Negotiating #2: Avoid Discussions About Money
You need to avoid the hard lessons we see others experiencing every day. Here's
an example. One client was a general manager with Exxon, earning a sizeable
income, but wanting to win a new job at a 20 percent increase. After two
meetings, the CEO said, "Bill, we'd like to have you join us, and I'd like to
work out something attractive for you. What have you been used to earning at
Exxon?"
At that point, having been encouraged, Bill explained his income. To make a long story short, he accepted a position. However, he later found out that the last person had been paid 40 percent more, and the company fully expected to match it. Now, the moral is that you should never negotiate based on where you've been. Negotiation is like poker. Don't lay your earnings on the table!
Premature discussions about money can be a real deal breaker. Besides, the more enthusiastic an employer becomes about you, the more likely he'll be willing to pay more. Sometimes an interviewer will begin like this: "Jim, before we get started, I'd like to know how much money you are looking for." Here is a possible response:
"Charles, I could talk more intelligently about my circumstances after I know more about the job. Will this job have line responsibilities?" Or, "Charles, I would not take your time if I did not have a fairly good idea of the range you could pay. If we can agree that my experience fits your needs, I doubt we'll have a problem on compensation. My concern is whether your needs call for someone with my background."Or, "For my part, I am most interested in the situation, the people I will work with, the company, and my role in the overall effort. While money is important, I'm not locked into a specific figure, because of these considerations."
Here, you remain gracious while avoiding a direct answer. If an interviewer persists, here is a response: "I'd rather avoid discussing compensation. Challenge is most important to me, and I would like to talk money after we both feel I'm right for the job." If all else fails, give a range surrounding your estimate of what the job pays.