Salary negotiation works both ways

13 Nov

Here’s one that I’ve been thinking about for 6+ months:

Oftentimes when you’re going out, looking for a new job, you’re going to fight for highest salary.  I mean, of course, right?  Who wouldn’t?  That’s why we’re in this rat race – more money!

It’s important to realize that there’s are ramifications.  It may seem obvious, but I’m not sure everyone thinks this through.  If you are offered 70K, and negotiate to get 80K, your employer will likely be looking for 12% more work.  The boss may not come out and say it, they may think you’re a great candidate and want to get you on board, but every month, they’ll be looking at your salary, and thinking about what you are worth.  Frankly, it’s easy to negotiate yourselve into a position that you can’t actually perform at yet.

Keep in mind that your “job” at a new position is to make your boss happy.  Most of the time that means doing the work you signed up for, but there’s a whole host of other requirements you have to meet as well. Your negotiation isn’t just getting you more money, it’s piling on the requirements as well. I’d strongly recomend everyone who’s starting a new job read The First 90 Days.  

On the other hand, if that isn’t how your new employer works, you may be getting into the wrong job!  You want to work somewhere that puts personal responsibility on each employee.  If they’re free with the money, what else are they free with?  If they’re desperate to get you on at any cost, are they equally desperate elsewhere?

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  • Sheldon
    I don't think your analysis of more work for more pay really holds. Most people work in relation to how much they enjoy what they are doing, not how much they are paid. People are paid according to supply and demand, you work according to how motivated you are. Virtually all studies of employee behavior indicate that money is not the most important motivator, and is not even often in the top 5.
  • 100% agree - money isn't the motivator. It is a factor I believe in how your boss perceives you. My point was to focus on the opposite side of the view - not from an employee perspective, where as you mention, money isn't the motivator - but from the employer's side, and what happens when you do negotiate higher.

    I've seen a number of situations over the past 2 years where people specifically go in for Job A, which has a salary of X. They negotiate hard, and get Salary X + 40%. The new job then expects them to be a more senior person. "Oh, if they're getting paid that much, they must be great". A few months later, the boss is sitting there wondering why they aren't performing at the level they were paid at, and bam they're out of a job.
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