o
r
t
h
e
j
o
b
,
s
o
l
e
t
‖
s
f
i
r
s
t
a
g
r
e
e
o
n
w
h
e
t
h
e
r
I
a
m
.
”O
r
:
“
S
a
l
a
r
y
?We
l
l
,
s
o
f
a
r
the job seems to have the right amount of responsibility for me,
a
n
dI
‖
ms
u
r
ey
o
up
a
yaf
a
i
r
s
a
l
a
r
y
,
d
o
n
‖
t
y
o
u
?
”(
What can he
s
a
y
?
)“
S
ol
e
t
‖
s
h
o
l
do
f
f
o
ns
a
l
a
r
yt
a
l
ku
n
t
i
l
y
o
uk
n
o
wy
o
uw
a
n
t
m
e
.
Wh
a
t
o
t
h
e
r
a
r
e
a
s
s
h
o
u
l
d
w
e
d
i
s
c
u
s
s
n
o
w
?
”
S
o
m
e
o
f
m
y
o
t
h
e
r
c
l
i
e
n
t
s
h
a
v
e
a
n
s
w
e
r
e
d
t
h
e
q
u
e
s
t
i
o
n
“
Wh
a
t
a
r
ey
o
u
r
s
a
l
a
r
yr
e
q
u
i
r
e
m
e
n
t
s
?
”w
i
t
h“
A
r
ey
o
uo
f
f
e
r
i
n
gm
et
h
e
j
o
b
?
”
Other handy phrases can be found at the end of the next
chapter. There are many polite ways to postpone salary talk.
These delays in discussing money can give you time to move your
potential employer from budget to fudgit to judgit.
The Preemptive Strike
My acknowledgments to Marty Nemko, author of Cool
C
a
r
e
e
r
sf
o
rD
u
m
m
i
e
s
,
f
o
rt
h
ef
o
l
l
o
w
i
n
gt
e
c
h
n
i
q
u
ew
h
i
c
hI
‖
v
e
dubbed the Preemptive Strike. Marty suggests that instead of
postponing salary talk, you, the candidate, should bring it up
early and get it out of the w
a
y
.I
‖
mi
m
p
r
e
s
s
e
d
:
I
t
h
i
n
kt
h
i
s
c
a
n
work!
We
d
i
f
f
e
r
a
s
t
ow
h
yy
o
u
‖
dd
oi
t
,
b
u
t
w
e
a
g
r
e
e
i
t
t
a
k
e
s
t
h
e
pressure off. Marty suggests it, I believe, as a way around SalaryMa
k
i
n
g
R
u
l
e
1
.
I
n
h
i
s
o
p
i
n
i
o
n
,
i
t
‖
s
b
e
t
t
e
r
t
o
“
d
o
i
t
u
p
f
r
o
n
t
a
n
d
g
e
t
it out of the w
a
y
”
t
h
a
n
t
o
p
o
s
t
p
o
n
e
i
t
.
My
p
e
r
s
p
e
c
t
i
v
e
o
n
Ma
r
t
y
‖
s
m
e
t
h
o
di
st
h
a
t
i
t
‖
sam
a
r
v
e
l
o
u
sw
a
yt
oa
c
t
u
a
l
l
yf
o
l
l
o
wS
a
l
a
r
y
Ma
k
i
n
g
R
u
l
e
1
.
I
f
y
o
u
f
i
n
d
i
t
a
w
k
w
a
r
d
t
o
p
l
a
y
“
d
o
d
g
e
t
h
e
s
a
l
a
r
y
”
when the employer brings it up you can head off that entire scene
using his “
h
a
n
d
l
e
i
t
n
o
w
”
t
e
c
h
n
i
q
u
e
.
[
B
T
WI
l
i
k
e
h
i
s
b
o
o
k
;
h
e
“
b
r
e
a
k
s
t
h
e
r
u
l
e
s
”
o
f
c
o
n
v
e
n
t
i
o
n
a
l
career counseling and the thinking is refreshing. His book,
a
c
t
u
a
l
l
y
,
r
e
c
o
m
m
e
n
d
s
y
o
uw
a
i
t
f
o
r
“
t
h
e
m
o
m
e
n
t
w
h
e
nt
h
e
b
o
s
s
seems maximally enthusiastic about ... you worki
n
gf
o
rh
i
m
,
”
w
h
i
c
hi
nm
y
i
n
t
e
r
p
r
e
t
a
t
i
o
nm
e
a
n
s
w
a
i
t
u
n
t
i
l
t
h
e
r
e
‖
s
a
no
f
f
e
r
.I
t
‖
s
26
How to Make $1,000 a Minute
in conversation with him that he proposed this alternative to
postponing salary talk.]
H
e
r
e
‖
s
h
o
wt
h
e
p
r
e
e
m
p
t
i
v
e
s
t
r
i
k
e
w
o
r
k
s
.A
f
t
e
r
y
o
uh
a
v
e
developed some rapport with the interviewer and have had some
discussion about your skills, the job, etc., you casually pop this
q
u
e
s
t
i
o
n
,
“
B
yt
h
ew
a
y
,
Mr
.
E
m
p
l
o
y
e
r
,
I
k
n
o
wi
t
‖
st
o
oe
a
r
l
yt
o
discuss compensation in detail, but I wonder if you can give me a
rough idea of the range you were thinking of with regard to this
p
o
s
i
t
i
o
n
?
”
I
t
d
o
e
s
n
‖
t
m
a
t
t
e
r
m
u
c
h
w
h
a
t
t
h
e
y
a
n
s
w
e
r
!L
a
t
e
r
,
w
h
e
ny
o
u
g
e
t
t
ot
h
e
j
u
d
g
i
t
s
t
a
g
e
y
o
u
‖
l
l
s
t
i
l
l
b
e
a
b
l
et
on
e
g
o
t
i
a
t
ey
o
u
r
b
e
s
t
price. What does matter is that by getting them to spill the beans,
you avoid them asking you what your salary expectations are. On
the other hand, this option runs a small risk of appearing more
interested in money than the job and the risk, too, of them turning
the tables and asking about your expectations.
A
n
do
n
c
e
t
h
e
y
‖
v
e
a
n
s
w
e
r
e
d
?The following response will
s
t
e
e
r
y
o
ub
a
c
ko
nt
h
e
m
a
i
nr
o
a
d
,“
T
h
a
n
ky
o
u
.I
‖
mc
o
n
f
i
d
e
n
t
i
f
I
‖
mt
h
e
r
i
g
h
t
p
e
r
s
o
nf
o
r
t
h
e
j
o
b
w
e
c
a
nf
i
n
da
s
a
l
a
r
y
t
h
a
t
w
o
r
k
s
.
”
T
h
e
nf
o
c
u
sa
t
t
e
n
t
i
o
nb
a
c
ko
nt
h
ej
o
bi
n
t
e
r
v
i
e
ww
i
t
h
,
“
T
e
l
l
m
e
more about the key problems you w
a
n
t
h
a
n
d
l
e
do
nt
h
i
s
j
o
b
,
”
o
r
,
“
L
e
t
‖
s
d
i
s
c
u
s
s
t
h
e
m
a
n
a
g
e
m
e
n
t
s
t
y
l
e
y
o
u
r
c
o
m
p
a
n
y
w
a
n
t
s
t
o
s
e
e
.
”
Any question that puts the interviewer back on exploring the
match between you and the job/company will do.
Notice how this question and reply not only helps the
employer relax about being able to afford you, but also postpones
real salary discussion until later. Properly done, your reply
d
o
e
s
n
‖
t
a
c
c
e
p
t
t
h
e
r
a
n
g
e
a
s
-i
s
,
y
o
u
‖
r
e
s
t
i
l
l
f
r
e
e
t
o
n
e
g
o
t
i
a
t
e
m
o
r
e
.
What if They Get Angry with Me?
Chapter 11 covers handling this worry in more detail, and
when to disobey the rules in order to avoid tension and anger in
the interview. Sometimes, going first can be the right thing to do,
b
u
t
t
h
a
t
‖
s
h
i
g
h
e
r
l
e
a
r
n
i
n
g
;
g
e
t
p
r
o
f
i
c
i
e
n
t
a
t
t
h
eb
a
s
i
c
s
f
i
r
s
t
.So,
definitely read Chapter 11—but not yet. F
o
r
n
o
w
,
l
e
t
‖
s
l
o
o
ka
t
h
o
w
we might avoid any struggle.
Salary-Making Rule 1: When to Discuss Money
27
I must admit that it feels a little tense when an employer
a
s
k
s
a
b
o
u
t
y
o
u
r
s
a
l
a
r
y
r
e
q
u
i
r
e
m
e
n
t
s
a
n
d
y
o
u
w
o
n
‖
t
d
i
s
c
l
o
s
e
t
h
e
m
.
A tug of war over disclosing your money requirements hurts
your chances of being hired because it destroys the rapport
needed for hiring. Your rule of thumb here is to put off the first
r
e
q
u
e
s
t
,
m
a
y
b
et
h
es
e
c
o
n
d
,
b
u
t
i
f
a
s
k
e
da
g
a
i
ny
o
u
‖
l
l
n
e
e
dt
o
handle it more directly.
Here are ways to handle it and avoid a struggle.
S
o
f
t
e
ny
o
u
r“
L
e
t
’
sw
a
i
t
”statements with introductory
p
h
r
a
s
e
s
l
i
k
e
:
“
D
i
s
c
u
s
s
i
n
g
s
a
l
a
r
y
i
s
a
l
w
a
y
s
a
w
k
w
a
r
df
o
r
m
e
,
s
o
…”
“
I
k
n
o
wy
o
u
‖
r
e
e
a
g
e
r
t
o
k
n
o
wr
e
q
u
i
r
e
m
e
n
t
s
,
b
u
t
…”
“
C
o
u
l
dI
s
a
y
s
o
m
e
t
h
i
n
ga
b
o
u
t
t
h
a
t
?
”
O
r
,
“
Wh
e
nw
e
d
i
s
c
u
s
s
m
o
n
e
yu
pf
r
o
n
t
I
get w
o
r
r
i
e
d
I
‖
l
l
b
e
s
c
r
e
e
n
e
d
o
u
t
o
r
b
o
x
e
d
i
n
,
s
o
c
o
u
l
d
w
e
…?
”
T
o
f
i
n
d
o
u
t
w
h
a
t
’
s
s
o
i
m
p
o
r
t
a
n
t
a
b
o
u
t
k
n
o
w
i
n
g
y
o
u
r
s
a
l
a
r
y
requirements,
u
s
eq
u
e
s
t
i
o
n
s
l
i
k
e
:
“
I
n
o
t
i
c
ew
e
‖
r
eb
a
c
ko
ns
a
l
a
r
y
a
g
a
i
n
.
Ma
y
I
a
s
k
y
o
u
a
q
u
e
s
t
i
o
n
?
”T
h
e
e
m
p
l
o
y
e
r
s
a
y
s
o
k
a
y
.
Y
o
u
c
o
n
t
i
n
u
e
,
“
Are you wondering if you can afford me, or do you just
n
e
e
di
t
f
o
r
a
n
a
p
p
l
i
c
a
t
i
o
n
,
o
r
s
o
m
e
t
h
i
n
g
e
l
s
e
?
”
O
r
,
“
I
n
o
t
i
c
e
w
e
‖
v
e
c
o
m
e
b
a
c
k
t
o
s
a
l
a
r
y
.
I
‖
dl
i
k
e
y
o
ut
o
k
n
o
wt
h
a
t
I
‖
db
e
g
l
a
dt
o
t
a
l
k
about money, and even share my tax return with you at some
point i
f
i
t
‖
s
i
m
p
o
r
t
a
n
t
,
b
u
t
c
o
u
l
dw
e
t
a
k
e
a
m
o
m
e
n
t
t
o
t
a
l
k
a
b
o
u
t
w
h
y
w
e
n
e
e
d
t
o
d
i
s
c
u
s
s
i
t
n
o
w
?
”
Give up. You can disregard my salary-making rules
altogether and reveal your salary up front. That will also end a
tug of war. You always have that option available, and I even
d
i
s
c
u
s
s
i
t
i
n
C
h
a
p
t
e
r
1
0
.
I
d
o
n
‖
t
,
h
o
w
e
v
e
r
,
r
e
c
o
m
m
e
n
d
i
t
.
P
e
o
p
l
e
‖
sa
t
t
e
n
t
i
o
ne
a
s
i
l
yg
e
t
sf
o
c
u
s
e
do
nt
h
eg
l
a
s
s
-halfe
m
p
t
ys
i
d
e
o
f
p
o
s
t
p
o
n
i
n
g
,
s
ot
h
e
ya
s
k
,
“
Wh
a
t
i
f
t
h
e
yg
e
t
a
n
g
r
y
w
i
t
hm
e
?
”N
o
t
et
h
a
t
t
h
es
a
m
eg
l
a
s
s
i
s
a
l
s
oh
a
l
f
f
u
l
l
:
“
Wh
a
t
if
t
h
e
y
‖
r
e
more impressed w
i
t
h
m
e
?
”
One client reported an incident that happened when he was
being interviewed by a recruiter who was retained by a familyo
w
n
e
d
c
o
m
p
a
n
y
.
T
h
e
r
e
c
r
u
i
t
e
r
‖
s
j
o
b
w
a
s
t
o
m
a
k
e
a
g
o
o
d
s
e
l
e
c
t
i
o
n
and to do it more objectively than the family could on its own.
In one group interview the recruiter pressed my client for
salary expectations. The client postponed it several times; the
28
How to Make $1,000 a Minute
family brass were in the room and they were showing some signs
of discomfort. The recruiter turned to t
h
e
ma
n
dr
e
m
a
r
k
e
d
,
“
T
h
i
s
man is doing exactly what I would tell a candidate of mine to do in
t
h
i
s
s
i
t
u
a
t
i
o
n
.
”
He scored points by focusing the interview on contribution,
n
o
tp
a
y
b
a
c
k
.C
h
e
c
ko
u
tD
a
n
i
e
l
‖
ss
t
o
r
yu
n
d
e
rt
h
e“
t
o
ol
o
w
”
heading at the beginning of Chapter 6.
D
o
n
‖
t
w
o
r
r
y
a
b
o
u
t
u
p
s
e
t
t
i
n
g
t
h
e
i
n
t
e
r
v
i
e
w
e
r
,
f
o
r
n
o
w
;
k
e
e
p
reading! Learn rules 2 to 5. If you allow the right mind-set to
d
e
v
e
l
o
p
,y
o
u
‖
l
lf
i
n
dy
o
u
ro
w
nn
a
t
u
r
a
lw
o
r
d
sa
n
dw
a
y
st
o
postpone salary talk. At the end of the next chapter, I disclose
how others have said it, which will help you compose and
embrace your own way of postponing salary talk. If you need
help coming up with a phrase that suits you, my telecoaching as
described in the Coaching and Practice Chapter 12, can make this
easy.
Development of an Offer
With the right research and approach, the tactics discussed
above can even allow you strategically to explore positions
seemingly beneath you.
For instance, I had a client with high-level management
capabilities who chose to interview for a line-manager position
paying way below his worth. Although normally that would be a
waste of time, by applying proper salary-talk timing he was able
t
od
e
v
e
l
o
pt
h
ei
n
t
e
r
v
i
e
wi
n
t
oas
u
p
e
r
i
o
r
o
f
f
e
r
.H
e
r
e
‖
s
h
i
s
o
w
n
account.
My interview was with the vice president of operations. He said
the slot he wanted to fill was operations manager, salary
$35,000. When he asked if that salary would be okay, I said I
wanted to table salary discussions until we were sure I was right
for the job. Then, while he talked about the company, I made
m
e
n
t
a
l
n
o
t
e
s
a
b
o
u
t
i
t
s
p
r
o
b
l
e
m
a
r
e
a
s
,
t
o
g
o
a
l
o
n
g
w
i
t
h
w
h
a
t
I
’
d
learned by reading the company literature and talking to the
secretary.
He asked what my strengths were, and I told him the top four.
He asked what my weaknesses were, and after about a fifteen-
Salary-Making Rule 1: When to Discuss Money
29
s
e
c
o
n
d
p
a
u
s
e
I
s
a
i
d
I
’
d
n
e
e
d
a
d
d
i
t
i
o
n
a
l
t
i
m
e
t
o
t
h
i
n
k
o
f
a
weakness with respect to this position.
After more discussion about my background, which I related to
company problem areas, he offered me the position of district
manager at a salary of $60,000 to $70,000.
Once again, I declined to discuss salary. Instead I steered the
conversation back to four of their stores in South Carolina, which
I knew from my research were ineffectively managed. I pointed
out qualifications listed on my résumé that coincided with that
need.
Then he asked me how much I actually wanted in salary. I
answered that I felt my salary should be based on the
responsibilities of the job and the standards of the industry. If we
got clarity on that, the salary would fall in line.
After that he began talking about an even better job concerning
the four problem stores. He said that the job, on approval of the
president, could pay $80,000 to $100,000!
An interview that was supposed to take only thirty minutes
a
c
t
u
a
l
l
y
t
o
o
k
n
i
n
e
t
y
,
a
n
d
m
y
i
n
t
e
r
v
i
e
w
e
r
s
a
i
d
h
e
’
d
t
a
l
k
t
o
t
h
e
president about paying top dollar for top people.
Another client deliberately interviewed for an advertised
position for which he was overqualified: a manager of computeraided design (CAD), pegged at $55,000 a year. He followed up
the interview with a letter telling how, to save the company
untold grief and overhead, he could 1) solve the problems he and
the interviewer had talked about, 2) solve some other problems
the interviewer had hinted at, and 3) help over the next two years
to integrate the CAD with the CAM (computer-aided-manufacturing) systems.
If he had revealed his salary requirements in the beginning,
h
e
‖
dh
a
v
eb
e
e
ns
c
r
e
e
n
e
do
u
tw
h
i
l
et
h
ec
o
m
p
a
n
yw
a
si
nt
h
e
budget stage and never been hired in the judgit stage, at $95,000.
Seller-Buyer Role Reversal in Negotiations: Part I
F
i
n
a
l
l
y
,
c
o
m
m
o
n
s
a
l
e
s
s
e
n
s
e
s
a
y
s
y
o
u
‖
l
l
g
e
t
y
o
u
r
b
e
s
t
m
o
n
e
y
if you wait. An interesting role reversal takes place if you
postpone salary discussions until offer time.
30
How to Make $1,000 a Minute
Interviews start with employers buying and you selling. If
you even passively agree to an X-dollar price or range for the
o
f
f
e
r
,
t
h
e
y
w
i
l
l
l
i
n
e
u
p
t
h
e
i
r
c
a
n
d
i
d
a
t
e
s
,
p
i
c
k
o
n
e
,
a
n
d
s
a
y
,
“
O
k
a
y
,
I
‖
l
l
b
u
yy
o
uf
o
r
Xd
o
l
l
a
r
s
.
”I
f
y
ou postpone discussing salary,
however, that role is reversed. They are no longer shoppers, they
are sellers. They are in a position where they want you. They have
j
u
d
g
e
dy
o
u
r
q
u
a
l
i
t
y
,
n
o
t
y
o
u
r
p
r
i
c
e
.T
h
e
y
‖
v
e
d
e
c
i
d
e
dt
o
a
s
k
y
o
u
t
o
j
o
i
n
t
h
e
m
,
s
o
t
h
e
y
‖
r
e
selling the job to you! They are motivated
at this time to offer you their best price, because they want your
c
o
n
t
r
i
b
u
t
i
o
n
.
I
f
t
h
e
y
a
r
e
n
‖
t
b
e
y
o
n
d
t
h
e
b
u
d
g
e
t
s
t
a
g
e
y
e
t
,
t
h
i
s
i
s
t
h
e
o
n
l
y
t
i
m
e
t
h
e
y
‖
l
l
b
e
m
o
t
i
v
a
t
e
d
t
o
b
r
e
a
k
t
h
r
o
u
g
h
i
t
.
So be prepared when Mr. Employer looks you in the eye and
s
a
y
s
,
“
Wh
a
t
s
o
r
t
o
f
s
a
l
a
r
ya
r
ey
o
ul
o
o
k
i
n
gf
o
r
?
”A
s
ky
o
u
r
s
e
l
f
w
h
e
t
h
e
r
h
e
‖
s
i
nt
h
e
j
u
d
g
i
t
s
t
a
g
e
.R
e
m
e
m
b
e
r
t
h
a
t
S
a
l
a
r
y
-Making
Rule 1 is Postpone salary discussions until you have been offered the job.
Chapter 4:
Salary-Making Rule 2:
Who Goes First
“
Wh
a
t
w
i
l
l
i
t
t
a
k
e
t
o
b
r
i
n
g
y
o
u
a
b
o
a
r
d
?
”
Mr
.
E
m
p
l
o
y
e
r
a
s
k
s
.
“
A
r
e
y
o
u
o
f
f
e
r
i
n
g
m
e
t
h
e
j
o
b
?
”
y
o
u
s
a
y
,
t
o
d
e
l
a
y
.
“
Y
e
s
.
”
Now what? Should you answer the question? No more
d
e
l
a
y
i
s
n
e
c
e
s
s
a
r
y
;
t
h
e
y
‖
r
e
r
e
a
d
y
t
o
m
a
k
e
a
n
o
f
f
e
r
.
L
e
t
‖
s
c
a
l
c
u
l
a
t
e
t
h
e
o
d
d
s
o
f
c
o
m
i
n
g
o
u
t
a
h
e
a
di
f
y
o
ug
o
f
i
r
s
t
.
Keep in mind that your work and dedication are intangible and
d
i
f
f
i
c
u
l
tt
op
r
i
c
e
.T
h
a
tm
e
a
n
st
h
e
r
e
‖
sar
a
n
g
e
.E
v
e
ni
f the
employer is in the budget phase, there is still a range to work
w
i
t
h
.
L
e
t
‖
s
s
a
y
,
f
o
r
e
x
a
m
p
l
e
,
t
h
a
t
t
h
e
c
o
m
p
a
n
y
‖
s
r
a
n
g
e
f
o
r
t
h
i
s
j
o
b
is $50,000 to $55,000. If you go first you can be only, as Goldilocks
might tell you, too high, too low, or just righ
t
.L
e
t
‖
s
s
e
ew
h
a
t
happens.
Calculating Winning Odds of the First Move
You Go First—Too High
Y
o
ut
h
i
n
k
,
“
O
k
a
y
,
y
o
ud
i
r
t
y
,
c
h
i
s
e
l
i
n
gr
a
t
s
,
I
k
n
o
wy
o
u
‖
r
e
o
u
t
t
os
t
e
a
l
m
e
c
h
e
a
p
,
b
u
t
I
‖
mt
o
os
m
a
r
t
f
o
r
y
o
u
.
”I
ny
o
u
r
m
o
s
t
d
i
p
l
o
m
a
t
i
c
t
o
n
e
s
y
o
us
a
y
,
“
I
k
n
o
ww
h
a
t
I
‖
mw
o
r
t
h
,
a
n
dI
w
a
n
t
$
6
0
,
0
0
0
t
o
a
c
c
e
p
t
y
o
u
r
o
f
f
e
r
.
”
31
32
How to Make $1,000 a Minute
T
h
e
r
e
s
p
o
n
s
e
?P
r
o
b
a
b
l
y
,
“
S
o
r
r
y
,
w
r
o
n
g
n
u
m
b
e
r
.
”
Y
o
u
r
c
o
m
e
b
a
c
k
:
“
A
w
,I
w
a
s
j
u
s
t
k
i
d
d
i
n
g
.I
r
e
a
l
l
yw
o
u
l
d
accept $59,000. Fifty-eight thousand dollars? Fifty-seven thousand
dollars sounds reasonable. Fifty-six thousand? Would you believe
I
l
o
v
e
t
h
i
s
p
l
a
c
e
s
o
m
u
c
h
I
‖
d
g
o
a
s
l
o
wa
s
$
5
5
,
0
0
0
?
”
S
o
u
n
dl
i
k
eb
e
g
g
i
n
g
?A
w
k
w
a
r
d
,
i
s
n
‖
t
i
t
?S
oy
o
ul
o
s
et
h
e
offer, or beg for the job.
The first of four charts illustrates the win-loss ratio here.
Wins
Losses
0
The Job
Your Dignity (Begging)
Figure 4-1. You GoFirst—
Too High. The Outcome
A
c
t
u
a
l
l
y
,
t
h
er
e
j
e
c
t
i
o
nm
i
g
h
t
b
ep
h
r
a
s
e
dl
i
k
et
h
i
s
:
“
We
l
l
,
$60,000 is not really the range we were thinking of, so give me
some time to talk to our comptroller about it and get back to you,
l
e
t
‖
s
s
a
y
,
T
h
u
r
s
d
a
y
.
”(
D
o
n
‖
t
h
o
l
d
y
o
u
r
b
r
e
a
t
h
.
)
You Go First—Too Low
Y
o
ut
h
i
n
k
,
“
L
i
s
t
e
n
,
S
c
r
o
o
g
e
,
y
o
um
a
yg
e
t
B
o
bC
r
a
t
c
h
i
t
f
o
r
p
e
a
n
u
t
s
,
b
u
t
y
o
u
‖
r
e
p
a
y
i
n
gm
e
a
f
a
i
r
w
a
g
e
.
”F
i
r
m
l
yy
o
us
a
y
,
“
I
k
n
o
wh
o
wv
a
l
u
a
b
l
e
I
a
m
,
a
n
dI
w
o
n
‖
t
t
o
u
c
h
y
o
u
r
j
o
b
f
o
r
l
ess than
$
4
0
,
0
0
0
.
”
Mr. Employer is disappointed. He thought he was finally
getting quality and finds out you are bargain-basement
m
e
r
c
h
a
n
d
i
s
e
.“
We
l
l
,
”
h
e
r
e
p
l
i
e
s
,
“
t
h
a
t
‖
s
n
o
t
r
e
a
l
l
yt
h
e
r
a
n
g
e
w
e
were thinking of, so give me some time to talk to our comptroller
a
b
o
u
t
i
t
a
n
dg
e
t
b
a
c
k
t
o
y
o
u
,
s
a
y
,
T
h
u
r
s
d
a
y
.
”(
A
g
a
i
n
,
d
o
n
‖
t
h
o
l
d
your breath.)
O
rh
em
i
g
h
t
s
a
ys
o
m
ev
e
r
s
i
o
no
f
“
S
o
l
d
!
”l
i
k
e
:
“
$
4
0
,
0
0
0
.
We
l
l
,
t
h
a
t
w
a
s
n
‖
t
e
x
a
c
t
l
yt
h
er
a
n
g
ew
ew
e
r
et
h
i
n
k
i
n
go
f
,
b
u
t
I
think we can come up with it if you really think y
o
u
‖
r
e
w
o
r
t
h
t
h
a
t
33
Rule 2: Who Goes First
m
u
c
h
.Wh
e
nw
o
u
l
dy
o
ul
i
k
e
t
o
s
t
a
r
t
?
”(
Y
o
uj
u
s
t
g
o
t
s
o
c
k
e
df
o
r
$10,000.)
Wins
Losses
0
The Job
The Job
$5,000 to $10,000
Figure 4-2. You GoFirst—
Too Low. The Outcome
You Go First—Just Right
Wh
a
t
i
f
y
o
u
‖
r
e
j
u
s
t
r
i
g
h
t
?T
h
a
t
i
s
,
y
o
uhappen to hit the top
o
f
t
h
e
r
a
n
g
e
:
“
T
h
i
s
w
i
l
l
c
o
s
t
y
o
u
$
5
5
,
0
0
0
,
Mr
.
E
m
p
l
o
y
e
r
.
”
“
We
l
l
,
t
h
a
t
w
a
s
n
‖
t
e
x
a
c
t
l
yt
h
e
r
a
n
g
e
w
e
w
e
r
e
t
h
i
n
k
i
n
go
f
,
”
Mr
.
E
m
p
l
o
y
e
r
s
a
y
s
,
“
b
u
t
I
t
h
i
n
k
w
e
c
o
u
l
dc
o
m
e
u
pw
i
t
hi
t
i
f
y
o
u
r
e
a
l
l
yt
h
i
n
ky
o
u
‖
r
ew
o
r
t
ht
h
a
t
m
u
c
h
.Wh
e
nw
o
u
l
dy
o
ulike to
s
t
a
r
t
?
”S
o
u
n
df
a
m
i
l
i
a
r
?O
f
c
o
u
r
s
e
.I
t
‖
s
t
h
e
s
a
m
e
w
o
r
d
s
a
s
t
h
e
“
T
o
o
l
o
w
”
r
e
s
p
o
n
s
e
.
S
o
e
v
e
n
i
f
y
o
u
w
e
r
e
j
u
s
t
r
i
g
h
t
,
y
o
u
‖
l
l
a
l
w
a
y
s
wonder if you really were too low!
Wins
Losses
The Job
$?????
Figure 4-3. You GoFirst—
Just Right. The Outcome
So Salary-Making Rule 2 is: Let them go first.
If you go first, you can choose from among these outcomes:
Lose the job, lose both the job and your dignity, lose $5,000 to
$
1
0
,
0
0
0
,
o
r
l
o
s
e
t
r
a
c
ko
f
w
h
e
t
h
e
r
y
o
u
‖
v
e
l
o
s
t
o
r
w
o
n
.N
o
t
v
e
r
y
encouraging odds.
34
How to Make $1,000 a Minute
Seller-Buyer Role Reversal in Negotiations: Part II
R
e
m
e
m
b
e
r
t
h
e
r
o
l
e
r
e
v
e
r
s
a
l
?We
l
l
,
b
e
c
a
u
s
e
o
f
t
h
a
t
,
i
t
‖
s
n
o
t
e
v
e
ny
o
u
r
p
l
a
c
et
og
of
i
r
s
t
.I
f
y
o
u
‖
v
ef
o
l
l
o
w
e
dS
a
l
a
r
y
-Making
R
u
l
e
1
,
t
h
e
i
n
t
e
r
v
i
e
w
e
r
b
e
c
o
m
e
s
t
h
e
s
e
l
l
e
r
n
o
w
.I
t
‖
s
t
h
e
s
e
l
l
e
r
‖
s
responsibility to name the price.
Wh
e
ny
o
ug
ot
ob
u
yan
e
ws
u
i
t
a
n
df
i
n
do
n
e
t
h
a
t
‖
s
r
i
g
h
t
,
y
o
u
a
s
k
,
“
Wh
a
t
‖
s
i
t
c
o
s
t
?
”D
o
e
s
t
h
e
s
e
l
l
e
r
r
e
p
l
y
,
“
We
l
l
,
h
o
wm
u
c
h
h
a
v
e
y
o
ug
o
t
?
”
o
r
“
Wh
a
t
d
i
dy
o
up
a
y
f
o
r
y
o
u
r
l
a
s
t
s
u
i
t
?
”I
t
‖
s
n
o
t
your job to determine how much this job is worth to these people
in this situation at this time. (You do need to know your market
v
a
l
u
e
,
o
f
c
o
u
r
s
e
.
We
‖
l
l
g
e
t
t
o
t
h
a
t
i
n
C
h
a
p
t
e
r
5
.
)
E
m
p
l
o
y
e
r
s
k
n
o
w
their business plans. They should have an idea of how you can
m
a
k
e
o
r
s
a
v
e
t
h
e
ma
b
u
c
k
.
I
t
‖
s
t
h
e
i
r
p
l
a
ce to tell you the number.
How to Postpone Salary Talk: Part II
In the play Harvey, people were moved by the lost-child look
o
f
E
l
w
o
o
dP
.
D
o
w
d
t
o
a
s
k
,
“
I
s
t
h
e
r
e
s
o
m
e
t
h
i
n
g
I
c
a
n
d
o
f
o
r
y
o
u
?
”
H
ea
l
w
a
y
s
r
e
p
l
i
e
d
,
“
Wh
a
t
d
i
dy
o
uh
a
v
ei
nm
i
n
d
?
”K
e
e
pt
h
a
t
phrase h
a
n
d
y
,a
si
n
:“
We
l
l
,I
‖
ms
u
r
ey
o
uh
a
v
es
o
m
e
t
h
i
n
g
b
u
d
g
e
t
e
df
o
r
t
h
i
s
p
o
s
i
t
i
o
n
.Wh
a
t
r
a
n
g
e
d
i
dy
o
uh
a
v
e
i
nm
i
n
d
?
”
O
r
:
“
I
h
a
v
e
s
o
m
e
i
d
e
a
o
f
t
h
e
m
a
r
k
e
t
,
b
u
t
f
o
r
a
m
o
m
e
n
t
l
e
t
‖
s
s
t
a
r
t
w
i
t
h
y
o
u
r
r
a
n
g
e
.
”
Some interviewers may be very persistent about knowing
your range or previous salary. Usually that happens prior to an
offer, and this is covered by Salary-Making Rule 1. Remember,
discussing salary before an offer is just another way to get you to
go first. Here are a few more of the ways you can postpone salary
d
i
s
c
u
s
s
i
o
n
st
om
a
k
es
u
r
ei
n
t
e
r
v
i
e
w
e
r
sg
of
i
r
s
t
.I
‖
v
en
u
m
b
e
r
e
d
them to help you pick them out.
1S
o
m
ec
l
i
e
n
t
s
,
w
h
e
na
s
k
e
da
b
o
u
t
p
r
e
s
e
n
t
s
a
l
a
r
y
,
s
a
y
,
“
I
‖
m
paid very fairly for my responsibilities in my present job, and I
expect a fair salary with respect t
o
m
y
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
h
e
r
e
.
”T
h
e
n
c
o
n
t
i
n
u
eb
ys
a
y
i
n
g(
i
f
t
h
e
r
e
‖
sb
e
e
nn
oo
f
f
e
ry
e
t
)
,
“
L
e
t
‖
sk
e
e
p
t
a
l
k
i
n
gt
om
a
k
e
s
u
r
e
I
‖
mt
h
e
o
n
e
y
o
uw
a
n
t
,
”o
r
(
i
f
a
no
f
f
e
r
h
a
s
b
e
e
n
m
a
d
e
)
“
Wh
a
t
d
i
d
y
o
u
h
a
v
e
i
n
m
i
n
d
?
”
Rule 2: Who Goes First
35
2When
asked the second or third time for his salary, one
client of mine finally just ignored it. 3As
e
c
o
n
d
s
a
i
d
,
“
H
e
l
l
,
i
t
d
o
n
‖
t
m
a
k
e
n
od
i
f
f
‖
r
e
n
c
e
w
h
a
t
I
w
a
s
a
-m
a
k
i
n
‖
b
‖
f
o
r
e
.I
t
‖
s
w
h
a
t
y
o
u
’
r
e
g
o
n
n
a
p
a
y
m
e
t
h
a
t
c
o
u
n
t
s
,
a
i
n
‖
t
i
t
?
”
4At
h
i
r
dc
l
i
e
n
t
t
o
o
ku
pt
h
e
i
s
s
u
e
h
e
a
do
n
.“
Ma
y
b
e
y
o
u
‖
v
e
noticed by now t
h
a
t
i
t
‖
s
a
c
l
e
a
r
p
r
i
n
c
i
p
l
e
o
f
m
i
n
e
n
e
v
e
r
t
o
d
i
s
c
u
s
s
s
a
l
a
r
yu
pf
r
o
n
t
.I
f
w
e
‖
r
eg
o
i
n
gt
ow
o
r
kt
o
g
e
t
h
e
r
,
w
e
‖
l
l
h
a
v
et
o
r
e
s
p
e
c
t
e
a
c
ho
t
h
e
r
‖
s
p
r
i
n
c
i
p
l
e
s
,
w
o
n
‖
t
w
e
?S
o
l
e
t
‖
s
s
e
e
h
o
wI
c
a
n
h
e
l
p
y
o
u
m
a
k
e
[
o
r
s
a
v
e
]
m
o
n
e
y
.
”
Another client, when questioned by a personnel
representative about his present salary said, 5”
I
d
o
n
‖
t
h
a
v
et
o
a
n
s
w
e
r
t
h
a
t
,
d
o
I
?
”“
N
o
,
”
t
h
e
p
e
r
s
o
n
n
e
l
r
e
pr
e
p
l
i
e
d
,
“
I
j
u
s
t
h
a
v
e
t
o
a
s
k
i
t
.
”
The best postponing phrase speaks confidence in being hired.
salary agreement
w
h
e
n
t
h
e
t
i
m
e
c
o
m
e
s
.
”O
f
t
e
n
y
o
u
r
i
n
t
e
r
v
i
e
w
e
r
w
i
l
l
b
e
s
e
t
a
t
e
a
s
e
7
by a statement like this ”
D
o
n
‖
t
w
o
r
r
y
a
b
o
u
t
s
a
l
a
r
y
;
I
k
n
o
wI
n
e
e
d
t
o
m
a
k
e
y
o
u
m
o
r
e
t
h
a
n
I
c
o
s
t
.
L
e
t
‖
s
m
a
k
e
s
u
r
e
t
h
e
f
i
t
i
s
r
i
g
h
t
.
”
6F
o
r
e
x
a
m
p
l
e
:
“
I
‖
ms
u
r
e
w
e
c
a
nc
o
m
e
t
o
a
g
o
od
If you have some experience of your own as an interviewer,
you could say 8”
L
o
o
k
,
i
f
s
a
l
a
r
y
i
s
a
l
l
y
o
u
‖
r
e
w
o
r
r
i
e
da
b
o
u
t
,
t
h
e
r
e
‖
s
n
o
p
r
o
b
l
e
m
!Wh
e
nI
‖
v
e
h
i
r
e
dp
e
o
p
l
e
m
y
s
e
l
f
,
s
a
l
a
r
y
h
a
s
b
e
e
nj
u
s
t
the finishing touch to the person who can really play for the team.
L
e
t
‖
s
t
a
l
k
a
b
o
u
t
i
t
w
h
e
n
w
e
‖
r
e
s
u
r
e
I
‖
mt
h
e
p
l
a
y
e
r
y
o
u
‖
r
e
a
f
t
e
r
.
”
Here are some additional examples that show you can
i
n
v
e
n
t
y
o
u
r
o
w
n
p
h
r
a
s
e
s
r
a
t
h
e
r
t
h
a
n
r
e
c
i
t
i
n
g
s
o
m
e
o
n
e
e
l
s
e
‖
s
.
9Nancy,
who had been underpaid in a previous position and
had run her own business for two years, handled salary questions
t
h
i
s
w
a
y
:
“
I
d
o
n
‖
t
w
a
n
t
t
o
a
p
p
e
a
r
d
i
f
f
i
c
u
l
t
.
I
c
a
n
u
n
d
e
r
s
t
a
n
dt
h
a
t
y
o
uw
a
n
t
t
ob
es
u
r
ey
o
uc
a
na
f
f
o
r
dm
e
,
a
n
dI
w
o
n
‖
t
r
e
q
u
i
r
ea
salary out of line with the job. But it is a principle of mine not to
discuss salary yet, because it can throw u
s
o
f
f
t
r
a
c
k
.
Wh
a
t
‖
s
r
e
a
l
l
y
i
m
p
o
r
t
a
n
t
i
s
w
h
e
t
h
e
r
I
‖
mr
i
g
h
t
f
o
r
t
h
e
j
o
b
a
n
d
w
h
a
t
I
c
a
n
p
r
o
d
u
c
e
f
o
r
y
o
u
.
”
When Denny was asked his salary expectations, he replied
10”
We
l
l
,
c
o
m
p
e
n
s
a
t
i
o
ni
s
a
b
o
u
t
n
u
m
b
e
r
t
h
r
e
e
o
n
m
y
p
r
i
o
r
i
t
i
e
s
l
i
s
t
right now. Number one is making sure we can work together,
36
How to Make $1,000 a Minute
a
n
dI
‖
dj
u
s
t
a
ss
o
o
nc
o
n
c
e
n
t
r
a
t
eo
nt
h
a
t
f
o
r
n
o
w
,
i
f
y
o
ud
o
n
‖
t
m
i
n
d
.
”D
e
n
n
y
w
a
s
a
b
l
e
t
o
b
o
o
s
t
t
h
e
e
m
p
l
o
y
e
r
‖
s
l
i
m
i
t
o
f
“
$
6
0
,
0
0
0
,
t
o
p
s
”
t
o
$
8
5
,
0
0
0
a
n
d
b
o
n
u
s
e
s
!
A
f
t
e
r
h
e
r
b
o
s
s
d
e
c
l
a
r
e
d
,
“
R
a
i
s
e
s
w
i
l
l
b
e
f
i
v
e
p
e
r
c
e
n
t
a
c
r
o
s
s
11
t
h
eb
o
a
r
dt
h
i
sy
e
a
r
,
” H
e
l
e
ns
a
i
d ”
I
‖
mn
o
ti
n
t
e
r
e
s
t
e
di
n
d
i
s
c
u
s
s
i
n
gr
a
i
s
e
s
y
e
t
.F
i
r
s
t
,
l
e
t
‖
s
m
a
k
e
s
u
r
e
o
u
r
g
o
a
l
s
m
a
t
c
hu
p
.
T
h
e
ni
f
w
e
n
e
e
dt
of
i
g
u
r
e
o
u
t
r
a
i
s
e
s
,
w
e
‖
l
l
h
a
v
e
s
o
m
e
t
h
i
n
gt
og
o
on.”I
n
s
t
e
a
d
o
f
a
5
-percent raise, Helen got a new judgit salary, 18
percent higher than her old one, to go with a new job title and
responsibilities.
Diana Jackson, an outstanding career consultant in New
York, reports the following response was successful for one of her
clients 12”
I
w
o
u
l
d
n
‖
t
w
a
n
t
t
o
s
a
y
a
n
y
t
h
i
n
g
a
t
t
h
i
s
p
o
i
n
t
t
h
a
t
m
i
g
h
t
s
c
a
r
e
y
o
u
a
w
a
y
,
a
n
d
I
‖
ms
u
r
e
y
o
u
d
o
n
‖
t
w
a
n
t
t
o
s
a
y
a
n
y
t
h
i
n
g
t
h
a
t
m
i
g
h
t
d
i
s
c
o
u
r
a
g
e
m
e
,
s
o
i
f
i
t
‖
s
o
k
a
y
w
i
t
h
y
o
u
,
I
‖
d
l
i
k
e
t
o
j
u
s
t
k
e
e
p
a
n
o
p
e
n
m
i
n
d
o
n
t
h
e
s
u
b
j
e
c
t
f
o
r
n
o
w
.
”
Tim, who earned well into six figures in real estate, was
exploring a passion of his—privatization within public education.
He knew there would be no point in trying to hide his previous
earnings, since one look at the title and level of responsibility in
h
i
sp
r
e
v
i
o
u
sp
o
s
i
t
i
o
nw
o
u
l
dt
e
l
l
a
ne
m
p
l
o
y
e
r
h
e
‖
db
e
e
ni
nt
h
e
upper bracket. So, instead of attempting to camouflage it, he
t
a
c
k
l
e
di
t
h
e
a
do
n
.
Wh
e
na
s
k
e
d
,
“
Wh
a
t
d
i
dy
o
um
a
k
e
t
h
e
r
e
?
”
h
e
smiled knowingly and said 13”
Al
o
t
!
”P
a
u
s
e
.
T
h
e
nh
ef
i
n
i
s
h
e
d
with, “
P
r
o
b
a
b
l
y
m
o
r
e
t
h
a
n
I
‖
dm
a
k
e
h
e
r
e
,
b
u
t
d
o
n
‖
t
w
o
r
r
y
,
s
a
l
a
r
y
i
s
n
‖
t
m
ym
a
i
nc
o
n
c
e
r
n
.
”T
h
i
s
w
a
yh
e
w
a
s
a
b
l
e
t
on
e
g
o
t
i
a
t
e
t
o
p
dollar without being screened out as too expensive.
B
a
r
b
a
r
aw
a
si
nas
l
i
g
h
t
l
yd
i
f
f
e
r
e
n
ts
i
t
u
a
t
i
o
n
;
s
h
e
‖
dh
a
d
salaries all over the boar
da
n
dk
n
e
wt
h
a
t
i
n
f
o
r
m
a
t
i
o
nw
o
u
l
d
n
‖
t
really help an employer. So she handled it by telling Human
Resources 14”
I
k
n
o
wy
o
un
e
e
dt
h
i
s
s
a
l
a
r
y
h
i
s
t
o
r
y
,
a
n
dI
‖
db
e
g
l
a
d
t
ot
e
l
l
y
o
u
.F
i
r
s
t
,
l
e
t
m
ee
x
p
l
a
i
nw
h
yI
d
i
d
n
‖
t
p
u
t
i
t
o
nt
h
e
a
p
p
l
i
c
a
t
i
o
n
:
I
d
i
d
n
‖
t
t
h
i
n
k
it would help us very much to get to a
r
e
a
s
o
n
a
b
l
e
o
f
f
e
r
.
Y
o
u
s
e
e
,
I
‖
v
e
h
a
d
c
o
n
s
u
l
t
i
n
g
p
r
o
j
e
c
t
s
t
h
a
t
w
o
u
l
d
a
n
n
u
a
l
i
z
e
t
o
$
1
2
0
,
0
0
0
a
y
e
a
r
,
a
n
d
I
‖
v
e
w
o
r
k
e
d
i
n
p
a
y
-the-rent type
jobs in the $30s. I have some salary research relevant to this
Rule 2: Who Goes First
37
position which I ca
n
b
r
i
n
g
i
n
w
h
e
n
w
e
‖
r
e
r
e
a
d
y
t
o
t
a
l
k
s
e
r
i
o
u
s
l
y
.
I
t
h
i
n
ki
t
w
i
l
l
b
e
m
u
c
hm
o
r
e
i
n
f
o
r
m
a
t
i
v
e
.
I
d
o
n
‖
t
t
h
i
n
kw
e
‖
l
l
h
a
v
e
m
u
c
h
p
r
o
b
l
e
mw
i
t
h
s
a
l
a
r
y
w
h
e
n
t
h
a
t
t
i
m
e
c
o
m
e
s
.
”
15One
of my favorite post-offer responses, but a bit too
f
l
i
p
p
a
n
t
f
o
r
p
r
a
c
t
i
c
a
l
u
s
e
i
s
:
“
Me
,
mention a figure first? I have
a
b
s
o
l
u
t
e
l
y
n
o
u
p
p
e
r
l
i
m
i
t
s
.
N
o
w
,
w
h
a
t
d
i
d
y
o
u
h
a
v
e
i
n
m
i
n
d
?
”
Want more samples? Go to www.SalaryNegotiations.com and
y
o
u
‖
l
l
f
i
n
d
m
o
r
e
.
U
s
e
BoughtTheBook as a password.
So you can see, you have some choice and some leeway in
Mr
.
E
m
p
l
o
y
e
r
‖
s
o
f
f
i
c
e
.
L
e
t
‖
s
j
u
s
t
s
a
y
h
e
‖
s
o
f
f
e
r
e
dy
o
ut
h
e
j
o
b
a
n
du
r
g
e
dy
o
ut
o
s
a
y
w
h
a
t
s
a
l
a
r
y
y
o
u
‖
l
l
a
c
c
e
p
t
.
S
i
n
c
e
y
o
uk
n
o
wt
h
a
t
t
h
e
r
e
‖
s
n
o
t
h
i
n
g
t
o
g
a
i
nb
yg
o
i
n
gf
i
r
s
t
,
y
o
u
‖
v
ec
o
n
f
i
d
e
n
t
l
ya
s
k
e
dh
i
mt
on
a
m
eh
i
s
opening bid.
Sure enough, he drums his fingers on the desk, clears his
t
h
r
o
a
t
,
a
n
ds
t
a
t
e
s
a
p
r
i
c
e
.N
o
wi
t
‖
s
y
o
u
r
m
o
v
e
a
g
a
i
n
.Wh
a
t
d
o
you do? You follow Salary-Making Rule 3.
Chapter 5:
Salary-Making Rule 3:
Your First Response
In my job as a career consultant, in which almost everything
I
d
oi
s
i
n
d
i
v
i
d
u
a
l
i
z
e
da
n
dt
h
e
r
e
a
r
e
e
x
c
e
p
t
i
o
n
s
t
oe
v
e
r
yr
u
l
e
,
i
t
‖
s
delightful to know that Salary-Making Rule 3 always holds.
Salary-Making Rule 3 is When you hear the figure or range, repeat
the figure or top of the range, and then be quiet.
Dangers and Power of Silence: Out for the Count
You must repeat the figure or top of the range with a
contemplative tone in your voice as if this were the start of a
multinational summit meeting. Your enthusiasm for the job and
company and industry has been unbounded up to this point.
Now let a quiet look of concern grace your countenance and gaze
at your slightly shuffling feet as you ponder this offer. Count to
thirty and think.
Quickly Calculate the Annualized Amount
First, you should calculate roughly what the offer is in
annual terms. Hourly workers can easily convert an hourly figure
to a yearly one by doubling it in thousands. So fifteen dollars an
hour is roughly $30,000 a year; twenty dollars an hour, $40,000; all
38
Rule 3: Your First Response
39
based on forty hours a week with no overtime. To go from
weekly to yearly, multiply by fifty (or divide by two and add two
zeros). For instance, $600 a week is $30,000 a year, and so on.
Calculate what the salary is, then compare it with your
expectations of what this job should pay, considering your
quality. During this time there is silence in the room. If you had
not repeated the figure or the top of the range, the silence would
be awkward or dangerous. Your interviewer would wonder if
y
o
uh
a
dg
o
n
et
os
l
e
e
po
r
i
f
y
o
u
‖
dh
e
a
r
dw
h
a
t
w
a
ss
a
i
d
.T
h
e
i
n
t
e
r
v
i
e
w
e
r
m
i
g
h
t
t
h
i
n
ky
o
uw
e
r
e
a
c
c
e
p
t
i
n
gi
t
o
r
t
h
a
t
y
o
u
‖
r
e
t
o
o
shy to talk about money.
But when you repeat it, the interviewer knows that you
h
e
a
r
di
t
a
n
df
e
a
r
s
y
o
u
‖
r
ed
i
s
a
p
p
o
i
n
t
e
d
.L
e
t
t
h
e interviewer be
n
e
r
v
o
u
s
,
w
o
r
r
i
e
d
,
o
r
a
n
x
i
o
u
s
.T
h
a
t
‖
s
o
k
a
yf
o
r
3
0
s
e
c
o
n
d
s
.T
h
a
t
way he or she will again consider your quality and the return you
w
o
u
l
d
m
a
k
e
o
n
t
h
e
c
o
m
p
a
n
y
‖
s
i
n
v
e
s
t
m
e
n
t
.
W
h
a
t
H
a
p
p
e
n
s
W
h
e
n
Y
o
u
’
r
e
Q
u
i
e
t
The most likely outcome of this silence is a raise. How about
t
h
a
t
!Y
o
uh
a
v
e
n
‖
t
b
e
e
no
nt
h
ej
o
bf
o
r
e
v
e
nt
h
i
r
t
ys
e
c
o
n
d
s
a
n
d
a
l
r
e
a
d
yy
o
uh
a
v
e
a
r
a
i
s
e
.I
t
m
i
g
h
t
s
o
u
n
dl
i
k
e
“
[
s
i
l
e
n
c
e
]
B
u
t
w
e
c
o
u
l
dg
o
a
s
h
i
g
ha
s
Xd
o
l
l
a
r
s
f
o
r
s
o
m
e
o
n
e
l
i
k
e
y
o
u
”
o
r
“
[
s
i
l
e
n
c
e
]
B
u
t
w
e
c
o
u
l
db
e
f
l
e
x
i
b
l
e
o
nt
h
a
t
.
”If you like, you can greet the
r
a
i
s
e
w
i
t
h
t
h
e
s
a
m
e
s
i
l
e
n
t
t
r
e
a
t
m
e
n
t
:
“
$
6
0
,
0
0
0
.
H
m
m
m[
s
i
l
e
n
c
e
]
.
”
S
o
m
e
t
i
m
e
sy
o
u
‖
l
l
g
e
t
a
ne
x
p
l
a
n
a
t
i
o
no
fw
h
yt
h
eb
u
d
g
e
t
a
l
l
o
w
s
o
n
l
yt
h
a
t
m
u
c
h
.“
T
i
m
e
s
a
r
e
r
o
u
g
h
,
c
o
m
p
e
t
i
t
i
o
n
‖
s
t
o
u
g
h
.
We
‖
v
ej
u
s
ts
u
n
km
o
n
e
yi
n
t
oa
nu
p
d
a
t
e
dF
l
a
m-a-doodle Wig
Wh
u
m
p
e
r
,
a
n
dt
h
ec
a
s
hf
l
o
wi
ss
q
u
e
e
z
e
db
yt
h
ep
r
e
s
i
d
e
n
t
‖
s
f
r
e
q
u
e
n
t
b
u
s
i
n
e
s
s
t
r
i
p
s
t
o
e
x
o
t
i
c
l
o
c
a
t
i
o
n
s
.
”
Listen. Be quiet. Think.
Compare, contrast, evaluate, and then respond.
What do you respond with? The truth.
40
How to Make $1,000 a Minute
Figure 5-2. Let a quiet look of concern grace your
countenance as you ponder the offer.
Count to thirty and think.
Responding with the Truth
T
h
e
t
r
u
t
hi
s
e
i
t
h
e
r
“
S
o
u
n
d
s
g
r
e
a
t
,
”
“
S
o
u
n
d
s
a
c
c
e
p
t
a
b
l
e
,
”
o
r
“
S
o
u
n
d
sd
i
s
a
p
p
o
i
n
t
i
n
g
.
” Y
o
u
‖
l
lk
n
o
ww
h
i
c
ho
n
ei
sc
o
r
r
e
c
t
because before the in
t
e
r
v
i
e
wy
o
u
‖
l
l
h
a
v
e
f
o
l
l
o
w
e
dt
h
e
a
d
v
i
c
e
i
n
this chapter and researched your market value. That will give you
the strength and power to negotiate for your full value because
y
o
u
‖
l
l
h
a
v
e
t
h
e
i
n
f
o
r
m
a
t
i
o
nt
ob
a
c
ki
t
u
p
.(
T
h
es
a
m
ea
p
p
r
o
a
c
h
applies to raise negotiating.)
Rule 3: Your First Response
41
Note that your past or present salary is only one indication
of your market value. Earlier you learned not to let your most
recent salary restrict your new one. You might have sidestepped
or postponed the salary question altogether by asserti
n
g
,
“
a
l
l
I
e
x
p
e
c
t
i
s
a
f
a
i
r
a
n
d
c
o
m
p
e
t
i
t
i
v
e
o
f
f
e
r
w
i
t
h
r
e
s
p
e
c
t
t
o
t
h
i
s
j
o
b
.
”
So, now, even if this offer is less than your most recent
s
a
l
a
r
y
,
y
o
u
m
u
s
t
a
b
i
d
e
b
y
t
h
e
s
a
m
e
r
u
l
e
s
.
I
t
‖
s
n
o
t
f
a
i
r
t
o
c
o
m
p
l
a
i
n
,
“
B
u
t
t
h
a
t
‖
sl
e
s
st
h
a
nI
‖
me
a
r
n
i
n
gn
o
w
,
”o
r“
T
h
a
t
‖
sl
e
s
st
h
a
nI
e
a
r
n
e
db
e
f
o
r
e
.
” Wh
i
l
ee
m
p
l
o
y
e
r
su
s
u
a
l
l
yt
r
yt
oe
x
c
e
e
dy
o
u
r
previous salary, your salary in some other job does not really
determine the value of your work in this job –
that value is made
up from a formula with three components.
S
od
o
n
‖
t
c
ompare the offer with your most recent salary.
Instead, use the thirty seconds to compare their offer with your
research, using the formula below.
Formula
How do you determine your fair market value?
First understand that a fair market value is not one neat, tidy
n
u
m
b
e
r
,
b
u
t
a
r
a
n
g
e
.
I
t
‖
s
t
h
e
a
n
s
w
e
r
t
o
t
h
e
q
u
e
s
t
i
o
n
“
Wi
t
h
i
n
w
h
a
t
r
a
n
g
e
w
o
u
l
da
c
o
m
p
a
n
y
h
a
v
e
t
o
p
a
yt
o
f
i
n
ds
o
m
e
o
n
e
l
i
k
e
y
o
u
?
”
O
r
s
i
m
i
l
a
r
l
y
,
“
I
f
you d
o
n
‖
t
t
a
k
et
h
ej
o
b
,
w
h
a
t
w
i
l
l
t
h
ec
o
m
p
a
n
y
n
e
e
d
t
o
o
f
f
e
r
s
o
m
e
o
n
e
a
s
g
o
o
d
a
s
y
o
u
t
o
t
a
k
e
i
t
?
”
A market value is a composite picture made up of three
pieces: your Objectively Researched Value (ORV$), your extra
I
n
d
i
v
i
d
u
a
l
V
a
l
u
e
(
I
V
$
)
,
a
n
dw
h
a
t
I
‖
l
l
c
a
l
l
y
o
u
r
R
i
s
k
-factor Dollars
(Rf$).
You left-brained folks might think of it as a formula in which
the market value equals the sum of three other values:
Market Value = ORV$ + IV$ + Rf$.
For you right-b
r
a
i
n
e
d
,
v
i
s
u
a
l
t
y
p
e
s
,
j
u
s
t
t
h
i
n
k
“
p
r
e
s
e
n
t
,
p
a
s
t
,
f
u
t
u
r
e
,
”
a
n
d
p
i
c
t
u
r
e
y
o
u
r
m
a
r
k
e
t
v
a
l
u
e
a
s
a
c
o
m
p
o
s
i
t
e
p
h
o
t
o
g
r
a
p
h
made by combining these three perspectives: the present going rate
(ORV$), the added value of your accumulated past experience
(IV$), and your future contribution (Rf$).
42
How to Make $1,000 a Minute
Left- or right-brained, in order to fully understand these
formulas, you need some definitions.
ORV$ (Objectively Researched Value); present. Objectively
researched information from current published data about the
g
o
i
n
g
r
a
t
e
;
t
h
i
s
y
e
a
r
‖
s
a
v
e
r
a
g
e
e
a
r
n
i
n
g
r
a
n
g
e
f
o
r
p
e
o
p
l
e
d
o
i
n
g
t
h
e
k
i
n
d
o
f
w
o
r
k
y
o
u
‖
r
e
c
o
n
s
i
d
e
r
i
n
g
.
IV$ (Individual Value); past. A subjective assessment of the
strength of your past track record as it applies to this new job or
promotion. It puts you somewhere on a scale from entry level to
seasoned professional, possibly with a unique competitive
advantage. IV$ measures how you stack up individually above or
below the competition.
RF$ (Risk-Factor Dollars); future. Compensation you are
willing to make contingent on your future success; speculative
compensation.
Calculating the Three Factors, Part I: ORV$
E-Resources
In the days before the internet, researching your competitive
value required a trip to the library only to discover dusty books
with data so far out of date you needed a scientific calculator to
g
r
o
s
s
u
pb
yt
h
r
e
e
y
e
a
r
s
‖
c
o
m
p
o
u
n
d
e
di
n
f
l
a
t
i
o
nt
oc
o
m
e
u
pw
i
t
h
meaningful numbers. By contrast, www.PayScale.com collects upto-the-minute salary data from thousands of individuals every
day.
Very precise salary-research data is available to you today at
the speed of light that would have cost thousands of dollars just a
few years ago. The problem is, the same alacrity that put these
sites up can also send them into obsolescence.
Websites sprout, grow, blossom and then either they
continually re-invest, re-invent themselves or they become
eclipsed by an even-better-yet technology.
F
r
a
n
k
l
y
,
i
t
‖
s
h
a
r
df
o
r
t
he printed page to keep up with eresources! So I encourage you to consult my website for a
Rule 3: Your First Response
43
continually updated list and critique of web-based resources.
www.SalaryNegotiations.com
ORV$ (Objectively Researched Value)
Find out in what range people get paid for work similar to
y
o
u
r
sb
yc
o
n
s
u
l
t
i
n
gp
u
b
l
i
s
h
e
ds
u
r
v
e
y
s
. Ma
k
es
u
r
ey
o
u
‖
r
e
comparing apples to apples, that the salary you find matches the
responsibilities of the job you expect to be paid for.
People often have a hard time matching their job to a job
t
i
t
l
e
.
Y
o
u
‖
l
l
n
e
e
dt
o
p
i
c
k
o
n
e
–
or two, perhaps –
that seem close.
Where there are actual job descriptions along with the titles, that
can help you select a title most closely related to the level of
responsibility.
O
n
c
ey
o
u
‖
r
eo
nt
r
a
c
kw
i
t
hat
i
t
l
eand perhaps a job
description, begin collecting pay-comparison-analysis information
that will coalesce into your objectively researched value (ORV$).
You have five resources, which are not exclusive of one another:
library and other printed information,
internet resources: online information,
library-research-for-computer-dummies technique,
person-to-person research: direct-dial resources, and
person-to-person research: word-of-mouth resources.
Library and Other Printed Information
Frankly, while there is printed salary info you can unearth in
t
h
e
s
t
a
c
k
s
o
f
y
o
u
r
l
o
c
a
l
l
i
b
r
a
r
y
,
y
o
ud
o
n
‖
t
n
e
e
dt
op
l
o
wt
h
r
o
u
g
h
those stacks anymore. For all practical purp
o
s
e
s
,
y
o
u
r
l
i
b
r
a
r
y
‖
s
computer room with Google will give you more than enough data
to affix a range to your ORV$.
Internet Resources: Online Information
T
h
e
f
o
u
r
“
p
r
e
f
e
r
r
e
d
p
r
o
v
i
d
e
r
s
”
I
nt
h
e
f
o
l
l
o
w
i
n
g
p
a
g
e
s
y
o
u
‖
l
l
f
i
n
ds
c
r
e
e
ns
h
o
t
s
a
n
dm
o
r
e
i
n
d
e
p
t
h
i
n
f
o
r
m
a
t
i
o
n
o
n
m
y
“
F
a
v
o
r
i
t
e
F
o
u
r
”
s
i
t
e
s
.
T
h
e
y
a
r
e
,
n
a
m
e
l
y
:
www.JobStar.org
44
How to Make $1,000 a Minute
www.PayScale.com
www.Salary.com, and
www.CareerJournal.com
Y
o
u
‖
l
l
a
l
s
o
f
i
n
db
r
i
e
f
i
n
f
o
r
m
a
t
i
o
n
o
n
o
t
h
e
r
s
i
t
e
s
o
f
r
e
l
e
v
a
n
c
e
.
S
i
n
c
et
h
ew
o
r
l
do
fc
y
b
e
r
s
p
a
c
ei
se
v
e
rc
h
a
n
g
i
n
g
,y
o
u
‖
l
lb
e
reminded several times, too, that you can go to my website
www.SalaryNegotiations.com for the latest update on e-resources.
Some info might be password protected, reserved for people-like
you-who purchased my book; try BoughtTheBook.
Rule 3: Your First Response
Figure 5-1. JobStar.org
45
46
How to Make $1,000 a Minute
Favorite #1: JobStar.org
Nothing beats JobStar for getting to the source of the data!
A
n
df
r
e
e
!I
t
‖
s
b
e
e
na
r
o
u
n
ds
i
n
c
e
t
h
e
8
0
s
,
a
n
di
t
s
f
o
u
n
d
e
r
,
Ma
r
y
Ellen Mort, pioneered one-stop shopping for salary surveys:
compensation data published by associations, recruitment firms,
government departments, schools, research organizations, etc. It
has about 80 categories for salary information with links to over
300 sites.
I
f
y
o
u
‖
r
el
o
o
k
i
n
gf
o
r
c
l
o
u
t
i
ny
o
u
r
n
e
g
o
t
i
a
t
i
o
n
s
,
(
i
.
e
.
,
y
o
u
want to show your potential employer your research) these
surveys in their “
s
t
r
a
i
g
h
t
f
r
o
mt
h
e
h
o
r
s
e
‖
s
m
o
u
t
h
”
f
o
r
m
a
t
c
o
u
l
d
b
e
a bit more compelling to an employer than generic information
compiled by a third party.
For instance, an advertising executive that points to a survey
from Advertising Age Magazine is using a reference the Hiring
Decision Maker already knows is credible. Use these to bolster
the believability of your other online research from other sources.
Rule 3: Your First Response
Figure 5-2. PayScale.com
47
48
How to Make $1,000 a Minute
Favorite #2: PayScale.com
Nothing beats PayScale f
o
r“
u
pt
ot
h
em
i
n
u
t
e
”s
a
l
a
r
y
information. Unlike other services that get their data secondhand, PayScale continuously collects compensation information
directly from real people.
Since 2002 PayScale has been running the largest real-time
salary survey on the web, collecting tens-of-thousands of
individual salary profiles each month. These profiles enable
PayScale to provide highly relevant information about what an
individual should be paid based on their unique personal job
profile (job title, skills, experience, location, etc.).
Their sophisticated proprietary software assures accurate
high-quality data, and unlike most for-profit salary sites built to
supply Human Resources departments of large companies with
i
n
f
o
r
m
a
t
i
o
n
,
P
a
y
S
c
a
l
e
‖
s
s
e
r
v
i
c
ew
a
s
b
u
ilt with the individual in
mind from the get-go.
Good information is available for free and their purchased
info is very well done and job-hunter/user friendly.
Readers of this book can access a special PayScale page, if
you go to www.PayScale.com/1000minute.
Rule 3: Your First Response
Figure 5-3. Salary.com
49
50
How to Make $1,000 a Minute
Favorite #3: Salary.com
Salary.com is the oldest commercial internet site for salary
data. Originally designed with HR department in mind, it now
offers info to individuals. It reports that in 2005, more than 2.4
million unique monthly visitors out of a U.S. workforce of 142.5
million. Salary.com estimates that 1 employee in 5 has viewed
salary information at its site in the past year. Like Payscale, this is
a for-profit site.
Freebies include a general report on your salary, based on a
company size of 1000 people; a more detailed report is available,
of course, and reasonably priced, too. More updates and critique
available online at my website: www.SalaryNegotiations.com.
Rule 3: Your First Response
Figure 5-4. CareerJournal.com
51
52
How to Make $1,000 a Minute
Favorite #4: CareerJournal.com [Wall Street Journal]
In addition to charts of salaries (likely from the same
primary sources you can find through JobStar.org) the Wall Street
J
o
u
r
n
a
l
‖
s
s
i
t
ew
i
l
l
l
i
n
ky
o
ut
oa
r
t
i
c
l
e
s
o
nd
i
f
f
e
r
e
n
t
i
n
d
u
s
t
r
i
e
s
t
o
help you get a fix on your ORV$. Go to its home page and click
o
n
a
t
a
b
m
a
r
k
e
d
“
S
a
l
a
r
y
&H
i
r
i
n
g
I
n
f
o
.
”
CareerJournal.com is a major internet career site for
executives, managers and professionals. The site's job database
offers more than 100,000 available positions, including job listings
in the CareerJournal National Network.
Sometimes you can get Salary information in a posted listing
here (or at Monster.com, etc.) for a job similar to yours.
CareerJournal's JobSeek Agents will alert candidates whenever a
job is added that matches their criteria.
Through the daily updates and thousands of archived
articles, you can examine hiring demand and salary data for a vast
array of industries and job functions, and access information on all
aspects of job hunting and career management. Editorial features
include more than a dozen noted columnists; a wide range of
features to help with resume writing, interviewing, networking
and negotiating a new job offer, as well as in-depth guidance on
improving your current career.
Rule 3: Your First Response
53
Other Sites of interest. Check www.SalaryNegotiations.com for
updates on these websites:
SalaryExpert.com: says you can compare executive salaries
at half-dozen companies of comparable size, which it will find for
you. Such a tool is valuable for job hunters, and als
o
f
o
r
b
o
a
r
d
s
‖
CEO search committees and pay panels.
Vault.com: particularly enticing because it can have salary
i
n
f
o
r
m
a
t
i
o
na
s
p
r
e
c
i
s
e
a
s
t
h
e
e
x
a
c
t
c
o
m
p
a
n
yy
o
u
‖
r
e
i
n
t
e
r
e
s
t
e
di
t
,
b
u
t
b
y
t
h
e
s
a
m
e
t
o
k
e
n
,
i
t
‖
s
s
p
o
t
t
y
,
y
o
u
h
a
v
e
t
o
j
o
i
n
t
o
g
e
t
a
n
y
t
h
i
n
g
worthwhile here. It has a job board, too.
SalaryPower.com: A new site t
h
a
t
s
a
y
si
t
‖
sm
i
s
s
i
o
ni
st
o
enhance the employment relationship between employees and
employers by developing a web site that offers accurate, reliable
compensation data to improve compensation discussions. Not
functional as of this printing; check my website for further info.
SEC.gov has all the 10-K, annual and quarterly reports, etc.,
on publicly traded companies. The officers and top executive
salaries are plain for all to see (with a little digging). You can
search www.sec.gov/edgar/searchedgar/companysearch.html where
y
o
u
‖
l
l
f
i
n
d
t
h
e
i
r
c
o
m
p
a
n
y
-specific search engine.
Computerjobs.com: Industry specific site with salary
i
n
f
o
r
m
a
t
i
o
n
.T
h
ei
n
f
oh
e
r
ei
sg
a
r
n
e
r
e
df
r
o
me
m
p
l
o
y
e
e
s
‖
o
w
n
report of their earnings, but without the quality-assurance of the
type of software PayScale.com has, so the salary info may not be
as reliable. When you find these sites through Google and
J
o
b
S
t
a
r
.
o
r
g
,
d
o
n
‖
t
r
e
l
yo
nt
h
e
ms
o
l
e
l
y–your best reliability is
found in the four favorites.
WageAccess.com: T
h
e
Wa
g
e
A
c
c
e
s
s
™C
o
m
p
e
n
sation Survey
is a multi-industry salary survey that includes over 500
benchmark positions and ensures complete participant
confidentiality. Alternatively, participants can purchase the
Advanced Survey Results which include a variety of descriptive
statistics, compensation analysis tools and salary trends, and
allows results to be queried, selected and filtered by geographic
location, industry and/or company size.
54
How to Make $1,000 a Minute
LinkedIn.com—a new kind of research tool. T
h
i
si
s
n
‖
t
primarily a salary info site, however, as an e-networking site, you
c
a
nu
s
ei
t
t
og
e
t
s
a
l
a
r
yi
n
f
o
r
m
a
t
i
o
nw
h
e
ny
o
u
‖
r
ev
e
r
yt
a
r
g
e
t
e
d
.
J
u
s
t
f
o
l
l
o
wt
h
e
i
r
“
n
e
t
w
o
r
k
i
n
g
”
p
r
o
t
o
c
o
l
s
a
n
df
i
n
da
n
o
t
h
e
r
p
e
r
s
o
n
t
o
t
a
l
k
t
o
w
h
o
w
o
r
k
s
o
r
w
o
r
k
e
d
f
o
r
t
h
e
c
o
m
p
a
n
y
y
o
u
‖
r
e
i
n
t
e
r
e
s
t
e
d
in, or who has a job similar to yours. Explore the pros and cons of
t
h
i
s
,
a
n
do
t
h
e
rs
i
t
e
sl
i
k
ei
t
,
i
nt
h
e“
Person-to-P
e
r
s
o
nR
e
s
e
a
r
c
h
”
section below.
Library-Research-For-Computer-Dummies Technique
I assume most of you are computer savvy and comfortable
accessing internet information, but
i
f
y
o
u
‖
r
e
a
t
a
l
l
i
n
t
i
m
i
d
a
t
e
db
y
the bits and bytes world, try my library-research-for-computerdummies technique. Many libraries have a telephone information
line you can call to have a human being (you remember those,
d
o
n
‖
t
y
o
u
?
)
l
o
o
k
u
p
i
n
f
o
r
m
a
t
i
o
n
y
o
u want from print or electronic
sources.
I
nf
a
c
t
,
i
f
y
o
uw
a
l
ki
n
,
t
h
e
r
e
‖
s
aw
h
o
l
ea
r
m
yo
f
l
i
b
r
a
r
i
a
n
s
w
h
o
‖
l
l
h
e
l
py
o
un
o
t
j
u
s
t
w
i
t
hs
a
l
a
r
yr
e
s
e
a
r
c
h
,
b
u
t
t
h
e
w
h
o
l
e
v
a
s
t
array of job hunting services and help online. Your tax dollars at
work, eh? Take advantage of it.
Computer Resources: Rent a Nerd
For more complicated searches, or if you simply prefer to
delegate the work, consider hiring someone else do the work for
you, especially if your job responsibilities are unique. (I know
people who will do this for you—email me at [email protected],
or visit my website for referrals to research helpers.) Salary
information pegged to job titles can be off the mark if your
position requires you to wear many hats. Having a real person
dig out the information you want could be a wise investment.
Person-to-Person Research: Direct-Dial and Internet Networking
Resources.
You can just pick up the phone and conduct your own
private survey. Call people doing work like yours. Tell them
y
o
u
‖
r
ed
o
i
n
gas
a
l
a
r
ys
u
r
v
e
ya
n
dt
h
a
t
y
o
u
‖
l
l
b
eh
a
p
p
yt
os
h
a
r
e
y
o
u
r
f
i
n
d
i
n
g
s
w
i
t
ht
h
e
mw
h
e
ny
o
u
‖
r
e
d
o
n
e
i
f
t
h
e
y
‖
l
l
p
a
r
t
i
c
i
p
a
t
e
.
Rule 3: Your First Response
55
Ask what the range is in their company for the job in question.
Carry through with your promise to send results to them.
I
f
y
o
ud
o
n
‖
t
w
a
n
t
t
oc
a
l
l
,
y
o
uc
a
nwrite. Use web research
on company websites for names/email addresses of appropriate
people for your survey, or join and use the recently developed enetworking sites.
E-networking through sites like LinkedIn, Ryze, Friendster,
Spoke, EntreMate, and others can be a more modern way to make
these personal connections. These sites are set up to facilitate
networking among their members.
You can search the
membership to find fellow professionals at your level who might
participate in your survey, or who might have specific knowledge
o
f
t
h
e
s
a
l
a
r
y
r
a
n
g
e
s
y
o
u
‖
r
e
r
e
s
e
a
r
c
h
i
n
g
.
Once again, visit my website (with BoughtTheBook password,
if needed) www.SalaryNegotiations.com for recent developments in
this arena. Online e-networking for job-related leads, information
(like salary), connections, etc, is still in its infancy—poised for
either a spectacular take-off or a dismal fizzle.
Example of Person to Person Direct Dial/Internet
L
e
t
‖
s
s
a
y
y
o
u
‖
r
e
i
n
t
e
r
v
i
e
w
i
n
g
f
o
r
a
p
o
s
i
t
i
o
na
s
a
p
u
r
c
h
a
s
i
n
g
manager for an urban hospital. Pick out six places that would
have similar customer service positions: perhaps a medical clinic,
a for-profit hospital, a nonprofit denominational hospital, a
unionized company, and the local headquarters for a medium-size
chain of stores. Pick companies in your or a similar location.
Ask to talk to their purchasing managers. Explain to those
p
e
o
p
l
e
t
h
a
t
y
o
u
‖
r
e
n
e
g
o
t
i
a
t
i
n
g
f
o
r
a
p
o
s
i
t
i
o
ns
i
m
i
l
a
r
t
o
t
h
e
i
r
s
a
n
d
n
a
m
e
t
h
e
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
.
T
e
l
l
t
h
e
mt
h
a
t
y
o
u
‖
r
e
c
a
l
l
i
n
g
f
i
v
e
p
e
o
p
l
e
from their city to learn comparable salary ranges, and that if they
p
a
r
t
i
c
i
p
a
t
e
i
n
y
o
u
r
s
u
r
v
e
y
y
o
u
‖
l
l
b
e
g
l
a
d
t
o
s
e
n
d
t
h
e
mt
h
e
r
e
s
u
l
t
s
.
Y
o
um
i
g
h
t
w
i
s
ht
o
e
x
p
l
a
i
nt
h
a
t
y
o
u
‖
l
l
o
n
l
ys
e
n
dt
h
e
i
n
f
o
t
o
t
h
ef
i
v
e(
o
rs
o
)p
a
r
t
i
c
i
p
a
n
t
sa
n
dc
o
m
p
a
n
yn
a
m
e
sw
o
n
‖
tb
e
mentioned, only t
h
ec
a
t
e
g
o
r
i
e
s
,
l
i
k
e“
n
o
n
p
r
o
f
i
t
d
e
n
o
m
i
n
a
t
i
o
n
a
l
h
o
s
p
i
t
a
l
.
”A
s
k
,
“
Wi
t
h
i
nw
h
a
t
r
a
n
g
e
w
o
u
l
dt
h
i
s
p
o
s
i
t
i
o
np
a
yi
n
56
How to Make $1,000 a Minute
y
o
u
r
o
r
g
a
n
i
z
a
t
i
o
n
?
”T
h
e
y
‖
l
l
p
a
r
t
i
c
i
p
a
t
e
i
f
t
h
e
y
‖
r
ec
u
r
i
o
u
s
a
b
o
u
t
their own positions and their own worth in the open market.
You can also request the same information from company
personnel representatives if you prefer to talk with them. They
m
a
yb
em
o
r
er
e
l
u
c
t
a
n
t
t
od
i
v
u
l
g
et
h
e
i
r
c
o
m
p
a
n
i
e
s
‖
p
r
i
v
a
t
ep
a
y
information; on the other hand, they may be more motivated to
know the results of your researc
h
,
b
e
c
a
u
s
e
i
t
‖
s
f
r
e
e
,
a
n
dt
h
e
yc
a
n
use it in their work.
The advantage of this method is that you get up-to-theminute, precise salary information tailored exactly to your
location. The disadvantage is that the sample is so small that you
might get skewed information.
Person-to-Person Research: Word-of-Mouth Resources
Besides association members, sources of money-talk outside the
library include recruiters, employment agents, personnel professionals, and your own network.
Recruiters, job and career counselors, outplacement
counselors, and employment-agency counselors are all good
sources of wage and earnings data. Recruiters generally specialize
i
na
c
e
r
t
a
i
na
r
e
a
o
f
t
h
e
j
o
bm
a
r
k
e
t
,
s
oy
o
u
‖
dw
a
n
t
t
ot
a
l
kt
oo
n
e
who knows your niche. The other counselors deal with a wide
v
a
r
i
e
t
y
o
f
c
l
i
e
n
t
s
,
s
o
t
h
e
i
r
i
n
p
u
t
w
o
n
‖
t
b
e
a
s
d
e
t
a
i
l
e
d
,
b
u
t
t
h
e
y
a
r
e
likely to know something about many different types of positions.
Ask around until you find someone who knows one of those
professionals (or someone who knows someone who knows) and
call that person.
Read the section in the Special Situations chapter (Chapter 8)
about discussing salary at networking interviews. Your network
can give you not only information about salary ranges, but also
advice to determine where you fit within those ranges. Does that
concept ring a bell? It should. It is the second factor in the
formula I gave you earlier, your extra Individual Value, IV$.
Rule 3: Your First Response
57
Calculating the Three Factors, Part II: IV$
IV$, Extra Individual Value
IV$ refers to your assessment of how well (or poorly) you
c
a
n
d
o
t
h
e
w
o
r
k
c
o
m
p
a
r
e
d
w
i
t
h
o
t
h
e
r
c
a
n
d
i
d
a
t
e
s
‖
a
b
i
l
i
t
y
.
A
r
e
y
o
u
a cut above average? Well known? Have a special expertise? If
so, your added value can add dollars to put your salary in the
above-average range. Here are some examples.
A salesman, Tom, sold safety equipment to
manufacturing companies. Besides sales ability (which
every candidate had), he had ten years of cultivating his
network through lunches, golf games, plant tours,
birthday cards, and other contact-building activities.
When Tom called a company, he could count on a faceto-face appointment. This IV$ enabled him to negotiate
a higher commission.
Ben, a paralegal, applied for a job revitalizing a small
specialty-law library. He was overqualified for the
$
3
5
,
0
0
0
p
o
s
i
t
i
o
n
.B
yr
e
i
n
t
e
r
p
r
e
t
i
n
gt
h
i
s
“
o
v
e
r
q
u
a
l
i
f
i
e
d
”
t
o
m
e
a
n
“
h
a
v
i
n
g
d
o
u
b
l
e
t
h
e
I
V
$
o
f
o
t
h
e
r
c
a
n
d
i
d
a
t
e
s
,
”
h
e
doubled the offer in a unique way. He accepted the
budgeted $35,000, but did the job (and then some) in
only twenty hours a week. Existing clerical personnel
whom he trained covered the other twenty hours. So his
employer got 150 percent of what had been hoped for,
Ben got $70,000 annualized earnings, and the $35,000
budget was maintained.
Beth, an administrative assistant, was very familiar with
Cougar Mountain accounting software. She added
$3,000 IV$ to her market range because the company had
budgeted $3,000 to train a new hire in this software.
A doctor was well known for his abilities in dealing with
allergies. He had published a book about it. The clinic
he was joining could expect to see many more allergy
patients because of his reputation, and additional
58
How to Make $1,000 a Minute
b
u
s
i
n
e
s
s
f
r
o
mt
h
o
s
e
p
a
t
i
e
n
t
s
‖
f
a
m
i
l
i
e
s
;
h
e
a
d
d
e
dt
h
i
s
I
V
$
to his objectively researched value.
IV$ can be a negative nu
m
b
e
r
.I
f
y
o
u
‖
r
eb
e
l
o
wa
v
e
r
a
g
e
,
entry level, lacking a specific requirement, etc., your objectively
researched value can be adjusted downward to make you
competitively priced.
A teacher switched careers to enter sales. Even though in
her estimation she could give sales gurus Zig Ziglar and Joe
Girard a run for their money, she was unproven in the eyes of the
world. By keeping her salary expectations at the lower end of the
objectively researched value, she remained competitive. She was
content to reap her big rewards in year two when she expected, as
Z
i
g
w
o
u
l
d
s
a
y
,
“
t
o
s
e
e
y
o
u
—a
t
t
h
e
t
o
p
.
”
An IBM mainframe programmer interviewed for an MIS
quality-a
s
s
u
r
a
n
c
e
p
o
s
i
t
i
o
n
,
a
b
i
gj
u
m
pf
o
r
h
i
m
.H
e
d
i
d
n
‖
t
k
n
o
w
the new programming language or hardware very well, but he
convinced the employer that his learning curve would be short.
He was willing to accept a few thousand below average for the
position in exchange for the job and a six-month salary review.
To go into business for himself, a public-utility employee left
a
p
o
s
i
t
i
o
n
w
h
e
r
e
h
e
‖
dw
o
r
k
e
dw
i
t
h
m
a
n
y
u
s
e
r
s
o
f
t
h
e
n
e
t
w
o
r
k
h
e
managed. He decided to go into business for himself as a PC
consultant helping consumers with Windows and basic computer
software problems. Best Buy charged $60-$125 an hour, a good
benchmark for ORV$. But, since he needed to establish his
r
e
p
u
t
a
t
i
o
nf
i
r
s
t
h
e
s
t
a
r
t
e
db
y
o
f
f
e
r
i
n
g
h
i
s
f
i
r
s
t
h
o
u
r
‖
s
c
o
n
s
u
l
t
a
t
i
o
n
free and 25 percent off the hourly rate after that, a good example
of how circumstances might make your IV$ a negative number.
Two resources for identifying your IV$:
Me
.
Wh
e
np
e
o
p
l
e
c
a
l
l
m
e
f
o
r
t
e
l
e
c
o
a
c
h
i
n
g
,
t
h
e
r
e
‖
s
o
f
t
e
n
I
V
$n
e
g
o
t
i
a
t
i
n
gs
t
r
e
n
g
t
h
st
h
e
y
‖
r
en
o
t
a
w
a
r
eo
f
.I
a
m
often able to help them see their IV$ in their mind so
they can articulate it, negotiate well and eventually see it
in their paycheck. Call me if you wish. See Chapter 12.
Myw
e
b
s
i
t
e
.T
h
e
r
e
‖
sm
o
r
ee
x
a
m
p
l
e
so
fI
V
$
si
na
password-protected
area
on
my
website
Rule 3: Your First Response
59
(BoughtTheBook).Y
o
u
‖
r
ew
e
l
come to visit and learn.
www.SalaryNegotiations.com
Calculating the Three Factors, Part III: Rf$
Rf$, Risk-factor Dollars
Objectively Researched Value determines a range, and
Individual Value a place within that range. Rf$ can take the salary
off the chart!
Whenever you are willing to negotiate
compensation contingent on performance, you add what I call
Risk-factor Dollars (Rf$).
E
m
p
l
o
y
e
r
s
‖
b
a
s
i
c
p
r
i
n
c
i
p
l
e
i
nh
i
r
i
n
g
(
a
n
dc
o
n
v
e
r
s
e
l
y
,
f
i
r
i
n
g
)
i
sT
o
mJ
a
c
k
s
o
n
‖
sMa
k
eMeaB
u
c
kp
r
i
n
c
i
p
l
e
.T
h
e
yb
r
i
n
gy
o
u
aboard only because they think your contribution will pay back
more money than your cost.
How much more money? Goo gobs? Are you willing to bet
on it?
If so, then you can add Rf$ to your value.
I
f
y
o
u
‖
r
e
j
u
s
t
a
n
o
t
h
e
r
c
o
gi
nt
h
e
w
h
e
e
l
,
y
o
um
a
yn
o
t
h
a
v
e
much solid Rf$ value to work with, but on the other hand, if you
expect to make a direct impact on the bottom line, this value could
be very high.
Rf$ Illustration: emergencies.
Emergency situations are a good example. My client Walter
knew that the company he was interviewing with was about to
lose an advertising account worth about $100,000 profit each year,
and he was the knight in shining armor who would rescue it. He
had a shot at adding a hefty bonus to his compensation. His IV$
w
a
s
m
u
c
ht
h
e
s
a
m
e
a
s
t
h
e
n
e
x
t
c
a
n
d
i
d
a
t
e
‖
s
,
b
u
t
h
e
w
a
s
a
v
a
i
l
a
b
l
e
right away, and the company was behind the eight ball! If the
c
u
s
t
o
m
e
r
d
i
d
n
‖
t
g
e
t
a
n
e
wa
c
c
o
u
n
t
m
a
n
a
g
e
r
i
m
m
e
d
i
a
t
e
l
y
,
t
h
e
y
‖
d
put the account out for proposal to other agencies. He added
$
2
0
,
0
0
0
“
r
e
s
c
u
e
”
R
f
$
t
o
h
i
s
o
b
j
e
c
t
i
v
e
l
y
r
e
s
e
a
r
c
h
e
d
v
a
l
u
e
.
60
How to Make $1,000 a Minute
Rf$ Illustration: Stock Options.
Stock options
compensation.
are
another
good
example
of
Rf$
N
e
wv
e
n
t
u
r
e
s
a
l
s
o
h
a
v
e
p
o
t
e
n
t
i
a
l
l
y
h
i
g
h
R
f
$
.
I
f
y
o
u
‖
r
e
h
i
r
e
d
t
o
s
p
e
a
r
h
e
a
da
nu
p
g
r
a
d
e
o
f
a
c
o
m
p
a
n
y
‖
s
w
e
b
s
i
t
e
,
f
r
o
ma
p
a
s
s
i
v
e
site to one that could open up gates for a flood of money to pour
in, you can negotiate a piece of that new pie. If you take part of
your compensation in performance bonuses and commissions,
those added Rf$ could make your value jump considerably. I
devote a complete chapter, Chapter 9, to understanding and
negotiating stock options.
Rf$ Illustration: other.
Direct contributions to increased sales, improved quality,
enhanced public image, higher visibility, innovative new product
lines, better conference results, etc., are all things that can be
measured. Because they can be measured, you can negotiate
additional compensation based on performance. So it pays to try
to predict the future and add it to your market value.
Timing
A note about timing. Research and calculate your market
v
a
l
u
ea
t
a
n
yt
i
m
e
.I
t
‖
sag
o
o
dt
h
i
n
gt
od
oe
v
e
na
t
t
h
ev
e
r
y
beginning of the job search and interviewing process, but you
should delay actual discussions about IV$ and Rf$ components
until the employer is serious enough to make you an offer.
T
h
e
r
e
‖
s
a
f
i
n
e
l
i
n
e
h
e
r
e
.
Y
o
ud
o
w
a
n
t
t
o
f
e
r
r
e
t
o
u
t
i
n
f
o
r
m
a
t
i
o
ni
n
the interview to help you determine your IV$ and Rf$, but you do
not want to discuss them yet as items of compensation.
In the beginning, just r
e
a
s
s
u
r
e
t
h
e
e
m
p
l
o
y
e
r
y
o
u
‖
l
l
b
e
f
i
n
e
w
i
t
ha“
f
a
i
r
m
a
r
k
e
t
v
a
l
u
e
.
”L
a
t
e
r
,
w
h
e
ny
o
u
‖
r
et
a
l
k
i
n
gt
u
r
k
e
y
,
negotiate those pieces of your market value.
Rule 3: Your First Response
61
Your Own Opinion of Where You Fit
Mary-Ellen Mort, a developer of the JobStar web page, has
words of wisdom I quote here:
“
O
b
v
i
o
u
s
l
y
t
h
e
m
o
r
e
y
o
u
c
a
n
f
i
n
d
o
u
t
(
f
r
o
m
y
o
u
r
n
e
t
w
o
r
k
,
y
o
u
r
research on the company and the industry) the more you are
able to guess what your skills can mean to the company. Inside
information—
such as they stand to lose a contract if they do
n
’
t
get someone who knows how to do X—
is the key.
“
T
h
e
i
n
t
e
r
v
i
e
w
i
n
g
p
r
o
c
e
s
s
i
t
s
e
l
f
i
s
o
n
e
o
f
t
h
e
b
e
s
t
w
a
y
s
o
f
n
o
s
i
n
g
out such stuff. Ask the right questions; listen for the answers.
Check out the impressions you get during the interview with your
close and confidential network. Often they can add something
that was not said about the vacancy or the need or the players
involved.
“
T
h
i
s
i
s
o
n
e
o
f
t
h
e
b
i
g
r
e
a
s
o
n
s
y
o
u
s
h
o
u
l
d
d
e
l
a
y
t
h
e
s
a
l
a
r
y
t
a
l
k
t
i
l
l
l
a
t
e
r
i
n
t
h
e
g
a
m
e
.
O
f
t
e
n
p
e
o
p
l
e
s
a
y
i
t
’
s
b
e
c
a
u
s
e
y
o
u
w
a
n
t
them to want you [first, before you discuss salary].
“
T
h
a
t
’
s
t
r
u
e
o
f
c
o
u
r
s
e
.
“
B
u
t
t
h
e
m
o
r
e
y
o
u
t
a
l
k
a
n
d
s
c
h
m
o
o
z
e
a
n
d
l
i
s
t
e
n
b
e
t
w
e
e
n
t
h
e
words, the more you have a sense of how much they need you
a
n
d
w
h
a
t
i
t
w
i
l
l
c
o
s
t
t
h
e
m
i
f
t
h
e
y
d
o
n
’
t
h
a
v
e
y
o
u
.
J
o
b
s
e
e
kers
forget they are not just giving info in the interviews, they are
c
o
l
l
e
c
t
i
n
g
i
t
t
o
o
.
”
Her point is expressed well.
Remember the budget, fudgit, and judgit stages?
Remember how I encouraged you to postpone salary talk until
they are in the judgit stage?We
l
l
h
e
r
e
‖
s
w
h
e
r
e
i
t
p
a
y
s
o
f
f
!
I
n
t
h
e
judgit stage, not only do they appreciate your value, but you
know your value, too, especially the IV$ and Rf$ values.
Any doubts you had while reading Chapter 2 about
delaying salary talk, and how it is only logical to wait until the
judgit stage to discuss value, should be gone by now. You should
now be more confidently grounded in how your value depends
o
nt
h
e
o
r
g
a
n
i
z
a
t
i
o
n
‖
s
n
e
e
d
s
a
n
dh
o
wt
h
o
s
e
n
e
e
d
s
a
n
dy
o
u
r
v
a
l
u
e
o
f
t
e
n
a
r
e
n
‖
t
c
l
e
a
r
u
n
t
i
l
t
h
e
judgit stage.
When, at the budget stage, an employer asks your salary
e
x
p
e
c
t
a
t
i
o
n
s
,
i
t
‖
s
l
o
g
i
c
a
l
t
o
s
a
y
,
“
I
c
o
u
l
d
n
‖
t
p
o
s
s
i
b
l
y
t
e
l
l
y
o
uw
h
a
t
I
‖
mw
o
r
t
h
t
o
y
o
uu
n
t
i
l
I
k
n
o
wt
h
e
w
h
o
l
e
j
o
b
a
n
dh
o
wm
u
c
h
I
c
a
n
62
How to Make $1,000 a Minute
p
r
o
d
u
c
ef
o
ry
o
u
ro
r
g
a
n
i
z
a
t
i
o
n
.
”Y
o
um
a
yh
a
v
et
h
o
r
o
u
g
h
l
y
researched your ORV$ market value but, until the judgit stage
arrives, your understanding of your IV$ and Rf$ value to the firm
is incomplete.
Here is an example.
I had a client who applied for a job as a word processor,
with a market value of fifteen to eighteen dollars an hour. When
asked at the start of the interview if eighteen dollars an hour was
acceptable, she thought,
“
Wo
w
!T
o
po
f
t
h
e
r
a
n
g
e
!
”B
u
t
s
h
e
said,
“
I
f
e
i
g
h
t
e
e
nd
o
l
l
a
r
sa
nh
o
u
r
i
saf
a
i
r
a
n
dm
o
t
i
v
a
t
i
n
gw
a
g
e
,
o
f
c
o
u
r
s
e
i
t
‖
s
a
c
c
e
p
t
a
b
l
e
,
b
u
t
I
‖
dr
a
t
h
e
r
w
a
i
t and discuss salary when
w
e
‖
r
e
b
o
t
h
c
l
e
a
r
a
b
o
u
t
w
h
a
t
I
c
a
n
p
r
o
d
u
c
e
f
o
r
y
o
u
.
”
They continued talking. By the time the employer reached
judgit, it was evident to both of them that, besides needing help
with word processing, the company also needed someone who
could organize mailing lists, distribute newsletters, deal with
printers, and handle a marathon monthly production weekend
that required extreme efficiency, patience, and coordination and
communication talents.
As a word processor, my client might have been worth just
ten to fifteen dollars an hour. But by adding those other
responsibilities, she was worth much more. When she postponed
money talk until the judgit stage, not only did her employer see
that increased worth, but so did she!
Ready, Set, Go!
S
o
b
e
f
o
r
e
y
o
u
s
h
o
wu
p
a
t
Mr
.
E
m
p
l
o
y
e
r
‖
s
o
f
f
i
c
e
,
y
o
u
s
h
o
u
l
d
have an opinion—not chiseled in stone—of your range around the
r
a
n
g
e
,
t
h
e
h
i
g
h
e
s
t
v
a
l
u
e
y
o
ut
h
i
n
ky
o
u
‖
r
e
w
o
r
t
h
,
a
n
dt
h
e
l
o
w
e
s
t
y
o
u
‖
l
l
a
c
c
e
p
t
.
If you have black-and-white evidence to support your
opinion, bring it with you in case you want to educate your
interviewer. Also, be prepared to upgrade it according to the
particulars of the job.
Rule 3: Your First Response
63
You now have adequate information for responding to a
salary offer.
Chapter 6:
Salary-Making Rule 4:
Your Researched Response
Going for Top of the Mark
Grounded in your knowledge of the market value for the
p
o
s
i
t
i
o
na
n
dy
o
u
r
u
l
t
i
m
a
t
ek
n
o
w
l
e
d
g
eo
f
y
o
u
r
q
u
a
l
i
t
y
,
y
o
u
‖
v
e
calculated two figures before going into the interview: the highest
y
o
u
‖
r
e
w
o
r
t
ha
n
dt
h
e
l
o
w
e
s
t
y
o
u
‖
l
l
a
c
c
e
p
t
.S
oa
f
t
e
r
s
i
l
e
n
c
e
,
a
n
d
perhaps your first raise, tell the interviewer whether the figure
offered is too high, too low, or just right.
Salary-Making Rule 4 is Counter their offer with your researched
response.
Your strategy here is to get your top figure in a way the
employer thinks is fair.
Responding to the Offer
Too High
This is generally a pleasant problem, but it deserves more
a
t
t
e
n
t
i
o
nt
h
a
ny
o
um
i
g
h
t
t
h
i
n
k
.
R
e
m
e
m
b
e
r
,
y
o
u
‖
re not out to get
every penny you can; you want only a fair salary to match your
peak performance. If your employer is making the mistake of
overpaying you, the company will begin to feel ripped off, just as
64
Rule 4: Your Researched Response
65
you would in the underpaid-vicious-cycle scenario in Chapter 1.
Your employer will regret the deal and resent you in the long run.
Although you may be delighted with the first paycheck,
e
v
e
n
t
u
a
l
l
yy
o
u
‖
l
l
f
i
n
dy
o
u
r
s
e
l
ft
r
a
p
p
e
db
e
c
a
u
s
ey
o
uc
a
n
‖
tg
e
t
a
n
o
t
h
e
rj
o
bw
i
t
h
o
u
tap
a
yc
u
t
,
a
n
dy
o
uc
a
n
‖
tg
e
tp
r
o
m
oted
because your boss begrudges your cost already.
T
h
e
o
t
h
e
r
p
o
s
s
i
b
i
l
i
t
y
i
s
t
h
a
t
y
o
u
‖
r
e
u
n
w
i
t
t
i
n
g
l
y
i
no
v
e
r
y
o
u
r
h
e
a
d
.I
f
y
o
ue
x
p
e
c
t
e
dt
w
e
n
t
yg
r
a
n
da
n
dy
o
u
‖
r
eo
f
f
e
r
e
df
o
r
t
y
,
m
a
y
b
ey
o
u
‖
v
ei
m
p
r
e
s
s
e
dt
h
e
s
ef
o
l
k
sb
e
y
o
n
dy
o
u
rc
a
p
a
b
i
l
i
t
i
e
s
.
Although eight hundred dollars a week looks nice, it could turn
out to be more like eight hundred dollars for one frustrating week
b
e
f
o
r
e
y
o
u
‖
r
e
b
a
c
k
o
u
t
o
n
t
h
e
s
t
r
e
e
t
.
Ar
e
s
p
o
n
s
e
t
o“
T
o
oh
i
g
h
”
m
i
g
h
t
b
e
:
“
We
l
l
,
t
h
a
t
‖
s
v
e
r
yf
a
i
r
,
actually a wonderful offer. I take it as an indication of your belief
t
h
a
t
I
‖
ms
o
m
e
o
n
e
w
h
o
c
a
nd
o
t
h
e
j
o
b
.L
e
t
‖
s
g
e
t
t
h
e
b
e
n
e
f
i
t
s
c
l
e
a
r
a
n
d
I
t
h
i
n
k
w
e
c
a
n
m
a
k
e
t
h
e
d
e
a
l
.
”
Finish up the negotiations but provide yourself with time, as
suggested in Chapter 7, before you finally accept the position.
Yo
u
‖
l
l
n
e
e
dt
h
a
t
t
i
m
et
om
a
k
eas
p
e
c
i
a
l
e
f
f
o
r
t
t
or
e
s
e
a
r
c
ht
h
e
position, both to make sure you can handle it and to find out why
t
h
e
y
‖
r
e
b
e
i
n
g
s
o
g
e
n
e
r
o
u
s
.
A client called me one day deliriously high with an offer
equal to a 150-percent salary increase and a benefits package that
totaled a 200-percent raise. I was worried. The job seemed okay,
but I told him to go back and check it out.
T
h
e
e
m
p
l
o
y
e
r
w
a
s
f
r
a
n
k
:
“
We
b
e
l
i
e
v
e
h
i
g
h
-tech corporations
succeed because of teamwork and dedication. Our projects often
take years to complete, and they keep us at the cutting edge of
technical application. When we find people we like, we want
t
h
e
mf
o
r
t
h
el
o
n
gh
a
u
l
;
w
ed
o
n
‖
t
w
a
n
t
o
u
r
p
e
o
p
l
el
o
o
k
i
n
gf
o
r
other positions. We need 100 percent of your energy and
commitment
,
a
n
d
w
e
k
n
o
ww
e
h
a
v
e
t
o
p
a
y
f
o
r
i
t
.
”F
i
n
e
!
S
i
n
c
e
w
e
k
n
o
wt
h
ee
m
p
l
o
y
e
ri
sh
a
p
p
y
,
w
e
‖
r
eh
a
p
p
y
.I
t
‖
saw
i
n
-win
s
i
t
u
a
t
i
o
n
,
a
n
d
w
e
‖
v
e
n
e
g
o
t
i
a
t
e
d
r
i
g
h
t
.
66
How to Make $1,000 a Minute
Too Low
Wh
e
nt
h
e
o
f
f
e
r
i
s
t
o
ol
o
w
,
d
o
n
‖
t
g
i
v
e
u
p
!T
h
e
r
e
a
r
e
m
a
n
y
ways to increase it. Your first response should be to acknowledge
i
t
.“
T
h
i
r
t
y
-five thousand dollars. I appreciate your offer, Mr.
E
m
p
l
o
y
e
r
.
”T
h
e
nr
e
f
o
c
u
s
o
ny
o
u
r
i
n
t
e
r
e
s
t
i
nt
h
ej
o
b
:
“
A
n
dI
‖
d
l
o
v
e
t
o
w
o
r
k
h
e
r
e
.
”T
h
e
n
p
u
t
o
u
t
a
s
t
a
t
e
m
e
n
t
y
o
uc
a
n
b
o
t
h
a
g
r
e
e
o
n
:
“
A
n
d
I
‖
ms
u
r
e
y
o
u
w
a
n
t
t
o
p
a
y
me a compensation that is fair
a
n
dw
i
l
l
k
e
e
pm
ec
o
m
m
i
t
t
e
da
n
dp
r
o
d
u
c
t
i
v
e
,
i
s
n
‖
t
t
h
a
t
r
i
g
h
t
?
”
(What can he say?)
“
We
l
l
,
”y
o
uc
o
n
t
i
n
u
e
,
“
f
r
o
mm
yr
e
s
e
a
r
c
hI
e
s
t
i
m
a
t
et
h
a
t
positions like this for someone with my qualifications are paying
in the range of X to Y thousand dollars. What can you do in that
r
a
n
g
e
?
”
The range you give will bracket the high end of your
research. If your research uncovered a range of $45,000 to $48,000,
b
r
a
c
k
e
t
t
h
eh
i
g
hr
a
n
g
eb
ys
a
y
i
n
g
,
“
I
nt
h
er
a
n
g
eo
f
$
4
7
,
0
0
0t
o
$
5
0
,
0
0
0
.
”
Typically, your interviewer will respond by telling you what
the company can do in that range: something, nothing, whatever.
Y
o
u
‖
r
e
r
e
a
d
y
t
o
c
o
n
t
i
n
u
e
a
nh
o
n
e
s
t
d
i
s
c
u
s
s
i
o
ni
no
r
d
e
r
t
o
r
e
a
c
h
a
common ground. Do your best here. Hold on to your researched
worth and keep talking to find a way to work it out so you both
win. Keep a mutuality about the negotiations. Look for a
compensation that is both fair and will keep you committed and
productive.
Notice how this negotiation compares with the You go first—
too-high/too-low scenarios. In either of those cases you could lose
the job. Here you have a firm job offer at X thousand dollars. If
a
l
l
f
u
r
t
h
e
r
n
e
g
o
t
i
a
t
i
n
gc
o
m
e
s
t
on
o
t
h
i
n
g
,
y
o
uc
a
n
‖
t
l
o
s
et
h
ej
o
b
o
f
f
e
r
.Y
o
uc
a
na
l
w
a
y
si
nt
h
ee
n
ds
a
y
,
“
We
l
l
,
l
e
t
‖
sg
ow
i
t
hX
d
o
l
l
a
r
s
”
o
r
“
N
o
t
h
a
n
k
s
.
”B
u
t
i
t
‖
s
your decision.
Sincere negotiations, in my experience, end up with a
satisfying common ground 90 percent of the time.
Ma
n
yp
e
o
p
l
e
,t
h
o
u
g
h
,t
h
i
n
kt
h
e
y
‖
l
ll
o
s
ea
ne
m
p
l
o
y
e
r
‖
s
respect if they talk very long about money. That‖
s
t
r
u
e
before an
Rule 4: Your Researched Response
67
offer, as we learned from Salary-Making Rule 1, but after an offer
it can actually increase respect.
For example, Daniel, one of my clients, received an offer on
the phone, but insisted on discussing it in person. After two hours
of negotiating, he had an acceptable offer. He made an extra
$10,000 a year in those two hours. The employer concluded the
s
e
s
s
i
o
n
w
i
t
h
t
h
e
c
o
m
m
e
n
t
:
“
I
f
I
h
a
da
n
y
d
o
u
b
t
s
a
b
o
u
t
y
o
ub
e
f
o
r
e
,
they are gone now. I know w
h
yI
‖
v
e
h
i
r
e
dy
o
u
.
”Myc
l
i
e
n
t
h
a
d
listened carefully to their opinions and offer, and had kept going
back to a researched response.
H
e
r
e
‖
s
w
h
e
r
e
y
o
u
r
r
e
s
e
a
r
c
ha
n
dy
o
u
r
o
w
ne
s
t
i
m
a
t
e
o
f
y
o
u
r
quality comes into play. You may wish to share your findings in
print with your (prospective) employer. Seeing facts on paper
might move him to agree more easily to your requests.
I
f
y
o
ur
e
s
e
a
r
c
ha
s
a
l
a
r
y
s
p
r
e
a
do
f
$
8
,
0
0
0
,
y
o
u
‖
l
l
w
a
n
t
t
o
a
s
k
for the top of the spread if you believe your expertise merits it.
O
t
h
e
r
w
i
s
e
,
y
o
u
‖
l
l
s
e
t
t
l
e
f
o
r
a
m
i
d
d
l
e
r
a
n
g
e
.E
v
e
ni
f
y
o
u
‖
r
e
e
n
t
r
y
level, however, go for a grand or two above the bottom. Sell your
ambition and potential.
Wh
a
t
e
v
e
r
y
o
u
d
o
,
d
o
n
‖
t
s
a
y
n
o
i
n
t
h
e
r
o
o
m
!
I
f
y
o
u
c
a
n
‖
t
r
e
a
c
h
a
m
u
t
u
a
l
l
y
s
a
t
i
s
f
y
i
n
g
s
a
l
a
r
y
,
y
o
u
s
t
i
l
l
h
a
v
e
the lower offer. Let the employer sweat a little. Remember, the
c
o
m
p
a
n
yw
a
n
t
s
y
o
u
.T
e
l
l
t
h
ei
n
t
e
r
v
i
e
w
e
r
t
h
a
t
y
o
u
‖
r
es
t
i
l
l
v
e
r
y
excited about the opportunity and that you both will want to
think about it and talk again tomorrow or Friday.
Too Low –
wrapping up the interview
Leaving negotiations when the offer is too low puts you in
jeopardy of losing the offer altogether. Employers may want to
just scrap the whole thing rather than risk hiring you today, only
to wave good-bye in a few months when you leave for more
m
o
n
e
y
.
Ma
k
e
s
u
r
e
t
h
e
y
‖
l
l
s
t
i
l
l
honor their current offer after you
c
o
n
s
i
d
e
r
i
t
.
Y
o
u
d
o
n
‖
t
w
a
n
t
a
n
y
i
n
t
e
r
l
o
p
e
r
s
t
o
p
u
s
h
t
h
e
i
r
w
a
y
i
n
t
o
c
o
n
s
i
d
e
r
a
t
i
o
n
.I
f
t
h
e
y
‖
l
l
h
o
l
df
i
r
mt
o
t
h
e
i
r
o
f
f
e
r
d
u
r
i
n
gt
h
e
n
e
g
o
tiat
i
o
n
s
,
y
o
u
‖
v
e
g
o
t
n
o
t
h
i
n
g
t
o
l
o
s
e
!
68
How to Make $1,000 a Minute
H
o
w
e
v
e
r
,
y
o
u
‖
l
l
n
e
e
dt
o
m
a
k
e
a
d
e
a
l
:
I
f
t
h
e
y
‖
ll keep it open,
on their part, then on your part, you need to reassure them that
y
o
u
‖
l
l
g
i
v
e
t
h
e
ma
nh
o
n
e
s
t
-to-goodness yes or no the next time
y
o
u
m
e
e
t
.
A
n
d
i
f
i
t
‖
s
a
y
e
s
,
y
o
u
m
e
a
n
i
t
.
S
a
ys
o
m
e
t
h
i
n
gl
i
k
et
h
i
s
,
“
We
l
l
,
w
es
e
e
mf
a
ra
p
a
r
t
a
t
t
h
e
moment. I d
o
n
‖
t
w
a
n
t
t
o
d
e
c
l
i
n
e
t
h
e
o
f
f
e
r
b
e
c
a
u
s
e
I
s
t
i
l
l
t
h
i
n
k
t
h
e
f
i
t
i
s
g
o
o
d
.T
h
i
s
i
s
a
f
i
r
mo
f
f
e
r
,
r
i
t
g
h
t
?
”[
Y
e
s
.
]“
O
k
a
y
,
t
h
e
nw
h
y
d
o
n
‖
t
w
e
d
o
t
h
i
s
…L
e
t
‖
s
t
a
l
k
a
g
a
i
ns
o
o
n[
m
e
a
n
s
2
4
h
o
u
r
s
o
r
l
e
s
s
,
B
T
W]
.I
‖
l
l
m
a
k
e
y
o
ut
h
i
s
p
r
o
m
i
s
e
:
I
‖
l
l
c
o
n
s
i
d
e
r
t
h
e
c
o
m
p
e
n
s
a
t
ion
to see if I can accept it; meanwhile, you can take some time to see
i
f
t
h
e
r
e
‖
s
a
n
y
t
h
i
n
g
w
e
‖
v
e
o
v
e
r
l
o
o
k
e
dt
o
m
a
k
e
i
t
b
e
t
t
e
r
.T
h
e
n
,
i
f
I
c
a
na
c
c
e
p
t
t
h
a
t
o
f
f
e
r
,
I
‖
l
l
s
a
y
y
e
s
,
a
n
dI
‖
l
l
m
e
a
ny
e
s
.I
f
I
c
a
n
‖
t
f
e
e
l
r
i
g
h
t
a
b
o
u
t
t
h
e
d
e
a
l
,
I
‖
l
l
s
a
y
n
o
,
a
n
ds
u
g
g
est you look for another
candidate who will fill the bill for you at that price. How does
t
h
a
t
s
o
u
n
d
?
”
I
fy
o
ud
o
n
‖
to
f
f
e
rt
h
i
st
y
p
eo
fr
e
a
s
s
u
r
a
n
c
e
,
t
h
e
ym
i
g
h
t
rescind the offer e
v
e
n
i
f
t
h
e
y
s
a
i
d
t
h
e
y
’
d
h
o
l
d
i
t
f
o
r
a
d
a
y
.
Too Low: bolstering an offer with bennies.
As you will see when you look over the list of bennies and
perks in Chapter 7, there may be ways to make the compensation
p
a
c
k
a
g
ec
o
r
r
e
c
te
v
e
ni
ft
h
eb
a
s
ei
s
n
‖
tw
h
a
ty
o
ue
x
p
e
c
t
e
d
.
Negotiating profit sharing, bonuses, stock options, vacation time,
accelerated-commission scales, an entertainment budget, training
budget, tuition reimbursement, or a company car is a way to build
your compensation. You or the company may need time to come
up with the creative financing.
Just Right
This is unlikely. The first figure you hear is generally the
e
m
p
l
o
y
e
r
‖
s
l
o
w
e
s
t
.E
v
e
ni
f
t
h
e
i
n
t
e
r
v
i
e
w
e
r
i
s
i
naf
i
t
o
f
e
c
s
t
a
s
y
and fudging and judging to entice you into the company, prudent
b
u
s
i
n
e
s
s
p
e
o
p
l
e
w
o
u
l
d
n
‖
t
b
a
c
k
t
h
e
m
s
e
l
v
e
s
i
n
t
o
a
c
o
r
n
e
r
.
B
u
t
i
f
i
t
does happen, andy
o
u
‖
r
ec
o
n
f
i
d
e
n
tt
h
a
ty
o
u
‖
v
er
e
s
e
a
r
c
h
e
d
correctly, take the same thirty seconds to think about it, then say,
“
Y
o
u
r
f
i
g
u
r
e
m
a
t
c
h
e
s
m
y
r
e
s
e
a
r
c
h
e
x
a
c
t
l
y
.
I
t
h
i
n
k
t
h
a
t
‖
s
a
p
e
r
f
e
c
t
starting point. Since I expect to learn fast, work hard, and become
69
Rule 4: Your Researched Response
very prod
u
c
t
i
v
e
f
o
r
y
o
u
,
I
‖
dl
i
k
e
t
o
d
i
s
c
u
s
s
s
c
h
e
d
u
l
i
n
g
a
t
e
n
t
a
t
i
v
e
r
a
i
s
e
t
o
Xt
h
o
u
s
a
n
dd
o
l
l
a
r
s
i
ns
i
x
m
o
n
t
h
s
.
”T
h
a
t
w
a
yy
o
u
‖
r
e
n
o
t
pushing for anything more than a fair salary, but still bringing up
a potential raise.
Remember all the losses we counted in Chapter 4 when you
g
o
f
i
r
s
t
?L
e
t
‖
s
l
o
o
k
a
t
t
h
e
s
c
o
r
e
c
a
r
dt
h
i
s
t
i
m
e
.
(
I
t
‖
s
r
e
p
r
o
d
u
c
e
do
n
the next page.) What a difference when, after letting the
interviewer go first, you count to thirty, then counter the
c
o
m
p
a
n
y
‖
s
o
f
f
e
r
w
i
t
h
y
o
u
r
r
e
s
e
a
r
c
h
e
d
r
e
s
p
o
n
s
e
.
Losses
Too High
The Offer
The Job
_________
_________
The Offer
A Raise
Perks & Bennies
_________
_________
_________
A Review
_________
Just
Right
Wins
Too Low
These “
L
e
t
T
h
e
mG
o
F
i
r
s
t
”
w
i
n
n
i
n
g
r
e
s
u
l
t
s
a
r
e
s
u
m
m
a
r
i
z
e
d
in the table on the following page.
Figure 6-1. Summary Chart for They Go First
—
The Outcomes
Chapter 7:
Salary-Making Rule 5:
Clinch The Deal, Then Deal Some More
Negotiating Bennies and Perks
Sometime during your post-offer silence your interviewer
m
i
g
h
t
s
a
y
,
“
N
o
wt
h
a
t
m
i
g
h
t
s
e
e
ml
o
w
,
b
u
t
k
e
e
pi
nm
i
n
do
u
r
liberal benefits program: free beer at the company picnic, your
own space in the parking lot, a half day off at Christmas and a
full-page spread in the company new
s
l
e
t
t
e
r
.
”D
o
n
‖
t
l
e
t
t
h
e
s
e
incredible goodies distract you from your first priority, your takehome pay. First come to an agreement on things like salary,
commissions, and bonuses. Then move on to the bennies and
perks.
“
B
e
n
n
i
e
s
”i
ss
l
a
n
gf
o
rb
e
n
e
f
i
t
s
,“
p
e
r
k
s
”f
o
rh
i
r
i
n
g
perquisites. They are important for two reasons. First, they can
complement a solid salary, making the total package even better.
S
e
c
o
n
d
,
i
f
t
h
es
a
l
a
r
yy
o
u
‖
v
eb
e
e
no
f
f
e
r
e
di
s
n
‖
t
q
u
i
t
ew
h
a
t
y
o
u
expected, adding on some of these often-nontaxable extras can
bring the entire offer very close to the figure you had in mind.
That is the meaning of Salary-Making Rule 5: Clinch the deal, then
deal some more.
Study the following ten subsections, which cover examples
of typical bennies and perks you may wish to negotiate. You
might choose not to discuss all of them at your first negotiating
70
Rule 5: Clinch The Deal, Then Deal Some More
71
session. Bring up a few of the major ones and save the others for a
s
e
c
o
n
ds
e
s
s
i
o
n
.
D
o
n
‖
t
w
o
r
r
y
i
f
y
o
uc
a
n
‖
t
r
e
s
o
l
v
e
a
l
l
o
f
t
h
e
mr
i
g
h
t
away, either. Some may be new to your employers, and they may
n
e
e
d
a
f
e
wd
a
y
s
t
o
s
e
e
w
h
a
t
‖
s
p
o
s
s
i
b
l
e
.
A
f
t
e
r
c
o
n
s
i
d
e
r
i
n
g
b
e
n
n
i
e
s
a
n
dp
e
r
k
s
,
w
e
‖
l
l
s
e
e
w
h
y
i
t
‖
s
v
i
t
a
l
to take time to think it over, how to juggle two or more offers, and
when to get an offer in writing.
1. Salary Reviews
The first thing to explore after negotiating your base salary is
the salary review. One of the reasons for negotiating the best base
salary first is that raises are generally computed as a percentage
on that base. The higher the base, the greater the 2-, 3-, or 10percent raise will be.
In negotiating a review there are three areas to consider:
t
i
m
i
n
g
,
b
a
s
i
s
,
a
n
dp
e
r
c
e
n
t
a
g
e
.A
l
t
h
o
u
g
hy
o
uc
a
n
‖
t
c
o
m
e
u
pw
i
t
h
the actual percentage now (if you could there would be no need
for a review later on), you can influence it by taking a look at the
cost-of-living adjustment (COLA).
The COLA is an automatic raise in salary to compensate for
inflation. If your raise is 10 percent one year, but inflation 10
p
e
r
c
e
n
t
o
v
e
r
t
h
e
s
a
m
e
t
i
m
e
,
t
h
e
ny
o
uh
a
v
e
n
‖
t
r
e
c
e
i
v
e
da raise at
a
l
l
.Y
o
u
‖
r
e
s
i
m
p
l
yb
e
i
n
gp
a
i
di
np
u
r
c
h
a
s
i
n
gp
o
w
e
r
e
x
a
c
t
l
yw
h
a
t
you earned the previous year. So you can bring up the subject of a
review by talking about COLA.
Y
o
um
i
g
h
t
s
a
y
,
“
I
e
x
p
e
c
t
t
h
a
t
m
y
s
a
l
a
r
y
w
i
l
l
k
e
e
pp
a
c
e
w
i
t
h
inflation, so there will be a cost-of-living adjustment each year,
w
o
n
‖
t
t
h
e
r
e
?
”O
n
c
e
y
o
u
g
e
t
y
o
u
r
p
o
t
e
n
t
i
a
l
e
m
p
l
o
y
e
r
t
o
a
g
r
e
e
t
o
a
COLA, then you have already raised the actual percentage of your
next raise because it will need to be computed and then added to
the COLA. The government publishes several cost-of-livingadjustment indicators. The personnel department should be able
to choose an appropriate one.
I
fy
o
uh
a
v
e
n
‖
tg
o
tt
h
eb
a
s
es
a
l
a
r
yt
ot
h
el
e
v
e
lt
h
a
t
‖
s
acceptable to you, you might postpone discussion of the COLA
and discuss the review process itself as a way to increase your
72
How to Make $1,000 a Minute
salary. You might suggest that the employer hire you at the salary
level you would like and then review your performance after six
months to come up with a salary that feels fair. If that doesn
‖
t
work, suggest that you split the difference. Try it for six months
a
n
d
g
o
f
r
o
mt
h
e
r
e
.
O
r
y
o
u
c
a
n
s
t
a
r
t
a
t
t
h
e
s
a
l
a
r
y
l
e
v
e
l
y
o
u
‖
v
e
b
e
e
n
offered and negotiate for a review of your performance in six
months. You might request a retroactive raise for that period,
based on your performance.
Eli Djeddah, an early pioneer in job career consulting,
suggests that you bring up the question of a review this way:
“
Wh
i
l
e
m
ys
t
a
r
t
i
n
gs
a
l
a
r
yi
s
i
m
p
o
r
t
a
n
t
,
I
a
ma
l
s
o
v
e
r
yi
n
t
e
r
e
s
t
e
d
in the future, since I expect to work here quite a while. In six
months, when we review my performance, will it be on my
d
e
m
o
n
s
t
r
a
t
e
dw
o
r
t
h
,
o
rj
u
s
tam
e
c
h
a
n
i
c
a
l
p
r
o
c
e
d
u
r
e
?
”Y
o
u
r
employer will certainly choose the former, Eli asserts.
The timing of the review depends on you. Whatever time
you estimate you will need to show tangible results, double it to
be safe, and ask for the review at the end of that time. You can
suggest that during your first week on the job you or your
employer come up with a specific set of objectives that will be the
basis for a review. That will demonstrate your conviction that
salary should be the direct reflection of your contribution, not pie
in the sky.
When you ask for a review in six months or any period
shorter than a year, you may get objections concerni
n
g
“
c
o
m
p
a
n
y
p
o
l
i
c
y
.
”R
e
q
u
e
s
t
a
s
p
e
c
i
a
l
e
x
c
e
p
t
i
o
nb
e
c
a
u
s
e
o
f
y
o
u
r
i
n
t
e
n
t
i
o
nt
o
r
e
a
l
l
ys
h
i
n
e
.Y
o
uc
a
ns
a
y
,
“
I
f
w
e
l
o
o
ka
t
m
yp
e
r
f
o
r
m
a
n
c
e
i
ns
i
x
m
o
n
t
h
s
a
n
dI
h
a
v
e
n
o
t
r
e
a
c
h
e
dm
y
o
b
j
e
c
t
i
v
e
s
,
i
t
w
o
n
‖
t
c
o
s
t
y
o
ua
penny. If I do reach them, you will have made more than I cost,
a
n
y
w
a
y
.
E
i
t
h
e
r
w
a
y
,
y
o
u
w
i
n
a
n
d
I
a
mm
o
t
i
v
a
t
e
d
.
”
2. Sales Compensation
The next items to consider are commission rates or bonuses
that you can earn. If you are in sales, you typically earn base plus
commissions. You can try to negotiate higher commission rates if
you wish. If those are standardized and nonnegotiable, try asking
for a higher commission rate over a certain quota. For example, if
Rule 5: Clinch The Deal, Then Deal Some More
73
normal sales commissions are, say, 5 percent, you can ask that
sales over $250,000 be paid a 6-percent commission.
Sales-compensation packages have several variations:
straight commission,
variable commission,
draw against commission,
advance against commission,
base plus commission,
salary plus commission,
salary and bonus,
salary, and
residuals.
I will define them here and discuss the rationale behind each
package.
Straight Commission: The commission phobia of some
salespeople puzzles me. They want security; they confuse
security with salary. On straight commission, your compensation
is strictly a percentage of your sales. To many people that
a
r
r
a
n
g
e
m
e
n
t
s
e
e
m
s
l
i
k
e
t
h
e
m
o
s
t
r
i
s
k
y
,
b
u
t
i
t
‖
s
a
c
t
u
a
l
l
yt
h
e
o
n
e
m
o
s
t
u
n
d
e
r
y
o
u
r
c
o
n
t
r
o
l
.
I
f
y
o
u
s
e
l
l
w
e
l
l
,
y
o
u
‖
r
e
s
a
f
e
;
n
o
o
n
e
w
i
l
l
f
i
r
ey
o
u
.I
fy
o
us
e
l
l
g
r
e
a
t
,
y
o
u
‖
r
en
o
to
n
l
ys
e
c
u
r
e
,
y
o
uc
a
n
practically write your own ticket.
S
o
m
e
t
i
m
e
s
I
w
o
n
d
e
r
w
h
e
r
e
t
h
e
yt
h
i
n
ka
c
o
m
p
a
n
y
‖
s
m
o
n
e
y
comes from. Draws and advances are not gifts; they come out of
your sales. They simply represent payment ahead of time of a
portion of your future earnings. If you don
‖
t
s
e
l
l
,
y
o
u
‖
r
e
n
o
m
o
r
e
secure on salary than on commission.
The best salespeople love straight commission because they
k
n
o
wt
h
e
yg
e
t
e
v
e
r
yd
o
l
l
a
r
t
h
a
t
‖
s
c
o
m
i
n
gt
ot
h
e
ma
n
dt
h
a
t
t
h
e
i
r
income is entirely in their control. However, straight commission
is no
t
p
r
a
c
t
i
c
a
l
i
f
y
o
u
c
a
n
‖
t
m
a
k
e
s
a
l
e
s
r
i
g
h
t
a
w
a
y
.
Wh
e
n
t
h
e
s
a
l
e
s
cycle is lengthy, straight commission is generally not workable.
Variable Commission: Same as straight commission, but the rate
goes up or down depending on sales circumstances. You might
74
How to Make $1,000 a Minute
be paid a higher commission on new accounts, on larger sales, or
on total volume over a certain amount. Negotiating an increase in
commission rate for top performance can be very lucrative and
motivating.
Draw against Commission: Also straight commission, except the
employer lets you draw a certain amount of money each pay
period to help you get started. So if you have a $1,000 draw and
you make only $800 in commissions, you would get a check for
$1,000 and pay the company $200 back out of future earnings.
Mo
s
t
d
r
a
w
s
a
r
e“
f
o
r
g
i
v
a
b
l
e
,
”w
h
i
c
hm
e
a
n
s
t
h
a
t
i
f
t
h
ej
o
bi
s
n
‖
t
working out you could quit and not have to pay back any money
you owed the company. Do check this out.
Draws may last indefinitely or for a specified number of
weeks or months, and the draw itself may be reduced or increased
over time.
Advance against Commission: Like a draw, but it is generally an
occasional, rather than a continual, event. It usually will not
exceed the amount of commissions already earned.
Base plus Commission: Same as salary plus commission. Here the
c
o
m
p
a
n
y
p
a
y
s
y
o
u
a
c
e
r
t
a
i
n
s
a
l
a
r
y
,
c
a
l
l
e
d
y
o
u
r
b
a
s
e
.
T
h
a
t
‖
s
y
o
u
r
s
to keep and rely on. Above that, the company gives you a
commission according to a mutually agreed-upon formula.
Salary: Some sales jobs pay a straight salary. These jobs almost
always come with bonuses. If not, you can try to negotiate one.
Salary and Bonus: A bonus is a one-time payment of a fixed
amount of money for achieving a certain volume of sales. It could
be a weekly, monthly, quarterly, or even annual bonus or a bonus
that automatically kicks in when you reach your goal.
Residual Commission: This is a type of commission that keeps on
paying even if you quit the company. In insurance sales, for
i
n
s
t
a
n
c
e
,
a
f
t
e
r
y
o
u
‖
v
e
b
e
e
nw
i
t
ht
h
e
c
o
m
p
a
n
y
f
o
r
a
certain length
o
f
t
i
m
e
,
y
o
u
‖
r
e
e
n
t
i
t
l
e
d
,
f
o
r
a
p
e
r
i
o
do
f
t
i
m
e
,
t
oa
c
o
m
m
i
s
s
i
o
no
n
the payments clients make to the policies you sold them whether
or not you work for the company any longer.
When your sales work involves a lot of new-account
generation, you would be wise to negotiate a residual commission
Rule 5: Clinch The Deal, Then Deal Some More
75
on those new accounts. The justification here is that the reward
for selling the account belongs to you; after you leave and the
account is maintained, a portion of the income should still be yours
for a while. Negotiate both the commission rate and the duration.
Wa
t
c
h
o
u
t
!D
o
n
’
t
g
e
t
c
h
e
a
t
e
d
o
u
t
o
f
y
o
u
r
c
o
m
m
i
s
s
i
o
n
s
w
h
e
n
y
o
u
leave. One of the most common, but avoidable, misfortunes in
negotiating sales commissions is not being clear about what
happens when you leave the company.
Whatever your commission structure is, make sure you get
clear exactly how commissions and pay are handled when you
leave the company.
What sales do you get paid on, and when is the payment
due? Often, commissions are payable when the client pays, not
when the client is billed. Those payments may lag several months
after the sale is made. Get it in writing now, when you begin.
Y
o
ud
o
n
‖
t
w
a
n
t
t
o
f
i
g
h
t
t
h
i
s
b
a
t
t
l
e
w
h
e
ny
o
u
‖
r
e
g
o
n
e
;
y
o
u
‖
dl
o
s
e
.
S
e
e
t
h
e
“
N
e
g
o
t
i
a
t
i
n
ga
S
e
v
e
r
a
n
c
e
P
a
c
k
a
g
e
”
s
e
c
t
i
o
n
s
i
nC
h
a
p
t
e
r
8
for more about this.
Sales-Compensation Example
H
e
r
e
‖
sa
ni
n
t
e
r
e
s
t
i
n
ge
x
a
m
p
l
eo
f
n
e
g
o
t
i
a
t
i
n
gc
o
m
m
i
s
s
i
o
n
compensation.
A client of mine moved into the art-sales field. She found a
collection of valuable art that was being held in trust and was
being stored for future sales. She wanted to be the agent to sell
t
h
e
p
a
i
n
t
i
n
g
s
a
n
d
d
i
d
n
’
t
k
n
o
w
h
o
w
m
u
c
h
t
o
a
s
k
f
o
r
i
n
s
a
l
a
r
y
.
This example is very illustrative of the Make me a buck principle.
Each party could make money for the other. The paintings were
a cost to the estate while in storage; with the addition of Liz, they
changed into a profit. Similarly, Liz without an art collection to
market was just another Girl Friday. Both parties could win here.
Now the question was who would win how much?
First, we determined her value in the matter. We figured that the
collection as is would sell for $200,000 to a big gallery. By
arranging special exhibits, auctions, and gallery showings, she
estimated she could bring in $500,000 over time. Therefore, the
difference between present and future sales would be $300,000,
t
h
e
“
v
a
l
u
e
a
d
d
e
d
”
s
h
e
c
o
u
l
d
p
r
o
d
u
c
e
.
W
h
e
t
h
e
r
i
t
t
o
o
k
h
e
r
t
w
o
76
How to Make $1,000 a Minute
years or twenty to do that, the added value to be shared in some
fashion between her and the estate would still be $300,000.
However, the $300,000 was just an estimate (wild guess?). Who
would bear the burden of the risk that the whole venture might be
a flop? If she were on straight commission, taking on all the
risks of the venture, she could negotiate for 50 to 85 percent of
t
h
e
n
e
t
i
n
c
r
e
a
s
e
d
v
a
l
u
e
(
t
h
a
t
’
s
$
1
5
0
,
0
0
0
t
o
$
2
4
0
,
0
0
0
,
a
b
o
u
t
3
0
to 50 percent of the estimated gross sales price); if she took all
the risk, she ought to get most of the reward. On the other hand,
if the estate would pay her living expenses for six months,
perhaps the compensation would be base plus a smaller
commission.
Paintings increase in value as their artists become better known.
If Liz got the paintings into the hands of collectors, her work
would be the ultimate reason for the increased value whether or
not she was still actively marketing the works. Therefore, she
could credibly negotiate for some residual commission on all
works sold after she left.
Compensation could also be structured as commission or as a
draw against commission.
Since her risk is higher on
commission, her reward should be higher than on a base or
salary. If she earned a forgivable draw against commission, her
risk would be less, so her commission might be less. On the
other hand, if the estate wanted to take on all the risk, it could
pay her a good salary for a year or two and call it even. She
could also negotiate a salary with a bonus for a certain number
of paintings sold within the first year.
Then she could lay claim to some of the more elusive dollars: the
increased-e
a
r
n
i
n
g
s
’
i
n
t
e
r
e
s
t
a
s
i
t
b
u
i
l
d
s
o
v
e
r
t
w
o
,
t
h
r
e
e
,
o
r
m
o
r
e
years and the savings generated as the storage costs decline.
(Storing a painting is not like renting a U-Haul self-storage
l
o
c
k
e
r
;
i
t
’
s
b
i
g
-buck climate control and high security.) On the
other hand, taxes and the costs of transportation, gallery rental,
and agent commission should be figured into the deal if it is to be
fair.
So you can see how compensation can be arranged in many
different ways, depending on what risk-reward ratio y
o
u
‖
r
e
willing to accept. Notice that you can significantly increase your
total compensation package by changing or adding one element.
Rule 5: Clinch The Deal, Then Deal Some More
77
3. Performance Bonuses
E
v
e
n
i
f
y
o
u
‖
r
e
n
o
t
i
n
s
a
l
e
s
,
n
e
g
o
t
i
a
t
i
n
g
a
p
e
r
f
o
r
m
a
n
c
e
b
o
n
u
s
can be a very win-win way of earning extra income. A bonus
b
a
s
e
do
nt
h
e
p
r
o
f
i
t
a
b
i
l
i
t
y
o
f
t
h
e
a
r
e
a
y
o
u
‖
r
e
w
o
r
k
i
n
g
i
n
g
i
v
e
s
y
o
u
an incentive to work and your employer a way to make more
money. Retail-store managers, franchise operators, and department managers regularly get incentive bonuses based on target
sales figures.
You can negotiate your own version of that no matter what
your job. Just pin a number to the quantity or quality of your
work using objectively measurable criteria. Or pose an openended question to your employer, like:
“
L
e
t
‖
s
c
o
n
s
i
d
e
r
s
e
t
t
i
n
g
u
p
a special bonus to encourage excellent performance. Can you
t
h
i
n
k
o
f
a
w
o
r
k
a
b
l
e
o
n
e
?
”
Two variations of the bonus are profit sharing and stock
options. Stock options used to be offered only to executives and
the highest levels of corporate management. That makes sense,
because their decisions directly affect the value of their company
in the marketplace, and that value determines the price of the
c
o
m
p
a
n
y
‖
s
s
t
o
c
k
.
Recently, though, stock options have become available to
l
o
w
e
r
l
e
v
e
l
s
o
f
m
a
n
a
g
e
m
e
n
t
.
Mc
D
o
n
a
l
d
‖
s
s
t
o
c
k
o
p
t
i
o
n
s
m
a
d
e
R
a
y
K
r
o
c
‖
s
s
e
c
r
e
t
a
r
ya
m
i
l
l
i
o
n
a
i
r
e
.S
o
m
e
o
f
t
h
e
m
o
s
t
m
o
t
i
v
a
t
ing and
successful companies have what are known as employee stockownership programs (ESOPs).
See Chapter 9 for detailed
information on negotiating stock options.
Although you would hardly be able to negotiate an entire
ESOP for the company, you can suggest profit sharing if your
w
o
r
kh
a
s
a
v
e
r
yd
i
r
e
c
t
b
e
a
r
i
n
go
nt
h
e
c
o
m
p
a
n
y
‖
s
p
r
o
f
i
t
s
.P
r
o
f
i
t
sharing can be computed monthly, quarterly, or annually as a
p
e
r
c
e
n
t
a
g
eo
f
t
h
eo
r
g
a
n
i
z
a
t
i
o
n
‖
sg
r
o
s
so
rn
e
t
r
e
v
e
n
u
e
s
.Y
o
u
r
research comes into play here, giving you as
e
n
s
eo
fw
h
a
t
‖
s
standard for the particular field and the level of the position
y
o
u
‖
r
e
e
x
p
l
o
r
i
n
g
.
78
How to Make $1,000 a Minute
4. Insurance
One benefit most companies offer is health insurance.
Insurance plans vary from company to company, and you should
ask to see what the plan and the coverage are. You may wish to
negotiate for a different deductible in your medical program. You
can also ask about dental insurance, life insurance, and special
medical-expense provisions like disability pay. If you are
unemployed and currently paying your own insurance premiums,
you may negotiate to be covered right away by insurance rather
than after the typical three-month waiting period.
Wh
i
l
e
y
o
u
‖
r
e
a
t
i
t
,
d
o
u
b
l
e
c
h
e
c
kt
h
a
t
t
h
e
i
n
s
u
r
a
n
c
e
y
o
ud
o
get from the company will extend three months beyond your
termination date in the event you should leave. Some states have
l
e
g
i
s
l
a
t
i
o
nr
e
q
u
i
r
i
n
gs
i
xm
o
n
t
h
s
‖p
o
s
t
-employment medical
coverage.
Legislation called COBRA (Consolidated Omnibus Budget
and Reconciliation Act [of 1985]) requires that you be allowed, at
your own expense, to remain on company health insurance at 101
percent of premium for up to a year or thirteen months after you
leave. If you would like your employer to pay for X months of
coverage when you leave, ask for it now.
5. Cars and Expense Accounts
For positions in which there is a lot of travel involved,
discuss the travel-and-mileage allowance or the possibility of
getting a company car. A company car may be worth several
thousand dollars because it saves your paying insurance and
maintenance costs on your own vehicle and depreciating that
vehicle, and in certain cases may even save you all the taxes on
those expenses.
In some tax situations, the benefits of an office in your home
and other travel and expense reimbursements can make a tidy
sum. Add it up: 27 percent (or more), income tax; 10 percent,
FICA; 1 to 5 percent, state income tax—almost forty-five cents on
t
h
e
d
o
l
l
a
r
!
I
t
‖
s
a
l
o
t
e
a
s
i
e
r
t
o
g
e
t
a
n
o
n
t
a
x
a
b
l
e
m
o
n
t
h
l
y
r
e
p
a
y
m
e
n
t
for car, insurance, phone, travel, etc., than to save all those
Rule 5: Clinch The Deal, Then Deal Some More
79
receipts and itemize them on April 15th. And your employer
s
a
v
e
s8p
e
r
c
e
n
t
i
nF
I
C
Ac
o
n
t
r
i
b
u
t
i
o
n
,
t
o
o
.R
e
m
e
m
b
e
r
,
y
o
u
‖
l
l
ultimately need documentation if the IRS asks for it. Check with
y
o
u
ra
c
c
o
u
n
t
a
n
t
;
c
h
e
c
kw
i
t
hy
o
u
re
m
p
l
o
y
e
r
‖
sa
c
c
o
u
n
t
a
n
t
;
then
solicit the opinion that favors you.
Another benefit to clear up now is the expense account or
entertainment account, especially if you are in sales. What does
the company consider customary expenses, and what exceptions
are there?
6. Professional Memberships
If you have done your research for the position, you are
probably aware of the professional association in your area of
expertise. If you explain to the employer how a membership can
help you be more productive for them, the employer should be
willing to pay your membership dues and give you time off for
meetings or training in your field.
7. Vacation and Personal Days
I
f
y
o
u
c
a
n
‖
t
i
n
c
r
e
a
s
e
t
h
e
m
o
n
e
y
,
p
e
r
h
a
p
s
y
o
u
c
a
n
r
e
d
u
c
e
t
h
e
time! Negotiate vacation, personal days, or your hours per week.
L
e
t
‖
s
g
e
t
o
n
e
t
h
i
n
g
c
l
e
a
r
o
n
t
h
e
v
a
c
a
t
i
o
n
i
s
s
u
e
.
N
o
o
n
e
p
a
y
s
you to go on vacation. You earn it. First, you earn it by doing
extra work to help cover for others when they go on vacation.
Second, you are paid only to bring in more money than you cost.
Y
o
ud
o
n
o
t
b
r
i
n
g
i
nm
o
n
e
y
o
nv
a
c
a
t
i
o
n
.S
o
t
w
o
w
e
e
k
s
‖
v
a
c
a
t
i
o
n
pay is really just fifty weeks of earnings spread out over fifty-two
weeks. However, on vacation you do restore and replenish your
energy (in theory, at least). Since that fresh energy can generate
more profit, employers can sometimes be convinced that extra
vacation bennies will pay off for them.
F
i
r
s
t
,a
s
kw
h
a
tt
h
ec
o
m
p
a
n
y
‖
sv
a
c
a
t
i
o
n
,s
i
c
k
-day, and
personal-day policies are. Then, when you discuss vacation,
always frame it as a way to help you be more productive on the
j
o
b
.Y
o
um
i
g
h
t
s
a
y
,
“
I
t
e
n
dt
ot
h
r
o
wm
y
s
e
l
f
s
o
e
n
t
i
r
e
l
yi
n
t
om
y
w
o
r
k
t
h
a
t
I
n
e
e
d
a
f
e
wb
r
e
a
k
s
d
u
r
i
n
g
t
h
e
y
e
a
r
t
o
r
e
c
h
a
r
g
e
;
I
‖
d
l
i
k
e
Xw
e
e
k
s
‖
v
a
c
a
t
i
o
n
.
”
80
How to Make $1,000 a Minute
See if you can get at least one more week than they offer,
e
v
e
ni
f
i
t
‖
s
f
ive personal days scattered throughout the year. Or
see if you can earn more vacation time or personal days by
achieving 100-percent attendance over a given period of time.
Many companies would prefer that their employees call in well
and take prearranged, earned wellness days rather than call in
sick on short notice.
8. Relocation Expenses
R
e
l
o
c
a
t
i
o
ne
x
p
e
n
s
e
sa
r
e
n
‖
ta
l
w
a
y
so
f
f
e
r
e
d
. T
h
e
ya
r
e
generally part of a new compensation package whenever your
present employer requests that you relocate.
With a new
employer, it is common only in executive positions, or whenever
the employer wants you badly enough.
Some relocation perks that you can calculate and might
consider requesting are company purchase of your present or
future home and company payments of moving fees, closing costs,
real-estate-b
r
o
k
e
r
‖
s
f
e
e
s
,
a
n
y
e
a
r
l
y
-mortgage-prepayment penalty,
mortgage-r
a
t
ed
i
f
f
e
r
e
n
t
i
a
l
s
,
y
o
u
r
f
a
m
i
l
y
‖
s
t
r
a
n
s
p
o
r
t
a
t
i
o
nc
o
s
t
s
o
f
looking at new homes, appliance installation, and lodging fees
while looking at or waiting for a new home.
9. Other Bennies and Perks
H
e
r
e
‖
sal
i
s
to
fs
o
m
eo
t
h
e
rt
h
i
n
g
sy
o
um
i
g
h
tc
o
n
s
i
d
e
r
:
severance pay; Christmas bonuses; matching-funds investment
program; deferred salary; corporate gasoline from private pumps;
free parking; corporate cafeteria or executive-dining-room
privileges; pension plans (do you contribute or does the company
pay in full?); credit union; company-paid physical examinations;
country-club or health-club memberships; and use of the
corporate plane, boat, or vacation property. With so many
takeovers, downsizing, etc., negotiating severance pay can be very
important. See the Special Situations chapter to learn more,
e
s
p
e
c
i
a
l
l
yt
h
es
e
c
t
i
o
n
,
“
N
e
g
o
t
i
a
t
i
n
gS
e
v
e
r
a
n
c
eT
i
m
i
n
gI
I
:
L
o
n
g
b
e
f
o
r
e
y
o
u
n
e
e
d
i
t
.
”
Rule 5: Clinch The Deal, Then Deal Some More
81
Also ask about tuition reimbursement. Are there specific
courses or degree work that would help you perform your job?
Ask if the company will pay, or help pay, some of those costs.
Still more bennies and perks are estate- or financial-planning
assistance, tax and legal assistance, and corporate-product
discounts. Figure 7-1 contains a list of perquisites and benefits.
1
0
.
S
i
g
n
i
n
g
B
o
n
u
s
(
a
.
k
.
a
.
“
S
i
g
n
-O
n
”
B
o
n
u
s
)
In flush times generally, or when demand is high in your
particular specialty, employers may entice you to take their offer
by adding a signing bonus. This is a one-time multi-thousand
d
o
l
l
a
r
p
a
y
m
e
n
t
a
n
d
i
t
s
p
u
r
p
o
s
e
c
a
n
b
e
t
o
…
sweeten the offer so you'll take it;
compensate you for bonuses, options vesting, etc., you
would lose with your present company if you accept the
offer from t
h
e
n
e
wo
n
e
(
t
h
e
y
“
m
a
k
e
y
o
u
w
h
o
l
e
.
”
)
;
recognize the IV$ value you bring (i.e. you're saving
them $5,000 tuition in, say, Peachtree software because
you already know it.);
r
e
w
a
r
d
y
o
u
f
o
r
b
r
i
n
g
i
n
g
o
v
e
r
y
o
u
r
“
b
o
o
k
”
o
f
b
u
s
i
n
e
s
s
o
r
your loyal-to-you clients.
Any time you can think of special IV$ (see chapter 4), you
have a rationale for negotiating this type of bonus.
Time to Think It Over
A
f
t
e
r
y
o
u
‖
v
ed
i
s
c
u
s
s
e
dt
h
e
s
em
a
t
t
e
r
s
,
t
h
eo
f
f
e
r
s
h
o
u
l
db
e
p
r
e
t
t
y
c
l
e
a
r
.
Y
o
u
‖
v
e
w
o
r
k
e
dh
a
r
d
,
h
e
l
dy
o
u
r
g
r
o
u
n
d
,
a
n
dy
o
u
‖
v
e
be
l
i
e
v
e
di
ny
o
u
r
s
e
l
f
.N
o
wc
o
m
e
s
t
h
eh
a
r
dp
a
r
t
:
D
O
N
‖
TT
A
K
E
THE JOB! (Yet.)
Money decisions are best made in the cool climate of logic
a
n
di
m
p
a
r
t
i
a
l
i
t
y
.R
e
m
e
m
b
e
r
,
y
o
u
‖
v
eb
e
e
nw
o
r
k
i
n
gt
o
w
a
r
dt
h
i
s
o
f
f
e
r
f
o
r
m
o
n
t
h
s
!Y
o
u
‖
r
ee
a
g
e
r
a
n
ds
t
i
m
u
l
a
t
e
d
.I
t
‖
sn
e
wa
n
d
exciting. But deciding in the heat of the moment makes for poor
f
i
n
a
n
c
i
a
l
d
e
c
i
s
i
o
n
s
.
A
n
y
o
n
e
w
h
o
‖
s
c
o
m
p
a
r
e
d
a
g
r
o
c
e
r
y
b
i
l
l
r
u
n
u
p
82
How to Make $1,000 a Minute
while shopping hungry with one while shopping with a full
stomach would concur.
G
i
v
e
y
o
u
r
s
e
l
f
t
i
m
e
t
o
t
h
i
n
k
,
b
u
t
d
o
n
‖
t
b
e
c
o
ol, indifferent, or
u
n
d
e
c
i
d
e
d
. Wh
e
ny
o
u
‖
v
ef
i
n
i
s
h
e
dn
e
g
o
t
i
a
t
ing, put all your
e
n
t
h
u
s
i
a
s
mb
a
c
ki
ng
e
a
r
a
n
ds
a
y
,
“
T
h
i
s
s
o
u
n
d
s
t
e
r
r
i
f
i
c
!I
t
h
i
n
k
w
e
‖
v
e
r
e
a
l
l
y
g
o
t
a
s
o
l
i
dm
a
t
c
h
h
e
r
e
.
Wo
u
l
dy
o
uj
o
t
t
h
i
s
a
l
l
d
o
w
n
s
o
w
e
‖
r
e
c
l
e
a
r
?
a
n
dI
‖
l
l
g
e
t
b
a
c
k
t
o
y
o
uas soon as you need to know.
When do y
o
u
n
e
e
d
t
o
k
n
o
w
?
”
It is extremely important to maintain your enthusiastic
voice, gestures, and energy so your request for time is not taken as
a
l
a
c
ko
f
i
n
t
e
r
e
s
t
i
nt
h
e
j
o
b
.T
h
e
r
e
‖
s
a
d
e
l
i
c
a
t
e
l
i
n
e
h
e
r
e
b
e
t
w
e
e
n
demanding time and requesting clarity.
Rule 5: Clinch The Deal, Then Deal Some More
83
I. BASIC COMPENSATION
Base salary, Sales commission, Bonuses, Signing bonus
II. BENEFITS
Vacation time, Sick days, Wellness days, COLA
Insurance: Life, Medical, Dental, Disability
III. PERQUISITES
Profit sharing
Financial-planning assistance
Stock options
Pension plan
Legal assistance
Child care
Tuition reimbursement
Country-club membership
Special training courses
Luncheon-club membership
Deferred compensation
Athletic-club membership
C.P.A. and tax assistance
Consumer-product discounts
Executive-dining-room privileges
Company car or travel allowance
Matching-investment program 401K
Professional/trade-association dues
IV. RELOCATION
Moving expenses, Closing costs, Mortgage-rate differential.
Mortgage-prepayment penalty, Real-estate brokerage fees.
Trips for your family to look for a home.
Lodging fees while between homes .
Shipping of boats and pets.
Installation of appliances, drapes, and carpets.
V. MISCELLANEOUS
Annual physical exam; Special training courses; Mortgage funds/loans.
Severance pay, Starting date, Future salary reviews.
Office space, equipment, Secretarial and support staff.
Outplacement assistance upon termination.
O
v
e
r
r
i
d
e
s
o
n
o
t
h
e
r
s
’
p
e
r
f
o
r
m
a
n
c
e
.
Time & costs of trade shows, professional conferences.
Figure 7-1. Base, Bennies and Perks Checklist
D
o
n
’
t
B
e
“
C
o
o
l
”
One client lost an offer because, instead of framing a delay
a
s
a
r
e
q
u
e
s
t
f
o
r
c
l
a
r
i
t
y
,
h
e
m
a
d
e
i
t
a
d
e
m
a
n
d
:
“
I
‖
l
l
n
e
e
dt
i
m
e
t
o
84
How to Make $1,000 a Minute
t
h
i
n
ka
b
o
u
t
t
h
i
s
.I
‖
l
l
c
a
l
l
y
o
ui
na
c
o
u
p
l
e
o
f
d
a
y
s
.
”“
We
l
l
,
”
t
h
e
employer responded—they had been talking for weeks—”
i
f
y
o
u
‖
r
e
s
t
i
l
l
u
n
d
e
c
i
d
e
d
,
w
e
d
o
n
‖
t
w
a
n
t
y
o
u
.
”T
h
e
e
m
p
l
o
y
e
r
h
a
d
i
n
t
e
r
p
r
e
t
e
d
h
i
s
“
t
h
i
n
k
a
b
o
u
t
t
h
i
s
”
r
e
s
p
o
n
s
e
a
s
l
a
c
k
o
f
c
o
m
m
i
t
m
e
n
t
or enthusiasm.
Put yourself in Ms.
E
m
p
l
o
y
e
r
‖
s
s
h
o
e
s
.S
h
e
h
a
s
c
o
n
c
l
u
d
e
da
long, arduous process of finding the person who is finally going to
solve her problems. She has struggled through nebulous and
difficult negotiations with you and struck a deal. She is now eager
to close the deal a
n
dt
h
e
l
a
s
t
t
h
i
n
g
s
h
e
w
a
n
t
s
t
o
h
e
a
r
i
s
,
“
I
‖
l
l
t
h
i
n
k
a
b
o
u
t
i
t
”(
e
s
p
e
c
i
a
l
l
ys
i
n
c
e
,
a
s
a
n
ys
a
l
e
s
p
e
r
s
o
nc
a
nt
e
l
l
y
o
u
,
“
I
‖
l
l
t
h
i
n
k
i
t
o
v
e
r
”
i
s
u
s
u
a
l
l
y
a
p
o
l
i
t
e
w
a
y
o
f
s
a
y
i
n
g
n
o
)
.O
nt
h
e
o
t
h
e
r
hand, you do need some time to make sure all the bases are
covered.
How to Enthusiastically Ask for Time to Think It Over
H
o
wd
o
y
o
u
a
s
k
f
o
r
i
t
?H
e
r
e
a
r
e
s
o
m
e
m
o
r
e
e
x
a
m
p
l
e
s
:
“
Y
e
s
!
We
‖
r
e
d
o
n
e
!I
c
a
n
‖
t
w
a
i
t
t
og
e
t
s
t
a
r
t
e
d
.I
w
i
l
l
n
e
e
dt
ol
o
o
kt
h
i
s
o
v
e
r
t
o
m
a
k
e
s
u
r
e
w
e
h
a
v
e
n
‖
t
f
o
r
g
o
t
t
e
n
a
n
y
t
h
i
n
g
,
s
o
w
h
e
n
d
o
y
o
u
want my fi
n
a
l
c
o
n
f
i
r
m
a
t
i
o
n
?
”O
r
:
“
O
k
a
y
,
I
‖
mg
i
v
i
n
g
m
y
t
e
n
t
a
t
i
v
e
y
e
s
r
i
g
h
t
n
o
wa
n
dI
‖
l
l
g
i
v
e
y
o
ut
h
e
p
e
r
m
a
n
e
n
t
o
n
e
a
s
s
o
o
n
a
s
y
o
u
n
e
e
dt
o
h
e
a
r
i
t
.
Wh
e
n
w
o
u
l
dt
h
a
t
b
e
?
”[
A
n
s
w
e
r
.
]“
O
k
a
y
,
I
d
o
n
‖
t
s
e
e
a
n
y
t
h
i
n
g
l
e
f
t
t
o
t
a
l
k
a
b
o
u
t
r
i
g
h
t
n
o
w
.
I
‖
l
l
s
l
e
e
p
o
n
t
h
i
s
,
l
o
o
k
at
i
t
a
g
a
i
nt
o
m
a
k
e
s
u
r
e
w
e
h
a
v
e
n
‖
t
m
i
s
s
e
da
n
y
t
h
i
n
g
,
a
n
dc
o
n
f
i
r
mi
t
i
n
w
r
i
t
i
n
g
b
y
t
h
a
t
d
a
t
e
.
”
Juggling Two or More Offers
Wh
a
ti
fy
o
uc
a
n
‖
to
p
e
r
a
t
eo
nt
h
ec
o
m
p
a
n
y
‖
st
i
m
e
t
a
b
l
e
?
Suppose the company wants a decision in one week and you have
another offer pending that will take two weeks to mature? Then
i
t
‖
s
b
e
s
t
t
o
s
u
g
g
e
s
t
y
o
u
r
o
w
nt
i
m
e
f
r
a
m
e
a
n
ds
e
e
i
f
t
h
e
c
o
m
p
a
n
y
can work within it.
“
T
h
i
s
m
e
e
t
s
a
l
l
m
y
c
r
i
t
e
r
i
a
f
o
r
w
h
a
t
I
w
a
n
t
,
”
y
o
u
s
a
y
,
“
a
n
dI
have every indication that this is the correct match, but I want to
Rule 5: Clinch The Deal, Then Deal Some More
85
c
o
n
s
i
d
e
r
t
h
i
s
v
e
r
y
c
a
r
e
f
u
l
l
y
.
I
‖
d
l
i
k
e
t
w
o
w
e
e
k
s
t
o
l
e
t
t
h
i
s
d
e
c
i
s
i
o
n
s
e
t
t
l
e
.
Wi
l
l
t
h
a
t
w
o
r
k
w
i
t
h
y
o
u
r
s
c
h
e
d
u
l
e
?
”
S
o
m
e
t
i
m
e
si
t
w
i
l
l
,
s
o
m
e
t
i
m
e
si
t
w
o
n
‖
t
.T
h
eh
a
r
d
e
s
t
p
a
r
t
about job hunting is that offers generally come one at a time. You
are seldom c
o
m
p
a
r
i
n
go
n
eo
f
f
e
r
w
i
t
ha
n
o
t
h
e
r
.I
n
s
t
e
a
dy
o
u
‖
r
e
comparing a bird in the hand with two in the bush. The key in
buying time to leverage other offers is to concentrate not so much
on getting the firm offer extended as on accelerating the pending
one.
If your pending offer has any strength at all, then you have a
good relationship established already with the hiring individual
(generally not the same as the personnel person). Use that
rapport. You will need to have a face-to-face meeting with this
potential boss, explain the problem, and ask for assistance in
solving it.
“
I
h
a
v
e
a
n
o
t
h
e
r
o
f
f
e
r
,
”
y
o
ue
x
p
l
a
i
n
.“
T
h
e
j
o
bi
s
n
o
t
b
e
t
t
e
r
than yours, or worse, just different. Frankly, my preference is to
take the one in which I can make the best contribution. How can
w
e
g
e
t
t
h
i
n
g
s
m
o
v
i
n
g
h
e
r
e
t
o
m
e
e
t
t
h
e
d
e
a
d
l
i
n
e
o
f
t
h
e
f
i
r
s
t
o
f
f
e
r
?
”
If you have good rapport, you can work together to
a
c
c
e
l
e
r
a
t
e
t
h
i
n
g
s
.I
f
t
h
e
r
e
‖
s
n
oi
n
t
e
r
e
s
t
i
na
s
s
i
s
t
i
n
gy
o
u
,
t
h
a
t
‖
s
a
strong indication that the second offer is less of a fit than the first.
S
o
m
e
t
i
m
e
s
,
h
o
w
e
v
e
r
,
j
o
b
t
w
o
(
p
e
n
d
i
n
g
)
c
a
n
‖
t
b
e
h
u
r
r
i
e
d
a
n
d
j
o
b
o
n
e
(
f
i
r
m
)
c
a
n
‖
t
b
e
d
e
l
a
y
e
d
.
S
o
i
f
y
o
u
‖
r
e
p
r
e
s
s
e
dt
o
g
i
v
e
a
y
e
s
or no to job one without having a yea or nay from employer two,
use your own judgment. You can:
Tell job one about j
o
b
t
w
o
a
n
d
p
r
e
s
s
f
o
r
m
o
r
e
t
i
m
e
:
“
T
h
e
r
e
a
s
o
n
I
‖
d
l
i
k
e
t
h
a
t
e
x
t
r
a
w
e
e
k
i
s
t
o
g
e
t
a
l
l
t
h
e
f
a
c
t
s
a
b
o
u
t
a
n
o
t
h
e
r
p
e
n
d
i
n
g
o
f
f
e
r
.
C
a
n
w
e
a
r
r
a
n
g
e
i
t
?
”
86
How to Make $1,000 a Minute
Figure 7-2. Juggling Two or More Offers
Tell job one yes, but warn the people there that, if job
two comes up, you would have to consider accepting it
and quitting theirs.
Tell job one yes and cross the next bridge if you come to
it. (You should be able to find a way to compensate
Rule 5: Clinch The Deal, Then Deal Some More
87
employer one fairly for the month of training and the
cost of hiring a replacement if you later pick job two. If
that is not your plan, then this is not good human
relations, and will probably come back to haunt you.)
Tell job one yes and forget job two.
Probably the best way to make the choice is to use your own
internal measurement of which job would work best. Tell that one
yes. Period. Even if it means losing the bird in the hand and the
two in the bush. Your integrity and focus will soon line up job
four, which may be better than all its predecessors.
How do you decide which is best?
Examine the offers and grade each of them A through F in
these areas: satisfaction, professional growth, growth in
responsibility, location, people and company style, and
compensation. Those are explained in Figure 7-3. Fill in the chart
by writing down the grades and then numbering each area in
order of importance: priority 1 through 6.
Start with your highest priority, and compare the jobs point
b
y
p
o
i
n
t
;
y
o
u
‖
l
l
k
n
o
ww
h
i
c
h
i
s
t
h
e
b
e
t
t
e
r
o
f
f
e
r
.
I
f
i
t
‖
s
s
t
i
l
l
t
o
oc
l
o
s
e
t
ot
e
l
l
,
t
h
e
nw
h
a
t
a
r
e
y
o
uwaiting for?
Tell job one yes and job two no!
88
How to Make $1,000 a Minute
PRIORITY
GRADE
JOB 1 JOB 2
_____
Satisfaction
Opportunity to be doing work activities in
which I am skilled in and enjoy.
_____
_____
_____
Professional Growth
Opportunity to expand my skills and become a
better professional in my field
_____
_____
_____
Growth in Responsibility
Opportunity to be promoted, or to expand the
job to take on higher-level problems as I master
the present ones.
_____
_____
_____
Location
Commuting
distance
and
location
of
the
job.
travel required
_____
_____
_____
People/Company Style
Are they people I can work with? Is the
company managed in a style that will allow me
to be successful?
_____
_____
_____
Compensation
Wages, bennies, perks.
_____
_____
geographical
Amount
of
Figure 7-3. Offer Comparison Chart
Counter-Offers
Occasionally, juggling two offers will stem from a surprise: a
counteroffer from your present company. There is no absolute
right or wrong thing to do about a counteroffer, but there are
important considerations. Consider first an objective comparison
using the format described above. If the counteroffer is better
than the market offer, then consider whether the real reasons you
wanted to leave your present company are still valid. If there is
Rule 5: Clinch The Deal, Then Deal Some More
89
concrete evidence that those reasons have been handled, you can
accept the counteroffer.
Usually, however, breaking the news that you want another
j
o
bw
i
l
l
l
e
a
v
eas
o
u
rt
a
s
t
ei
ny
o
u
rp
r
e
s
e
n
t
e
m
p
l
o
y
e
r
‖
sm
o
u
t
h
.
They are in shock and they make an instinctive play to retain you.
Without prior evidence that real changes are being made, all their
promises about things being better from now on are, as Mary
P
o
p
p
i
n
sw
o
u
l
ds
a
y
,“
P
i
e
-crust promises: easily made, easily
b
r
o
k
e
n
.
”
Urgent Employers
Occasionally your prospective employer will ask you to
decide right in the room. Whether you are juggling many offers
or desperately clinging to one, you do not want to do that.
Y
o
u
‖
v
es
a
i
d
,
“
I
‖
l
l
g
e
t
b
a
c
kt
oy
o
ua
s
s
o
o
na
s
y
o
un
e
e
dt
o
know. When do y
o
u
n
e
e
d
t
o
k
n
o
w
?
”
Y
o
u
‖
r
e
t
o
l
d
,
“
We
n
e
e
d
t
o
h
a
v
e
y
o
u
r
a
n
s
w
e
r
r
i
g
h
t
n
o
w
.
”
You ask for c
l
a
r
i
f
i
c
a
t
i
o
n
:
“
F
i
n
e
,
t
e
l
l
m
e
a
b
o
u
t
t
h
a
t
.
”
Y
o
u
‖
r
e
t
o
l
d
,
“
C
h
a
r
l
i
e
‖
s
f
l
y
i
n
gt
o
L
o
n
d
o
n
,
S
h
a
r
o
n
‖
s
g
o
i
n
go
n
vacation, and we need someone aboard by Monday. We need to
k
n
o
wr
i
g
h
t
n
o
w
.
”
That seems reasonable, so you work with it.
I
f
y
o
u
‖
r
e
a
t
a
l
l
i
n
t
e
r
e
s
t
e
d
,
s
a
y
,
“
Y
e
s
!
T
h
i
s
l
o
o
k
s
g
r
e
a
t
!
R
i
g
h
t
n
o
wI
‖
mr
e
a
d
y
t
o
a
c
c
e
p
t
,
b
u
t
I
l
i
k
e
t
o
m
a
k
e
m
y
d
e
c
i
s
i
o
n
s
c
a
r
e
f
u
l
l
y
.
I
‖
ms
u
r
ey
o
uw
o
u
l
dw
a
n
t
c
a
r
e
f
u
l
d
e
c
i
s
i
o
n
s
f
r
o
mm
ew
h
e
nI
‖
m
w
o
r
k
i
n
gf
o
r
y
o
u
.I
c
a
n
‖
t
s
e
et
h
a
t
a
n
y
t
h
i
n
gw
o
u
l
dc
o
m
eu
pt
o
c
h
a
n
g
e
m
y
m
i
n
db
u
t
,
i
f
t
h
e
r
e
‖
s
a
n
y way to get me some objective
t
i
m
e
t
o
s
o
l
i
d
i
f
y
m
y
t
h
i
n
k
i
n
g
o
nt
h
i
s
,
I
w
o
u
l
da
p
p
r
e
c
i
a
t
e
i
t
.
”I
f
a
n
i
m
p
u
l
s
i
v
e
d
e
c
i
s
i
o
n
i
s
w
a
n
t
e
d
,
y
o
u
‖
l
l
o
b
l
i
g
e
.
S
a
y
y
e
s
a
n
d
b
a
s
e
i
t
o
n
your judgment of the moment. If something comes up before
Mo
n
d
a
y
,
y
o
u
‖
l
l
c
a
l
l
b
a
c
k
a
n
d
(impulsively) say no!
I
na
n
ye
v
e
n
t
,
l
e
a
v
et
h
en
e
g
o
t
i
a
t
i
o
n
s
o
p
e
nal
i
t
t
l
e
:
“
D
e
c
i
d
e
now? Why, yes, of course! I accept! There may be a detail or two
i
nt
h
ec
o
m
p
e
n
s
a
t
i
o
np
a
c
k
a
g
ew
e
‖
v
eo
v
e
r
l
o
o
k
e
d
,
s
oi
f
I
t
h
i
n
ko
f
a
n
y
t
h
i
n
g
I
‖
l
l
l
e
t
y
o
u
k
n
o
wi
n
t
h
e
n
e
x
t
c
o
u
p
l
e
o
f
d
a
y
s
.
”
90
How to Make $1,000 a Minute
N
o
wr
e
m
e
m
b
e
r
s
o
m
e
t
h
i
n
g
p
r
e
s
e
n
t
e
di
nt
h
e
“
T
i
m
e
t
o
T
h
i
n
k
I
t
O
v
e
r
”
s
e
c
t
i
o
n
:
“
Wo
u
l
d
y
o
u
j
o
t
t
h
i
s
a
l
l
d
o
w
n
?
”
When to Get It in Writing
There's four levels of getting it in writing:
Level 1. “
j
o
t
t
i
n
g
i
t
d
o
w
n
”
s
o
w
e
'
r
e
c
l
e
a
r
,
Level 2. getting a written formal offer from the company,
Level 3. extra contractual agreements like non-compete, nondisclosure, non-solicitation, and confidentiality, and
Level 4. unique features of your employment or compensation
t
h
a
t
l
i
m
i
t
a
n
e
m
p
l
o
y
e
r
'
s
r
i
g
h
t
t
o
f
i
r
e
y
o
u
“
a
t
w
i
l
l
.
”
Level 1 applies every time. In hurry-up situations it's
doubly i
m
p
o
r
t
a
n
t
t
og
e
t
i
t
“
j
o
t
t
e
dd
o
w
n
”b
e
f
o
r
ey
o
ul
e
a
v
et
h
e
negotiating table. Things are going fast and you want to know
that what you bargained for will not get lost in the shuffle.
Putting it in writing is a way of getting your employer to be extra
awake, aware and clear about the terms, dates, amounts, etc. I
r
e
c
o
m
m
e
n
dt
h
e
w
o
r
d“
j
o
t
.
”“
L
e
t
'
s
j
o
t
i
t
d
o
w
ns
ow
e
'
r
e
c
l
e
a
r
”i
s
more user-f
r
i
e
n
d
l
y
a
n
d
l
e
s
s
i
n
t
i
m
i
d
a
t
i
n
g
t
h
a
n
“
L
e
t
'
s
w
r
i
t
e
i
t
u
p
.
”
If the company policy is to send a written/e-mailed offer
letter, that's Level 2. As long as you have agreed to a definite date
for acceptance, there should be no danger of losing an offer to
interlopers and you can wait for a confirmation letter from the
employer. Especially when the offer is more complicated than the
s
t
a
n
d
a
r
d
o
n
e
o
f
s
a
l
a
r
y
,
b
e
n
e
f
i
t
s
,
a
n
d
s
t
a
r
t
i
n
g
d
a
t
e
,
“
j
o
t
i
t
d
o
w
n
.
”
If you want a little more control of the situation, you can
offer to write and send a letter of acceptance that reiterates the
o
f
f
e
r
.C
o
m
p
o
s
e
t
h
a
t
l
e
t
t
e
r
f
r
o
mt
h
e
n
o
t
e
s
y
o
u“
j
o
t
t
e
dd
o
w
n
”
a
t
the time.
Write up the elements of the offer neatly during the
interview and ask your employer to look it over. Then have a
duplicate made for yourself. You'll be glad you got it all clear and
so will your employer.
Level 3. Sometimes employers have non-compete, nondisclosure, etc., agreements for you to sign. They may look like
Rule 5: Clinch The Deal, Then Deal Some More
91
innocent boilerplate documents, but don't sign them yet. Read
about these in Special Situations, Chapter 8.
Level 4 occurs when you have a lot at stake by accepting an
offer—as when having to resign another position. You may want
t
ol
i
m
i
tt
h
ee
m
p
l
o
y
e
r
'
sr
i
g
h
tt
oh
i
r
e
/
f
i
r
e“
a
tw
i
l
l
.
” Y
o
u
'
l
l
definitely want the offer in writing, and this time it should be
typed out in a formal letter, and you may need a contract
prepared by a lawyer. Generally you'll have no problem getting
that letter and, more important, a day to solidify your decision.
Situations requiring a formal contract are also covered in Chapter
8
u
n
d
e
r
“
Wh
e
n
D
o
I
N
e
e
d
t
o
T
a
l
k
t
o
a
L
a
w
y
e
r
.
”
Delay giving notice to your present employer until you have
your letter or formal agreement from the new one.
Final Acceptance of an Offer
The final acceptance of an offer can be done by phone. In
the normal-paced version of this option, you will take the time
you need to think through the offer coolly before calling to accept.
When you call, you may request a more formal written offer
so that you don't quit your present job, then find yourself
unemployed. In larger companies the personnel department
provides one within a week. Or you can offer to write a detailed
letter of acceptance yourself, if you wish.
In any event,
communicate your enthusiasm once again, and assure your
employer how well you expect this to work out.
What if I Like it Now—
C
a
n
I
J
u
s
t
S
a
y
“
Y
e
s
”
?
What if you know the job is perfect and the package is
super? Why not say yes right away? Well, besides depriving
y
o
u
r
s
e
l
f
o
f
t
h
e
o
b
j
e
c
t
i
v
i
t
yy
o
u
‖
dg
a
i
nb
yw
a
i
t
i
n
g
,
i
t
‖
s
a
m
a
t
t
e
r
o
f
style. As Eli Djeddah, a pioneer in career counseling, has said,
“
I
t
‖
s
s
i
m
p
l
yn
o
t
d
i
g
n
i
f
i
e
d
.
”Y
o
uw
a
n
t
t
ob
e
t
r
e
a
t
e
dw
i
t
hr
e
s
p
e
c
t
when you begin your new job. If you wait before accepting the
o
f
f
e
r
,
y
o
u
‖
l
lb
er
e
s
p
e
c
t
e
df
o
ry
o
u
rc
l
e
a
r
-headed approach to
t
h
i
n
g
s
,
a
n
d
y
o
u
r
e
m
p
l
o
y
e
r
‖
s
j
o
y
w
i
t
h
i
t
s
n
e
w
-found employee will
92
How to Make $1,000 a Minute
be all the more sweet for its day or so of pacing in the waiting
room.
Chapter 8:
Special Situations
This chapter deals with some situations job seekers often
encounter in their campaigns. These situations may require
special strategies or, in some cases, making exceptions to the
salary-making rules.
The chapter also includes a special
consideration: how to present a good image to employers.
A
d
s
a
n
d
A
p
p
l
i
c
a
t
i
o
n
s
w
i
t
h
“
S
a
l
a
r
y
H
i
s
t
o
r
y
R
e
q
u
i
r
e
d
”
Some ads get pretty nosy about your salary requirements.
However, even an ad that reads:
Salary history required. Résumés without salary histories will be
shredded into oblivion and each applicant excommunicated ipso
facto, held up to public scorn and opprobrium, fined, imprisoned,
and in various and sundry ways maltreated should end
…
a
n
d
h
i
r
e
d
i
f
w
e
t
h
i
n
k
y
o
u
c
a
n
h
e
l
p
u
s
o
u
t
o
f
o
u
r
m
e
s
s
.
Wa
n
t
a
d
sh
a
v
eb
e
e
nd
e
s
c
r
i
b
e
da
s“
d
e
s
p
e
r
a
t
es
c
r
e
a
m
sf
o
r
help emanating from somewhere deep in the corporate
d
i
a
p
h
r
a
g
m
.
”T
h
e
y
a
r
e
l
a
s
t
resorts from people who need help so
badly they are willing to pay to advertise, then sift through
h
u
n
d
r
e
d
s
o
f
r
é
s
u
m
é
s
.I
d
o
n
‖
t
c
a
r
e
h
o
ws
t
r
o
n
g
l
ya
na
dd
e
m
a
n
d
s
y
o
u
r
n
u
m
b
e
r
s
,
e
m
p
l
o
y
e
r
s
w
i
l
l
n
o
t
p
a
s
s
y
o
u
o
v
e
r
i
f
y
o
u
‖
r
e
r
i
g
h
t
f
o
r
the job, provided you show them respect.
93
94
How to Make $1,000 a Minute
Why do employers want these figures?
To screen,
r
e
m
e
m
b
e
r
?T
h
e
yd
o
n
‖
t
w
a
n
t
t
ow
a
s
t
e
t
h
e
t
i
m
e
t
a
l
k
i
n
gt
oy
o
ui
f
t
h
e
y
c
a
n
‖
t
“
a
f
f
o
r
d
”
y
o
u
i
n
t
h
e
i
r
b
u
d
g
e
t
s
t
a
g
e
.
Y
o
u
r
b
e
s
t
a
p
p
r
o
a
c
h
to their ads is to acknowledge their need to screen, then stick to
y
o
u
r
p
r
i
n
c
i
p
l
e
s
a
b
o
u
t
p
o
s
t
p
o
n
i
n
g
m
o
n
e
y
u
n
t
i
l
t
h
e
r
e
‖
s
a
m
a
t
c
h
.
S
oi
ny
o
u
r
c
o
v
e
r
l
e
t
t
e
r
w
r
i
t
e
s
o
m
e
t
h
i
n
gl
i
k
e
:
“
I
u
n
d
e
r
s
t
a
n
d
y
o
u
‖
v
e
r
e
q
u
e
s
t
e
da
s
a
l
a
r
yh
i
s
t
o
r
y
.I
‖
mp
a
i
dr
o
u
g
h
l
yt
h
e
m
a
r
k
e
t
value of a [job title] w
i
t
h
Xy
e
a
r
s
‖
e
x
p
e
r
i
e
n
c
e
a
n
d
,
t
h
o
u
g
h
I
‖
mn
o
t
w
i
l
l
i
n
gt
op
u
b
l
i
s
hm
yc
o
m
p
e
n
s
a
t
i
o
np
a
c
k
a
g
e
,
I
‖
db
eh
a
p
p
yt
o
d
i
s
c
u
s
s
i
t
i
n
a
n
i
n
t
e
r
v
i
e
w
.
I
d
o
n
‖
t
t
h
i
n
k
s
a
l
a
r
y
w
i
l
l
b
e
a
p
r
o
b
l
e
m
.
”
T
h
e
ni
nt
h
ei
n
t
e
r
v
i
e
ws
a
y
,
“
T
h
ea
m
o
u
n
t
o
f
r
e
s
p
o
n
s
i
b
i
l
i
t
yl
o
o
k
s
r
i
g
h
t
,
h
e
r
e
,
a
n
ds
i
n
c
e
I
‖
db
e
i
n
t
e
r
e
s
t
e
di
nf
i
t
t
i
n
gi
n
t
oy
o
u
r salary
s
t
r
u
c
t
u
r
eI
‖
ms
u
r
ew
ec
a
nc
o
m
et
oag
o
o
da
g
r
e
e
m
e
n
t
.L
e
t
‖
s
d
i
s
c
u
s
s
t
h
e
j
o
b
a
n
d
t
h
e
m
a
t
c
h
f
o
r
t
h
e
m
o
m
e
n
t
.
”
I
n
t
e
r
n
e
t
b
o
x
e
s
“
E
n
t
e
r
S
a
l
a
r
y
H
i
s
t
o
r
y
H
e
r
e
”
When you apply online, you often run into a box that will
not let you leave it empty. I do not adv
i
s
e
p
u
t
t
i
n
g
“
0
”
[
z
e
r
o
]
t
h
e
r
e
because it can look smart-a
l
e
c
k
y
.O
nt
h
e
o
t
h
e
r
h
a
n
d
,
y
o
ud
o
n
‖
t
w
a
n
tt
ob
es
c
r
e
e
n
e
do
u
t
,
e
i
t
h
e
ra
n
dy
o
u
‖
l
ln
e
v
e
rg
e
tt
ot
h
e
“
s
u
b
m
i
t
”
b
u
t
t
o
n
u
n
l
e
s
s
y
o
u
e
n
t
e
r
s
o
m
e
t
h
i
n
g
.
S
o
,
I
s
u
g
g
e
s
t
y
o
u
d
o
some good ORV$ research (Chapter 5) and put a number there
t
h
a
tc
o
n
v
e
y
st
h
em
e
s
s
a
g
e
:
“
Ia
m ag
o
o
dc
a
n
d
i
d
a
t
e
,
n
o
tt
o
o
e
x
p
e
n
s
i
v
e
a
n
d
n
o
t
t
o
o
c
h
e
a
p
.
”
The same message applies to a paper application form, but
t
h
e
r
e
,
w
h
e
n
i
t
a
s
k
s
f
o
r
s
a
l
a
r
y
e
x
p
e
c
t
a
t
i
o
n
s
,
y
o
u
c
a
n
w
r
i
t
e
“
O
p
e
n
.
”
When it asks for previous salary history, leave it blank.
I
f
i
t
s
a
y
s
,
“
F
i
l
l
i
ne
v
e
r
yb
l
a
n
ka
n
da
n
s
w
e
r
e
v
e
r
yq
u
e
s
t
i
o
n
,
”
p
u
t
“
C
o
m
p
e
t
i
t
i
v
e
”
w
i
t
h
a
n
a
s
t
e
r
i
s
k
i
n
t
h
e
s
a
l
a
r
y
s
l
o
t
a
n
d
a
n
o
t
e
a
t
t
h
e
b
o
t
t
o
ms
a
y
i
n
g
,
“
*
I
‖
db
e
g
l
a
dt
od
i
s
c
u
s
s
t
h
i
s
p
e
r
s
o
n
a
l
l
yi
na
n
i
n
t
e
r
v
i
e
w
.
”I
nt
h
e
i
n
t
e
r
v
i
e
ws
a
y
,
“
I
‖
db
e
g
l
a
dt
od
i
s
c
u
s
s
i
t
in a
hiring i
n
t
e
r
v
i
e
w
.
I
d
o
n
‖
t
t
h
i
n
k
s
a
l
a
r
y
w
i
l
l
b
e
a
p
r
o
b
l
e
m
.
L
e
t
‖
s
s
e
e
h
o
wI
c
a
n
h
e
l
p
y
o
u
.
”
Special Situations
95
Discussing Salary at Networking Interviews
During job interviews always follow Salary-Making Rule 1:
Postpone salary discussions until you have been offered the job.
However, during information-gathering interviews, salary
discussions can sometimes be appropriate. Occasionally, people
will want to know your salary expectations as a way of
understanding what level of work you want and are able to
handle.
I instructed one client of mine to begin her networking
interviews with a salary discussion. Since she was working for a
temporary-services agency, she could be mistaken for an eightdollar-an-hour gofer unless she made her potential clear. She
started her conve
r
s
a
t
i
o
n
s
w
i
t
ha
s
t
a
t
e
m
e
n
t
l
i
k
e
:
“
I
k
n
o
wI
‖
ma
b
l
e
t
o
h
a
n
d
l
e
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
t
h
a
t
p
a
y
i
n
t
h
e
h
i
g
h
t
h
i
r
t
i
e
s
.
I
‖
mf
l
e
x
i
b
l
e
a
b
o
u
t
w
h
e
r
eI
s
t
a
r
t
a
n
dI
‖
mi
n
t
e
r
e
s
t
e
di
nt
a
l
k
i
n
gw
i
t
hy
o
ut
o
i
d
e
n
t
i
f
y
p
a
t
h
s
t
o
t
h
a
t
e
n
d
.
”
That brings up the question of how to ask for salary
i
n
f
o
r
m
a
t
i
o
n
w
h
e
n
y
o
u
‖
r
e
not interviewing for a job.
I
nt
h
eU
n
i
t
e
dS
t
a
t
e
s
,
d
i
s
c
u
s
s
i
n
go
n
e
‖
s
s
a
l
a
r
yi
s
p
r
a
c
t
i
c
a
l
l
y
t
a
b
o
oi
ns
o
c
i
a
l
c
o
n
v
e
r
s
a
t
i
o
n
.P
e
o
p
l
ea
r
ec
u
r
i
o
u
sa
b
o
u
t
w
h
o
‖
s
making what, but are too afraid to ask. So when you offer a youtell-me-yours-and-I
‖
l
l
-tell-you-m
i
n
e
d
e
a
l
,
i
t
‖
s
t
o
o
g
o
o
dt
o
p
a
s
s
u
p
.
E
v
e
nt
h
e
ny
o
u
‖
l
l
b
eg
e
t
t
i
n
go
n
l
yar
a
n
g
e
,
w
i
t
ht
h
e
i
rs
a
l
a
r
i
e
s
situated anonymously in the middle.
People often attach identity, status, value, and prestige to
their incomes, so revealing them can be scary, too intimate. I
know counselors, lawyers, mechanics, and even baby sitters who
are too shy to ask peers what they charge per hour. Nevertheless,
if you intend to add a networking approach to your job-hunting
c
a
m
p
a
i
g
n
,
y
o
u
‖
l
l
n
e
e
d
t
o
d
i
s
c
u
s
s
salary with your contacts. It will
probably feel awkward to discuss it and awkward to avoid it, but
you need to discuss it.
Keep in mind again that your salary is linked to your level of
r
e
s
p
o
n
s
i
b
i
l
i
t
y
.Y
o
un
e
e
dt
ot
r
e
a
t
s
a
l
a
r
ya
s
a
t
h
e
r
m
o
m
e
t
e
r
;
y
o
u
‖
l
l
be telling people how much heat you can take. Before you
96
How to Make $1,000 a Minute
seriously talk to people on your job hunt, do the research as
described in Chapter 5. Look at the jobs and ask yourself which
one you realistically think you could best handle. Get the range
by looking it up. Then do a reality check on your expectations by
discussing your findings on information-gathering interviews.
Phrasing your check on responsibilities you can handle
m
i
g
h
t
s
o
u
n
dl
i
k
e
:
“
Wh
a
t
a
r
e
t
h
e
b
i
g
g
e
s
t
c
h
a
l
l
e
n
g
e
s
y
o
uc
o
u
l
ds
e
e
me handling? A
n
d
w
h
a
t
d
o
p
o
s
i
t
i
o
n
s
l
i
k
e
t
h
a
t
p
a
y
?
”
A
n
o
t
h
e
r
r
e
s
e
a
r
c
hq
u
e
s
t
i
o
ny
o
uc
a
na
s
kac
o
n
t
a
c
t
i
s
:
“
Wi
t
h
the amount of experience you see in me, and considering the
functions I can handle, what would you estimate my salary range
i
nt
h
i
s
f
i
e
l
dt
ob
e
?
”A
n
dy
o
uc
a
nf
o
l
l
o
wu
pw
i
t
h
:
“
We
l
l
,
I
‖
v
e
researched [supervisor] positions in the [travel] industry,
[production-supervisor] positions in [light manufacturing], and a
few other types of positions, and I come up with a range of X to Y
dollars. What would I have to do in your field to get that kind of
m
o
n
e
y
?
”
You can, if you like, go first in such a situation. As long as
y
o
ua
r
e
n
‖
t
d
i
s
c
u
s
s
i
n
gas
p
e
c
i
f
i
c
j
o
bo
p
e
n
i
n
g
,
i
t
f
i
g
u
r
e
s
t
ob
ea
n
open-e
n
d
e
dc
o
n
v
e
r
s
a
t
i
o
nt
h
a
t
‖
s
n
o
t
l
i
k
e
l
yt
ob
o
xy
o
ui
n
.T
h
a
t
‖
s
especially true if y
o
u
‖
r
e
t
a
l
k
i
n
ga
b
o
u
t
y
o
u
r
r
e
s
e
a
r
c
h
e
de
s
t
i
m
a
t
e
.
Remember, too, that interviewers may not really know how to
answer you.
You probably realize by now that, since people would
sooner discuss their sex lives and last sessions with their therapist
than reveal t
h
e
i
rs
a
l
a
r
i
e
s
,o
t
h
e
r
s
‖e
s
t
i
m
a
t
e
so
fy
o
u
re
a
r
n
i
n
g
abilities may really be a blind guess. Your own estimates may
educate them on the size of the problems you want to handle.
Wi
t
ht
h
a
tc
l
a
r
i
t
y
,y
o
u
‖
l
lg
e
tb
e
t
t
e
r
-quality referrals to other
contacts.
Special Considerations: Image and Communication
Part of getting top dollar is your self-presentation. If your
own estimate of value and competence is not matched by your
c
o
n
t
a
c
t
s
‖e
s
t
i
m
a
t
e
s
,t
h
ep
r
o
b
l
e
mc
o
u
l
db
ey
o
u
ri
m
a
g
eo
r
communication.
Special Situations
97
Image. Getting what y
o
u
‖
r
e
w
o
r
t
ht
h
r
o
u
g
hy
o
u
r
i
m
a
g
e
r
e
q
u
i
r
e
s
dressing in your salary range, displaying etiquette in your salary
range, grooming in your salary range, and speaking in your salary
range. There are studies that show the most reliable indicator of a
p
e
r
s
o
n
‖
ss
a
l
ary level is vocabulary, and that a limp, fishy
handshake could cost you thousands of dollars.
Look around you and notice the way your target-level
people dress and act. Imitate them or their superiors. A client of
mine heeded my advice and dressed in a well-fitting, moderately
priced suit when the position he was interviewing for was very
“
s
h
o
r
t
s
l
e
e
v
e
s
.
”T
h
e
b
u
s
i
n
e
s
s
o
w
n
e
r
w
h
o
i
n
t
e
r
v
i
e
w
e
d
h
i
ms
a
i
d
h
e
was overqualified for that position, but had been thinking of
another position more in his line. Investment: one $350 suit;
return: twelve hundred percent—one job $5,000 better than the
original.
Communication. Besides looking the part, you also need to
communicate your capabilities in a strong, positive way that is
directly understandable and applicable to your prospective
e
m
p
l
o
y
e
r
‖
sn
e
e
d
s
.I
t
‖
sc
o
m
m
o
ns
e
n
s
et
h
a
tt
h
es
t
r
o
n
g
e
ry
o
u
construct the match and compatibility, the more fudgit and judgit
y
o
u
‖
l
l
e
n
g
e
n
d
e
r
.
Being a job and career consultant, I of course recommend
minimally consulting a candid friend for a critique of your selfpresentation. And if you really want the best return from your
e
f
f
o
r
t
s
,
h
i
r
e
a
c
o
a
c
h
,
a
c
a
r
e
e
r
c
o
n
s
u
l
t
a
n
t
w
h
o
s
e
r
e
p
u
t
a
t
i
o
ny
o
u
‖
v
e
researched. Besides saving you time (which equals money) in
your job hunt and focusing you on your best market possibilities,
a coach can really train you to sell yourself at the top of your
potential.
“
O
v
e
r
q
u
a
l
i
f
i
e
d
”
The well-dressed client above evoked a constructive
“
O
v
e
r
q
u
a
l
i
f
i
e
d
”r
e
s
p
o
n
s
e
. B
u
tw
h
a
ti
f“
O
v
e
r
q
u
a
l
i
f
i
e
d
”i
s
negative? I had a less-fortunate client who applied for two
almost-identical positions in two very similar companies. One
t
o
l
dh
i
mh
ec
o
u
l
d
n
‖
th
a
n
d
l
et
h
ej
o
b
,
t
h
eo
t
h
e
rt
h
a
th
ew
a
s
98
How to Make $1,000 a Minute
overqualified, a very subjective term that can mean different
things.
“
O
v
e
r
q
u
a
l
i
f
i
e
d
”r
e
l
a
t
e
s
t
osalary negotiations one time out
of three. It means your potential employer is worried that
y
o
u
‖
l
l
b
e
b
o
r
e
d
,
s
ob
o
r
e
dt
h
a
t
y
o
u
‖
l
l
l
a
s
t
a
f
e
wm
o
n
t
h
s
,
then quit for more exciting work;
y
o
u
‖
l
l
b
e
e
x
p
e
n
s
i
v
e
,
s
o
e
x
p
e
n
s
i
v
e
t
h
a
t
y
o
u
‖
l
l
w
o
r
k
a
f
e
w
months, then quit for a better-paying job;
a
p
o
l
i
t
e
w
a
y
o
f
s
a
y
i
n
g
t
h
e
y
d
o
n
‖
t
l
i
k
e
y
o
u
a
n
dt
h
i
n
k
t
h
a
t
i
n
a
f
e
wd
a
y
s
y
o
u
‖
l
l
a
l
i
e
n
a
t
e
e
v
e
r
y
b
o
d
y
a
n
d
g
e
t
f
i
r
e
d
.
The first is a focus issue; the second, a salary issue; the
third—w
e
l
l
,
i
nF
r
i
t
zP
e
r
l
s
‖
w
o
r
d
s
:
“
I
f
b
yc
h
a
n
c
ew
efind each
o
t
h
e
r
,
i
t
‖
s
b
e
a
u
t
i
f
u
l
.
I
f
n
o
t
,
i
t
c
a
n
‖
t
b
e
h
e
l
p
e
d
.
”
T
h
e
f
i
r
s
t
m
e
a
n
s
t
h
e
j
o
bi
s
n
‖
t
r
e
a
l
l
yf
o
r
y
o
u
.U
n
l
e
s
s
y
o
u
‖
r
e
interested in starting in the cellar and working your way up, you
should refocus the interview on where the company might have
challenges at your level.
The second is a situation covered by Salary-Making Rule 1.
I
f
y
o
u
‖
r
e
b
e
i
n
g
j
u
d
g
e
d
a
s
t
o
o
e
x
p
e
n
s
i
v
e
,
t
h
e
n
s
a
l
a
r
y
h
a
s
b
e
c
o
m
e
a
n
i
s
s
u
ee
v
e
nt
h
o
u
g
hy
o
uh
a
v
e
n
‖
t
e
x
p
l
i
c
i
t
l
yd
i
s
c
u
s
s
e
di
t
,
i
nw
h
i
c
h
c
a
s
e
y
o
u
‖
r
e
r
e
a
l
l
y
d
i
s
c
u
s
s
i
n
g
s
a
l
a
r
y
b
e
f
o
r
e
t
h
e
o
f
f
e
r
.
A
l
t
h
o
u
g
h
i
t
‖
s
still too early to discuss numbers, you should bring up and face
this issue head on.
Av
a
r
i
a
t
i
o
n
o
f
“
I
‖
ms
u
r
e
w
e
c
a
n
c
o
m
e
u
p
w
i
t
h
a
g
o
o
ds
a
l
a
r
y
a
g
r
e
e
m
e
n
t
”w
o
r
k
s
w
e
l
l
.O
r
t
r
y
:
“
O
v
e
r
q
u
a
l
i
f
i
e
d
?I
‖
mg
l
a
dy
o
u
brought that up, because I want a job that will work out well for a
long time. So far this seems like the right kind of challenge for me.
I
f
s
a
l
a
r
y
i
s
a
n
i
s
s
u
e
,
I
‖
ms
u
r
e
w
e
c
a
n
h
a
n
d
l
e
t
h
a
t
i
f
t
h
e
j
o
b
i
s
r
i
g
h
t
.
”
O
rs
i
m
p
l
y
:
“
O
v
e
r
q
u
a
l
i
f
i
e
d
? Ma
y
b
ey
o
u
‖
r
ew
o
r
r
y
i
n
gt
h
a
t
y
o
u
c
a
n
‖
t
p
a
y
m
e
e
n
o
u
g
ha
n
dI
‖
dl
e
a
v
e
.
D
o
n
‖
t
.
I
f
t
h
e
j
o
b
i
s
r
i
g
h
t
a
n
d
t
h
e
m
o
n
e
y
i
s
f
a
i
r
,
I
‖
l
l
b
e
s
a
t
i
s
f
i
e
d
.
”
Again, you must know yourself and the job well enough. If
it really is below your capabilities and you see no potential to
expand the duties, then you are o
v
e
r
q
u
a
l
i
f
i
e
da
n
ds
h
o
u
l
d
n
‖
t
b
e
interviewing for that position in the first place.
Special Situations
99
Exceptions: Recruiters and Employment Agencies
What if you register with employment agencies (which place
support staff) or recruiters (who work with higher-level
professionals and executives)? What do you tell them when they
ask about salary?
I am revising my second-edition advice.
In that edition, I said that both types of intermediaries are
exceptions. I advocated total candor and said you may discuss
salary expectations first. I asserted that such intermediaries, to
screen you, legitimately needed to know your salary
requirements. I explained that the purpose of postponing salary
discussion is to give yourself time to move the employer from
budget to fudgit to judgit a
n
dt
h
a
t
w
h
e
ny
o
u
‖
r
e
d
e
a
l
i
n
g
w
i
t
ha
n
i
n
t
e
r
m
e
d
i
a
r
yy
o
u
‖
r
ew
i
t
h
i
nt
h
ebudget stage, only. I said so
because, at least initially, only the intermediary has contact with
t
h
ee
m
p
l
o
y
e
r
.S
os
i
n
c
ey
o
uw
o
n
‖
t
g
e
t
t
ot
h
efudgit or judgit
stages if you withhold salary, I recommended that, when dealing
with recruiters, you let them know your current earnings and
requirements, especially the salary that represents the amount of
challenge you can handle.
I said the same goes concerning employment agencies.
I
n
s
t
e
a
do
f
h
o
l
d
i
n
g
b
a
c
k
y
o
u
r
e
x
p
e
c
t
a
t
i
o
n
s
,
s
o
m
e
t
i
m
e
s
y
o
u
‖
l
l
h
a
v
e
to be doubly c
l
e
a
r
a
b
o
u
t
w
h
a
t
s
a
l
a
r
y
y
o
u
w
i
l
l
a
n
dw
o
n
‖
t
a
c
c
e
p
t
,
o
r
y
o
u
‖
l
l
b
er
u
n
n
i
n
ga
l
l
o
v
e
rt
o
w
nt
a
l
k
i
n
gt
op
e
o
p
l
ea
b
o
u
t
l
o
w
paying jobs. (Throughout the rest of this section
,
I
‖
l
l
r
e
f
e
r
t
ot
h
e
i
n
t
e
r
m
e
d
i
a
r
ya
s
t
h
e
“
r
e
c
r
u
i
t
e
r
”
t
h
o
u
g
ht
h
e
a
b
o
v
e
p
r
i
n
c
i
p
l
e
s
h
o
l
d
true for employment agents as well.)
Since that edition, I have done telecoaching with several
people who have not benefited by disclosing current earnings to a
recruiter. So what should you do? Read the rest of this section. It
contains my original advice and rationale with a few side
comments where needed; then read the example that follows,
where I will temper my original advice.
When asked about their current earnings, some people are
tempted to inflate them. Never do that. There are three sound
100
How to Make $1,000 a Minute
reasons why I recommend 100-percent truth in stating your salary
information:
Frank money talk with a recruiter shows integrity and
good faith;
Recruiters can often sense when you are fabricating your
e
a
r
n
i
n
g
s
,
a
n
dt
h
e
y
‖
r
et
r
a
i
n
e
di
ne
f
f
e
c
t
i
v
em
e
t
h
o
d
so
f
getting at the truth, which include verifying with
previous employers, a service their client, the employer,
expects and is paying for;
Experienced recruiters are excellent judges of value, so
salary history will not prejudice them, and you can still
establish your real value with facts about your
p
e
r
f
o
r
m
a
n
c
e
p
o
t
e
n
t
i
a
l
.
(
S
i
d
e
c
o
m
m
e
n
t
:
I
‖
ve learned that
only some recruiters will not be prejudiced by salary
history; others will still use it as a measuring stick;
proceed with caution.)
E
v
e
nt
h
o
u
g
hy
o
u
‖
l
l
l
a
c
kc
o
n
t
a
c
t
w
i
t
ht
h
ee
m
p
l
o
y
e
r
a
t
t
h
e
start, experienced recruiters are generally pretty accomplished,
themselves, at moving an employer from budget to judgit. Since
the fee they earn for a placement—believe me, they do earn it—
u
s
u
a
l
l
y
d
e
p
e
n
d
s
o
n
t
h
e
f
i
r
s
t
y
e
a
r
‖
s
s
a
l
a
r
y
,
t
h
e
y
‖
l
l
t
r
y
t
o
g
e
t
y
o
u
t
h
e
highest offer possible. On the other hand, s
i
n
c
e
t
h
e
y
‖
r
e
p
a
i
do
n
l
y
upon placement, just getting you hired is their first priority. Your
s
a
l
a
r
yi
ss
e
c
o
n
d
a
r
y
.I
ft
h
ee
m
p
l
o
y
e
r“
c
a
n
‖
ta
f
f
o
r
dy
o
u
,
”t
h
e
recruiter will look for another candidate. (Job-hunting tip: In such
a case, ask the recruiter if there are other client companies who
might want your talents. If you are a very strong candidate, some
recruiters will market you to their client base to earn extra fees.
Marketing a candidate, rather than filling a job order, is the
exception, not the rul
e
,
b
u
t
y
o
u
‖
v
e
g
o
t
n
o
t
h
i
n
g
t
o
l
o
s
e
!
)
P
a
r
a
d
o
x
i
c
a
l
l
y
,
r
e
c
r
u
i
t
e
r
s
‖
c
o
n
c
e
r
nf
o
r
j
u
s
t
g
e
t
t
i
n
g
y
o
uh
i
r
e
d
,
which can budget you out, can also motivate recruiters to bend
the budget for you. Why? Because they want a compensation
package attractive enough to make you say yes!
Recruiters usually at least try to extend the offer on the
c
o
m
p
a
n
y
‖
s
b
e
h
a
l
f
.B
e
f
o
r
e
t
h
e
yp
r
e
s
e
n
t
i
t
,
t
h
e
y
m
a
k
e
e
v
e
r
ye
f
f
o
r
t
Special Situations
101
to clear all aspects of it with the hiring person. That includes
dollars, incentives, bennies, perks, relocating expenses, sign-on
bonuses, and others. Sometimes recruiters negotiate the offer;
s
o
m
e
t
i
m
e
s
,
s
i
n
c
et
h
e
yh
a
v
en
oa
u
t
h
o
r
i
t
yt
os
p
e
n
dt
h
e
i
r
c
l
i
e
n
t
s
‖
money, this is precisely the time they bow out. Often, then, the
candidate is able to negotiate the offer directly with the employer
d
u
r
i
n
gt
h
e
i
n
t
e
r
v
i
e
w
.Y
o
u
‖
l
l
n
e
e
do
n
l
yt
ok
n
o
ww
h
oa
c
t
u
a
l
l
yi
s
handling the negotiations in your case.
Will your recruiter spill the beans and hurt your negotiating
position with the employer? Well, recruiters invariably tell the
employer your current or past earnings when asked. However, if
the candidate earns more than the budgeted salary, but the
employer is able to go higher, the recruiter may withhold the
c
a
n
d
i
d
a
t
e
‖
se
a
r
n
i
n
g
si
n
f
o
r
m
a
t
i
o
nu
n
t
i
lt
h
ee
m
p
l
o
y
e
rh
a
s
interviewed that person. I know a recruiter who got a candidate
$30,000 more that way.
Often, however, the employer is firm about the highest
potential offer. If that looks like a problem, the recruiter will, by
asking the candidate if the range is okay, avoid putting any more
time into what might be an unworkable situation. If that happens
to you, you may c
h
o
o
s
e
t
o
i
n
t
e
r
v
i
e
w
,
a
n
y
w
a
y
,
e
s
p
e
c
i
a
l
l
y
i
f
y
o
u
‖
r
e
unemployed or the opportunity looks especially good.
However, you should know that an experienced recruiter
w
o
n
‖
t
s
e
n
d
out on an interview candidates who
are motivated to look at a new position because of
money, only;
w
o
n
‖
tr
e
v
e
a
lt
h
e
i
re
a
r
n
i
n
g
so
ra
r
ef
o
u
n
dt
oh
a
v
e
exaggerated them;
would entertain a counteroffer from their current
employers;
have unrealistic expectations about the salary or job
t
h
e
y
‖
l
l
a
c
c
e
p
t
.
During your interview with the employer, Salary-Making
Rule 1 remains in effect, though you here approach it differently.
Your aim is still to establish value before discussing price.
102
How to Make $1,000 a Minute
However, since, when asked, recruiters reveal your past or current
earnings to their client companies—after all, the employer pays
the fee—i
t
d
o
e
s
n
‖
t
m
a
t
t
e
r
i
f
y
o
u
,
t
o
o
,
t
e
l
l
t
h
ee
m
p
l
o
y
e
r
.Y
o
u
r
recruiter should actually suggest that you do. The recruiter
should also show you how to sell your worth.
Wh
e
n
t
h
e
e
m
p
l
o
y
e
r
a
s
k
s
,
“
Wh
a
t
s
a
l
a
r
y
a
r
e
y
o
u
l
o
o
k
i
n
g
f
o
r
?
”
y
o
uc
a
ns
a
y
,
“
I
‖
ms
u
r
et
h
a
t
,
i
f
y
o
uc
o
u
l
dd
o
u
b
l
ey
o
u
r
c
u
r
r
e
n
t
e
a
r
n
i
n
g
s
w
i
t
ht
h
e
r
i
g
h
t
j
o
b
,
y
o
u
‖
dj
u
m
pa
t
t
h
e
c
h
a
n
c
e
,
w
o
u
l
d
n
‖
t
y
o
u
?S
o
w
o
u
l
d
I
.
B
u
t
r
e
a
l
i
s
t
i
c
a
l
l
y
,
I
‖
me
a
r
n
i
n
g
Xd
ollars now, and
I hope that an offer will be somewhere between that and twice
that figure, based on your recognition of my true worth to your
o
r
g
a
n
i
z
a
t
i
o
n
.
”O
r
:
“
Wh
e
nt
h
e
r
e
c
r
u
i
t
e
r
d
e
s
c
r
i
b
e
dy
o
u
r
c
o
m
p
a
n
y
and opportunity, she explained that your firm was very
competitive and that you typically hire top talent as a result. That
assures me that when you make me an offer it will be both fair
a
n
d
a
t
t
r
a
c
t
i
v
e
.
”
Candidates who report their earnings to the dollar without
prompting get high marks for honesty, and everything else they
s
a
ya
b
o
u
t
t
h
e
i
r
b
a
c
k
g
r
o
u
n
d
sb
e
c
o
m
e
se
a
s
i
e
r
t
oa
c
c
e
p
t
.S
oi
t
‖
s
acceptable to go ahead and give both the recruiter and the
employer your exact salary, but make it very clear what range you
t
h
i
n
ky
o
u
‖
r
eq
u
a
l
i
f
i
e
df
o
r
.(
S
i
d
ec
o
m
m
e
n
t
:
R
e
a
dthe following
example. If you can get by without disclosing current earnings,
you might come out ahead.)
Exceptions: Recruiters and Agencies—
Revisions
A telecoaching client of mine concluded some negotiations
that illustrate a difficulty here. Unfortunat
e
l
y
,
h
e
d
i
d
n
‖
t
c
o
n
t
a
c
t
me until after he had made a blunder.
Many negotiation books suggest you inflate your current
salary by tacking on your benefits, perks, and bonuses. Thus, if
y
o
u
‖
r
e
m
a
k
i
n
g
,
s
a
y
,
$
7
5
,
0
0
0
a
n
db
o
n
u
s
,
y
o
ut
e
l
l
t
h
e
e
m
p
l
o
y
e
r
(
o
r
recruite
r
)
y
o
u
‖
r
em
a
k
i
n
g$
9
5
,
0
0
0
.Myc
l
i
e
n
t
,
T
o
m(
n
o
t
h
i
s
r
e
a
l
name), did that and eventually got an offer from the Atlantabased employer at $120,000 plus a relocation package, and
bonuses.
Special Situations
103
Then he contacted me. He was worried that eventually his
actual current salary would be disclosed, that somewhere down
t
h
el
i
n
eh
e
‖
df
i
n
dh
i
m
s
e
l
f
i
nap
i
c
k
l
eb
e
c
a
u
s
ea
f
t
e
r
l
e
a
v
i
n
gh
i
s
present job he might be left out in the cold if the new company
fired him for not having told the whole truth.
We did some calculations. If he played it right it was
unlikely,
s
a
yo
n
ec
h
a
n
c
ei
nt
e
n
,
t
h
a
t
t
h
e“
w
h
i
t
el
i
e
”w
o
u
l
de
v
e
r
really come to light. The risk-reward question was: Are you
willing to take a 10-percent risk that it will all fall apart and your
integrity will be questioned for the 90-p
e
r
c
e
n
t
c
h
a
n
c
e
t
h
a
t
y
o
u
‖
l
l
make $45,000 more each year and have a great job with plenty of
growth and challenge?
The window for living with this
uncertainty was one year. (We thought it extremely unlikely that
anyone would ever uncover this after a year or, if someone did,
w
o
u
l
dc
a
r
e
b
yt
h
e
n
,
s
i
n
c
e
T
o
mc
o
u
l
da
l
w
a
y
s
s
a
y
,
“
We
l
l
m
yb
a
s
e
was $75,000, but my package w
a
s
a
r
o
u
n
d
$
9
5
,
0
0
0
,
”
a
n
y
w
a
y
.
)
Tom decided that living under the sword of Damocles for a
year was a price he was not willing to pay. So we set about
c
l
e
a
n
i
n
gu
pt
h
e
m
a
t
t
e
r
.H
e
c
a
l
l
e
dt
h
e
r
e
c
r
u
i
t
e
r
a
n
ds
a
i
d
,
“
I
a
m
very interested in this offer, but I want to clarify something before
we go further. First, tell me, do you think this $120,000 offer is a
fair market value for the job, and for my t
a
l
e
n
t
s
i
n
t
h
i
s
s
i
t
u
a
t
i
o
n
?
”
R
e
c
r
u
i
t
e
r
,
“
O
h
,
y
e
s
[
b
l
a
h
b
l
a
h
]
.
”
T
o
m(
t
o
h
i
m
s
e
l
f
)
,
“
G
o
t
c
h
a
!
”
T
o
m
,
“
We
l
l
,
t
h
a
t
‖
s
w
h
a
t
I
t
h
o
u
g
h
t
.I
t
m
a
k
e
s
m
ew
a
n
t
t
o
clear up a misunderstanding we may have had earlier in our
d
i
s
c
u
s
s
i
o
n
s
. Wh
e
ny
o
ua
s
k
e
dm
e
,
―
Wh
e
r
ea
r
ey
o
un
o
w
?
‖I
responded $95,000. You should know that that was the value of
my entire compensation package, including projected year-end
bonuses and benefits. My actual base salary is $75,000. If you
think this discrepancy would have any adverse effect on the
Atl
a
n
t
a
c
o
m
p
a
n
y
‖
s
o
f
f
e
r
,
w
e
s
h
o
u
l
d
c
l
e
a
r
i
t
u
p
n
o
w
.
”
R
e
c
r
u
i
t
e
r
,
“
T
h
a
t
‖
s
t
e
r
r
i
b
l
e
!
Wh
y
d
i
dy
o
u
s
a
y
t
h
a
t
?N
o
wI
‖
m
i
n
a
b
i
n
d
w
i
t
h
t
h
e
A
t
l
a
n
t
a
c
o
m
p
a
n
y
.
T
h
a
t
m
e
a
n
s
t
h
e
y
‖
d
b
e
g
i
v
i
n
g
you a 60-p
e
r
c
e
n
t
r
a
i
s
e
!T
h
e
y
‖
l
l
n
e
v
e
r
g
o
f
o
r
t
h
a
t
.
”H
e
c
o
n
t
i
n
u
e
d
to vent for a while.
104
How to Make $1,000 a Minute
Mind you, this was a top recruiter from a high-end, wellrespected, IBM-of-the-industry retained-search firm. He was –
misguidedly, I think –
basing the offer on current earnings, not the
freely agreed-upon market value!
The short of it is that the company did rescind the offer. In
m
y
o
p
i
n
i
o
n
,
i
t
w
a
s
n
o
t
b
e
c
a
u
s
e
t
h
e
d
o
l
l
a
r
f
i
g
u
r
e
w
a
s
n
‖
t
r
i
g
h
t
b
u
t
because the company insisted on people who could be absolutely
t
r
u
s
t
e
di
nt
h
o
s
ep
o
s
i
t
i
o
n
s
,
s
od
i
d
n
‖
t
w
a
n
t
t
os
t
a
r
t
ar
e
l
a
t
i
o
n
s
h
ip
f
r
o
ma
“
We
l
l
,
I
l
i
e
d
”
f
o
u
n
d
a
t
i
o
n
.
End of story.
So what do we learn from this?
If Tom had held firm in the beginning he might have
a
v
o
i
d
e
dt
h
a
t
t
r
a
p
.
H
e
c
o
u
l
dh
a
v
e
s
a
i
d
,
“
I
c
a
n
‖
t
d
i
s
c
l
o
s
e
m
y
e
x
a
c
t
e
a
r
n
i
n
g
sn
o
wb
u
t
,
l
e
tm
et
e
l
ly
o
u
,
i
t
‖
sal
o
t
! Wh
a
t
‖
smore
i
m
p
o
r
t
a
n
t
i
sm
yw
o
r
t
hi
nan
e
x
t
m
o
v
e
.I
‖
v
er
e
s
e
a
r
c
h
e
dt
h
e
industry, and I think my next move should be to responsibilities
paying anywhere between $110,000 and $175,000. That total
package would be composed of a significant base and good
performance incentives. The actual dollar number will depend on
location—t
h
ec
o
l
d
e
r
t
h
ec
l
i
m
a
t
ei
s
,
t
h
em
o
r
em
o
n
e
yI
‖
l
l
n
e
e
d
—
overall growth potential of the position, range of autonomy,
visibility in the industry, benefits, perks, relocation package,
signing bonus, a
n
d
m
a
n
y
o
t
h
e
r
f
a
c
t
o
r
s
.
Wh
y
d
o
n
‖
t
w
e
s
e
e
i
f
I
l
i
k
e
t
h
e
j
o
ba
n
d
,
i
f
t
h
e
yl
i
k
e
m
e
f
i
r
s
t
;
s
a
l
a
r
yw
o
n
‖
t
b
e
a
ni
s
s
u
e
f
o
r
t
h
e
r
i
g
h
t
j
o
b
.
Wh
a
t
i
s
t
h
e
c
o
m
p
a
n
y
?
”
This response is honest, clear, based on research, and
completely avoids current earnings. Will a recruiter buy it?
Ma
y
b
e
;
m
a
y
b
e
n
o
t
.
I
t
‖
s
w
o
r
t
h
a
t
r
y
.
Salary Boxes
S
o
m
e
t
i
m
e
s
y
o
u
‖
l
l
b
en
e
g
o
t
i
a
t
i
n
gw
i
t
hac
o
m
p
a
n
yt
h
a
t
h
a
s
compensation all figured out ahead of time. Perhaps it has
implemented the Hay system, or the ranges have been set by
law—public-sector positions are often confined so—and you fit
into a category. Teaching positions are systematically boxed into
Special Situations
105
academic degrees and years of experience. Each box has its own
salary attached. The federal government has grades and steps
within grades; positions are assigned a rating of G.S. 8, G.S. 9, and
so on, and a standard salary.
You can n
e
g
o
t
i
a
t
et
h
e
s
e
,
t
h
o
u
g
hi
t
‖
sh
a
r
d
e
r
.I
f
y
o
uc
a
n
‖
t
change the salary attached to the box, perhaps you can change the
b
o
x
.D
o
e
s
n
‖
t
y
o
u
r
v
o
l
u
n
t
e
e
r
w
o
r
kw
i
t
hG
r
e
a
t
B
ooks and your
adult-education class work really add up to another year of
teaching experience? Perhaps your two years in that inner-city
school is equivalent to three or four years of normal teaching. (It
t
o
o
k
s
e
v
e
r
a
l
y
e
a
r
s
o
f
f
y
o
u
r
l
i
f
e
,
t
h
a
t
‖
s
f
o
r
s
u
r
e
!)
The other strategy to use is reassigning the grade itself. The
earlier in the formation stages a job is, the easier it is to do that. If
t
h
ej
o
bh
a
sb
e
e
nc
l
a
s
s
i
f
i
e
da
sG
.
S
.
5f
o
ry
e
a
r
sa
n
dy
e
a
r
s
,
i
t
‖
s
unlikely you can make a case for upgrading it, unless you can
n
e
g
o
t
i
a
t
es
o
m
ea
d
d
e
dr
e
s
p
o
n
s
i
b
i
l
i
t
i
e
st
oi
t
.B
u
t
i
f
i
t
‖
san
e
w
position, you might be able to show how it really should be
upgraded.
A client of mine was told in the interviewing process that a
p
a
r
t
i
c
u
l
a
r
c
o
m
p
a
n
y
‖
s
p
o
l
i
c
y
w
a
s
t
o
g
i
v
e
a
l
l
t
h
e
i
nformation about
degree, experience, project assignment, and so forth to the
personnel department, and it would come up with an offer. That
was it! He could only take it or leave it once it was figured out!
Sound nonnegotiable? Well, we found a way for him to make the
right noises to the right ears about his value and about the
importance of getting the compensation figured out attractively.
A
l
t
h
o
u
g
hw
ec
o
u
l
d
n
‖
t
c
h
a
n
g
et
h
ef
i
n
a
l
n
u
m
b
e
r
,
w
ei
n
f
l
u
e
n
c
e
d
beforehand the people who made up that number. When the offer
came in, it was a 100-percent salary increase over his present job.
P
h
i
l
’
s
S
a
l
a
r
y
-Boxes Story
Another client, Phil, interviewed to teach at a public high
s
c
h
o
o
l
.
T
h
r
e
e
t
i
m
e
s
d
u
r
i
n
g
t
h
e
i
n
t
e
r
v
i
e
wt
h
e
p
r
i
n
c
i
p
a
l
s
a
i
d
,
“
Y
o
u
understand that this is an eight-t
e
n
t
h
s
p
o
s
i
t
i
o
n
,
d
o
n
‖
t
y
o
u
?
”(
T
h
a
t
meant it was a four-day-a-week job, so drew 80 percent of fulltime salary.)
106
How to Make $1,000 a Minute
“
We
l
l
,
”m
yc
l
i
e
n
t
r
e
p
l
i
e
d
,
“
I
u
n
d
e
r
s
t
a
n
dt
h
a
t
i
t
‖
s
a
ne
i
g
h
t
t
e
n
t
h
s
p
o
s
i
t
i
o
n
,
a
n
d
i
f
I
‖
mt
h
e
o
n
e
y
o
u
w
a
n
t
I
‖
ms
u
r
e
w
e
c
a
n
f
i
n
d
a
way to w
o
r
k
o
u
t
f
a
i
r
c
o
m
p
e
n
s
a
t
i
o
n
.
”
Turns out my client was the one they wanted, but eighttenths of the salary box was too low for him to accept. So first he
tried to get eight-tenths of a different box. Would the principal
c
o
n
s
i
d
e
rh
i
sm
a
s
t
e
r
‖
sd
e
g
r
e
et
h
ee
q
u
i
v
a
l
e
n
to
f“
m
a
s
t
e
r
‖
sp
l
u
s
f
i
f
t
e
e
n
h
o
u
r
s
”
?A
f
t
e
r
a
l
l
,
i
t
h
a
dr
e
q
u
i
r
e
dt
h
i
r
t
y
m
o
r
e
c
r
e
d
i
t
h
o
u
r
s
t
h
a
n
o
t
h
e
r
t
e
a
c
h
e
r
s
‖
m
a
s
t
e
r
‖
s
d
e
g
r
e
e
s
.
“
S
o
r
r
y
,
n
o
,
”
t
h
e
p
r
i
n
c
i
p
a
l
r
e
s
p
o
n
d
e
d
.
Then how about credit for an extra year of experience, since
h
i
sm
a
s
t
e
r
‖
si
n
t
e
r
n
s
h
i
p had been a very demanding full-time
position for six months with delinquent kids?
“
N
o
,
a
n
ye
x
c
e
p
t
i
o
n
s
w
o
u
l
db
r
i
n
go
ng
r
i
e
v
a
n
c
e
s
f
r
o
mo
t
h
e
r
t
e
a
c
h
e
r
s
i
n
t
h
e
u
n
i
o
n
.
”
Well, how about special assignments like debating coach, or
computer & audio-visual equipment coordinator?
“
A
h
a
!
We
c
o
u
l
d
e
x
p
l
o
r
e
t
h
a
t
,
y
e
s
!
Ms
.
S
m
i
t
h
,
t
h
e
c
h
e
m
i
s
t
r
y
teacher has just had a baby and might be interested in handing the
e
q
u
i
p
m
e
n
t
s
o
m
e
o
n
e
e
l
s
e
.
”
Result: eight-t
e
n
t
h
s
p
o
s
i
t
i
o
np
l
u
s
a
f
e
wh
o
u
r
s
‖
c
o
o
r
d
i
n
a
t
i
n
g
school equipment, equaling a total salary 10 percent higher than a
full-time position in that box. Of further interest is that six people
had interviewed for and rejected the position when they learned it
was only eight-tenths. Phil scored!
The moral is that, when interviewers say“
i
n
f
l
e
x
i
b
l
e
”o
r
“
n
o
n
n
e
g
o
t
i
a
b
l
e
,
”t
h
e
y
‖
r
es
t
i
l
l
i
nt
h
ebudget stage. So wait for
judgit, and look for ways to change the box you fit in, the box the
job fits in, or the box-m
a
k
e
r
s
‖
m
i
n
d
s
!
Over the Phone
Final acceptance of an offer can be handled by phone, but
whenever possible avoid doing the initial negotiating that way. If
you are given an offer over the phone, tell the individual that it
sounds very workable and, since it is important that the
Special Situations
107
a
g
r
e
e
m
e
n
t
b
e
c
l
e
a
r
a
n
d
g
o
o
d
f
o
r
b
o
t
h
p
a
r
t
i
e
s
,
y
o
u
‖
d
l
i
k
e
to stop in
and talk it over in detail. You will have a better opportunity to get
a fully negotiated deal when you and your potential employer are
g
i
v
i
n
g
i
t
y
o
u
r
f
u
l
l
a
t
t
e
n
t
i
o
n
,
w
h
i
c
h
y
o
u
c
a
n
‖
t
d
o
o
n
t
h
e
p
h
o
n
e
.
Wh
e
n
i
t
‖
s
n
o
t
p
o
s
s
i
b
l
e
t
o
s
t
o
p
i
n
,
y
o
u
c
a
n
m
a
ke sure you and
the employer are undisturbed and able to negotiate as you would
face to face by simply setting a time to call back to handle it.
O
t
h
e
r
w
i
s
e
,
y
o
u
‖
r
e
o
f
f
g
u
a
r
d
o
r
l
i
k
e
l
y
t
o
b
e
c
a
u
g
h
t
i
n
t
h
e
m
i
d
d
l
e
o
f
something. Call back at a time when you can concentrate on
negotiating.
Delayed Negotiations
Another special area to note is delayed salary discussions.
You know from Salary-Making Rule 1 to wait for a job offer before
d
i
s
c
u
s
s
i
n
gs
a
l
a
r
y
,
b
u
t
d
o
n
‖
t
w
a
i
t
l
o
n
g
e
r
t
h
a
nt
h
a
t
.I
f
y
o
ug
e
t
a
hiring signa
l
f
r
o
ma
ne
m
p
l
o
y
e
r
w
h
o
d
o
e
s
n
‖
t
b
r
i
n
gu
ps
a
l
a
r
y
,
you
bring it up.
Y
o
u
c
o
u
l
d
s
a
y
,
“
We
l
l
,
I
g
u
e
s
s
t
h
a
t
m
e
a
n
s
w
e
‖
d
b
e
t
t
e
r
m
a
k
e
a
d
e
a
l
.
Wh
a
t
d
i
d
y
o
u
h
a
v
e
i
n
m
i
n
d
?
”
Letting it go beyond offer time could mean your employer
plans to hire you without negotiating a
n
da
s
s
u
m
e
sy
o
u
‖
l
l
t
a
k
e
w
h
a
t
y
o
u
g
e
t
.
O
r
e
l
s
e
t
h
e
e
m
p
l
o
y
e
r
‖
s
e
m
b
a
r
r
a
s
s
e
d
.
I had a client who had every indication that the director of
e
n
g
i
n
e
e
r
i
n
gw
a
n
t
e
dt
oh
i
r
e
h
i
m
.T
h
e
d
i
r
e
c
t
o
r
h
a
ds
a
i
d
,
“
Y
o
u
‖
r
e
j
u
s
t
t
h
e
p
e
r
s
o
n
w
e
‖
r
e
l
o
o
k
i
n
g
f
o
r
.
”
“
Wh
a
t
w
a
s
t
h
e
i
r
o
f
f
e
r
?
”
I
a
s
k
e
d
.
“
O
h
,
w
e
h
a
v
e
n
‖
t
t
a
l
k
e
d
m
o
n
e
y
y
e
t
.
”
Uh-oh!
He quickly followed my instructions to get right back on the
phone, ask how firm the decision was, and suggest that they talk
a
b
o
u
t
s
a
l
a
r
y
.
H
e
w
a
s
t
o
l
d
,
“
We
l
l
,
w
e
‖
dl
o
v
e
t
o
h
a
v
e
y
o
u
,
b
u
t
y
o
u
wouldn
‖
t
t
a
k
e
$
5
8
,
0
0
0
,
w
o
u
l
d
y
o
u
?
”
“
We
l
l
,
I
‖
dc
o
n
s
i
d
e
r
i
t
,
”
h
e
r
e
p
l
i
e
d
.“
Wh
e
nc
a
nw
e
t
a
l
k
,
a
n
d
w
h
o
m
a
k
e
s
t
h
o
s
e
d
e
c
i
s
i
o
n
s
?
”
108
How to Make $1,000 a Minute
He was hired two weeks later at a grade higher than the
opening was originally rated at. He made an extra $7,500 a year
b
e
c
a
u
s
eh
e
‖
dn
e
g
otiated for his market value and fuller
responsibilities. If he had waited, the employer would have been
t
o
os
h
yt
ot
e
l
l
h
i
mt
h
ec
o
m
p
a
n
yc
o
u
l
d
n
‖
t
a
f
f
o
r
dh
i
m
,
a
n
dh
e
‖
d
h
a
v
el
o
s
t
t
h
eo
f
f
e
r
.H
e
‖
dh
a
dt
oe
d
u
c
a
t
es
o
m
e
o
n
einside the
company about the flexibility of salaries.
Remember, a company may not know what you know—that
money can be fudged to fit the person.
No Experience
H
o
wd
oy
o
ud
e
t
e
r
m
i
n
ey
o
u
rv
a
l
u
ei
fy
o
ut
h
i
n
ky
o
u
‖
r
e
inexperienced?
The first such people who come to mind are recent college
graduates. I recently read a survey of Harvard M.B.A. graduates
w
h
o
s
eb
i
g
g
e
s
t
w
o
r
r
yw
a
s
t
h
a
t
t
h
e
yd
i
d
n
‖
t
h
a
v
ea
n
ye
x
p
e
r
i
e
n
c
e
that would attract an employer.
O
t
h
e
r“
Id
o
n
‖
th
a
v
ea
n
ye
x
p
e
r
i
e
n
c
e
”p
e
o
p
l
ea
r
ec
a
r
e
e
r
changers, foreign immigrants, high-school students, even
mainframe programmers switching to client-server networks.
Please be careful. Your tendency is to be so glad that
s
o
m
e
o
n
e
i
s
o
f
f
e
r
i
n
g
y
o
u
a
j
o
b
t
h
a
t
y
o
u
a
c
c
e
p
t
w
i
t
h
a
b
e
g
g
a
r
‖
s
n
o
d
and smile at whatever is offered. Ponder the following points.
If you followed Salary-Ma
k
i
n
gR
u
l
e
s1
,
2
,
a
n
d3
,
t
h
e
y
‖
r
e
choosing you, not your price. They really want to hire you! They
t
h
i
n
k
y
o
u
‖
l
l
m
a
k
e
o
r
s
a
v
e
t
h
e
mm
o
n
e
y
.
Evidently you have the ability to do the work or the
c
o
m
p
a
n
y
w
o
u
l
d
n
‖
t
b
e
m
a
k
i
n
g
y
o
u
a
n
o
f
f
e
r
.
The compa
n
y
‖
s
h
i
r
i
n
gd
e
c
i
s
i
o
ni
s
b
a
s
e
d9
5
p
e
r
c
e
n
t
o
ny
o
u
r
personality, enthusiasm, and transferable skills. Only 5 percent
has to do with your specialized knowledge. Since the company
c
a
n
‖
t
t
e
a
c
hm
a
n
n
e
r
sa
n
dc
o
m
m
o
ns
e
n
s
e
,
t
h
ec
o
m
p
a
n
yhires it.
Since it can teach its subject, it trains you. Therefore, 95 percent of
you is experience worth bargaining about.
Special Situations
109
T
h
i
s
i
s
i
t
!T
h
i
s
i
s
t
h
e
o
n
l
y
t
i
m
e
y
o
u
‖
l
l
b
e
a
t
t
h
e
s
t
a
r
t
i
n
g
l
i
n
e
.
H
e
r
e
‖
s
y
o
u
r
c
h
a
n
c
e
t
o
b
e
g
i
n
t
h
e
v
i
r
t
u
o
u
s
c
y
c
l
e
o
f
Ms
.
Wo
r
t
h
.
What do you have to lose?
So if you think you have no experience, remember the
q
u
a
l
i
t
i
e
s
t
h
a
t
m
a
k
e
y
o
u
s
u
c
c
e
s
s
f
u
l
.
T
o
a
n
o
f
f
e
r
o
f
Xd
o
l
l
a
r
s
y
o
u
‖
l
l
s
a
y
,
“
F
r
o
mm
y
r
e
s
e
a
r
c
h
,
Xd
o
l
l
a
r
s
i
s
a
r
o
u
n
d
e
n
t
r
y
l
e
v
e
l
f
o
r
s
a
l
a
r
y
.
Considering my enthusiasm and general success in the things I set
out
t
o
d
o
,
I
b
e
l
i
e
v
e
I
‖
mw
o
r
t
h
a
b
o
u
t
[
a
m
i
d
d
l
e
-of-range] Y dollars.
Wh
a
t
c
a
n
y
o
u
d
o
i
n
t
h
a
t
a
r
e
a
?
”
When Do I Need to Talk to a Lawyer?
D
a
nF
e
l
i
x
,
a
.
k
.
a
.
“
T
h
eE
x
e
c
u
t
i
v
e
‖
s
A
t
t
o
r
n
e
y
,
”s
p
o
k
et
om
e
a
b
o
u
t
w
h
e
n
i
t
‖
s
a
g
o
o
di
d
e
a
t
o
b
r
i
n
g
a
l
a
w
y
e
r
i
n
t
o
t
h
e
n
e
g
o
t
i
a
t
i
ng
mix.
The first strong indicator you need a lawyer was: anytime
y
o
u
‖
r
ea
s
k
e
dt
oa
c
t
u
a
l
l
ys
i
g
na
n
y
t
h
i
n
g–and, please, before you
sign it, not afterwards.
I
fy
o
u
‖
r
eg
i
v
e
ns
o
m
e
t
h
i
n
gt
h
a
ts
o
u
n
d
sl
i
k
etheir lawyer
wrote it, let your lawyer read it. There
‖
s
a
s
t
r
o
n
g
p
r
o
b
a
b
i
l
i
t
y
y
o
u
w
o
n
‖
t
r
e
a
l
l
yk
n
o
ww
h
a
t
i
t
m
e
a
n
s
!S
o
m
e
t
i
m
e
s
,
m
o
r
ei
m
p
o
r
t
a
n
t
t
h
a
nt
e
l
l
i
n
gy
o
uw
h
a
t
‖
s
t
h
e
r
e
,
s
/
h
e
c
a
nt
e
l
l
y
o
uw
h
a
t
‖
s
not there;
i
.
e
.
d
e
f
a
u
l
t
p
r
o
v
i
s
i
o
n
s
s
u
c
ha
s
d
i
s
p
u
t
e
r
e
s
o
l
u
t
i
o
na
t
t
o
r
n
e
y
s
‖
f
e
e
s
,
commission payments, etc. So, read it, of course, but have an
attorney tell you what it really means.
W
h
a
t
A
b
o
u
t
t
h
e
“
n
o
n
s
”
?
N
o
n
c
o
m
p
e
t
e
,
N
o
n
d
i
s
c
l
o
s
u
r
e
…
T
h
e
m
a
n
o
n
t
h
e
s
t
r
e
e
t
m
i
g
h
t
t
e
l
l
y
o
u
,
“
N
o
t
t
o
w
o
r
r
y
,
t
h
e
y
‖
r
e
n
o
t
r
e
a
l
l
y
e
n
f
o
r
c
e
a
b
l
e
.
”Wr
o
n
g
!
Non Compete, Non Disclosure, Non Solicitation, Non
a
n
y
t
h
i
n
g
c
a
n
a
l
l
b
e
e
n
f
o
r
c
e
a
b
l
e
a
n
de
v
e
n
i
f
t
h
e
y
a
r
e
n
‖
t
,
i
t
c
a
n
c
o
s
t
big bucks to fight it later.
Go to www.SalaryNegotiations.com a
n
d
I
‖
l
l
l
i
n
k
y
o
u
t
o
m
o
r
e
i
n
d
e
p
t
hi
n
f
o
r
m
a
t
i
o
nf
r
o
mD
a
na
b
o
u
tt
h
e“
n
o
n
s
.
” F
o
rn
o
w
,
remember, if they try to slipi
t
b
yy
o
uw
h
e
ny
o
u
‖
r
e
s
i
g
n
i
n
gy
o
u
r
110
How to Make $1,000 a Minute
innocuous w-4 tax forms in personnel, wait. Think about whether
w
h
a
t
t
h
e
y
‖
r
e
a
s
k
i
n
gy
o
ut
og
i
v
e
u
pi
s
w
o
r
t
hi
t
.A
n
d
,
s
i
n
c
e
y
o
u
c
a
n
‖
t
u
n
d
e
r
s
t
a
n
dt
h
a
t
l
e
g
a
l
e
s
e
,
a
n
y
w
a
y
,
t
a
l
kt
o
a
l
a
w
y
e
r
t
o
k
n
o
w
w
h
a
t
,
e
x
a
c
t
l
y
,
y
o
u
‖
r
e
g
i
v
ing up.
Other Special Situations Call for Mr. Legalman
The following situations are examples of when to not only to
have the agreement in writing, but to have it in writing in a way
t
h
a
t
‖
s
e
n
f
o
r
c
e
a
b
l
e
—hence, let a lawyer help you.
Wh
e
ny
o
u
‖
v
en
e
g
o
t
i
a
t
e
davaluable bonus, severance,
s
t
o
c
ko
p
t
i
o
no
ro
t
h
e
rf
i
n
a
n
c
i
a
l
e
x
t
r
a
,
e
s
p
e
c
i
a
l
l
yi
f
i
t
‖
s
somehow different than what others in the company are
already receiving. Memories can fade, even with the
best of intentions. What was the exact performance or
other event the bonus based on?
Wh
e
n
y
o
u
‖
r
e
t
h
e
f
i
r
s
t
o
r
o
n
l
y
p
e
r
s
o
n
i
n
y
o
u
r
p
o
s
i
t
i
o
n
f
o
r
y
o
u
rn
e
we
m
p
l
o
y
e
r
.I
fy
o
u
‖
r
et
h
ef
i
r
s
tm
a
r
k
e
t
i
n
g
professional for an accounting firm, for example, getting
the benefits of the expanded and detailed written
contract process should help expectations on both sides,
helping to ensure a successful tenure.
Wh
e
ny
o
u
‖
r
e
l
e
a
v
i
n
g
a
g
o
o
dp
o
s
i
t
i
o
nw
i
t
ha
c
o
m
p
e
t
i
t
o
r
,
o
rh
a
v
i
n
gt
or
e
l
o
c
a
t
ey
o
u
rr
e
s
i
d
e
n
c
e
,
y
o
u
‖
db
ew
e
l
l
advised to get written assurances of the security of your
new position –
and covering those m
a
n
y
“
w
h
a
t
i
f
‖
s
”
a
n
d
e
s
p
e
c
i
a
l
l
y
w
h
a
t
i
f
t
h
e
n
e
wp
o
s
i
t
i
o
n
d
o
e
s
n
‖
t
w
o
r
k
o
u
t
.
I
t
i
s
u
s
u
a
l
l
yc
r
i
t
i
c
a
l
t
og
e
t
aw
r
i
t
t
e
nc
o
n
t
r
a
c
t
i
f
y
o
u
‖
r
e
bringing something to the table that you want to walk
out with when you and your new employer [inevitably]
part ways.
A written contract to cover this situation is important for
several different groups. To name just a few: experienced sales
people with their list of established clients and contacts as well as
scientists and others who want to keep part of their inventions
a
n
do
t
h
e
ri
n
t
e
l
l
e
c
t
u
a
l
p
r
o
p
e
r
t
y
.I
fy
o
ud
o
n
‖
th
a
v
eaw
r
i
t
t
e
n
Special Situations
111
contract, anything you bring to the table or develop while an
employee, may well end up the property of your employer!
When in doubt, check it out.
B
y
t
h
e
w
a
y
,
t
h
e
r
e
‖
s
t
w
o
k
i
n
d
s
o
f
l
a
w
y
e
r
s
i
n
t
h
is domain: the
ones who work for the companies and the ones who work for the
individual (plaintiff) –t
h
a
t
‖
s
t
h
ek
i
n
dy
o
uw
a
n
t
.I
f
y
o
ul
i
v
ei
n
Illinois, you're in luck! Dan Felix can take good care of you -- go
to my site, www.SalaryNegotiations.com, and you can find a link
to his site there. If you're in any of the other 49 states, Dan's site
still might be able to help you -- he's working on a list of attorneys
you can rely on.
Negotiating a Severance Package: Background
Can you negotiate for money when
y
o
u
‖
v
e
b
e
e
n
f
i
r
e
d
?
Four hundred fifteen thousand people were released from
their jobs in the United States in 2004. As downsizings, RIFs, and
mergers become more common, so also do severance packages for
terminated employees. Employers offer them severance for two
reasons.
First, when people are angry (as is often the case when
t
h
e
y
‖
v
eb
e
e
nf
i
r
e
d
,
e
s
p
e
c
i
a
l
l
yif through no fault of their own),
they want retribution; they often sue, or threaten to sue, their
employers. Even though such suits are rarely successful, they are
a nuisance. So employers will give some severance in consideration for a release.
Second, employers are people; people do have hearts. So if
they can afford it, they would prefer to help the former employee
find new work even if they have no strict obligation to do so.
A Word about Lawsuits.
Mo
s
t
s
t
a
t
e
s
h
a
v
e
e
m
p
l
o
y
m
e
n
t
“
a
t
-w
i
l
l
”
l
a
w
s
,
w
hich means
t
h
a
t
,
a
s
l
o
n
ga
s
e
m
p
l
o
y
e
r
s
d
o
n
‖
t
d
i
s
c
r
i
m
i
n
a
t
e
b
yr
a
c
e
,
c
r
e
e
d
,
s
e
x
,
age, certain disabilities, etc., or break any individual employment
contract, they are free to hire and fire anyone they wish—and
y
o
u
‖
r
e
f
r
e
e
t
oq
u
i
t
!Wh
i
l
e
b
e
i
n
gf
i
r
e
di
s
n
e
v
e
r
pleasant when it
112
How to Make $1,000 a Minute
happens to you, all in all the free-enterprise system runs better
w
i
t
h
t
h
i
s
f
l
e
x
i
b
i
l
i
t
y
,
a
n
di
t
m
a
k
e
s
i
t
e
a
s
i
e
r
f
o
r
t
h
e
“
s
y
s
t
e
m
”
t
o
h
i
r
e
you somewhere else.
However, if you feel you actually have been discriminated
against in your termination, you can consider suing, although it
will decrease your employability somewhat even if you prevail. If
you want to learn about your rights, you can call the National
Employment Lawyers Association at (415) 227-4655.
Generally I counsel my clients not to sue, but to negotiate a
severance instead. If you have strong discrimination grounds, or
are simply in a discrimination category, you have better leverage
t
on
e
g
o
t
i
a
t
e
a
s
e
v
e
r
a
n
c
e
t
h
a
ni
f
y
o
u
‖
r
e
a
w
h
i
t
e
,
E
n
g
l
i
s
h
-speaking
male under forty.
Still, a lawsuit is seldom satisfying, even to the winner. In
m
y
o
p
i
n
i
o
n
,
y
o
u
‖
d
b
e
b
e
t
t
e
r
o
f
f
t
o
g
e
t
a
s
e
v
e
r
a
n
c
e
a
n
d
g
o
f
o
r
w
a
r
d
w
i
t
hy
o
u
r
l
i
f
e
.G
e
t
y
o
u
r
“
r
e
v
e
n
g
e
”b
yn
e
g
o
t
i
a
t
i
n
gas
e
v
e
r
a
n
c
e
,
taking the money, scoring a new job quickly, and laughing all the
way to the bank.
Negotiating a Severance Package: Timing
T
i
m
i
n
g
.D
o
n
‖
t
j
u
s
t
a
c
c
e
p
t
t
h
e
s
e
v
e
r
a
n
c
e
o
f
f
e
r
o
nt
h
e
s
p
o
t
.
L
i
s
t
e
n
,
t
h
e
n
s
a
y
,
“
I
a
p
p
r
e
c
i
a
t
e
t
h
i
s
,
a
n
d
w
i
l
l
c
o
n
s
i
d
e
r
t
h
i
s
c
a
r
e
f
u
l
l
y
.
When can we talk about this again in case I have any questions or
requests?
”
Wh
e
ny
o
u
‖
v
eb
e
e
nf
i
r
e
d
,
s
e
p
a
r
a
t
ey
o
u
r
a
n
g
e
r
a
n
dr
e
s
e
n
t
ment from your efforts to get a good severance package. Money
w
o
n
‖
t
c
h
a
n
g
ey
o
u
rf
e
e
l
i
n
g
s
;
i
t
w
i
l
l
j
u
s
t
h
e
l
py
o
u
rf
i
n
a
n
c
e
si
n
transition. So make the best deal with that in mind, not as a way
to retaliate against your employer. Take time to cool off.
Consult the laws of your state, check provisions of your
union or other contract if you have one, and modify the following
advice accordingly.
When you return after having thought about it (and having
contacted a lawyer if doing so is relevant in your case –
check my
site for legal resources), negotiate the best package you can.
Special Situations
113
Negotiating Severance Timing II: Long before you need it.
By the way, the best time to negotiate severance is not when
y
o
u
‖
r
e
f
i
r
e
d
,
b
u
t
,
r
a
t
h
e
r
,
w
h
e
n
y
o
u
‖
r
e
h
i
r
e
d
.
K
i
n
do
f
l
i
k
e
t
h
e
w
a
y
a prenuptial agreement prevents nasty court battles if, alas,
divorce occurs. So, also, getting your severance agreed upon at
hiring time when the future looks rosy is much better than later
when things took a turn for the worse. So, how does one tactfully
bring up termination when getting hired? Set up the negotiation
by using two softening positions:
I
t
‖
s
n
o
t
them t
h
a
t
y
o
u
‖
r
e
w
o
r
r
i
e
d
a
b
o
u
t
a
n
d
t
h
e
r
e
‖
s
n
o
t
h
i
n
g
t
o
l
o
s
e
.
It could go like this:
“
Mr
.
E
m
p
l
o
y
e
r
,
t
h
e
r
e
‖
so
n
es
m
a
l
l
c
o
n
c
e
r
n
I
h
a
v
e
.
I
w
o
n
d
e
r
i
f
w
e
c
o
u
l
d
d
i
s
c
u
s
s
i
t
.
”
[
O
f
c
o
u
r
s
e
!
]
“
We
l
l
,
d
oy
o
uf
o
r
e
s
e
e
ac
h
a
n
g
e
i
nm
a
n
a
g
e
m
e
n
t
,
am
e
r
g
e
r
,
buy-o
u
t
o
r
c
h
a
n
g
e
i
n
o
w
n
e
r
s
h
i
p
a
n
y
w
h
e
r
e
o
n
t
h
e
h
o
r
i
z
o
n
?
”[
N
o
!
]
“
G
o
o
d
.
I
t
‖
s
j
u
s
t
t
h
a
t
i
n
t
i
m
e
s
l
i
k
e these with takeovers, IPOs
and competition from dot.coms, etc., sometimes a job can be going
great and I could be performing well, and then, through no fault
o
f
m
y
o
w
n
,
t
h
e
r
e
‖
s
a
c
h
a
n
c
e
I
c
o
u
l
db
e
o
u
t
o
nt
h
e
s
t
r
e
e
t
.S
o
,
y
o
u
d
o
n
‖
t
f
o
r
e
s
e
e
t
h
i
s
h
a
p
p
e
n
i
n
g
,
i
s
t
h
a
t
r
i
g
h
t
?
”[
N
o
,
n
o
,
t
h
a
t
w
o
n
‖
t
happen.] Notice softening position number one: you avoid
i
m
p
l
y
i
n
g
y
o
u
d
o
n
‖
t
t
r
u
s
t
them b
y
“
b
l
a
m
i
n
g
”
p
o
t
e
n
t
i
a
l
i
n
v
o
l
u
n
t
a
r
y
termination on possible changes in the market or management.
“
We
l
l
,
t
h
e
nw
h
a
t
I
‖
mg
o
i
n
gt
or
e
q
u
e
s
t
s
h
o
u
l
d
n
‖
t
c
o
s
t
t
h
e
company any money at all. Could we agree that in the unlikely
e
v
e
n
t
I
‖
mi
n
v
o
l
u
n
t
a
r
i
l
y
t
e
r
m
i
n
a
t
e
d(
e
x
c
e
p
t
f
o
r
c
a
u
s
e
)
t
h
a
t
I
c
o
u
l
d
h
a
v
e_
_
_
_m
o
n
t
h
‖
ss
e
v
e
r
a
n
c
ep
a
yi
n
c
l
u
d
i
n
gm
e
d
i
c
a
l
b
e
n
e
f
i
t
s
?
”
Notice softening position number two: if t
h
e
r
e
‖
s
n
o
c
h
a
n
g
e
s
i
n
t
h
e
f
o
r
e
s
e
e
a
b
l
e
f
u
t
u
r
e
,
t
h
e
n
s
e
v
e
r
a
n
c
e
w
o
n
‖
t
c
o
s
t
t
h
e
ma
c
e
n
t
!
Wi
l
l
y
o
ug
e
t
i
t
?Ma
y
b
e
.
Ma
y
b
e
n
o
t
.
B
u
t
i
t
‖
s
w
o
r
t
ha
s
k
i
n
g
!
S
i
xm
o
n
t
h
s
i
s
ag
o
o
dt
i
m
ef
r
a
m
e
.A
s
kf
o
r
m
o
r
ei
f
y
o
uf
e
e
l
i
t
‖
s
justified.
There will likely be conditions –first of all that it applies
only to getting fired, not quitting (called involuntary vs. voluntary
termination). Also, you may need to agree to a severance package
114
How to Make $1,000 a Minute
that activates only if termination occurs within a two- or threeyear period, or upon termination pursuant to the sale/merger of
t
h
ec
o
m
p
a
n
y
,
o
rc
h
a
n
g
ei
nm
a
n
a
g
e
m
e
n
t
,
b
u
t
,
o
b
v
i
o
u
s
l
y
,
i
t
‖
s
always better for you if you can get it open-ended without
conditions.
L
i
k
ei
n
s
u
r
a
n
c
e
,
y
o
uh
o
p
ey
o
u
‖
l
l
n
e
v
e
r
h
a
v
et
oi
n
v
o
k
ethis
c
l
a
u
s
e
,
b
u
t
,
a
l
s
ol
i
k
e
i
n
s
u
r
a
n
c
e
,
y
o
u
‖
l
l
b
e
g
l
a
dy
o
uh
a
v
e
i
t
i
f
y
o
u
need it.
Wh
e
t
h
e
r
y
o
u
‖
r
e
n
e
g
o
t
i
a
t
i
n
g
a
t
t
h
e
b
e
g
i
n
n
i
n
g
,
m
i
d
d
l
e
o
r
e
n
d
of your employment, here are the four elements of a severance
package to keep in mind:
Negotiating Severance: Four Items
More Money
I
nm
o
s
t
s
i
t
u
a
t
i
o
n
s
,
e
m
p
l
o
y
e
r
s
a
r
e
n
‖
t
r
e
q
u
i
r
e
dt
oo
f
f
e
r
e
v
e
n
t
w
ow
e
e
k
s
‖
n
o
t
i
c
e(
s
e
v
e
r
a
n
c
e
)
,
t
h
o
u
g
ht
h
e
yg
e
n
e
r
a
l
l
yw
o
n
‖
t
g
o
below this unless you are terminated for cause.
Severance pay should be in addition to, not in lieu of,
accrued vacation and personal time.
Generally speaking, the higher your rank, the more you can
get. Four weeks for each year of service is extremely generous; be
j
o
y
f
u
l
a
t
t
h
r
e
e
;
a
ne
m
p
l
o
y
e
r
‖
s
i
n
i
t
i
a
l
o
f
f
e
r
w
o
u
l
dp
r
o
b
a
b
l
y
b
e
o
n
e
or two. At executive levels, the weeks-for-y
e
a
r
s
f
o
r
m
u
l
a
i
s
n
‖
t
a
s
applicable. Middle manage
r
s
s
h
o
u
l
dg
e
t
t
h
r
e
et
of
o
u
r
m
o
n
t
h
s
‖
salary, and high-level executives should look for nine months to a
year.
A way to get more money yet not have a package that looks
b
i
g
g
e
rt
h
a
na
n
y
o
n
ee
l
s
e
‖
si
st
oask to delay your effective
termination date. Even if you never come into the office again,
your official termination date can be put off a few weeks, which
w
i
l
l
a
d
d
a
f
e
wm
o
r
e
w
e
e
k
s
‖
s
e
v
e
r
a
n
c
e
.
Bonuses and Commissions
Refer to the Watch out! paragraph in C
h
a
p
t
e
r7
‖
s“
S
a
l
e
s
C
o
m
p
e
n
s
a
t
i
o
n
”s
e
c
t
i
o
n
.I
f
y
o
uh
a
dt
h
ef
o
r
e
s
i
g
h
t
t
og
e
t
“
w
h
a
t
Special Situations
115
c
o
m
m
i
s
s
i
o
n
s
d
o
I
g
e
t
p
a
i
di
f
I
‖
mn
o
l
o
n
g
e
r
h
e
r
e
”
c
l
e
a
r
w
h
e
ny
o
u
w
e
r
e
h
i
r
e
d
,
k
n
o
we
x
a
c
t
l
y
w
h
a
t
‖
s
d
u
e
n
o
w
.
Whether or not you clarified this up front, you can still
negotiate m
o
r
e
n
o
w
!
I
f
y
o
u
h
a
v
e
d
e
a
l
s
t
h
a
t
a
r
e
c
o
o
k
i
n
g
a
n
d
w
o
n
‖
t
close without your tending, negotiate commissions you otherwise
w
o
u
l
d
n
‖
t
g
e
t
,
i
ne
x
c
h
a
n
g
ef
o
r
h
e
l
p
i
n
gt
h
ec
o
m
p
a
n
yt
oc
l
o
s
eo
r
keep the accounts despite your transition.
Bonuses are another matter. If there is a quarterly or annual
t
r
i
g
g
e
r
d
a
t
e
f
o
r
b
o
n
u
s
e
s
,
a
n
dy
o
u
‖
r
e
l
e
t
g
ob
e
f
o
r
e
t
h
a
t
d
a
t
e
,
t
h
e
company has no obligation to pay you the bonus. But you can
a
s
k
!
A
n
d
i
f
y
o
u
c
a
n
‖
t
g
e
t
i
t
a
l
l
,
m
a
y
b
e
y
o
u
c
a
n
g
e
t
s
o
m
e
p
o
r
t
i
o
n
?
Letters of Recommendation
A nicely worded announcement praising your past
contributions and expressing any company chagrin at having to
l
e
t
s
u
c
h
a
g
o
o
d
e
m
p
l
o
y
e
e
g
o
c
a
n
h
e
l
p
i
n
y
o
u
r
s
e
a
r
c
h
.
D
o
n
‖
t
w
o
r
r
y
t
o
o
m
u
c
ha
b
o
u
t
t
h
i
s
,
t
h
o
u
g
h
;
b
e
i
n
g
f
i
r
e
dd
o
e
s
n
‖
t
c
a
r
r
y
t
h
e
s
t
i
g
m
a
it used to. Offer to give the company a letter for its editing, or ask
to edit a letter given you by the company.
Now is the time to handle this, while the company is
motivated to have a clean break; it would be harder to get a letter
of reference later.
Job-Search Assistance: Outplacement
Most medium and large companies will pay for outplacement: job-search coaching and other ancillary job-search services.
You may need to educate a smaller company about this benefit.
An important thing to negotiate here is your right to choose
t
h
ep
r
o
v
i
d
e
r
.D
o
n
‖
t
w
o
r
r
yt
o
om
u
c
ha
b
o
u
t
t
h
e
c
o
s
t
s
;
o
n
c
ey
o
u
have interviewed a few firms, the one you pick will be able to
negotiate with your personnel office to provide the best possible
services within their budget.
Here are some criteria for choosing an outplacement
provider. Choose a firm that will assign a personal counselor to
work with you one on one. Ideally, its contract should obligate
the firm to stay with you until you find a job, even if it takes a
116
How to Make $1,000 a Minute
year or more. Ask to speak with the assigned counselor briefly to
make sure the chemistry is right. Make sure your counselor has
t
h
r
e
e
o
r
m
o
r
e
y
e
a
r
s
‖
e
x
p
e
r
i
e
n
c
e
d
o
i
n
gt
h
i
s
k
i
n
do
f
w
o
r
k
.I
f
y
o
u
want advice about this, call me. I can help you select a firm. 847853-1046.
Here are some additional niceties. A full outplacement
contract will provide office, phone, message service, printing and
mailing of résumés, and correspondence. An outplacement firm
will also have some research capabilities to help you find
o
r
g
a
n
i
z
a
t
i
o
n
s
t
h
a
t
y
o
u
‖
d
l
ike to work for.
If your parting ways is exceptionally amicable, a job-search
desk and phone and secretarial extras can be provided by your
(former) company, too. That could make outplacement counseling—the most important part—more affordable.
But be c
a
r
e
f
u
l
h
e
r
e
;
d
o
n
‖
t
c
h
o
o
s
eo
u
t
p
l
a
c
e
m
e
n
t
p
r
o
v
i
d
e
r
s
because you think they have more contacts than you do. Rather,
evaluate and rely on their ability to help you make new contacts,
i.e. to coach your self-presentation and networking well enough
that appropriate hiring decision makers are eager to meet you.
The power to make people interested in meeting you is much
b
e
t
t
e
r
t
h
a
n
h
o
p
i
n
g
t
h
a
t
s
o
m
e
o
f
t
h
e
f
i
r
m
‖
s
c
o
n
t
a
c
t
s
w
i
l
l
s
e
e
y
o
u
a
s
a favor.
Negotiating by E-mail
D
o
n
‖
t
d
o
i
t
.
E-mail is 100% verbal; communication is 90% or more
nonv
e
r
b
a
l
(
i
n
f
l
e
c
t
i
o
n
,
p
a
u
s
e
s
,
f
a
c
i
a
l
e
x
p
r
e
s
s
i
o
n
s
,
e
t
c
.
)
.Y
o
u
‖
l
l
b
e
entrusting thousands or even tens of thousands of dollars to a
medium that employs only 10% of your communication abilities.
D
o
e
s“
Y
e
a
h
,r
i
g
h
t
,
”m
e
a
n“
y
e
s
,i
n
d
e
e
d
!
”o
r“
y
o
uc
a
n
‖
tb
e
s
e
r
i
o
u
s
!
”
?Wi
t
h
o
u
t
n
o
n
-v
e
r
b
a
l
s
,
y
o
u
c
a
n
‖
t
t
e
l
l
.
I coached Fred, who had a received an offer by email of
$55,000 and benefits. He had replied by email to the president
t
h
a
t
h
e
w
a
s
n
o
t
i
n
t
e
r
e
s
t
e
da
t
t
h
a
t
p
r
i
c
e
,
a
n
d
t
o
“
t
a
k
e
h
i
s
h
a
t
o
u
t
o
f
Special Situations
117
th
er
i
n
g
.
”Q
u
e
s
t
i
o
n
i
n
gh
i
m
,
I
u
n
c
o
v
e
r
e
dt
h
a
t
“
a
t
t
h
a
t
p
r
i
c
e
”
m
e
a
n
t
F
r
e
d
h
a
d
f
e
l
t
i
n
s
u
l
t
e
d
b
y
t
h
e
p
r
e
s
i
d
e
n
t
‖
s
“
l
o
w
”
o
f
f
e
r
.
While it was true that the offer was a bit low, it was not true
that the employer intended in any way to insult Fred. Upon
deeper examination, we found misplaced anger: it was really
F
r
e
d
‖
sf
r
u
s
t
r
a
t
i
o
ni
nt
h
ej
o
bs
e
a
r
c
ha
n
du
p
s
e
t
a
t
h
i
sp
r
e
v
i
o
u
s
e
m
p
l
o
y
e
r
‖
s
i
n
s
u
l
t
s
t
h
a
t
g
o
t
t
r
i
g
g
e
r
e
d
a
n
d
v
e
n
t
e
d
h
e
r
e
.
A
l
l
b
e
c
a
u
s
e
email can be interpreted as insulting when voice would be heard
as acknowled
g
i
n
g
.O
n
c
et
h
e
s
et
w
o“
e
g
o
s
”g
o
t
t
o
g
e
t
h
e
r
f
a
c
et
o
face, it became clear how valuable each considered the other to be.
Fred was able to negotiate a wonderful deal.
F
WI
W,
I
MH
O(
t
h
a
t
‖
s“
e
-m
a
i
l
s
p
e
a
k
”f
o
r“
F
o
rWh
a
tI
t
‖
s
Wo
r
t
h
,
I
nMyH
u
m
b
l
eO
p
i
n
i
o
n
”
)
,
i
t
‖
s
tough enough to do this
stuff real-space, real-time. Crippling the communications by
subtracting all the non-verbals cannot do any good, and will
probably do harm.
Voice to voice will do; face to face is better.
More Special Situations: see www.SalaryNegotiations.com
I
‖
v
ew
r
i
t
t
e
na
b
o
u
ts
e
v
e
r
a
lo
t
h
e
rn
e
g
o
t
i
a
t
i
o
n
st
o
p
i
c
sa
n
d
situations on my website. Use BoughtTheBook as a password and
y
o
u
‖
l
l
b
e
a
b
l
e
t
o
g
e
t
a
c
c
e
s
s
t
o
t
h
e
s
e
a
r
t
i
c
l
e
s
,
(
a
n
d
m
o
r
e
)
.
Are Bonuses Refundable?
Be Willing to Walk Away
Can My Employer Find Out How Much I am Making?
Catching Up After Starting at a Low Salary
Countering an Aggressive Employer
Declining a Counter-Offer
Deferred Compensation: Why wait?
Does a Title Matter? Should I Negotiate it?
Fixing Negotiation Mistakes
Full time vs. Part time—
Change in Pay?
More About When to Get It In Writing
More Work—
Same Pay. Now What?
118
How to Make $1,000 a Minute
Negotiating Health Benefits & Other Perks
Negotiating Telecommuting
Negotiations: Be Willing to Walk Away.
Promotion or a Lateral Move?
Salary Negotiations in a Slow Economy
Squeezing Money Out of Hard Work and Good Luck
Three Reasons to Decline a Counter-Offer
Took a Low offer--Now what?
Underpaid? Women & Salary Negotiations
Using Internal Information About Salary
Why Men Earn More & What To Do About It
Summary of Special-Situation Rules
When discussing salary expectations outside job
interviews, focus on a researched level of responsibility
and concomitant pay.
With recruiters and employment agents, even when
y
o
u
‖
r
e
d
i
s
c
u
s
s
i
n
ga
s
p
e
c
i
f
i
c
j
o
b
,
y
o
um
a
yg
of
i
r
s
t
,
b
u
t
if
you can avoid it and still get the opportunity to
interview, it can be to your advantage. Stress your
researched expectations, not your present salary, and
give a wide range.
Use a researched range, too, when confronted with rigid
salary structures. See whether you can get a new salary,
based on your market value, within that structure.
Wh
e
ny
o
u
‖
r
eg
e
t
t
i
n
g“
o
v
e
r
q
u
a
l
i
f
i
e
d
”f
e
e
d
b
a
c
ko
r
hesitancy in bringing up salary, check on the status of
the job offer and initiate salary discussions.
When you think youh
a
v
e
n
‖
t
a
n
ye
x
p
e
r
i
e
n
c
e
,
c
h
o
o
s
e
t
o
s
t
a
r
t
Ms
.
Wo
r
t
h
‖
s
v
i
r
t
u
o
u
s
c
y
c
l
e
.
I
fy
o
u
‖
v
eb
e
e
nl
e
tg
o
,d
o
n
‖
tg
oy
e
t
!N
e
g
o
t
i
a
t
ea
severance.
Better yet—negotiate severance in the hiring interview.
Special Situations
119
BTW, IMHO, you should avoid negotiations by e-mail;
HAND.
Check with a
L
a
w
y
e
r
w
h
e
n
i
t
‖
s
c
o
m
p
l
i
c
a
t
e
d
o
r
r
i
s
k
y
.
Go to www.SalaryNegotiations.com for more information
If you can get stock options or grants to own a piece of
t
h
e
r
o
c
k
,
g
o
f
o
r
i
t
!
…w
h
i
c
h
b
r
i
n
g
s
u
s
t
o
t
h
e
n
e
x
t
c
h
a
p
t
e
r
,
“
S
t
o
c
k
O
p
t
i
o
n
s
P
a
c
k
a
g
e
.
”
Chapter 9:
Evaluating And Negotiating A Stock
Options Package
I asked Corey Rosen at the National Center for Employee
Ownership [NCEO] to go into depth on the topic of negotiating
stock options. This chapter is largely his work and you can dive
even deeper in to the subject, if you wish, by getting a copy of his
book.
The NCEO has numerous publications (check the website),
and data about options allocation practices, and an extensive Web
site at www.nceo.org. For more information, contact the NCEO at
(510) 208-1300.
The Fundamentals
I
f
y
o
u
‖
r
e
l
i
k
e
m
o
s
t
p
e
o
p
l
e
,
y
o
u
‖
r
e
e
x
c
i
t
e
dt
o
b
e
g
e
t
t
i
n
g
s
t
o
c
k
o
p
t
i
o
n
sa
sp
a
r
to
fy
o
u
rc
o
m
p
e
n
s
a
t
i
o
n
,
b
u
ty
o
u
‖
r
ea
l
s
oab
i
t
c
o
n
f
u
s
e
db
yj
u
s
t
h
o
wo
p
t
i
o
n
sw
o
r
k
.Y
o
u
‖
v
eh
a
df
r
i
e
n
d
sa
n
d
colleague
s
w
h
o
h
a
v
e
r
e
c
e
i
v
e
ds
t
o
c
k
o
p
t
i
o
n
s
,
b
u
t
y
o
u
‖
r
e
n
o
t
r
e
a
l
l
y
sure how yours compare or how you can negotiate for a better
options package. This chapter is intended to help you make sense
of what you are being offered and give you ideas on what things
might or might not be negotiable.
There is simply too much variation between companies and
e
m
p
l
o
y
e
e
sw
i
t
h
i
nc
o
m
p
a
n
i
e
st
op
r
o
v
i
d
ea“
h
a
r
d
-and-f
a
s
t
”
120
Evaluating and Negotiating a Stock Options Package
121
negotiation strategy for stock options. Instead, the goal here is to
help you understand how options packages vary so that you will
be ready to have an intelligent discussion, understanding both
y
o
u
ra
n
dy
o
u
re
m
p
l
o
y
e
r
‖
sc
o
n
c
e
r
n
s
.T
h
i
sc
h
a
p
t
e
rw
i
l
lf
i
r
s
t
provide an overview of stock options, their tax treatment, and
why they can be valuable. It will then discuss why and how
companies grant stock options, and finally, review some key
considerations in evaluating and negotiating your options
package.
Part 1: Stock Options 101: What Is a Stock Option?
A stock option gives you the right to purchase a certain
number of shares of stock in your company for a fixed price. It is
a contract between you and the company, subject to certain terms
and conditions. The options expire on a certain date, meaning
that you only have a certain period of time in which to purchase
the shares(
a
l
s
ok
n
o
w
na
s“
e
x
e
r
c
i
s
i
n
g
”t
h
eo
p
t
i
o
n
s
)
.T
h
i
si
s
usually ten years. Options are also subject to vesting, a process
through which you gradually earn a right to purchase the shares,
For instance, you might be 20% vested after one year, 40% after
two, 60% after three, 80% after four, and 100% after five years.
This means that after two years, you would have the right to
exercise 40% of the options.
The price at which you can purchase the shares is usually
the fair market price at the time of the grant. With a stock option,
you decide when to purchase the shares and when to sell. You
cannot lose with an option. If the share price never goes over the
grant price, you can simply choose not to purchase the shares.
The simplest way to purchase the shares is with cash. Most
c
o
m
p
a
n
i
e
s
a
l
s
oh
a
v
e“
c
a
s
h
l
e
s
s
”e
x
e
r
c
i
s
em
e
c
h
a
n
i
s
m
s
t
h
a
t
a
l
l
o
w
you to receive the shares without actually spending cash. The
most popular of these are broker-assisted purchases and sales,
company loans, and stock swaps.
In a simple example, you might receive stock options that
give you the right to purchase 1,000 shares at $10 per share for the
next ten years and that vest 25% every year for four years. Seven
122
How to Make $1,000 a Minute
years later, the share price is at $30, so you decide to purchase the
shares. The $20 spread on each share is your gain.
Taxes and the Two Different Types of Options
The gain that you recognize with a stock option is subject to
tax. There are two different types of stock options, each with a
different tax treatment.
Nonqualified Stock Options (NSOs)
Nonqualified stock options (NSOs) do not qualify for any
special tax treatment from the IRS. There are no legal limits of
how many options people can get, nor are there any requirements
for how they should be given out. Companies have complete
discretion. Different employees, even doing the same job, can get
different option packages.
When employees exercise a nonqualified option, they pay
ordinary income tax on the spread between the grant price and
the price on the date of exercise. That spread is treated like part of
your compensation, and you pay the same taxes as if it were part
of your regular paycheck. Your company would get a tax
deduction for the same amount. This is true whether you actually
sell the shares or not.
If you hold onto the shares after exercise, any additional
gain between the price at the time of exercise and the price at the
time of sale is treated as a capital gain. There are two capital gains
tax rates. Short-term capital gains rates are the same as ordinary
income tax rates, but long-term capital gains rates are lower than
ordinary income tax rates. To receive long-term capital gains
treatment, you have to hold onto the stock for at least one year
after exercise before sale.
For example, an individual making $110,000 per year
exercises 1,000 nonqualified options at $10 per share for stock
worth $25. The individual must report a gain subject to ordinary
income tax of $15 x 1,000 ($15,000) and pay 31% tax on that
amount. If the shares are then held for another two years and go
up another $5 per share, this additional gain of $5,000 would be
subject to long-term capital gains.
Evaluating and Negotiating a Stock Options Package
123
Incentive Stock Options (ISOs)
Incentive stock options are more complicated, but offer the
possibility of better tax treatment for employees. When an
employee exercises an ISO they do not pay any tax. When they
later sell the shares, they will pay capital gains taxes on the entire
spread. Companies do not take a tax deduction for ISOs.
In order to qualify for this better tax treatment, ISOs must
comply with certain regulations. Most importantly, the employee
must hold the shares for at least one year after the date of exercise
and two years after the date of grant. The company must also
comply with specific rules in terms of how ISOs are granted.
For example, an individual making $110,000 per year
exercises 1,000 incentive stock options at $10 per share for stock
worth $25. If the shares are held for at least 12 months after
exercise, and go up another $5 per share, for a total gain of
$20,000, the total amount ($25 - $10) would be subject to capital
gains taxes of 20%, or $4,000.
There is another catch. The exercise of an ISO may also
subject optionees to something called the alternative minimum tax
(AMT).
The AMT was enacted to prevent higher-income
taxpayers from paying too little tax because they are able to take a
variety of tax deductions or exclusions. The AMT requires that
taxpayers who may be subject to it calculate their taxes in two
ways. First, they figure out how much tax they would using the
normal tax rules. Then, they add back in to their taxable income
certain deductions and exclusions they took when figuring their
regular tax and, using this now higher number, calculate the
AMT. If the AMT is higher, the taxpayer pays that tax instead.
The spread between the grant price and the price at the time
of exercise i
s
o
n
e
o
f
t
h
e
“
p
r
e
f
e
r
e
n
c
e
i
t
e
m
s
”t
h
a
t
m
u
s
t
b
e
a
d
d
e
d
back into the AMT calculation. In many situations when
employees pay the AMT because of the exercise of ISOs, they will
get most of it back in the future. The amount by which the AMT
exceeds your regulart
a
xp
a
y
m
e
n
tb
e
c
o
m
e
sa“
m
i
n
i
m
u
mt
a
x
c
r
e
d
i
t
”(
MT
C
)
t
h
a
t
c
a
nb
e
a
p
p
l
i
e
di
nf
u
t
u
r
e
y
e
a
r
s
w
h
e
nn
o
r
m
a
l
taxes exceed the AMT amount.
124
How to Make $1,000 a Minute
This explanation is the simplified version of a potentially
complex matter. Anyone potentially subject to the AMT should
use a tax advisor to make sure everything is done appropriately.
If you receive ISOs take care to consider if you are subject to these
rules.
With an ISO, it is also important to emphasize that you do
not have to meet the holding periods. You only have to meet the
holding periods to receive the favorable tax treatment. If you fail
to meet the holding period requirements, then the option is just
t
r
e
a
t
e
dl
i
k
ea
nN
S
O
.T
h
i
si
sk
n
o
w
na
sa“
d
i
s
q
u
a
l
i
f
y
i
n
g
disposition. You pay ordinary income tax on the spread between
the grant price and the price at exercise and then capital gains on
the rest. Since you are disqualifying, you are not holding on to the
stock for one year, so you also pay short-term capital gains rates.
What Is It Really Worth?
The ultimate financial benefit of a stock option to you is the
difference between the price at which you purchase the stock and
the price at which you eventually sell the stock, minus the
appropriate taxes. Maximizing this value, however, is not an easy
decision. The decisions about when to exercise and when to sell
depend on your beliefs about the stock price, tax consequences,
and your tolerance for risk. Most economists would argue that to
m
a
x
i
m
i
z
et
h
ev
a
l
u
eo
f
a
no
p
t
i
o
n
,
y
o
us
h
o
u
l
d
n
‖
t
e
x
e
r
c
i
s
ey
o
u
r
options early, but hold on until nearly the end of the exercise
term, exercising at a point prior to that when you feel the stock is
relatively high.
T
h
a
t
‖
se
a
s
yf
o
rt
h
e
mt
os
a
y
.I
fy
o
ua
r
es
i
t
t
i
n
go
na
n
u
n
e
x
e
r
c
i
s
e
do
p
t
i
o
nt
h
a
th
a
sg
a
i
n
e
dc
o
n
s
i
d
e
r
a
b
l
ev
a
l
u
e
,i
t
‖
s
tempting to c
o
n
s
o
l
i
d
a
t
e
y
o
u
r
g
a
i
n
s
.
I
t
‖
s
e
v
e
n
m
o
r
e
t
e
m
p
t
i
n
g
i
f
t
h
e
m
a
r
k
e
t
h
a
s
b
e
e
nv
o
l
a
t
i
l
e
f
o
r
y
o
u
r
c
o
m
p
a
n
y
‖
s
s
h
a
r
e
s
o
r
y
o
un
e
e
d
the money for something important. The economists are usually
right, however. Assume you have an option to buy at $10 and the
stock is at $25 six years later. If you exercise at $25, you either
hold onto the shares and pay no taxes until sale (if it an ISO) or
pay taxes now (if it is an NSO). In either event, you have paid $10
per share, and, if you pay taxes, probably another $3 or $4 per
Evaluating and Negotiating a Stock Options Package
125
share as well. So you have between $10 per share and $14 per
s
h
a
r
e
t
h
a
t
‖
s
b
e
e
ns
p
e
n
t
.T
h
a
t
m
o
n
e
yi
s
n
‖
t
a
v
a
i
l
a
b
l
e
t
oi
n
v
e
s
t
i
n
o
t
h
e
r
t
h
i
n
g
s
.
B
y
c
o
n
t
r
a
s
t
,
i
f
y
o
u
w
a
i
t
t
o
e
x
e
r
c
i
s
e
,
i
t
i
s
.
I
t
‖
s
a
s
t
r
o
n
g
argument, but one you need to evaluate in terms of the tax
consequences, other investment opportunities, financial goals, and
assessment of the risk of waiting.
P
a
r
t
2
:
T
h
e
C
o
m
p
a
n
y
’
s
P
e
r
s
p
e
c
t
i
v
e
U
n
d
e
r
s
t
a
n
d
i
n
g
t
h
e
c
o
m
p
a
n
y
‖
s
p
e
r
s
p
e
c
t
i
v
e
s
h
o
u
l
d
g
i
v
e
y
o
u
a
better basis for understanding why your company is granting you
stock options and the constraints on the company in offering this
form of reward. Armed with this knowledge, you are in a better
position to see why your option package is what it is and, if you
are attempting to negotiate a better package, how you might
improve it.
Wh
y
P
a
y
i
n
O
p
t
i
o
n
s
a
t
A
l
l
Wh
e
n
T
h
e
r
e
’
s
A
l
w
a
y
s
C
o
l
d
,
H
a
r
d
C
a
s
h
?
Why would companies go to all this hassle to provide
o
p
t
i
o
n
s
t
o
e
m
p
l
o
y
e
e
s
?F
i
r
s
t
,
s
o
m
e
c
o
m
p
a
n
i
e
s
d
o
n
‖
t
h
a
v
e
t
h
e
c
a
s
h
.
This applies mostly to small start-ups that need to conserve every
dollar to keep operating. They may, in effect, make a deal with
employees to accept a right to a share of the future growth of the
company instead of a more competitive salary.
Second,
companies may have enough cash on hand, but prefer to use it to
fund growth. Most of these companies are already paying a
competitive wage, but want to provide employees with something
extra.
A third incentive for paying in options is that a quirk in
accounting rules provides that companies do not have to show
any current expense on their income statement when they issue
employees options, although there are a few exceptions.
Fourth, companies pay in options because employees
demand them. Over the last quarter century, real wages have
increased hardly at all, while returns to shareholders have gone
up at a rate much faster than any time in history. Employees have
figured out that the road to wealth lies through ownership.
126
How to Make $1,000 a Minute
Finally, companies see options as a way to tie employees to the
company, to give them an interest in helping the company
perform better.
How Companies Grant Stock Options
Companies have a great deal of flexibility in how they grant
stock options. There are few rules and regulations about who gets
options, how many, and how often.
Some companies grant to everyone, others grant to
employees at certain levels, others grant to only managers or
executives. It is entirely up to the company. As for as the timing
of grants, most companies, especially in the high-tech sector, grant
options to employees when they are hired. Many companies
supplement these new hire grants with ongoing grants. Another
common granting practice is to grant options to employees at one
time for individual performance or as part of a larger companywide grant.
In terms of how many options employees receive, it is also
entirely up to the company. Most often, the number of options
depends on your position in the company. Like salary, in general,
the higher up your position, the more options you will receive.
For new hire grants, the amount given to new employees is
usually driven by competitive considerations: how much do we
need to give to get someone to do this job considering what other
companies are doing? Often these grants are substantial, and
there may be significant variation even within a company. You
may be able to negotiate the option package you receive at the
time of hire, especially if you have skills and experience that are in
serious demand.
Ongoing grants are often based on getting promoted or
performance reviews. Here there may be room to negotiate as
p
a
r
t
o
f
ap
e
r
f
o
r
m
a
n
c
ec
o
n
t
r
a
c
t
(
“
i
f
I
c
a
nd
ot
h
i
s
,
I
w
i
l
l
g
e
t
t
h
i
s
n
u
m
b
e
r
o
f
o
p
t
i
o
n
s
”
)
.O
t
h
e
r
c
o
m
p
a
n
i
e
s
m
a
yg
r
a
n
t
o
p
t
i
o
n
s
b
a
s
e
d
on the achievement of corporate or group targets, in which case
there is usually a set formula for who will get what. Finally, many
plans grant options solely at the discretion of a group leader,
m
a
n
a
g
e
m
e
n
t
,
o
r
t
h
e
c
o
m
p
a
n
y
‖
s
b
o
a
r
d
o
f
d
i
r
e
c
t
o
r
s
.
H
e
r
e
t
o
o
t
h
e
r
e
Evaluating and Negotiating a Stock Options Package
127
may be room for negotiation if you feel you have leverage with
the company.
For most one-time, company wide grants, all employees get
the same number of stock options. This approach is most
common in very large companies. Of course, these approaches
are not mutually exclusive, and plans may often include elements
of more than one approach.
Part 3: Evaluating and Negotiating Your Option Agreement
The most important factor that will determine the value of
y
o
u
r
o
p
t
i
o
n
si
st
h
ep
e
r
f
o
r
m
a
n
c
eo
f
t
h
ec
o
m
p
a
n
y
‖
ss
t
o
c
kp
r
i
ce,
something that is not negotiable. There are certain terms and
conditions of the option agreement, however, you may be able to
negotiate. Here are some of the more important terms.
How Many Options Should You Get and What Does That Mean?
This is a very important and difficult question. A smaller
number of options in a company with very good growth prospects
may be just as or more valuable than a large number of options in
a company growing more slowly. The risk that the options will be
worth anything at all varies too. Here, however, are some of the
factors you need to consider in evaluating what the number of
options you are offered means. There is data available from the
NCEO and other organizations about how options are allocated in
various kinds of companies. You can use this as a very rough
guide to see how your peers fare, but these data should be viewed
with considerable caution.
Are you better off working for a company that gives you
100, 1,000, or 10,000 options? The answer is you cannot say from
just this information. If you get 10,000 options at $1, 1,000 options
at $10, or 100 options at $100, you have the same current economic
value. Consider this example. Assume that company A gives you
10,000 options at $1, Company B 1,000 options at $10, and
Company C 100 options at $100. Assume further than each
c
o
m
p
a
n
y
‖
ss
t
o
c
kp
r
i
c
eg
r
o
w
s1
0
%o
v
e
rt
h
en
e
x
t
s
e
v
e
ny
e
a
r
s
.
Factoring in the compound rate of growth on this, your stock
128
How to Make $1,000 a Minute
w
o
u
l
dj
u
s
t
a
b
o
u
t
d
o
u
b
l
e
i
nt
h
a
t
t
i
m
e
.T
om
a
k
e
i
t
s
i
m
p
l
e
,
w
e
‖
l
l
assume it does. Here is what you would have:
Company A: 10,000 options at $1.
Option price = $1
Purchase price = $2
Net gain = 10,000 x $1 ($2 per share - $1 per share) = $10,000
Company B: 1,000 options at $10
Option price = $10
Purchase price = $20
Net gain = $1,000 x $10 ($20 per share - $10 per share) = $10,000
Company C: 100 options at $100
Option price = $100
Purchase price = $200
Net gain = 100 x $100 ($200 per share - $100 per share) = $10,000
In other words, the number of options is not the key
calculation. It is the number of options times the price at which
t
h
e
o
p
t
i
o
n
s
a
r
e
g
r
a
n
t
e
dt
h
a
t
f
i
x
e
s
t
h
e
“
f
a
c
e
”
v
a
l
u
e
o
f
t
h
e
o
p
t
i
o
n
.
B
u
t
t
h
i
s
c
a
l
c
u
l
a
t
i
o
nl
e
a
v
e
s
m
u
c
ht
ob
e
d
e
s
i
r
e
d
.I
t
‖
s
r
e
a
l
l
yo
n
l
ya
starting point. Several other factors affect just how to assess the
value of the number of options you have.
Company Risk
How likely is it that the company will even be around in a
few years? And if it is, what is the chance its share price will go
up, and if so, by how much? There is no easy way to answer these
questions. In general, the riskier the company, the greater the
potential gain. With a lot of options in a risky company, you
could strike it rich –or end up with zero. You could end up
somewhere in the middle too. In a more stable company with a
steadily growing stock price, you are much more likely to end up
somewhere in the middle.
Volatility
Probably nothing surprises option holders more than to
learn that options are generally worth more in companies with
Evaluating and Negotiating a Stock Options Package
129
volatile stock. With a volatile stock, the price experiences lots of
ups and downs, as opposed to a stock that is not volatile, which
grows or declines in a much more stable, incremental fashion. An
option gives you the chance to exercise at the high points and lets
you ignore the low ones. There is also, however, the risk that
some volatile companies may go out of business altogether.
Will You Get More Options in the Future?
The options you get when you join the company hopefully
are not the last you will get. Structuring an agreement so that you
can get additional options over time is a critical negotiating issue.
In fact, you may not want to get all your options up front. If you
get all or most of your options early on, you have entered a
lottery. If the price was historically very high, your options may
turn out to be not worth much. You would be better off in this
scenario if you got options periodically, some at $100, some at the
dip next year when the stock went to $60, and so on. You average
out your risk this way.
Type of Option
I
ng
e
n
e
r
a
l
,
i
t
‖
s
b
e
t
t
e
r
f
o
r
y
o
ut
o
h
a
v
e
I
S
O
s
t
h
a
nN
S
O
s
.Y
o
u
d
o
n
‖
t
h
a
v
e
t
o
p
a
y
t
a
x
e
s
r
i
g
h
t
a
w
a
y
,
s
o
y
o
u
m
a
y
b
e
a
b
l
e
t
o
h
o
l
d
o
n
to at least some of the shares. On the other hand, if the AMT is
going to effect you, or you are already in a very low tax bracket,
t
h
i
s
a
d
v
a
n
t
a
g
e
m
a
yb
e
n
e
g
l
i
g
i
b
l
e
.I
t
‖
s
w
o
r
t
ha
s
k
i
n
gf
o
r
I
S
O
s
i
n
most cases, especially in start-up companies where taxes for the
company are not going to be an issue for the foreseeable future.
Most companies, however, are not likely to want to bargain on
this issue.
The Exercise Period
The longer the term of your option (the number of years you
have to exercise it), the more valuable it is. If you can continue to
buy stock at $10 for ten years, that is obviously worth a lot more
than a right to buy for only five. While this is a critical factor, it
may be a tough one to negotiate. Companies rarely give different
people different terms.
130
How to Make $1,000 a Minute
Vesting
Employees gradually receive a right to exercise their stock
options through a process known as vesting. Vesting schedules
are usually fixed for everyone. Most companies vest options over
a period of three to five years. Vesting does not always proceed
evenly across the years. Some companies provide equal vesting,
25% per year, for instance. Others may vest a large share each
year. Some companies vest a little every quarter or even every
month, usually so that people will not exercise their options all at
the same time each year. More frequent vesting events also can
provide employees better opportunities, especially in volatile
companies where employees may want to exercise their options
quickly to take advantage of market fluctuations. Like the length
of the option term, however, companies will rarely negotiate a
different vesting schedule.
Transfer Rights
Stock options can only be transferred to other parties if the
plan specifically allows it. Companies are generally not eager to
offer transfer rights broadly to employees, however, even to their
family members. Usually, this right is granted, if at all, only to
key people.
Selling Your Shares in a Closely Held Company
If your company is publicly traded, shares you purchased
through stock options can be sold on a stock exchange. What if
your company is not publicly traded? How do you sell your
shares? There are three common provisions for this in closely held
companies. In many cases, options can be exercised at any time
they are vested, but the shares can only be sold if the company
goes public or is sold. A second approach is to provide an internal
market for the shares, either by having the company buy them or
other individuals, often employees, buy them. Finally, the
company may agree to buy any shares only at the price they were
granted unless the company is sold or goes public.
From the company standpoint, the first approach is
preferable because it has the least cost. From your standpoint, the
Evaluating and Negotiating a Stock Options Package
131
second makes the most sense, with the third being in the middle.
But if the shares are purchased internally, you need to understand
and be comfortable with how a value is set for the shares.
Change of Control and IPOs
What happens to your stock options when the company is
s
o
l
d(
a
“
c
h
a
n
g
e
o
f
c
o
n
t
r
o
l
”
t
r
a
n
s
a
c
t
i
o
n
)
o
r
g
o
e
s
p
u
b
l
i
c
(
a
n
“
i
n
i
t
i
a
l
p
u
b
l
i
c
o
f
f
e
r
i
n
g
”
)
.
When a company is sold, there is no standard answer, but
some important considerations. The first is whether your
unvested options will vest on change of control. Most of the time,
unvested options vest fully on a change of control. However,
some plans leave the matter up to the discretion of the board of
directors, while others cancel any unvested shares.
The second consideration is when and to whom will you be
able to sell the shares that from exercised options. In most cases,
they will be purchased by the acquiring company as part of the
transaction. Because there is no legal requirement that plans
provide this, however, a plan could provide that the shares will be
purchased at a later date or that employees will get shares in the
acquisition company in their place. If these are publicly traded
shares, this is not a problem, but if they are shares of a closely held
company, you may not be able to sell them
The final consideration here is whether your options will be
exchanged for options in the new company, a common approach.
Existing options generally would carry forward their vesting and
exercise terms, but not necessarily. Generally, the options
exchange is supposed to be for equal value, although this can be a
complex issue.
If a company does a public offering, the issues are usually
more straightforward. Options typically simply continue their
vesting and exercise terms, but now the shares are more liquid.
However, securities rules prohibit the sale of shares obtained
through options exercises for certain employees (generally, top
executives). In some cases, the company and/or its investors and
investment bankers (those who arrange the transaction to go
132
How to Make $1,000 a Minute
public) may establish rules that prevent the sale of shares from
options for defined periods of times.
As with other aspects of options, these issues may or may
not be negotiable, but, in general, issues concerning change of
control may be more negotiable than other issues. In any event, it
is important at least to have a clear understanding of what will
happen in these cases and have specific language in your option
grant covering them. Otherwise, you are leaving these events
purely to the discretion of whoever controls the company at the
time these events occur.
Conclusion
There is a great deal to consider in understanding and, if
possible, negotiating an options package. It may seem daunting
to go through all this, and tempting just to trust the plan to be set
up properly and fairly which it may well be. But some plans may
simply overlook certain important issues that, if brought to the
attention of management, they will agree need to resolve. In other
cases, terms may not be what you would like, but they were
carefully thought about and may be difficult to change, but you
c
a
n
‖
t
k
n
o
wu
n
t
i
l
y
o
u
a
s
k
.
If your options package is substantial, and you are at all
uncertain about it, it may be advisable to seek professional advice,
usually an attorney or accountant familiar with these plans.
Corey Rosen wrote Equity: Why Employee Ownership Is Good
For Business. Check my website for further connections.
Chapter 10:
Raises and Salary Reviews
Why Would Your Boss Give You a Raise?
If you want a higher salary for your present job, it behooves
you to answer this question: Why would anybody want to give
somebody a raise?
B
y
“
r
a
i
s
e
,
”
I
d
o
n
‖
t
m
e
a
n
a
c
o
s
t
-of-living adjustment (COLA)
t
o
k
e
e
pp
a
c
e
w
i
t
hi
n
f
l
a
t
i
o
n
.I
f
y
o
u
‖
v
e
r
e
a
d“
N
e
g
o
t
i
a
t
i
n
gB
e
n
n
i
e
s
a
n
dP
e
r
k
s
”i
nC
h
a
p
t
e
r7
,
y
o
ur
e
a
l
i
z
et
h
a
t
‖
sn
or
a
i
s
e
.Wh
e
n
consum
e
rp
r
i
c
e
sa
r
ec
l
i
m
b
i
n
g
,
m
o
s
tw
o
r
k
e
r
s
‖r
a
i
s
e
sh
a
v
e
,
i
n
r
e
a
l
i
t
y
,
j
u
s
t
h
e
l
p
e
d
t
h
e
mk
e
e
p
p
a
c
e
w
i
t
h
i
n
f
l
a
t
i
o
n
.
L
e
t
‖
s
l
o
o
k
b
a
c
k
at relatively high inflation years.
The first version this book was published about 1988, and
inflation in the United States was 4.4 percent, and for the four
years after was 4.6, 6.1, 3.1, and 2.9 percent, respectively. [You can
do the same type of math for 2000 –2006 inflation stats.] That
t
o
t
a
l
s
2
1
.
1
p
e
r
c
e
n
t
b
ys
i
m
p
l
e
a
d
d
i
t
i
o
n
.B
u
t
i
t
‖
s
r
e
a
l
l
ym
o
r
e
t
h
a
n
that because inflation, like interest on savings accounts,
compounds. So for 1988-93, inflation actually cut purchasing
power almost 23 percent!
For example, if you earned $30,000 in 1988 and $36,875 in
1
9
9
3
,
y
o
ud
i
d
n
‖
t
r
e
c
e
i
v
e
a
r
a
i
s
e
a
t
a
l
l
.
Y
o
uw
o
u
l
dn
e
e
di
n
1
9
9
3
t
o
have earned almost one and a quarter times your 1988 salary just
to maintain the same buying power.
133
134
How to Make $1,000 a Minute
B
u
t
w
a
i
t
.
I
t
‖
s
e
v
e
n
w
o
r
s
e
t
h
a
n
t
h
a
t
!
In 1988 your income was taxed in the thirty-grand bracket.
N
o
wy
o
u
‖
r
ep
a
y
i
n
gt
a
x
e
so
nn
e
a
r
l
yt
h
i
r
t
y
-seven grand so
probably a
r
e
i
nah
i
g
h
e
r
t
a
xb
r
a
c
k
e
t
.T
h
a
t
m
e
a
n
s
w
e
‖
r
e
t
a
l
k
i
n
g
about a 23-to-40-percent increase in pay needed over five years
just to buy the same house, clothes, and food as before. The numbers
for low inflation years, like 1998-2000 are still a hefty amount, eh?
With inflation that high, why would anybody want to give
somebody a raise, too?
T
h
ea
n
s
w
e
r
i
s
t
h
a
t
e
m
p
l
o
y
e
r
s
d
o
n
‖
t
give raises, employees
earn them.
Remember the Make me a buck p
r
i
n
c
i
p
l
e
?H
e
r
e
‖
s
a
c
o
r
o
l
l
a
r
y
:
The longer you are in a particular job, the better you perform it
(one hopes). The better you perform it, the more goods and
services you produce in that same forty-hour week, therefore the
m
o
r
e
v
a
l
u
e
y
o
u
‖
r
e
p
r
o
d
u
c
i
n
gf
o
r
y
o
u
r
e
m
p
l
o
y
e
r
.S
o
,
s
i
n
c
e
y
o
u
’
r
e
making the employer more bucks, a raise is just your fair share of those
bigger profits.
If you think you deserve a raise just for reporting to work
e
a
c
h
o
f
l
a
s
t
y
e
a
r
‖
s
2
5
1
w
o
r
k
d
a
y
s
,
y
o
u
‖
r
e
m
i
s
t
a
k
e
n
.
P
e
o
p
l
e
a
c
t
a
s
i
f
t
h
e
y
‖
r
eentitled t
oar
a
i
s
ee
v
e
r
yy
e
a
r
b
u
t
,
f
r
o
my
o
u
r
e
m
p
l
o
y
e
r
‖
s
perspective, continued increases in salary without increases in
value merely make you a prime target for the next layoffs. During
the last recession, that happened to many managers who were
being overpaid for the amount of work they did. They were either
let go or encouraged to retire.
Earning It
At first glance, continually boosting your output might look
like an overwhelming task. You may wonder just how much
m
o
r
e
p
r
o
d
u
c
t
i
v
e
y
o
u
‖
dh
a
v
e
t
ob
e
t
oe
a
r
na
r
a
i
s
e
.S
a
yy
o
u
‖
r
e
i
n
the same job for ten years and need to accomplish more each year.
Y
o
um
i
g
h
t
r
e
a
c
ha
p
o
i
n
t
w
h
e
r
e
y
o
ut
h
i
n
k
,
“
I
c
a
n
‖
t
d
oa
n
ym
o
r
e
t
h
a
n
I
‖
ma
l
r
e
a
d
y
d
o
i
n
g
!
”
Raises and Salary Reviews
135
B
u
t
t
h
a
t
‖
s
n
o
t
s
o
.I
f
y
o
us
e
t
y
o
u
r
s
i
g
h
t
s
c
o
r
r
e
c
t
l
y
,
y
o
uc
a
n
contribute more every single year than you did the year before.
I
‖
mn
o
t
t
a
l
k
i
n
g
a
b
o
u
t
w
o
r
k
i
n
g
h
a
r
d
e
r
,
I
‖
mt
a
l
k
i
n
g
a
b
o
u
t
w
o
r
k
i
n
g
smarter. If you put your brain to it, you can actually work less
time and accomplish more. And there are no upper limits,
especially in the new millennium when there are countless ways
t
h
a
t
e
l
e
c
t
r
o
n
i
c
s
c
a
n“
c
h
i
pa
w
a
y
”
a
t
m
a
n
yo
f
t
h
e
t
i
m
e
-consuming
t
a
s
k
s
o
f
y
e
s
t
e
r
y
e
a
r
.A
n
dt
h
e
r
e
‖
s
n
e
v
e
r
a
l
i
m
i
t
t
ot
h
e
s
a
t
i
s
f
a
c
t
i
o
n
and commitment you can create in co-workers, management,
customers, and vendors.
A
l
t
h
o
u
g
hy
o
ud
o
n
e
e
dt
o
b
e
m
o
r
e
v
a
l
u
a
b
l
e
,
y
o
ud
o
n
‖
t
n
e
e
d
to double your output to net a 5-percent raise. A solid record of
g
o
o
dw
o
r
ki
sa
l
l
t
h
a
t
‖
sr
e
q
u
i
r
e
d
.I
f
y
o
u
rm
i
n
di
sa
c
t
i
v
ea
n
d
engaged in your job, productivity increases will happen
automatically. All you need to do is notice them.
Since the focus of this book is salary and raise negotiating,
this chapter concentrates on negotiating r
a
i
s
e
sy
o
u
‖
v
ee
a
r
n
e
d
rather than earning raises to negotiate. The latter—performing on
the job in such a way that you deserve a raise—is a book in itself.
Two books, in fact, and a tape set:
Richard Germann: Working and Liking It
Steve Kravette: Get a Raise in 60 Days
Jack Chapman (me!): How to Beat the System and Get a
Raise! (Tape Set & Workshop Manual)
T
h
e
t
w
ob
o
o
k
s
a
r
e
o
l
d
,
b
u
t
t
h
e
b
e
s
t
I
‖
v
e
s
e
e
n
.Amazon.com
can locate copies for y
o
u
.Y
o
u
‖
l
l
f
i
n
dm
o
r
e
i
n
f
oi
n“
R
e
s
o
u
r
c
e
s
”
section in the back of this book.
R
i
c
h
a
r
dG
e
r
m
a
n
n
‖
s
book takes you through a program to
create an ideal job out of your present one. It covers analyzing
your best talents, establishing a contact-and-information network
within your company, defining your ideal situation, gaining
recognition for your worth, and launching a step-by-step
campaign using research, communication, and persuasion.
S
t
e
v
eK
r
a
v
e
t
t
e
‖
sb
o
o
kt
e
a
c
h
e
sy
o
ut
h
ea
t
t
i
t
u
d
ea
n
d
performance you need to get a raise at any time you want one,
without working overtime or changing company policies.
136
How to Make $1,000 a Minute
Each is a powerful book that I recommend for strategies on
earning a promotion or raise.
Figure 10-1
.
E
m
p
l
o
y
e
r
s
d
o
n
’
t
g
i
v
e
r
a
i
s
e
s
.
Employees earn them.
My tape set adds a very practical and motivational element
t
o
t
h
e
i
d
e
a
s
p
r
e
s
e
n
t
e
di
nMr
.
K
r
a
v
e
t
t
e
‖
s
b
o
o
k
. The set includes a
workbook and taped exercises to turn his ideas into an easily
implemented, almost foolproof way to get a raise. The tapes also
augment some of the raise-negotiating techniques that follow.
Communication Is the Key
N
o
ww
e
‖
l
l
l
e
a
r
n
h
o
wto negotiate.
L
e
t
‖
s
a
s
s
u
m
e
y
o
u
‖
v
e
k
e
p
t
your shoulder to the wheel all year long. You have thrown every
Raises and Salary Reviews
137
morsel of energy, creativity, and positive mental attitude humanly
possible into your job. You have made your company a bundle.
How do you negotiate a raise? Communication. Here are
three communication steps:
1)
Document your results;
2)
Get your boss to acknowledge them;
3)
N
e
g
o
t
i
a
t
ear
a
i
s
et
h
es
a
m
ew
a
yy
o
u
‖
dn
e
g
o
t
i
a
t
ea
salary.
A
c
c
o
r
d
i
n
g
t
o
t
h
e
s
a
y
i
n
g
“
T
h
e
w
h
e
e
l
t
h
a
t
s
q
u
e
a
k
s
t
h
e
l
o
u
d
e
s
t
i
s
t
h
e
o
n
e
t
h
a
t
g
e
t
s
t
h
e
g
r
e
a
s
e
,
”
a
c
o
m
p
l
a
i
n
e
r
m
a
y
g
e
t
m
o
r
e
n
o
t
i
c
e
t
h
a
n
y
o
u
d
o
.
D
o
n
‖
t
a
s
s
u
m
e
t
h
a
t
y
o
u
r
b
o
s
s
k
n
o
w
s
w
h
a
t
a
g
o
o
d
j
o
b
y
o
u
‖
v
ed
o
n
et
ok
e
e
pt
h
i
n
g
s
r
u
n
n
i
n
gs
os
m
o
o
t
h
l
y
.B
o
s
s
e
s
w
h
o
allow efficient workers the freedom to do a good job are less likely
t
ob
ea
w
a
r
eo
f
w
o
r
k
e
r
s
‖
a
c
c
o
m
p
l
i
s
h
m
e
n
t
s
!S
u
c
hb
o
s
s
e
s
a
r
es
o
trusting of your work that they naturally pay attention to their
p
r
o
b
l
e
m
s
i
n
s
t
e
a
do
f
y
o
u
r
p
e
r
f
o
r
m
a
n
c
e
.T
h
e
y
a
r
e
n
‖
t
m
o
t
i
v
a
t
e
dt
o
del
v
e
i
n
t
o
y
o
u
r
a
c
c
o
m
p
l
i
s
h
m
e
n
t
s
.
T
h
e
r
e
f
o
r
e
,
y
o
u
‖
l
l
h
a
v
e
t
o
d
e
l
v
e
for them.
The best way to do that is to keep a job journal. If your
review is due soon, start your journal by reviewing the period
since your last raise and writing down the most significant things
y
o
u
‖
v
e
d
o
n
e
.
I
f
y
o
u
r
r
e
v
i
e
wi
s
a
l
o
n
g
t
i
m
e
o
f
f
,
b
e
g
i
n
y
o
u
r
j
o
u
r
n
a
l
today and it will be your magic carpet to Raiseland later. Start by
purchasing a spiral notebook big enough to hold large entries and
small enough to tuck into a very accessible place.
I
‖
mi
n
d
e
b
t
e
dt
oC
a
r
l
A
r
m
b
r
u
s
t
e
r
,
aMa
s
s
a
c
h
u
s
e
t
t
sc
a
r
e
e
r
counselor, for the following description of a job journal, a splendid tool for negotiating raises.
A journal can assist your career in a number of ways, but
none of them is magical. You have to work at career advancement, and a journal gives you excellent material to accomplish the
task.
What do you write in your career log? There are four kinds
of observations. The first kind is about your achievements. As
you work you are solving certain problems, learning new
138
How to Make $1,000 a Minute
techniques, creating new approaches.
Record these small
triumphs in your journal, with enough factual information to
describe exactly what happened and what the results were.
Quantifiable data such as approximate percentages, rounded
dollar figures, or units of time are especially desirable.
A
c
h
i
e
v
e
m
e
n
t
s
d
o
n
‖
t
h
a
v
e
t
ob
e
e
a
r
t
h
-s
h
a
k
i
n
g(
y
o
uw
e
r
e
n
‖
t
h
i
r
e
d
to be a miracle worker), but they should be tangible evidence of
your effectiveness on the job.
The second set of observations comes from time spent
studying your superiors, colleagues, subordinates, or customers.
Start a policy of observing people in order to find out what their
s
t
r
o
n
g
e
s
t
t
a
l
e
n
t
s
a
r
e
.
D
o
n
‖
t
l
o
o
k
f
o
r
w
e
a
k
n
e
s
s
e
s
o
r
c
h
i
n
k
s
i
n
t
h
e
i
r
armor, because negative appraisals don
‖
t
l
e
a
da
n
y
w
h
e
r
e
.T
h
e
y
just sour you on the people.
But a positive observation of what their skills are can help
you respect them and thus lay a firm foundation for building
good human relations. Also, you will know more precisely how
to approach them effectively to get their support for your projects,
promotions, or raises. Your notebook forces you to be aware of
them.
The third set of observations includes your ideas for
progress. How often have you had the experience of getting a
brilliant insight into how to do your job better or to create
something more efficient and then two weeks later find that
y
o
u
‖
r
eu
n
a
b
l
et
or
e
c
a
l
l
t
h
ei
d
e
at
h
a
t
h
a
de
x
c
i
t
e
dy
o
us
om
u
c
h
?
Since they may be lost due to the frailty of human memory,
insights of genius should be recorded.
The fourth kind of observation includes news items,
information, or sources of information about your chosen career
field, such as newspaper and magazine articles. You want to be
p
r
o
f
e
s
s
i
o
n
a
l
a
n
dk
e
e
pu
pw
i
t
hw
h
a
t
‖
s
g
o
i
n
g
o
n
.Y
o
u
r
r
e
a
d
i
n
g
i
n
your field should be documented for future use.
Raises and Salary Reviews
139
Using a Job Journal
For documenting your results, use your journal in step one
of negotiating a raise.
A few weeks before your review, look through (or if you
d
o
n
‖
t
h
a
v
e
a
j
o
u
r
n
a
l
,
t
h
i
n
k
t
h
r
o
u
g
h
)
t
h
e
f
i
r
s
t
k
i
n
d
of observations:
your achievements since your last raise. Especially note the
d
i
f
f
e
r
e
n
c
e
s
b
e
t
w
e
e
nw
h
a
t
y
o
u
‖
r
ed
o
i
n
gn
o
wa
n
dw
h
a
t
y
o
ud
i
d
when you started at your current salary. Measure your achievements with respect to dollars, people, productivity, exposure, or
anything else countable or measurable.
Analyzing your work with respect to measurable results
gives you a concrete success agenda to share with your raise giver
a
n
ds
h
o
w
s
y
o
uh
o
wy
o
u
‖
v
e
a
c
t
u
a
l
l
y
b
e
e
ns
p
e
n
d
i
n
g
t
h
e
t
i
m
e
t
h
a
t
,
in effect, the employer buys from you.
In analyzing your results, take the raise-g
i
v
e
r
s
‖
v
i
e
w
p
o
i
n
t
.
What matters to them? What puts more money in their paychecks
or bonuses? What will they be able to parlay into their own raises
or promotions? What do they care deeply about?
For example, you were tired of being bugged repeatedly
about the same old tripe by every new employee. So you
organized a training program for the new people who come into
your department. As a result these people now know what
t
h
e
y
‖
r
ed
o
i
n
g
.B
u
tw
h
a
t counts to your boss? The boss is
interested that your training program cuts 50 percent off the time
he previously wasted on getting recruits up to speed. And that
you were able to give 50 percent more of your own time to other
money-making work because y
o
ud
i
d
n
‖
th
a
v
et
oa
n
s
w
e
r
ridiculous questions every ten minutes.
This is where the second set of observations comes into play.
Read through (or think about) the things that matter to your boss.
T
h
e
s
e
a
r
e
n
‖
t
a
l
w
a
y
s
r
e
l
a
t
e
dt
o
m
o
n
e
y
.
B
o
s
s
e
s
c
a
na
l
s
o
c
a
r
e about
neatness, safety, morale, confidentiality, corporate visibility,
efficiency, creativity, good press, or even fancy titles and time for
golf. Knowing what your boss values will help you measure your
140
How to Make $1,000 a Minute
results in language he or she will understand and appreciate. If
y
o
u
d
o
n
‖
t
k
n
o
ww
h
a
t
y
o
u
r
b
o
s
s
c
o
n
s
i
d
e
r
s
i
m
p
o
r
t
a
n
t
,
a
s
k
!
Then take time to fill out pages similar to the Review
Preparation Worksheet in figure 10-2. Use a separate page for
e
a
c
ha
c
h
i
e
v
e
m
e
n
ty
o
u
‖
v
eh
a
ds
i
n
c
ey
o
u
rl
a
s
ts
a
l
a
r
yi
n
c
r
e
a
s
e
.
Later, come up with goals for yourself for the next year. You can
use the ideas section from your journal. As an example, say your
idea is to start up a chocolate-ice-cream break at 10:00 each
m
o
r
n
i
n
g
.I
f
y
o
uh
a
v
e
a
c
h
o
c
o
h
o
l
i
c
b
o
s
s
,
y
o
u
‖
r
e
f
i
n
e
.O
t
h
e
r
w
i
s
e
,
project how much more work will get done, in the short or long
term, so the discussion will have some merit.
Observations from the fourth section of your journal, news
in your field, may also generate goals.
The Prereview Memo
Wh
e
ny
o
u
‖
v
ea
s
s
e
m
b
l
e
dt
h
a
tmaterial, put together a
prereview memo. Communication-s
t
e
p2
,
y
o
u
‖
l
l
r
e
c
a
l
l
,
i
s
t
og
e
t
your boss to acknowledge your achievements. That can come
only out of a personal meeting; just sending the memo will do
precious little. But do send the memo. Hard-copy not e-mail.
Make it one page. You can have a multipage document for
backup purposes, but a one-page version has a simple, unique
advantage over a longer one: Your boss will actually read it!
Raises and Salary Reviews
141
Achievement:
_______________________________________________
_______________________________________________
_______________________________________________
Results (specifying money made or saved, time saved,
percent improvement, etc.):
_______________________________________________
_______________________________________________
_______________________________________________
Value these results have to my boss (and why my boss
would care about them):
_______________________________________________
_______________________________________________
_______________________________________________
New problems or goals arising from this situation:
_______________________________________________
_______________________________________________
_______________________________________________
Figure 10-2. Review Preparation Worksheet
Start the memo by thanking your boss for the opportunity to
work and contribute to the organization over the past X months or
year. Since your review is coming up (you continue
)
,
y
o
u
‖
v
e
prepared a summary of the highlights during the period, which
y
o
ue
x
p
e
c
t
t
o
l
e
a
dt
o
a
c
o
n
v
e
r
s
a
t
i
o
na
b
o
u
t
t
h
e
n
e
x
t
Xm
o
n
t
h
s
‖
o
r
y
e
a
r
‖
s
g
o
a
l
s
.T
h
e
n
,
i
nb
u
l
l
e
t
e
df
o
r
m
,
l
i
s
t
y
o
u
r
t
o
pf
i
v
e
a
r
e
a
s
o
f
achievement. Make them brief, positive, and results oriented.
142
How to Make $1,000 a Minute
Each area will correspond to one of three types: “
G
o
o
d
s
h
o
w
,
”
“
N
i
c
e
g
o
i
n
g
,
”
o
r
“
C
o
u
l
d
’
v
e
b
e
e
nw
o
r
s
e
.
”
“
G
o
o
ds
h
o
w
”
i
s
w
o
r
k
y
o
u
‖
v
e
d
o
n
e
t
h
a
t
d
i
r
e
c
t
l
y
a
f
f
e
c
t
e
dt
h
e
quality of products or services, or the quantity of profit or
services. For example: Solidified communications with the
independent distributors in Midwest region through personal
visits and follow-up telephone work. Results: Sales increased 37
percent over last year and distributor turnover went down 20
p
e
r
c
e
n
t
.
”
I
nc
o
n
t
r
a
s
t
t
ot
h
em
e
a
s
u
r
a
b
l
ei
n
c
r
e
a
s
eo
f“
G
o
o
ds
h
o
w
,
”
“
N
i
c
eg
o
i
n
g
”focuses on your ability to handle the routine stuff.
D
o
n
‖
t
t
a
k
et
h
eo
r
d
i
n
a
r
yr
esponsibilities of your job for granted.
Remind your boss of the benefits that come from your simply
d
o
i
n
gy
o
u
r
j
o
br
i
g
h
t
.F
o
r
e
x
a
m
p
l
e
,
“
O
v
e
r
s
a
ww
o
r
d
-processing
unit, hiring and training sixteen operators over the past year and
maintaining the supplies and equipment. Results: You [the boss]
have had, I believe, a completely worry-free year with regard to
word processing, and no complaints of any substance from the
s
t
a
f
f
.
”
The last category, “
C
o
u
l
d
’
v
eb
e
e
nw
o
r
s
e
,
”notes what at
first you might regard as fa
i
l
u
r
e
s
.
F
o
r
e
x
a
m
p
l
e
:
“
L
o
s
t
t
h
r
e
e
m
a
j
o
r
c
l
i
e
n
t
s
,
”
“
P
r
o
d
u
c
e
d3
0
-percent-f
e
w
e
r
p
a
r
t
s
,
”
“
T
u
r
n
o
v
e
r
d
o
u
b
l
e
d
,
”
“
P
r
o
f
i
t
s
d
e
c
l
i
n
e
d
,
”o
r
“
We
‖
r
er
e
a
l
l
yi
nd
e
b
t
n
o
w
!
”H
o
w
e
v
e
r
,
i
f
y
o
u
‖
v
e
b
e
e
nw
o
r
k
i
n
gh
a
r
d
,
t
h
e
r
e
i
s
p
r
o
b
a
b
l
yac
a
s
e
f
o
r
“
T
h
i
n
g
s
c
o
u
l
d
‖
v
e
b
e
e
nw
o
r
s
e
.
”Mention the circumstances under which
you were working (careful: no blaming, just facts), and turn
p
l
i
g
h
t
s
i
n
t
o
a
c
c
o
m
p
l
i
s
h
m
e
n
t
s
.
F
o
r
e
x
a
m
p
l
e
:
“
R
e
t
a
i
n
e
d5
0
p
e
r
c
e
n
t
of my staff during the past year despite salary reductions and
layoffs. I have a committed group who will dedicate themselves
t
ot
h
e
c
o
m
p
a
n
y
‖
s
e
f
f
o
r
t
t
os
u
r
v
i
v
e
t
h
i
s
r
e
c
e
s
s
i
o
na
n
dk
e
e
py
o
u
r
d
i
v
i
s
i
o
n
s
t
r
o
n
g
a
n
d
r
e
a
d
y
f
o
r
t
h
e
n
e
x
t
s
t
e
p
s
.
”
End the memo with a comment about how you look forward
to a productive discussion. Do not mention raises in the memo.
Send the memo seven to ten days before your review.
To whom do you send it? The way this particular memo is
constructed, it goes only to your reviewer. If you are far enough
Raises and Salary Reviews
143
ahead of schedule (a month or so), you can take some of the same
journal material and send it as a report to several managers. The
purpose, of course, is to let people know about your good work,
but the best way to do that is to make it a request for feedback.
Prepare the one-page memo or summary and include backup
pages with some details on how you achieved your results and an
honest presentation of questions that occurred to you while you
prepared the material.
N
o
t
h
i
n
gi
nl
i
f
ei
s
s
oc
u
t
a
n
dd
r
i
e
dt
h
a
t
t
h
e
r
ea
r
e
n
‖
t
af
e
w
other options, a few worries about consequences, or a set of other
c
o
n
s
i
d
e
r
a
t
i
o
n
si
no
u
r
d
e
c
i
s
i
o
nm
a
k
i
n
g
.G
e
t
t
i
n
go
t
h
e
r
p
e
o
p
l
e
‖
s
input on our decisions, albeit hindsight, is a way to be even more
productive in the future. So send it out and invite discussion.
Follow it up on your own in a week. Remember, if you do your
work so well that nobody notices, nobody will notice!
H
e
r
e
‖
sac
a
s
eh
i
s
t
o
r
yo
f
s
u
c
c
e
s
s
f
u
l
l
ys
e
n
d
i
n
gap
r
e
r
e
v
i
e
w
memo to several managers.
Jack was in charge of preventive maintenance at a medium-size
plant that manufactured tin cans. He did a great job. But until he
d
o
c
u
m
e
n
t
e
d
h
i
s
r
e
s
u
l
t
s
,
h
e
d
i
d
n
’
t
k
n
o
w
h
o
w
g
r
e
a
t
.
By looking up the production records for the years before he was
hired, Jack discovered how much money had been spent on
repairs and how much had been lost due to production-line
downtime.
H
e
l
i
s
t
e
d
t
h
e
n
e
w
p
r
o
c
e
d
u
r
e
s
h
e
’
d
p
u
t
i
n
t
o
p
l
a
c
e
:
m
e
t
h
o
d
s
f
o
r
machine maintenance, critical wear-testing of parts, and the
gathering of input from production-line employees.
He
documented several of the improvements and tagged each with
an estimated dollar savings.
They totaled an astounding
$200,000!
J
a
c
k
d
e
c
i
d
e
d
t
h
a
t
,
s
i
n
c
e
h
e
’
d
b
e
e
n
u
n
a
w
a
r
e
o
f
t
h
e
e
x
t
e
n
t
o
f
h
i
s
own contribution, his bosses must be doubly unaware. And
since preventive maintenance means doing things so nothing
breaks, Jack was in exactly the kind of success-is-havingnobody-notice-anything position that further guarantees that
higher-u
p
s
a
r
e
o
b
l
i
v
i
o
u
s
t
o
o
n
e
’
s
w
o
r
k
.
During his first year, he did have to cope with breakdowns,
malfunctions, and downtime, but these were a carry-over from
144
How to Make $1,000 a Minute
h
i
s
p
r
e
d
e
c
e
s
s
o
r
’
s
s
h
o
d
d
y
w
o
r
k
.
H
i
s
p
r
o
g
r
a
m
’
s
e
f
f
e
c
t
i
v
e
n
e
s
s
w
o
u
l
d
n
’
t
r
e
a
l
l
y
s
h
o
w
u
p
u
n
t
i
l
t
h
e
n
e
x
t
y
e
a
r
!
H
i
s
m
e
m
o
l
i
s
t
e
d
“
G
o
o
d
s
h
o
w
”
f
o
r
i
m
p
r
o
v
e
m
e
n
t
s
i
n
t
h
e
equipment, the efficiency of operations, and the retrofitting of a
machine that would have cost $80,000 to replace.
“
N
i
c
e
g
o
i
n
g
”
i
n
c
l
u
d
e
d
h
i
s
r
e
c
o
r
d
o
f
t
h
e
p
a
s
t
s
i
x
m
o
n
t
h
s
,
s
u
c
h
a
s
recording and analyzing data about when and how things broke,
and initiating the this-machine-is-sounding-strange reports from
the line that would pay off by catching things before they broke.
H
e
h
a
d
a
“
C
o
u
l
d
’
v
e
b
e
e
n
w
o
r
s
e
”
o
n
a
b
r
e
a
k
d
o
w
n
t
h
a
t
s
t
o
p
p
e
d
production for eight hours. He pointed out that he was able to
cut the normal sixteen-hour repair time in half.
Jack sent the report to several people in a sincere effort to
gather even more ideas and suggestions. He got them. One
was a terrific idea about rewards for employees who find
potential trouble spots, which served as fodder for the next
y
e
a
r
’
s
r
e
v
i
e
w
.
Jack and I discussed the $200,000 in savings. We noted that it
was pure profit, the equivalent of earnings generated by $2
million to $4 million in sales.
I
n
J
a
c
k
’
s
c
a
s
e
,
m
a
n
a
g
e
m
e
n
t
a
c
t
u
a
l
l
y
c
a
m
e
t
o
h
i
m
a
n
d
g
a
v
e
h
i
m
an increase plus bonuses equal to a 50-percent raise. Of
c
o
u
r
s
e
,
t
h
e
b
o
s
s
d
o
e
s
n
’
t
a
l
w
a
y
s
s
t
e
p
f
o
r
w
a
r
d
l
i
k
e
t
h
a
t
,
s
o
l
e
t
’
s
get back to you.
At the Negotiating Table
For your review, make sure you have undisturbed time to
go over your memo with the boss. Bring your own copy. Begin
t
h
ed
i
s
c
u
s
s
i
o
nb
yg
o
i
n
go
v
e
r
y
o
u
r
c
o
n
t
r
i
b
u
t
i
o
n
s
.E
i
t
h
e
r
y
o
u
‖
l
l
hea
r
t
h
e
b
o
s
s
a
c
k
n
o
w
l
e
d
g
e
y
o
u
r
e
f
f
e
c
t
i
v
e
n
e
s
s
o
r
y
o
u
‖
l
l
h
a
v
e
t
o
a
s
k
for it. One way or another, get the boss to agree that you are
e
f
f
e
c
t
i
v
e
!O
t
h
e
r
w
i
s
e
y
o
u
‖
l
l
h
a
v
e
e
a
r
n
e
da
r
a
i
s
e
i
nd
e
e
d
s
,
b
u
t
n
o
t
i
n
t
h
e
p
l
a
c
e
t
h
a
t
c
o
u
n
t
s
:
t
h
e
b
o
s
s
‖
s
m
i
n
d
.
Then get the boss in line with your goals, to see if the ideas
y
o
u
‖
v
e
h
a
t
c
h
e
df
i
t
i
n
t
oh
i
s
o
r
h
e
r
p
l
a
n
s
.S
u
c
had
i
s
c
u
s
s
i
o
nw
i
l
l
happen pretty naturally, but at the end request some clarity about
whether the boss wants you to do these things. Be direct. Ask,
“
A
r
et
h
e
s
eg
oals important to you, and should I work on the
Raises and Salary Reviews
145
t
h
e
m
?
”O
r
:
“
H
o
ww
o
u
l
dy
o
ur
a
n
k
t
h
e
s
e
i
no
r
d
e
r
o
f
i
m
p
o
r
t
a
n
c
e
?
S
h
o
u
l
d
I
s
t
a
r
t
o
n
n
u
m
b
e
r
o
n
e
f
i
r
s
t
?
”
A
t
t
h
i
s
p
o
i
n
t
,
a
s
i
ns
a
l
a
r
yn
e
g
o
t
i
a
t
i
n
g
,
y
o
u
‖
v
e
c
o
a
x
e
dy
o
u
r
employer as close to the judgit stage as possible. Therefore, as in
salary negotiating, let the boss name the figure first.
You may, if you wish, first educate the boss on the difference
b
e
t
w
e
e
na
r
a
i
s
e
a
n
da
C
O
L
A
.Y
o
us
t
i
l
l
w
o
n
‖
t
b
e
n
a
m
i
n
g
a
f
i
g
u
r
e
f
i
r
s
t
,
b
u
t
y
o
u
‖
l
l
b
e
i
n
d
i
r
e
c
t
l
y
s
t
a
t
i
n
g
t
h
a
t
y
o
ue
x
p
ect your increase
to do more than just keep pace with inflation. You could say,
“
T
h
ec
o
s
t
-of-l
i
v
i
n
ga
d
j
u
s
t
m
e
n
t
t
h
i
s
y
e
a
r
i
s
Xp
e
r
c
e
n
t
;
I
‖
dl
i
k
et
o
d
i
s
c
u
s
s
w
h
a
t
m
y
r
a
i
s
e
w
i
l
l
b
e
.
”
As in salary negotiating you absolutely must know the
market value for comparable positions. Your ability to strike a
bargain at the top of the range depends on it. In a salary
negotiation, the question of disclosing your present or past salary
is important. In a raise negotiation, that point is moot; obviously,
your boss already knows your present salary. Therefore, the most
important thing is knowing your market value. You acquire that
knowledge by researching two types of sources: external and
internal.
Use the other resources described in Chapter 5 to come up
with a market value externally. By using a hard copy of your PayComparison Analysis Report or other printed sources, or both,
you can gain leverage with your boss in this discussion.
Internally, make sure you nose around and find out whatever you can about compensation policies and practices and the
current profitability and operating budget of your division,
company, or organization. That will be useful for comparing your
salary with others outside the company.
I
t
‖
st
e
m
p
t
i
n
gt
ou
s
ey
o
u
rm
a
r
k
e
tk
n
o
w
l
e
d
g
ea
n
d
documentation of your value to come up with a figure and go
first. D
o
n
’
t
.You may think that declaring a value 20 percent
above your present compensation will prompt the company to
budge from its 2-percent plans, and it probably would. But if the
company intended to double y
o
u
r
s
a
l
a
r
y
,
d
o
y
o
u
t
h
i
n
k
i
t
‖
dg
o
t
h
a
t
h
i
g
h
k
n
o
w
i
n
g
y
o
u
‖
db
e
t
i
c
k
l
e
d
w
i
t
h
l
e
s
s
?L
e
t
y
o
u
r
b
o
s
s
s
w
e
a
t
.
I
f
146
How to Make $1,000 a Minute
y
o
u
‖
v
e
m
a
d
e
t
h
e
b
e
s
t
c
a
s
e
f
o
r
y
o
u
r
v
a
l
u
e
,
q
u
o
t
e
E
l
w
o
o
dP
.
D
o
w
d
a
n
d
s
a
y
,
“
Wh
a
t
d
i
d
y
o
u
h
a
v
e
i
n
m
i
n
d
?
”
When you hear 2 percent, repeat it, look glum for thirty
s
e
c
o
n
d
s
,
a
n
dr
e
s
p
o
n
db
yr
e
p
o
r
t
i
n
gy
o
u
r
r
e
s
e
a
r
c
h
.“
I
‖
v
es
p
e
n
t
some time looking into the current market value of this type of
p
o
s
i
t
i
o
n
,
”y
o
us
a
y
,
“
a
n
dm
yr
e
s
e
a
r
c
hi
n
d
i
c
a
t
e
s
ar
a
n
g
efrom X
d
o
l
l
a
r
st
oYd
o
l
l
a
r
s
.I
‖
mn
o
t
s
u
r
ei
f
y
o
uw
e
r
ea
w
a
r
eo
f
t
h
a
t
.
C
o
n
s
i
d
e
r
i
n
g
m
y
c
o
n
t
r
i
b
u
t
i
o
n
s
t
h
a
t
w
e
‖
v
e
j
u
s
t
d
i
s
c
u
s
s
e
d
,
I
t
h
i
n
k
a
fair salary would be in the Y-d
o
l
l
a
r
v
i
c
i
n
i
t
y
.
”I
f
t
h
e
b
o
s
s
s
e
e
m
s
skeptical, you could present documentation of your research in a
manila folder for him/her to look at then, or later. (See the section
on research and pay-comparison analyses in Chapter 5.)
Remember, too, that fringe bennies and perks can easily
c
o
m
p
e
n
s
a
t
e
i
f
y
o
u
r
e
m
p
l
o
y
e
r
c
a
n
‖
t
m
o
v
e
t
h
e
b
a
s
e
.
A
n
e
x
t
r
a
week
of vacation, for example, is a 2-percent raise. Look over the list of
bennies and perks in Figure 7-1. Determine which ones you could
ask for, then ask.
F
r
o
mt
h
a
t
p
o
i
n
t
,
y
o
u
‖
r
eo
ny
o
u
ro
w
n
.C
o
m
eu
pw
i
t
ha
salary that is fair and will keep you committed and productive.
Creating Raises and Promotions
D
o
n
‖
t
j
u
s
t
w
a
i
t
f
o
r
r
e
v
i
e
w
s
a
n
da
n
n
i
v
e
r
s
a
r
i
e
s
t
oa
s
kf
o
r
a
raise, either. An ideal time to get an increase is when changes
occur at work. When you do a tremendous job on a revenueproducing project, when you take on more work because someone
q
u
i
t
sa
n
dt
h
ep
o
s
i
t
i
o
ni
s
n
‖
t
f
i
l
l
e
d
,
a
n
yt
i
m
ey
o
u
rv
a
l
u
et
ot
h
e
organization increases, take the opportunity to send a brief memo
to your boss and discuss compensation. You may negotiate a onetime bonus, a raise, or, when your job changes significantly,
something besides a raise (which is usually based on your last
salary): a new salary appropriate to your new job.
Sometimes a new job just creeps up on you. When you
document your accomplishments, notice how your job has
evolved. Have you begun making decisions only the boss made
before? Did the part-time help you hired to handle the rush turn
into a full-time staff of one-and-a-half people you now train and
Raises and Salary Reviews
147
supervise? Are you now selling to customers you previously only
serviced?
D
o
s
o
m
e
s
u
b
t
r
a
c
t
i
o
n
.
T
h
i
s
y
e
a
r
‖
s
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
m
i
n
u
s
l
a
s
t
y
e
a
r
‖
s
r
e
s
p
o
n
s
i
b
i
l
i
t
i
e
s
m
a
y
y
i
e
l
d
a
b
i
g
r
e
m
a
i
n
d
e
r
.
I
t
‖
s
c
a
l
l
e
d
a
n
e
w
job. Instead of a raise, it deserves a whole new salary based on its
actual value to the company.
Naturally, most employers will continue seeing you as your
o
l
ds
e
l
f
.S
o
y
o
u
‖
r
e
g
o
i
n
g
t
o
h
a
v
e
t
o
e
d
u
c
a
t
e
s
o
m
e
o
n
e
a
b
o
u
t
y
o
u
r
new position. Otherwise, your boss is likely to think that the
jump from $30,000 to $45,000 a year is a 50-percent raise, when
actually it‖
s
a
n
e
ws
a
l
a
r
y
a
p
p
r
o
p
r
i
a
t
e
t
o
y
o
u
r
n
e
wj
o
b
.
The clearest way to break the box your employer thinks
y
o
u
‖
r
e
i
n
i
s
t
o
i
n
v
e
n
t
a
n
e
wj
o
b
t
i
t
l
e
.
F
o
r
e
x
a
m
p
l
e
,
i
t
‖
d
b
e
e
a
s
i
e
r
t
o
g
e
t
t
h
es
a
l
a
r
yo
f
a
n“
a
c
c
o
u
n
t
i
n
g
-s
e
r
v
i
c
e
sc
o
o
r
d
i
n
a
t
o
r
”t
h
a
nt
h
e
r
a
i
s
eo
fa
n“
a
c
c
o
u
n
t
i
n
gc
l
e
r
k
.
” D
o
n
‖
t
,h
o
w
e
v
e
r
,c
a
l
li
ta
promotion. Promotions sometimes have to be reviewed and
a
p
p
r
o
v
e
d
.Y
o
u
r
s
h
a
s
a
l
r
e
a
d
yo
c
c
u
r
r
e
d
,
a
n
di
t
‖
s
j
u
s
t
a
s
r
e
a
l
a
s
a
f
o
r
m
a
l
p
r
o
m
o
t
i
o
n
,
s
od
o
n
‖
t
b
u
yt
h
el
i
n
e“
We
‖
l
l
s
e
ei
f
w
ec
a
n
p
r
o
m
o
t
e
y
o
u
.
”
Y
o
us
a
y
,
“
I
d
o
n
‖
t
c
are about a title as much as simply being
p
a
i
d
m
a
r
k
e
t
v
a
l
u
e
f
o
r
t
h
e
w
o
r
k
I
c
o
n
t
r
i
b
u
t
e
h
e
r
e
.
”
N
o
wy
o
u
‖
v
e
negotiated a
r
a
i
s
e
,
o
r
e
v
e
na
p
r
o
m
o
t
i
o
n
;
y
o
u
‖
r
e
feeling proud of yourself. I can tell you from experience with
many clients that that will definitely start you on the virtuous
c
y
c
l
e
o
f
Ms
.
Wo
r
t
h
.
Y
o
u
‖
l
l
w
i
n
,
y
o
u
r
e
m
p
l
o
y
e
r
w
i
l
l
w
i
n
,
a
n
d
y
o
u
r
future will be even brighter.
Chapter 11:
You Go First Perspective
When You Go First Is Safe
I saved these You go first comments for the end because,
since it is easier to go first than it is to follow Salary Rule 1,
Postpone salary discussions until you have been offered the job, I
d
i
d
n
‖
t
want to give you any escape clauses earlier. Now that you
understan
dh
o
wi
t
i
s
u
s
u
a
l
l
y
i
ny
o
u
r
b
e
s
t
i
n
t
e
r
e
s
t
t
o
w
a
i
t
,
I
‖
l
l
t
e
l
l
you when you can disregard that rule.
Recall that the two reasons to wait are that you might be
screened out of the interview altogether and the employer might
make an offer based on lower previous earnings rather than
market value.
Sometimes those two reasons are moot. Creating a new
p
o
s
i
t
i
o
nw
i
t
ha
ne
m
p
l
o
y
e
ri
sag
o
o
de
x
a
m
p
l
e
.Y
o
uw
o
n
‖
t
b
e
s
c
r
e
e
n
e
do
u
t
,
b
e
c
a
u
s
e
y
o
u
‖
db
e
t
h
e
o
n
l
yo
n
e
i
n
t
e
r
v
i
e
w
i
n
g
.I
na
m
a
n
n
e
ro
f
s
p
e
a
k
i
n
g
,
y
o
u
‖
v
ea
l
r
e
a
d
yb
e
e
noffered the job and
discussing a market-value range for the position could help the
e
m
p
l
o
y
e
r
c
r
e
a
t
et
h
a
t
p
o
s
i
t
i
o
nb
i
ge
n
o
u
g
h
.H
e
r
e
‖
sa
ne
x
a
m
p
l
e
w
h
e
r
e
d
i
s
c
u
s
s
i
n
g
m
o
n
e
y
b
e
f
o
r
e
a
n
“
o
f
f
e
r
”
helped the negotiations
Cheryl was negotiating with an employer to create an
administrative position that included preparing and reviewing
large government contracts. Her potential employer could have
had a $25,000 administrative assistant position in mind, but she
wanted the bottom-line responsibility for making those contracts
148
You Go First Perspective
149
happen, and she wanted the money that came with that
responsibility.
She told him that market value for an
administrative director of a company their size was in the $4550,000 range and that she would like him to think along those
lines as they assembled the set of responsibilities.
W
i
t
h
t
h
e
c
o
r
r
e
c
t
a
t
t
i
t
u
d
e
,
“
H
o
w
c
a
n
w
e
c
r
e
a
t
e
t
h
i
s
p
o
s
i
t
i
o
n
s
o
i
t
s
value to you is at the administrative-d
i
r
e
c
t
o
r
l
e
v
e
l
?
”
s
h
e
w
o
r
k
e
d
with him to create responsibilities beyond the clerical. Naming a
dollar range helped get her there.
Y
o
u
m
a
y
f
i
n
dc
i
r
c
u
m
s
t
a
n
c
e
s
i
n
w
h
i
c
h
d
i
s
c
u
s
s
i
n
g
t
h
e
“
d
o
l
l
a
r
s
i
z
e
”
o
f
t
h
e
j
o
b
w
i
l
l
h
e
l
p
p
o
s
i
t
i
o
n
y
o
u
b
e
t
t
e
r
.
S
o
,
i
f
s
a
l
a
r
y
t
a
l
k
w
o
n
‖
t
s
c
r
e
e
ny
o
uo
u
t
a
n
dy
o
ut
h
i
n
k
i
t
w
i
l
l
help the employer think bigger, you can share your target market
value be
f
o
r
e
t
h
e
r
e
‖
s
a
n
o
f
f
e
r
.
But if you just want to tell to avoid tension, think again.
Read on.
What if They Get Angry with Me?
People sometimes excuse themselves from following SalaryMa
k
i
n
gR
u
l
e
1
b
ys
a
y
i
n
g
,
“
I
f
I
d
o
n
‖
t
a
n
s
w
e
r
t
h
e
s
a
l
a
r
yq
u
e
s
t
i
o
n
,
t
h
e
i
n
t
e
r
v
i
e
w
e
r
w
i
l
l
g
e
t
a
n
g
r
y
w
i
t
hm
e
,
a
n
dt
h
e
nI
‖
l
l
never get the
j
o
b
!
”S
o
m
e
t
i
m
e
s
t
h
e
y
‖
r
e
r
i
g
h
t
.
I
n
d
e
e
d
,
s
o
m
e
i
n
t
e
r
v
i
e
w
e
r
s
d
e
c
l
a
r
e
a staunch inflexibility about their budgets right away by
announcing things like:
“
T
h
i
s
p
o
s
i
t
i
o
np
a
y
s
Xd
o
l
l
a
r
s
;
t
h
e
r
e
‖
s
n
o
n
e
g
o
t
i
a
t
i
o
n
.I
f
t
h
a
t
‖
s
n
o
t
a
c
c
e
p
t
a
b
l
e
t
o
y
o
u
,
t
h
e
nl
e
t
‖
s
e
n
dt
h
e
i
n
t
e
r
v
i
e
w
n
o
w
,
”
“
I
a
b
s
o
l
u
t
e
l
y
h
a
v
e
t
o
k
n
o
wy
o
u
r
c
u
r
r
e
n
t
e
a
r
n
i
n
g
s
,
”
o
r
“
T
h
i
s
a
p
p
l
i
c
a
t
i
o
n
m
u
s
t
b
e
f
i
l
l
e
do
u
t
completely before the
i
n
t
e
r
v
i
e
wc
a
n
p
r
o
c
e
e
d
.
”
T
h
e
ym
a
yf
e
e
lf
r
u
s
t
r
a
t
e
dt
h
a
tt
h
e
yc
a
n
‖
ts
c
r
e
e
ny
o
u
.
S
o
m
e
t
i
m
e
s
y
o
u
‖
l
l
n
o
t
i
c
et
h
a
t
y
o
u
r
i
n
t
e
r
v
i
e
w
e
r
s
e
e
m
s
p
e
r
t
u
r
b
e
d
,
t
h
i
n
k
s
y
o
u
‖
r
e
n
o
t
b
e
i
n
g
c
o
o
p
e
r
a
t
i
v
e
.
Y
o
uworry that that will get
in the way of building the rapport essential to being hired.
What should you do? Should you go first?
150
How to Make $1,000 a Minute
First, let me say that inflexibility is the exception. Following
the guidelines in Chapters 3 and 4, you will find most
interviewers quite amenable to postponing salary talk o
n
c
e
t
h
e
y
’
r
e
a
s
s
u
r
e
d
t
h
a
t
y
o
u
’
l
l
a
c
c
e
p
t
a
f
a
i
r
m
a
r
k
e
t
-value salary.
S
e
c
o
n
d
,
o
d
d
s
a
r
e
t
h
a
t
t
h
e
y
‖
r
e
w
o
r
r
i
e
dy
o
u
‖
r
e
t
o
o
e
x
p
e
n
s
i
v
e
.
(People rarely get upset about your being too inexpensive.) As
long as you know t
h
a
t
y
o
u
‖
r
ei
n
t
e
r
v
i
e
w
i
n
ga
t
,
o
rt
h
a
t
t
h
e
r
e
‖
s
potential to reach, the right level of responsibility, i
t
’
st
oy
o
u
r
advantage that the company worry about affording you!
A word about tension: Use your common sense to avoid
escalating tension to anger. Postponing salary talk is generally the
best option. But even if you do decide to discuss it up front,
remember you can still follow salary-making rules 3, 4, and 5.
Poorly executed negotiations are thousands of dollars more
valuable than no negotiations at all.
S
o
i
f
y
o
u
‖
r
e
t
e
m
p
t
e
d
t
o
g
o
f
i
r
s
t
,
t
o
d
i
s
c
u
s
s
p
r
i
c
e
b
e
f
o
r
e
v
a
l
u
e
just to placate the interviewer, think twice, then decide.
When you do find yourself in that tension in an interview,
remember that, without thinking, your old habits will be in charge
and s
t
e
e
r
y
o
u
t
o
t
h
e
p
a
t
h
o
f
l
e
a
s
t
r
e
s
i
s
t
a
n
c
e
:
g
i
v
i
n
g
i
n
.
I
‖
l
l
d
i
s
c
u
s
s
how you can control your habits in the next chapter. For now, if
your habits are controlling you, you will feel like going first. If
you act on those feelings or on your considered judgment, here
are three ways to handle that impulse: least effective (and easiest),
better, and best.
Least Effective: The least effective way is to cave in immediately
and reveal your salary history or requirements. You risk losing
several thousand dollars in that ten-second conversation, and you
risk being screened out as too cheap or too expensive. Coughing
up a salary figure will get you off the hook, but since it
c
o
m
p
r
o
m
i
s
e
s
t
h
e
p
r
i
n
c
i
p
l
e
s
o
f
b
e
i
n
g
h
i
r
e
do
n
v
a
l
u
e
,
n
o
t
p
r
i
c
e
,
i
t
‖
s
not a tremendously posit
i
v
e
s
i
g
nt
h
a
t
y
o
u
‖
r
e
s
t
a
r
t
i
n
gav
i
r
t
u
o
u
s
cycle.
If, however, you do choose the least effective method, at least
discuss your salary expectations (not your history). Determine your
m
a
r
k
e
t
v
a
l
u
e
(
s
e
e
C
h
a
p
t
e
r
5
)
a
n
dc
o
m
m
u
n
i
c
a
t
e
a
r
a
n
g
e
:
“
We
l
l
,
I
You Go First Perspective
151
expect a fair salary for this kind of position. My research indicates
a
r
a
n
g
e
o
f
Xd
o
l
l
a
r
s
t
o
Yd
o
l
l
a
r
s
,
b
u
t
e
v
e
r
yj
o
b
i
s
u
n
i
q
u
e
,
s
o
l
e
t
‖
s
d
i
s
c
u
s
s
t
h
ej
o
ba
n
dm
yp
o
t
e
n
t
i
a
l
i
ni
t
.T
h
e
nw
e
‖
l
l
b
o
t
hh
a
v
ea
b
e
t
t
e
r
i
d
e
a
o
f
m
y
v
a
l
u
e
.
”
Somewhat better than that: Instead of discussing your
r
e
q
u
i
r
e
m
e
n
t
s
,
d
i
s
c
u
s
s
t
h
e
m
a
r
k
e
t
v
a
l
u
e
,
s
i
n
c
e
t
h
a
t
‖
s
a
l
l
y
o
uw
a
n
t
,
a
n
y
w
a
y
.C
o
u
l
ds
o
u
n
dl
i
k
e
t
h
i
s
,
“
A
s
I
s
a
i
db
e
f
o
r
e
,
a
l
l
I
n
e
e
di
s
a
f
a
i
r
s
a
l
a
r
y
,
a
n
dh
e
r
e
‖
s
w
h
a
t
m
yr
e
s
e
a
r
c
hs
a
y
s
t
h
e
r
a
n
g
e
i
s
,
$
Xt
o
$Y. I think that where I fit in that range will depend on how
impressed and confident you are that I can do the job. Can we
t
a
l
k
m
o
r
e
a
b
o
u
t
t
h
a
t
?
”
Better still: If you choose to bypass Salary-Making Rule 1 (in
w
h
i
c
h
y
o
u
w
a
i
t
f
o
r
a
n
o
f
f
e
r
)
,
t
h
e
r
e
‖
s
s
t
i
l
l
a
chance to follow SalaryMaking Rule 2 (in which the interviewer goes first). When the
company is adamant about discussing salary, you can probe its
b
u
d
g
e
t
a
n
ds
a
y
t
h
a
t
i
t
‖
s
a
g
o
o
ds
t
a
r
t
i
n
g
p
o
i
n
t
.
F
o
r
e
x
a
m
p
l
e
:
“
My
s
a
l
a
r
y
e
x
p
e
c
t
a
t
i
o
n
s
?T
h
e
y
‖
r
e
s
i
m
p
l
e
:
a
f
a
i
r
m
a
r
k
e
t
v
a
l
u
e
.
P
e
r
h
a
p
s
you could h
e
l
p
m
e
t
h
e
r
e
;
w
h
a
t
i
s
t
h
e
r
a
n
g
e
y
o
u
‖
r
e
t
h
i
n
k
i
n
g
o
f
?I
‖
d
b
e
g
l
a
d
t
o
t
e
l
l
y
o
u
i
f
i
t
f
i
t
s
.
”
Wh
e
ny
o
ug
e
t
t
h
e
r
a
n
g
e
,
s
a
y
,
“
T
h
a
t
‖
s
i
nt
h
e
b
a
l
l
p
a
r
k
;
I
‖
m
sure we can make a good salary agreement if you want to hire me.
L
e
t
‖
s
k
e
e
p
t
a
l
k
i
n
g
.
”
The Preemptive strike discussed in Chapter 3 is similar to
t
h
i
s
“
l
e
t
t
h
e
mg
of
i
r
s
t
”
o
p
t
i
o
n
.T
h
e
d
i
f
f
e
r
e
n
c
e
i
s
t
h
a
t
i
n
s
t
e
a
do
f
turning the tables on the interviewer, you initiate salary talk so
y
o
u
‖
r
e
n
e
v
e
r
i
nt
h
e
p
o
s
i
t
i
o
no
f
a
n
s
w
e
r
i
n
g
t
h
e
q
u
e
s
t
i
o
n
i
nt
h
e
f
i
r
s
t
place.
Best: S
t
i
c
kt
oy
o
u
r
p
r
i
n
c
i
p
l
e
s
.Y
o
ud
o
n
‖
t
h
a
v
e
t
oa
n
s
w
e
r
e
v
e
r
y
s
i
n
g
l
eq
u
e
s
t
i
o
na
ni
n
t
e
r
v
i
e
w
e
r
a
s
k
s
;
y
o
u
‖
r
en
o
t
o
nt
h
ew
i
t
n
e
s
s
stand. Often you can defuse discomfort by commenting on it, like:
“
I
f
i
n
dt
a
l
k
i
n
g
a
b
o
u
t
m
o
n
e
y
a
t
t
h
i
s
p
o
i
n
t
a
w
k
w
a
r
d
.P
e
r
h
a
p
s
y
o
u
do, t
o
o
?I
h
o
p
e
I
‖
mn
o
t
u
p
s
e
t
t
i
n
g
y
o
u
b
y
a
s
k
i
n
g
t
o
p
o
s
t
p
o
n
e
i
t
.
”
You can finish up with some of the responses at the end of
C
h
a
p
t
e
r
4
.N
a
n
c
y
‖
sr
e
s
p
o
n
s
ew
o
r
k
sw
e
l
l
.O
r
s
o
m
e
t
h
i
n
gl
i
k
e
:
“
Y
o
us
e
e
,
I
k
n
o
wt
h
i
s
i
s
t
h
ek
i
n
do
f
w
o
r
k
,
a
n
dt
h
ea
m
o
u
n
t
o
f
152
How to Make $1,000 a Minute
responsibilit
y
,
t
h
a
t
I
w
a
n
t
.I
f
I
‖
mv
a
l
u
a
b
l
e
t
oy
o
u
,
I
‖
ms
u
r
e
t
h
a
t
f
i
n
d
i
n
g
a
f
a
i
r
s
a
l
a
r
y
w
i
l
l
t
a
k
e
c
a
r
e
o
f
i
t
s
e
l
f
.
”
T
h
i
s
“
b
e
s
t
”k
i
n
do
f
r
e
s
p
o
n
s
et
a
k
e
s
p
r
a
c
t
i
c
e
.Mo
s
t
p
e
o
p
l
e
have interviewing habits, and most often they have the specific
one of answering every questio
n
t
h
e
y
‖
r
e
a
s
k
e
d
,
as if the interviewer
really knows what to ask! I have news for you. Interviewers act out
o
f
h
a
b
i
t
,
t
o
o
!I
nt
h
e
f
i
n
a
l
c
h
a
p
t
e
r
,
l
e
t
‖
s
t
a
k
e
a
l
o
o
ka
t
o
u
r
h
a
b
i
t
s
and their impact on salary negotiations.
Chapter 12:
Practice and Coaching
Changing Habits through Practice
This book has supplied the logic, scripts, and tools for
s
t
r
a
t
e
g
i
e
s
t
h
a
t
y
o
u
‖
l
l
n
e
e
di
no
r
d
e
r
t
oc
h
a
n
g
e
y
o
u
r
h
a
b
i
t
s
a
b
o
u
t
s
a
l
a
r
y
t
a
l
k
.
B
u
t
t
h
a
t
‖
s
n
o
t
e
n
o
u
g
h
. Even if you commit this entire
b
o
o
kt
om
e
m
o
r
y
,
w
h
e
ny
o
us
h
o
wu
pa
t
Mr
.
E
m
p
l
o
y
e
r
‖
s
o
f
f
i
c
e
y
o
u
‖
l
l
p
r
o
b
a
b
l
ys
l
i
pb
a
c
ki
n
t
oy
o
u
r
s
a
m
e
o
l
dw
a
y
s
.U
n
l
e
s
s
y
o
u
practice.
Most of us are not accustomed to negotiating for ourselves.
Our present habits push us to d
o
j
u
s
t
t
h
e
o
p
p
o
s
i
t
e
:
a
c
c
e
p
t
w
h
a
t
‖
s
offered and hope for the best. To understand how to break habits,
l
e
t
‖
s
f
i
n
d
o
u
t
h
o
we
n
t
r
e
n
c
h
e
d
t
h
e
y
t
e
n
d
t
o
b
e
.
Think of all the habits you live out in the first half hour of
each day. Turning off the alarm? Pressing the snooze button? Do
you find the toothpaste, toothbrush, and hair dryer in the same
place every time? If you had to think about each step, and search
for the soap and cereal every morning, each would take twice as
long and not get done as well. For example, you can probably
remember the hours it took you to do routine chores when you
last moved into a new home and had to establish new habits.
So we must respect habits. They allow us to be comfortable
and safe in a rather unpredictable world. On the other hand, old
153
154
How to Make $1,000 a Minute
habits can inhibit behavior in a new activity (like salary
negotiation) and cost you thousands of dollars.
L
e
t
‖
st
r
ya
ne
x
p
e
r
i
m
e
n
t
.P
u
t
t
h
i
sb
o
o
kd
o
w
n
,
f
o
l
dy
o
u
r
hands, and notice which pinkie finger is on the bottom. Now,
refold your hands with the other pinky finger on the bottom. How
does it feel?
Comfortable
Uncomfortable
Uncomfortable, naturally!
Which way is correct? Neither, of course. Your way is just
y
o
u
r
h
a
b
i
t
;
t
h
eo
t
h
e
r
w
a
yi
sj
u
s
t
t
h
e“
u
n
c
o
m
f
o
r
t
a
b
l
e
”w
a
y
.I
t
makes no practical difference which way you fold your hands,
a
n
d
y
e
t
y
o
u
‖
l
l
d
o
i
t
t
h
e
s
a
m
e
c
o
m
f
o
r
t
a
b
l
e
w
a
y
e
v
e
r
y
s
i
n
g
l
e
t
i
m
e
!
A more challenging experiment is to try folding your arms.
Notice whether the left arm or the right arm is on top. Go ahead!
Now, try to fold them so that the other arm is on top.
D
i
f
f
i
c
u
l
t
,
i
s
n
‖
t
i
t
?P
l
e
a
s
e
d
o
i
t
u
n
t
i
l
y
o
u
c
a
n
f
o
l
d
t
h
e
mi
n
r
e
v
e
r
s
e
a
t
will. If you can do it with ease i
nf
e
w
e
r
t
h
a
nt
e
nt
r
i
e
s
,
y
o
u
‖
r
e
terrific. Habits are very strong controllers of even simple
behaviors.
Salary and raise negotiations, needless to say, are much
more complicated than folding your arms. Poor habits about
salary talk will take practice to change. You can practice alone by
writing a script, using a tape recorder, or talking to a mirror. An
even faster way to change them is through practice and coaching.
Practice and Coaching Are Even Better
C
o
a
c
h
i
n
gh
e
l
p
su
ss
e
eo
u
r
s
e
l
v
e
so
b
j
e
c
t
i
v
e
l
y
.T
h
a
t
‖
sw
h
y
tennis lessons from a coach will correct in one hour what someone
may have tried to correct alone for weeks. The same goes for
b
a
s
e
b
a
l
l
,
f
o
o
t
b
a
l
l
,
g
o
l
f
,
h
o
c
k
e
y
,
a
e
r
o
b
i
c
s
,
a
n
dj
o
g
g
i
n
g
.
I
t
‖
s
t
r
u
e
f
o
r
negotiations, too. Someone with ears other than your own can give
you objective feedback that will help you handle yourself better.
Use friends, counselors, or telephone sessions.
Practice and Coaching
155
A friend or acquaintance can help you by role playing and
asking you the tricky questions. Have your friend read Chapter 3
to understand budget, fudgit, and judgit. That will improve the
role playing by helping your friend unders
t
a
n
dt
h
ee
m
p
l
o
y
e
r
‖
s
frame of mind about screening.
Call me; I Love Coaching Salary Negotiations
847-853-1046
Readers have called me many times since this book was first
published. I have enjoyed these calls. You, too, are welcome to
consult with me and my staff by phone if you wish, at 847-8531046.
I
o
p
e
r
a
t
eo
nt
h
e“
Ma
k
eY
o
uAB
u
c
k
”p
r
i
n
c
i
p
l
e
.C
a
l
l
a
n
y
t
i
m
e
;
w
h
a
t
w
e
‖
l
l
d
o
i
s
s
p
e
n
da
f
e
wm
i
n
u
t
e
s
t
o
s
e
e
i
f
m
y
h
e
l
pw
i
l
l
r
e
a
l
l
y
m
a
k
e
y
o
um
o
n
e
y
.I
f
s
o
,
w
e
‖
l
l
w
o
r
k
a
t
a
r
e
a
s
o
n
a
b
l
e
h
o
u
r
l
y
r
a
t
e
a
n
d
c
o
a
c
h
y
o
u
w
h
a
t
t
o
s
a
y
,
w
h
e
n
t
o
s
a
y
i
t
,
a
n
d
w
e
‖
l
l
p
r
a
c
t
i
c
e
.
Here are a few stories to give you a flavor of what we can
g
e
t
d
o
n
et
h
r
o
u
g
ht
e
l
e
c
o
a
c
h
i
n
g
.I
‖
v
ep
i
c
k
e
ds
o
m
eo
f
t
h
em
o
r
e
i
n
t
e
r
e
s
t
i
n
go
n
e
s
b
e
c
a
u
s
eI
t
h
i
n
ky
o
u
‖
l
l
e
n
j
o
yr
e
a
d
i
n
gt
h
e
ma
n
d
because you will see a few twists and turns in applying the five
salary-making rules in these examples.
Public-Relations Professional
Situation: George called about a salaried public-relations position
in a hospital. The hospital was losing money. In the midst of
c
u
t
b
a
c
k
sa
n
ds
a
l
a
r
yf
r
e
e
z
e
s
,
G
e
o
r
g
ed
i
d
n
‖
t
k
n
o
wh
o
wt
og
e
t
a
r
a
i
s
e
.
“
I
‖
l
l
j
u
s
t
b
e
h
a
p
p
y
t
o
k
e
e
p
m
y
j
o
b
,
”
h
e
s
a
i
d
.
Telecoaching: I
nr
e
v
i
e
w
i
n
gh
i
s
b
o
s
s
‖
s
g
o
a
l
s
,
h
o
w
e
v
e
r
,
w
e
f
o
u
n
d
that the addictions-treatment center was profitable and the one
department on which the boss pinned his hopes for growth.
G
e
o
r
g
e
a
n
dI
s
p
o
t
t
e
dt
h
e
b
o
s
s
‖
s
h
o
t
b
u
t
t
o
n
,
i
d
e
n
t
i
f
i
e
da
f
e
w
o
f
G
e
o
r
g
e
‖
s
P
Ra
c
c
o
m
p
l
i
s
h
m
e
n
t
s
e
s
p
e
c
i
a
l
l
ya
s
t
h
e
yr
e
l
a
t
e
dt
o
t
h
e
center, and developed the outline of a PR campaign to build the
c
e
n
t
e
r
‖
s
v
i
s
i
b
i
l
i
t
ya
n
dc
r
e
d
i
b
i
l
i
t
y
.A
l
t
h
o
u
g
hG
e
o
r
g
e
w
a
s
n
o
t
a
b
l
e
to get an immediate salary increase, he did negotiate a bonus
156
How to Make $1,000 a Minute
based on the overall use of the center. We estimated the bonus
could net $2,000 to $4,000 a year.
Management Consultant
Situation: A high-level international-business consultant was
interviewing for an operations-management position with a
nationwide food distributor. The recruiter told Frank that
$115,000 was as high as the company would go.
Telecoaching: We were able to find (or find out how to find) three
navigation points to guide us: a cost-of-living index, comparable
salaries, and a specific trouble spot that Frank could handle with
dispatch and save the company $50,000 with. He arranged to
negotiate directly with the hiring-decision makers and made his
case. Frank got $20,000 more plus a performance bonus of up to
50 percent of his salary.
Village Engineer
Situation: Jim was hired in summer by a small village to be its
engineer. He felt the offer was low, but the village manager
c
o
u
l
d
n
‖
tg
oo
u
t
s
i
d
et
h
eb
u
d
g
e
t
,
a
n
dt
h
eb
u
d
g
e
tc
o
u
l
d
n
‖
tb
e
changed until the new village board reviewed it in the fall.
Telecoaching: To get around the problem, however, Jim asked for
and got a relocation package (tax free) that was not in the original
offer. That boosted his earnings and tided him over until the
regular salary-review process could make his earnings more
competitive.
Of course, we also set up a plan to make sure the manager
and the new board would be well informed of his value by the
time the fall budget review took place.
Product Manager for High-Tech Marketing Products
Situation: V
i
r
g
i
n
i
a
‖
ss
t
u
m
p
e
rw
a
sh
o
wt
on
e
g
o
t
i
a
t
eal
a
t
e
r
a
l
t
r
a
n
s
f
e
rw
h
e
r
es
h
et
h
o
u
g
h
t(
b
u
tw
a
s
n
‖
ts
u
r
e
)s
h
ewould be
making more than her prospective new boss.
Telecoaching: T
h
ep
r
o
b
l
e
mh
e
r
ei
s
t
h
a
t
i
t
u
s
u
a
l
l
yd
o
e
s
n
‖
t
w
o
r
k
well when you talk to a new boss about salary and negotiate for
more than the boss is getting. We had to find a way to discover
Practice and Coaching
157
t
h
e
b
o
s
s
‖
s
real salary, then decide how much to negotiate for. We
worked out a way to present the dilemma to personnel that
allowed the personnel administrator to give Virginia her salary
g
u
i
d
e
l
i
n
e
s
w
i
t
h
o
u
t
a
c
t
u
a
l
l
y
r
e
v
e
a
l
i
n
g
h
e
r
b
o
s
s
‖
s
e
a
r
n
i
n
g
s
.
We
a
l
s
o
strategized a way her new boss might get a raise.
She changed positions, kept her salary, and in the first
month taught her boss how to negotiate a better deal for himself
as well as for Virginia. Soon they were both earning more than
when her negotiations began.
Marketing Manager/Sales Manager
Situation: Dave originally interviewed for a position he was
overqualified for. During the interview the sales VP and the
operations manager were impressed with Dave, so they called the
president in to discuss upgrading the position. They did upgrade
i
t
;
b
u
t
j
u
s
t
a
s
a
c
a
m
e
l
i
s
c
a
l
l
e
d
“
a
h
o
r
s
e
d
e
s
i
g
n
e
d
b
y
a
c
o
m
m
i
t
t
e
e
,
”
the new position was pasted together with two conflicting sets of
responsibilities. As it stood, the job was 50-percent sales, sales
support, and on-site trouble-shooting, and 50-percent strategic
planning. That combination had conflicting elements that would
doom it to failure. Dave wanted 10-percent sales and 90-percent
planning; he was also pushing for $20,000 more now and even
more interesting money later. He also knew that two of the three
people in on the decision would fight energetically to keep the job
50-percent sales and sales support.
Telecoaching: First, Dave needed coaching on how to avoid
premature salary discussions. Even though his superiors were
t
e
c
h
n
i
c
a
l
l
ym
a
k
i
n
gh
i
ma
no
f
f
e
r
,
t
h
e
yh
a
d
n
‖
t
r
e
a
l
l
yd
e
c
i
d
e
df
o
r
which job. In our discussion it became clear that he was not on
Salary-Making Rule 2 (in which the interviewer goes first), but
r
a
t
h
e
r
o
nR
u
l
e
1
,
w
h
i
c
hi
nD
a
v
e
‖
s
c
a
s
e
w
a
s
:
P
o
s
t
p
o
n
e
s
a
l
a
ry talk
until the company knows which job it wants to offer.
The strategy we worked out was to concentrate on a fiveyear plan rather than on a present opening. By submitting a twopage outline of such a plan, Dave was able to pull the attention of
all three decision makers to the big picture. He also offered an
alternative way to get the 50-percent sales-and-trouble-shooting
158
How to Make $1,000 a Minute
portion all done without making it half his job. Dave spent a total
of twenty minutes delaying and discussing compensation.
Finally, he increased the salary $20,000 ($1,000 a minute), and
negotiated a profit-sharing bonus based on his five-year
performance plan.
Computer Specialist
Situation: Similarly, I told Jerry to break the rules. Usually the
base salary is handled first, then the bennies and perks. However,
Jerry knew he would want certain pieces of computer hardware to
get the results the employer wanted on the job.
Telecoaching: Ic
o
a
c
h
e
dh
i
mt
os
a
y
,
“
S
a
l
a
r
ya
n
db
e
n
e
f
i
t
sa
r
e
important, Mr. Employer, but having the tools to do the job for
y
o
ui
s
m
yf
i
r
s
t
c
o
n
c
e
r
n
.L
e
t
‖
s
d
i
s
c
u
s
s
t
h
ei
m
p
o
r
t
a
n
t
c
o
m
p
u
t
e
r
i
n
v
e
s
t
m
e
n
t
I
w
a
n
t
t
o
y
o
u
t
o
m
a
k
e
a
n
d
,
i
f
w
e
c
a
n
a
g
r
e
e
o
n
t
h
a
t
,
I
‖
m
s
u
r
e
c
o
m
p
e
n
s
a
t
i
o
n
w
i
l
l
b
e
n
o
p
r
o
b
l
e
m
.
”
Wh
i
l
en
e
g
o
t
i
a
t
i
n
gt
h
a
t
p
e
r
k
,
J
e
r
r
y
‖
s
a
t
t
i
t
u
d
ew
a
s
:
“
E
v
e
ni
f
you offered me a huge salary, I would have to say no if the tools
d
o
n
‖
t
c
o
m
ew
i
t
hi
t
.
”T
h
ee
m
p
l
o
y
e
rw
a
si
m
p
r
e
s
s
e
dw
i
t
hh
i
s
integrity and commitment to results. Jerry got the hardware and a
better compensation package to boot.
City Manager
Situation: A city manager had a poor performance review and
therefore only a small raise.
Telecoaching: It took us two half-hour sessions to work up a
strategy because three of seven city commissioners would change
in three months. By rigorous questioning and evaluating, he
discover
e
de
a
c
hc
o
m
m
i
s
s
i
o
n
e
r
‖
sh
o
tb
u
t
t
o
n
s
.T
h
em
a
n
a
g
e
r
realized he would need some special management-training and
personal-development courses if he was ever going to meet their
expectations. By proposing a specific, eighteen-step plan for selfimprovement and better performance, he saved his job. (He
found out later that the small raise was a first step in a push to get
him to quit. The commissioners had actually been planning to
terminate him.) He is now well on his way to recouping all his
lost-salary ground on his next opportunity.
Practice and Coaching
159
Direct-Mail Marketer
Situation: Amy had a huge opportunity to make money on the
r
e
s
i
d
u
a
l
s
(
o
nt
h
e“
b
a
c
ke
n
d
”
)
d
i
r
e
c
t
l
ya
t
t
r
i
b
u
t
a
b
l
et
oh
e
r
w
o
r
k
.
She was not aware of it and called only to practice her regular
negotiation pitch.
Telecoaching: We practiced the regular rules to bring her salary
up 10 percent. Then I showed her the back-end gold mine. (See
Residual Commission in Chapter 7.) We rehearsed negotiating for
bennies on each renewal transaction from original accounts she
generated if and only if the accounts were profitable from her
copywriting. Each year thereafter her earnings jumped between
$10,000 and $15,000.
On Getting the Courage to Negotiate
The above examples were somewhat complicated; most
p
e
o
p
l
e
‖
st
e
l
e
c
o
a
c
h
ing needs are much simpler.
Often in
t
e
l
e
c
o
a
c
h
i
n
g
,
y
o
u
‖
l
l
j
u
s
t
c
o
n
f
i
r
ma
n
ds
o
l
i
d
i
f
yas
t
r
a
i
g
h
t
f
o
r
w
a
r
d
application of the five salary-making rules. Sometimes its main
benefit is to give needed encouragement and practice.
“
I
c
o
u
l
d
n
‖
t
b
e
l
i
e
v
e
I
s
a
i
d
w
h
a
t
I
d
i
d
.
”(
J
.
G
.
,
c
l
e
r
k
.
)
“
I
k
e
p
t
h
e
a
r
i
n
gy
o
u
r
v
o
i
c
e
d
u
r
i
n
gt
h
e
i
n
t
e
r
v
i
e
wa
n
dI
s
a
i
d
t
h
o
s
e
m
a
g
i
c
w
o
r
d
s
.
…I
t
h
i
n
k
I
w
a
s
m
o
r
e
s
u
r
p
r
i
s
e
d
a
t
m
y
c
h
u
t
z
p
a
h
t
h
a
nm
yb
o
s
sw
a
s
. I
th
e
l
p
e
da
n
di
tw
o
r
k
e
d
.
” (
T
.S
.
,
m
a
n
u
f
a
c
t
u
r
e
r
‖
s
r
e
p
.
)
“
I
f
y
o
uh
a
d
n
‖
t
b
a
w
l
e
dm
eo
u
t
f
o
r
b
e
i
n
gw
i
m
p
y
,
I
‖
dh
a
v
e
g
i
v
e
nu
p
.I
‖
ms
t
i
l
l
a
w
i
m
p
,
o
v
e
r
a
l
l
,
b
u
t
a
t
l
e
a
s
t
I
‖
me
a
r
n
i
n
g
m
o
r
e
m
o
n
e
y
!
”(
L
.
W.
,
c
u
s
t
o
m
e
r
-service rep.)
“
O
n
e
n
e
e
d
s
o
n
e
‖
s
s
p
i
r
i
t
f
o
r
t
i
f
i
e
dt
o
r
e
a
l
l
y
s
t
a
n
du
pf
o
r
w
h
a
t
o
n
e
d
e
s
e
r
v
e
s
.
T
h
a
n
k
s
.
”(
M.
C
.
,
e
d
u
c
a
t
o
r
.
)
“
H
e
a
r
i
n
g
y
o
us
a
y
―
Y
o
uc
a
nd
o
i
t
‖
m
a
d
e
m
e
f
e
e
l
t
h
a
t
I
c
o
u
l
d
d
o
i
t
.
…I
d
i
d
i
t
!
”(
M.
B
.
,
e
v
e
n
t
s
p
l
a
n
n
e
r
.
)
“
H
e
t
h
e
n
s
a
i
d
,
―
E
q
u
i
t
y
?
!
Y
o
uw
a
n
t
e
q
u
i
t
y
t
o
o
?
!
‖
I
t
h
o
u
g
h
t
I
h
a
dg
o
n
et
o
of
a
r
,
b
u
t
I
g
o
t
i
t
,
a
n
dh
ew
a
s
i
m
p
r
e
s
s
e
d
.
”(
B
.
T
.
,
music-company manager.)
160
How to Make $1,000 a Minute
“
A
t
f
i
r
s
t
I
t
h
o
u
g
h
t
,
―
T
his is preposterous! I have no right to
a
s
k
f
o
r
a
l
l
t
h
a
t
.
‖
…A
f
t
e
r
[
o
u
r
t
e
l
e
c
o
a
c
h
i
n
g
]
I
s
a
wh
o
wI
r
e
a
l
l
y
h
a
d
been cheating myself. I
tw
a
s
n
‖
tm
yb
o
s
s
‖
sf
a
u
l
t
,
i
tw
a
sm
e
b
e
l
i
e
v
i
n
gt
h
a
t
I
s
h
o
u
l
d
n
‖
t
r
e
a
l
l
yg
e
t
…w
h
a
t
I
d
e
s
e
r
v
e
.Wh
e
nI
finally asked for it, it seemed like the most reasonable thing on
e
a
r
t
h
.
”(
D
.
W.
,
a
c
c
o
u
n
t
a
n
t
.
)
On Practice
“
I
k
e
p
t
w
a
n
t
i
n
g
y
o
u
t
o
g
o
a
n
d
t
a
l
k
f
o
r
m
e
.
Y
o
u
h
a
d
s
o
m
a
n
y
great ways to say things. When I finally did it, though, they
w
e
r
e
n
‖
t
y
o
u
r
w
o
r
d
s
a
n
y
m
o
r
e
.
I
h
a
du
s
e
dy
o
u
r
w
o
r
d
s
enough to
m
a
k
e
t
h
e
mm
y
o
w
n
.
”(
K
.
B
.
,
n
u
r
s
e
.
)
“
P
r
a
c
t
i
c
e
m
a
k
e
s
p
e
r
f
e
c
t
…b
u
t
f
o
r
m
e
,
p
r
a
c
t
i
c
e
w
i
t
h
y
o
u
m
a
d
e
i
t
p
o
s
s
i
b
l
e
.
”(
R
.
D
.
M.
,
c
o
u
n
s
e
l
o
r
.
)
“
I
t
h
o
u
g
h
t
I
k
n
e
wh
o
wt
o
d
o
t
h
i
s
.
I
r
e
a
d
t
h
e
b
o
o
k
a
h
u
n
d
r
e
d
times! But it was different saying it out loud somehow. Anyway
i
t
w
o
r
k
e
d
,
t
h
a
n
k
s
.
”(
W.
B
.
C
.
,
e
n
g
i
n
e
e
r
.
)
“
S
o
m
e
b
o
d
ys
h
o
u
l
dm
a
k
ee
v
e
r
y
b
o
d
yr
e
h
e
a
r
s
et
h
e
i
rl
i
n
e
s
about salary negotiations. Rehearsing answers to every possible
r
e
s
p
o
n
s
e
i
s
w
h
a
t
m
a
d
e
m
y
$
5
,
0
0
0
h
a
p
p
e
n
.
”(
J
.
W.
,
s
a
l
e
s
m
a
n
.
)
“
I
n
e
v
e
r
c
o
u
l
dh
a
v
es
t
a
t
e
dm
yc
a
s
el
i
k
et
h
a
t
i
f
w
eh
a
d
n
‖
t
p
r
a
c
t
i
c
e
d
…I
t
e
l
l
m
yf
r
i
e
n
d
s
t
h
a
t
I
a
r
g
u
e
dm
yc
a
s
e
w
i
t
ha
l
a
w
y
e
r
a
n
d
I
w
o
n
!
”(
M.
L
.
,
l
e
g
a
l
s
e
c
r
e
t
a
r
y
.
)
Arranging Personal Telecoaching—
847-853-1046
I
f
y
o
u
‖
dl
i
k
et
os
t
r
a
t
e
g
i
z
e
,
r
e
h
e
a
r
s
e
,
o
rj
u
s
t
r
e
v
i
e
ww
h
a
t
y
o
u
‖
v
e
b
e
en thinking, you are welcome to set up a telecoaching
s
e
s
s
i
o
n
.H
e
r
e
‖
s
w
h
a
t
t
od
o
.C
a
l
l
m
e
a
t
8
4
7
-853-1046 and set an
appointment time. My assistant will schedule a time. You can
mail or fax me material in advance if you think it would help. At
the appo
i
n
t
e
dt
i
m
e
,
w
e
‖
l
l
s
p
e
n
da
f
e
wm
i
n
u
t
e
s
t
o
m
a
k
e
s
u
r
e
t
h
i
s
w
i
l
l
p
a
y
h
a
n
d
s
o
m
e
l
y
f
o
r
y
o
u
,
a
n
d
i
f
s
o
,
w
e
‖
l
l
h
a
v
e
a
g
o
o
d
g
o
a
t
i
t
.
[Sometimes people really have it all handled; in those cases I tell
them so and we end it there –
no cost.]
Practice and Coaching
161
If you get the voice mail, rest assured someone will get back
to you promptly.
D
o
n
‖
t
b
es
h
ya
b
o
u
t
c
a
l
l
i
n
g
.Il
o
v
ed
o
i
n
gt
e
l
e
c
o
a
c
h
i
n
g
s
.
Clients report they put a lot of money in the bank from them.
C
a
u
t
i
o
n
:
D
o
n
‖
tg
e
ti
n
t
oa
ne
i
t
h
e
r
-or trap here by either
telecoaching with me or practicing with friends. Do both! I
encourage you to practice with others in addition to whatever
telecoaching you might arrange.
Your Goal in All This
I strongly urge you to practice. Find a friend or coach who
will role-play the employer. Have the person probe for your
present salary and your expectations, then finally extend an offer
to you. You counter with your researched response. Consult
Chapters 3 and 4; write out and make up responses that feel right
to you. Rehearse them. Tape record a couple of sessions if you
wish. The goal is to make the process comfortable.
Although negotiating may never be 100-percent comfortable
for you, you can still make it sound more and more natural.
Many of my clients tell me how, after practicing, their money talk
flows smoothly and effortlessly. They habitually follow this key
principle: value first, price second.
The practice you put in will generate good new habits and a
high degree of comfort that the employer will interpret as
confidence that you truly d
e
s
e
r
v
e
w
h
a
t
y
o
u
‖
r
e
a
s
k
i
n
g
f
o
r
.
Final Note: Financial Independence
Increased salaries and raises are nice, but financial independence is even nicer.
I
‖
v
ea
l
w
a
y
sb
e
e
ni
n
t
e
r
e
s
t
e
di
nm
yc
l
i
e
n
t
s
‖
f
i
n
a
n
c
i
a
l
w
e
l
l
being. After witnessing all the career wreckage of corporate
d
o
w
n
s
i
z
i
n
g
i
n
t
h
e
―
8
0
s
,
―
9
0
s
,
a
n
d
p
o
s
t
9
1
1
,
I
d
e
c
i
d
e
d
t
h
a
t
,
b
e
s
i
d
e
s
a
better salary right now, I should show clients how to set
themselves up for better earnings for their lifetime.
162
How to Make $1,000 a Minute
Beginning in 1996, I have made it a point in my counseling
work to show clients how to achieve financial independence.
I discovered that you can become free of jobs, salaries, and
businesses upon picking one or all of three strategies and
applying it consistently in your career. It means attention to
working on your career, not in your career.
Anyone interested in learning about these methods is
welcome to request an email report (free, with one small
c
o
n
d
i
t
i
o
n
)
c
a
l
l
e
d“
H
o
wt
o
Wo
r
k
S
m
a
r
t
e
r
(
n
o
t
H
a
r
d
e
r
)
i
n
t
h
e
N
e
x
t
S
e
v
e
nY
e
a
r
st
oC
a
s
hO
u
tB
e
f
o
r
eI
t
‖
sT
o
oL
a
t
e
”f
r
o
m
[email protected]
POSTSCRIPT
Good luck!
I hope reading this book has helped you take your salary
more seriously. When compensation is negotiated in a win-win
way, both you and your employer will be motivated to get the
very best performance and accomplishment from the situation.
That, in turn, will produce more money for the employer and
career satisfaction and success for you.
Ma
y
y
o
ua
l
w
a
y
s
b
e
p
a
r
t
o
f
t
h
e
v
i
r
t
u
o
u
s
c
y
c
l
e
:
a
c
h
i
e
v
e
m
e
n
t
…
g
o
o
dp
a
y… m
o
r
ea
c
h
i
e
v
e
m
e
n
t… b
e
t
t
e
rp
a
y… e
v
e
nm
o
r
e
a
c
h
i
e
v
e
m
e
n
t
…
163
How to Make $1,000 a Minute
REVIEW OF RESOURCES
Resources for coaching or rehearsing salary negotiations.
Jack Chapman: 847-853-1046, telecoaching service.
Resources for achieving financial independence.
Special report (free with one small condition): “
H
o
wt
o
Work Smarter (not Harder) in the Next Seven Years to Cash Out
B
e
f
o
r
e
I
t
‖
s
T
o
o
L
a
t
e
.
”S
e
n
d
e
m
a
i
l
r
e
q
u
e
s
t
t
o
[email protected]
Resources for salary negotiation presentations.
Salary Negotiation Presentations:
I have several colleagues across the country who speak at
bookstores and professional organizations about salary and raise
negotiations. If your group might be interested, call 847-853-1046.
Books:
Germann, Richard. Working and Liking It. New York: Fawcett
B
o
o
k
G
r
o
u
p
,
1
9
8
9
.
I
t
‖
s
o
l
d
–
try Amazon.com
Kravette, Steve. Get a Raise in 60 Days. New York: Bantam, 1983.
Tapes:
Chapman, Jack. How to Beat the System and Get a Raise!
(Workshop Tape set and Manual.) Published by the author.
(Order directly from Jack Chapman, at 511 Maple Ave., Wilmette,
IL, 60091; $69.95 + $3.50 shipping and handling.)
How to Make $1,000 a Minute
ABOUT THE AUTHOR
Jack Chapman is a nationally known career advisor and
speaker in the field of career development. Since 1981, he has
personally coached over two thousand individuals in his role as a
senior Career Advisor in, and then owner of the Chicago office of
the oldest and largest career development firm in the nation.
Now he conducts a private practice named Lucrative
Careers, Inc. in which he works with clients two ways: First, to
become more satisfied and better paid in their careers, and
second, to systematically manage their careers to achieve financial
i
n
d
e
p
e
n
d
e
n
c
e
.(
S
e
e
“
F
i
n
a
l
N
o
t
e
:
F
i
n
a
n
c
i
a
l
I
n
d
e
p
e
n
d
e
n
c
e
”
a
t
t
h
e
end of Chapter 12.)
Through his books, tapes, group work, and training of many
other career advisors, he has helped countless people from every
w
a
l
ko
f
l
i
f
el
a
n
de
x
a
c
t
l
yt
h
ej
o
b
s
,
s
a
l
a
r
i
e
s
,
a
n
dr
a
i
s
e
st
h
e
y
‖
v
e
wanted.
He is cofounder and past president of the Professional
Career Counselors and Consultants Network (now merged with
Association of Career Professionals, International).
Following his undergraduate studies at Loyola University of
C
h
i
c
a
g
o
,J
a
c
ke
a
r
n
e
dh
i
sm
a
s
t
e
r
‖
si
nv
o
c
a
t
i
o
n
a
lg
u
i
d
a
n
c
ea
t
Northeastern Illinois University and taught on the faculty at
C
h
i
c
a
g
o
‖
sC
o
l
u
m
b
i
aC
o
l
l
e
g
e
,w
h
e
r
eh
ep
i
o
n
e
e
r
e
dac
a
r
e
e
r
development curriculum.
Jack has appeared on network television to represent career
counselors. He has delivered countless speeches and lectures and
conducted numerous workshops and seminars.
Jack welcomes feedback, success stories, and input on this
book and the process of salary negotiations, and is available as a
speaker and workshop leader for job and career development.
Telecoaching: 847-853-1046
Direct Line: 847-251-4727
Postal Address: 511 Maple Avenue, Wilmette, IL 60091
Web: www.salarynegotiations.com; E-mail: [email protected]
How to Make $1,000 a Minute