Students learn how to negotiate salary

When Jeff Morgan began negotiating the salary for his first job out of college, he didn't realize how unprepared he was until it was too late.

One would think looking for a job or a raise is a win-win situation. The employer is anxious to hire good candidates who are qualified for the job, and the employee is seeking good employment in their chosen field.

As Morgan, Weber State University alumnus, discovered when it comes to negotiating salary the goal between employee and employer are in direct conflict with one another.

"I was sick about it. I took the first offer without attempting to negotiate for something more or extra," Morgan said.

He found the employer's goal is to recruit a future employee as cheaply as possible without the candidate feeling exploited.

Al Harris teaches how to negotiate a salary at the John B. Goddard School of Business and Economics. He said with just a little research and playing the negotiation game, any potential employee can increase the salary they are paid.

"The bottom line is there is almost always wiggle room when negotiating salary and yet so many people never bother to negotiate salary," Harris said. "They wouldn't be able to hold onto people they really want without some latitude."

Morgan learned through a frustrating experience the negotiation game means putting oneself in the best position , which requires careful thought and educated planning.

The first step in the game plan is to increase the odds by actively arranging plenty of interviews. It's an advantage to know other recruiters are interested in the skills one brings to the negotiation table.

"In any kind of negotiations about 50 percent of your success is determined by your preparation," Harris said. "You can have the greatest personality in the world, but how much do you really know about what you are proposing during the negotiations?"

Therefore, the next best tactic for negotiation is to study employment sites like jobmart.org that research salary ranges offered for a job. Then go one step further and research the salaries of people at the levels below and higher than the job position desired.

The ultimate bargaining power during a negotiation comes directly from the skills and experiences a potential employee brings to the negotiation table.

According to wetfeet.com, a guide to negotiating salary and perks, knowing the BATNA is critical. BATNA is a negotiator's term for best alternative to a negotiated agreement.

Think through what the alternatives are. One could, for example, stay in the current job if that is appropriate. One could accept another offer, or keep on looking for another job.

Knowing the BATNA means knowing what the minimum amount that one is prepared to accept. The BATNA can fluctuate depending upon the circumstances, Harris said.

In planning, consider the starting point or the walk away point, Harris said.

For example, when shopping for a car never consider the sticker price the starting point price. What is one willing to pay for the car? Thus, complete the homework, know the Blue Book price, and shop around at other car lots to compare prices for similar model cars.

"Making the initial offer, whether the offer comes from the candidate or the employer, establishes the anchor point," Harris said. "Therefore the negotiations will be referenced from the anchor point. Consider the situation. Do you want to be the one to establish the anchor point. Ask yourself, what is my target goal? Then do your homework know the market value of anything you are negotiating and the advantage is yours to establish the anchor point for negotiating."

The bargaining range involves knowing the employers BATNA as well. The wise potential employee researches the employer's resistance point.

A skilled negotiator can squeeze the employer to find where the resistance point is. Stick to the plan for wanting more and then back off if the employer reaches the limit of reason in the negotiation. If they agree too readily, then the bottom salary was accepted too soon in the game and the employer didn't reach the maximum resistance point.

Harris' suggestions for winning the negotiation game: carefully plan out the negotiation strategy, memorize it and put the plan in summary form on an index card for quick reference.

You can reach reporter Carolyn Losee by calling 626-7624.