Q&A talks about negotiating salary with Duane Sauer, director of permanent placement services at Robert Half Finance & Accounting in Hartford.
Q: Robert Half International has a new survey out that shows hiring managers are more willing to negotiate salaries. What did the survey find?
A: More than one-third (38 percent) of CFOs said they are more willing to negotiate salary with top candidates than they were one year ago. Only 5 percent said they are less willing. Despite a relatively high unemployment rate, companies face challenges when recruiting professionals with highly specialized skill sets. Hiring managers are increasingly recognizing that to get the best workers, pay should be competitive and that they may run the risk of losing workers later if they don’t pay them what they’re worth now.
Q: How does Robert Half define top job candidates? Is this for hiring across the board or does it focus solely on high-level executive hires? Are mid-manager candidates finding more willingness to negotiate?
A: Top job candidates aren’t necessarily limited to executive-level positions — they are professionals at all levels who have hard-to-find skill sets. We are seeing firms more willing to make their compensation packages more competitive in an effort to attract these types of candidates. Many of the positions in demand right now include those that can help increase efficiencies, mitigate risks and improve profitability — all priorities for local companies in the current economy.
Q: You advise doing a reality check, that job seekers at companies that recently announced layoffs should be reticent about negotiating salary. Isn’t a company that has had layoffs going to have more difficulty hiring top job seekers? Isn’t this an opportunity to get more money?
A: If a firm’s on shaky financial ground, compensation may be limited, but that doesn’t mean candidates can’t negotiate other perks. Because those companies may have a tougher time recruiting, they might offer inexpensive but desirable perks, such as flexible schedules, the ability to telecommute or extra vacation time, etc. Most employers recognize that offering in-demand incentives and perks are a cost-effective way to retain and attract highly skilled professionals.
Q: There was one response, at 54 percent, that found no change in answer to the question, “Compared to 12 months ago, are you more willing or less willing to negotiate salary with top job candidates?” How can a job seeker interpret that result? Are these hiring managers still willing to negotiate?
A: Just because an employer is not more willing to negotiate than they were last year, doesn’t mean that there is no wiggle room at all. The most important thing a job seeker can do before they decide whether to negotiate salary is to determine fair compensation in their city. Candidates can do their homework by reviewing compensation surveys and publications such as Robert Half’s 2012 Salary Guides and talking to colleagues and recruiters. If an offer is less than you think it should be, point it out politely then counter with your desired salary.
Q: Are there certain professions where hiring managers are more willing to negotiate than others? What fields might employees best be able to negotiate for higher salaries?
A: Companies are most willing to invest in specialized professionals who can help them increase their bottom lines and maximize new technology. That said, we’re seeing professionals in fields like finance and accounting and information technology have the most luck when it comes to negotiating higher salaries. For example, financial analysts with five years of experience and an MBA are in strong demand in the Hartford area. Employers are also seeking candidates who are proficient with the most popular systems and software applications and are willing to make their compensation packages more competitive for the right person.
Q: Why is it important for job seekers to not sell themselves short when negotiating salary?
A: Accepting a low-paying offer can have lingering effects for both candidates and employers. Candidates who accept a low-paying job may set the stage for how much they can earn during their tenure with the company, since raises and bonuses are often a percentage of the professional’s base salary. When evaluating a job offer, professionals should inquire about advancement opportunities, benefits and other forms of compensation so they can evaluate the whole picture. Candidates who sell themselves short may feel undervalued and end up leaving for another higher-paying position.
Q: What can candidates do if they are deadlocked with an employer over salary negotiation?
A: One way to break a deadlock is to agree to a salary below what you would like, but negotiate extra benefits in another area such as added vacation time. An alternative option is to be specific that if you achieve certain performance goals in a certain amount of time, you will receive a raise to the desired salary level. Remember that the job opportunity is about more than just money — it’s about job tasks and professional growth opportunities, among other factors. Candidates should know what is most important to them going into the conversation. It’s essential to weigh all aspects of the offer. Regardless of how the negotiation turns out, always remain professional and gracious.
