Jim: Being courted by smaller company who couldn't pay! Creative
compensation package included perks, benefits, tax benefits and
Jerry: Fifteen minute coaching nets 45,000 cash and up to
$25,000 over that. Book got the strategy, coaching built the
Step #4 (of 5) Your Researched Response
4. Salary-Making Rule #4:
Give A Researched Response
Once the employer has suggested the salary range and you've said your four-letter word, it's time to counter the offer with your researched response: what you think you’re worth and why.
The formula to figure out your market value like this: your Objectively Researched Value, added to your Individual Value, enhanced by the “Risk Factor” dollars equals your Market Value.
Your "Market Value" = ORV$ + IV$ + Rf$.
To do your own calculations you’ll begin with the ORV$. The best resources I've found for this are Payscale.com, Salary.com, CareerJournal.com, and Jobstar.org.
At this point of your negotiations, if you’ve followed rules1, 2, and 3, you should be firmly established in the driver’s seat. Now you want to make the best case possible for the best compensation possible. Consult the sites above. Make sure you have high quality ammunition to back up your response.
Once you know what your employer would have to pay
anybody, use that as the foundation. [ORV$] Then look to find out what’s special about you [IV$] that warrants pay above and beyond average. •special talents, •relevant business connections, •specialized experience, •inventive ideas, •etc.
Finally, if you can’t get your desired compensation all in up front salary, try taking a risk [Rf$] on things like •retroactive increase, •in-kind extras, •bonuses, •stock options, •profit sharing, etc.
--MORE ON THIS TOPIC: See chapter 5 for a full treatment of the formula.
--MORE ON THIS TOPIC: Read this real life example…