Even before the call back for another round of meetings, Brad knew he had aced his interview. As he described it to me later, he was "in a groove.” Everything fell into place. He sounded articulate, bright, downright charming.

Clearly, a strong candidate (isn't that what the HR Director had said?), he was not surprised to be invited back as one of the finalists for the job. Brad had worked hard to get to this point and was anxious to put his period of "joblessness" behind him. But it wasn't over -- and the fat lady didn't sing!

Here's what happened:

Interviewer: Brad, your background is impressive. You seem to be someone who could do a good job for us. Let me ask you, 'What are your salary requirements?'

Brad: Well, I'm really more interested in the responsibility than the money.

Interviewer: Are you saying that you don't care how much we would pay you?

Brad: No, No, just that money is not the determining factor for me.

Interviewer: Well, what were you making in your last job?

Brad: That’s really not that important. I’m sure you'll pay me a fair salary.

Interviewer (frustrated): Okay, let's try to revisit this issue later.

Unfortunately, later never came. Brad received a "thanks, but no thanks" letter shortly thereafter.

Brad's case is not unusual. Even the top sales professionals will tell you that "closing the deal" is one of the trickier aspects of their jobs. Still, Brad's negotiation miscues occurred before any opportunity to close the deal. His avoidance of the salary question sabotaged the negotiation process right from the start.

Should he have disclosed a number? What if it was too high? Or worse, too low? Should he have been less wishy-washy? How should he have handled the salary question? How can you avoid Brad's mistakes?

Setting the Stage

You may be asked to disclose your salary history or salary requirements at any time during the search process -- in the job posting, in a telephone screening, during the initial interview, or in subsequent interviews -- and the negotiation process begins at this first exchange of information.

Before the interview, do some research of the marketplace to determine the salary range for your position and level of responsibility. Talk to your personal contacts and referrals to find out what their companies pay for commensurate levels. Check with professional associations in your field to obtain information based on recent salary surveys. Gather industry and geographical statistics from compensation websites, like www.salary.com and www.jobsmart.org/tools/salary/sal-surv.cfm.

Hiring companies most often have a salary range for the position and will want to bring you in at the mid to lower end of the range. This way, they can offer you merit increases later without topping you out of the salary range.

Entering the Negotiation

From the moment the salary question is first raised, the negotiation has begun. How you respond will lay the groundwork for further discussions. There may be variations in the phrasing, but the question will be posed one of two ways:

Interviewer: What are your salary requirements? Or what is your current salary?

Either way, an ill-prepared response can compromise your negotiation position later on. In any negotiation process, the one who throws out a number first is generally at a disadvantage. Don’t reveal your salary requirements until finding out what the salary range is for the position. When asked about your salary requirements, try saying something like this:

You: I’m looking for a salary comparable to the market rate, given my skills and capabilities. What is the salary range that you're considering for this position?

The interviewer will often tell you the range. Don’t treat it as an offer -- it's not. If the range is higher than you expected, all you have to say is "that seems to be a reasonable range ... we should be able to come to terms.” On the other hand, if it's lower than you expected, you'll know you have some work to do to get it bumped up. Respond with, "it is lower than I expected, but I am confident I can do a great job for you. Let’s revisit this later.” Then ask another question to move the conversation to another topic.

Of course, there will be times when the dialogue doesn't flow the way you want it to. You may be asked to disclose your current (or most recent) salary. Although what you've earned in past positions is not a relevant measure of your worth in a new job, many organizations wrongly rely on your salary history to determine your rate. So you may encounter a conversation like this:

Interviewer: What is your current salary?

You: I’m looking for the fair market value given my skills and abilities, so before I answer that, may I ask you: 'What is the salary range for this position?'

Interviewer: I asked you first!

This is when you "smile.” Smiling breaks the tension and you will have shown that you are a tough negotiator, something they will certainly want you to be on their behalf. So, if you find yourself cornered into giving a number, here's a way of responding:

You: My most recent salary was $xxxxx and based on the research I have done on positions at this level, I would be looking for $xxxxxx.  How does that compare to what you are thinking?

Press the interviewer into giving you a number. Don’t show your cards without seeing theirs as well. You both need to reveal a number. Again, this is not an offer, but rather a ballpark assessment to determine the practicality of continuing the conversation. How this exchange unfolds will help you define your negotiation strategy later when an offer is on the table.

As you move forward, keep showing enthusiasm for the job, the company, the boss and the people with whom you would be working. Continue to emphasize your value, to promote your strengths, to make them "want" you -- because the minute a company decides they want you, your price goes up.

Closing the Deal

When an offer comes, it may lift you psychologically (particularly after a bout of unemployment), but your objectivity can easily wane. Never accept an offer on the spot, no matter how good it seems. Accepting the job at face value without adequately assessing whether it's the right job for you, can easily lead to regrets six months later.

Instead, thank the person for the offer and ask how soon he/she would like a decision from you -- and always request the offer in writing.

Agree on a decision date and then take the needed time to review the total compensation package. If you choose to make a counter-offer, make sure that you're willing to negotiate as if you have nothing to lose. Of course, there's always some risk involved, but if you don't try, you can easily become resentful later. Prepare your counter negotiation carefully.

For starters, you need to know what you want from your employer. Begin with cash compensation first and then consider each benefit separately to complete the total package. Both "cash" and "non-cash" rewards will impact your standard of living, so be sure to consider all of the variables in your compensation equation. Examine the health coverage, insurance and retirement benefits. Be clear about paid holidays and vacations. Consider bonus arrangements, stock options, tuition reimbursement, travel or expense accounts, and professional or trade association memberships.

Some additional perks that are offered these days include casual dress, flexible hours, career development, professional training, onsite childcare and eldercare, extended leave/sabbaticals, community volunteering on company time, telecommuting, fitness centers, recreation facilities, concierge services, take-home meals, employee entertainment and product discounts, free food and beverages, haircuts, massage, dry cleaning services and more. Do you want all of these?

Be willing to compromise on some issues in order to gain on others. The negotiation process is not a showdown in which there is a winner and a loser. Don’t give a different impression from the one you created in your interviews, but don't "give away the farm" either.

Worthwhile organizations will not withdraw an offer just because you think that you are worth more. Get straight with yourself that you have some value. They want you! So wield your power while you have it. If you want to bump the salary up, try saying this:

You: I’ve thought a lot about the offer. I am confident that I can do a great job for you. I like the company and all the people I've met. I’m eager to get started. I just have one problem -- the salary is a bit less than I had expected. Can we talk about that?

Interviewer: How much were you looking for?

You: I was hoping for $xxxxxx.

Interviewer: Let me see what I can do.

Often the interviewer will suggest splitting the difference between the offer and your request. Other times, they may move your first performance review up to three months with eligibility for an increase. They are many additional ways to offset the difference in non-cash rewards.

If they truly see value in you, a few thousand dollars is much less costly than reopening the search. Besides, hiring managers don't generally want to settle for their second choice. They want you.

When both parties agree on terms for which they are able to move forward, the negotiation ends -- but the deal isn't closed until you are truly "on-board." Many "sure things" have been known to slip away at the last minute, so delay the celebrations until you've started your new job.

When the day comes, notify your network, in writing, about your new position and be sure to close out any pending job possibilities. Then pop the cork on the champagne, prop your feet up, and revel in the sweet sound of the fat lady singing! The negotiation is over.

© 2003, Career Planning and Management, Inc., Boston, MA.  All rights reserved.