Salary Negotiation Skills and Strategies - for Navigating The Tough Terrain

Why do so many job candidates come unprepared to the salary negotiation table?

The idea of "winging" it seems to be a popular one, but not a very prudent course of action when you consider that the decisions made here, at the time of hire, will have a direct impact on your career for years to come.

For example, a loss of $1000 in negotiated annual salary at the start of hire will not only reduce your immediate income, but will reduce your income for the rest of your employment job  with this company, because all subsequent raises will be based on this lower rate. Over a career life this can mean a loss of thousands and thousands of dollars.

Salary negotiation may not present a life or death situation, but it certainly has a direct impact on the quality of one's life. So why do so few people adequately prepare themselves for this part of the career job search process? And why do so many choose to navigate blindly, simply hoping for the best?

The Least You Need To Know

To begin, you need to understand the base figures you'll be working with in your calculations. These are your three key figures:

1. Your living wage - the minimum income requirements you need to survive. The income required to maintain your rent or mortgage, your utilities, car payment, groceries, fuel, clothing, etc. - the basic necessities. You need to know this number, but you share it with no one. To calculate this figure you need to have to 12 months of records: bills, utilities, etc. You can calculate this with six months, but your figures may not be entirely accurate. You want to add up each category, individually, and then add the categories together. Divide by 12 and you'll have your living wage. Keep in mind that this figure may not address luxury items.
2. Your current worth - at a man's pay scale (in this age of enlightenment, it's still not always equal, so make sure you know the correct figures): research pay scales for individuals at your current skill and qualification level; in this type of position; in this particular industry; in this specific location, and in the current business climate.
3. Top scale: for this type of position, in this type of industry, in this location, and in the current business climate - the amount that would make you jump out of bed on Monday mornings, even if you're not quite there yet.