You need to start negotiating way before your first interview.  Sounds illogical, doesn't it?  The key here is to have your own personal negotiation before you have one with a potential employer.  If you don't, I guarantee that you'll regret it later.

Self-Negotiating

The objective in negotiating is to get all or most of what you want.  The operative word here is "want."  You need to decide what you want - and more importantly, what you must have. 

Successful negotiators know what their bottom line is before they start a discussion.  And they are ready to walk away if they can't get to it.  Many job seekers set minimum compensation targets and then panic when they get lowball offers.  They fold like a soft taco. 

It's hard to stand your ground, especially when the job market has been as bad as the past few years.  It's rational to fear that this could be it - the only offer you're going to get.  But you need to be strong for a lot of reasons.

First is your real worth.  If you've done your research and know that your minimum price is reasonable for your background and/or locality, taking a lower offer is destructive.  Not just to your pocketbook, but to your self-image.  Settling for less says the prospective employer doesn't value you enough … and neither do you.

The other reason not to fold is your long-term benefit.  Think about it.  Doesn't that stupid job application you have to fill out always have spaces for salary history?  Don't a lot of job postings ask for salary requirements as part of the response?  Take less now and take a step back for the rest of your life.  Seriously, the income you earn over your future career can be impacted, and that can affect your retirement income as well. 

So stand firm and be ready to hold your own.

Who Blinks First

Negotiation is all about timing.  It might happen during the first interview, or it might not.  But if it hasn't come up by the end of the second interview, it's time to force the issue.  Remember, the simple rule is "(s)he who names a number, loses."  That said, you can raise the subject.

At the end of the second interview, when you're asked if you have any questions, you can say something like, "can you give me an idea of the approximate compensation range for this position?"

A cagey interviewer may say, "What kind of compensation are you expecting?" 

And you, being the savvy interviewee, will reply, "my research has shown that this kind of position generally gets somewhere between < lowest acceptable figure > and < some number that doesn't qualify you as being insane." > Then this goes on until somebody flinches.

Reasonable interviewers won't drag this out beyond a couple of go-rounds.  Actually, this is a good way to make a judgment about prospective employers.  The ones that persistently avoid committing to a figure are not-so-subtly telling you that they'll be weaselly in the future.  It's a sign.

Turning this scenario around, you may hear, "what salary are you expecting?" Rather than throwing down a number, you should ask for the range paid for a position of this kind.  Again, a responsible employer will tell you something.  Then the ball's in your court.

Too Low/Too High/Just Right

Now you have to decide what you're going to do, Goldilocks.  Let's start with the easiest situation: "just right."  The range given is consistent with your expectations.  All you need to say is that this range works fine for you.  And then stop talking. 

Anything else you say is likely to undermine your position.  If the interviewer tries to prompt you to say more, just smile and say that any further discussion of compensation needs to follow a formal offer of employment.  Then turn the conversation back to the specifics of the job and/or your qualifications for it.

Next is the "too high" range.  Gee, that's a problem you'd probably like to have.  First of all, not all that likely.  Second, it's an indication that you might not be the right candidate. You may fit the basic qualifications, but may not have had the expected span of responsibility or experience in a challenging environment.  The difference in compensation is an indicator that you may be out of your league. 

But sometimes, just sometimes, the company is willing to pay more than you expected.  Should this happen, you've got to keep a poker face.  Expressions of delight or shock (verbal or otherwise) will undermine your position. Just nod and say that this range works fine for you.  And then stop talking.  See instructions above.

Finally, there's the "too low" compensation.  Sadly, it's the most common situation.  You know you shouldn't cave, but responding effectively requires delicacy and tact.  Something other than, say… "You can't be serious, dude."

The correct response in this situation is to say that your research showed that similar positions typically ranged from < fill in your findings here. > The interviewer is then "obliged" to offer some kind of explanation, which might be an additional bonus or incentive payment plan, an accelerated salary review schedule, or alternative compensation structure, like stock options. 

Or the answer may be that this is their salary structure and you can, um, take it or leave it.  If it's below your minimum and this is the final offer, you should politely decline.  Sincerely wish them all the best in filling the position.

Getting Yours

However, if the interviewer indicates that there's some room to bargain, it's your turn.  Time to bid back and justify why you deserve it.  Be prepared with some statements about how you will be able to add value for the prospective employer, by addressing some of the business problems inherent in the job.  (Hint: "what are the challenges that the incumbent faced in this position" is a great question to ask in the first interview.)

You need to focus on future value, not past accomplishments.  Why should new employers raise their asking prices if your value proposition is based on what you did last?  Prior successes only have value as a predictor for the future if it's a lateral move.  You'll want to project your achievements into the new situation and explain how you'll be bringing your talents to bear.  If you're convincing, there could be a bump up for you. 

Compensation: More than Money

Money is only one element in a compensation package. Sometimes an employer that won't budge on salary will be flexible about other things.  You can negotiate for more vacation, a car allowance, paid training, or lots of other perks.

A friend of mine, when faced with a salary offer that was significantly less than her minimum, successfully negotiated a four-day work week.  This kept her pro-rated compensation within range and gave her an extra free day to boot.  As another example, while working as a contractor, I traded a small piece of my hourly rate for medical insurance coverage. 

Be open to thinking about creative ways to improve your package and suggest them.  You may be pleasantly surprised at what you can get if you just ask.

More

On several occasions, I've heard from jobseekers having second thoughts about accepting offers below their minimum.  They ask how they can go back and renegotiate.  Sorry, but there are no do-overs here.

Once you've said yes, you're committed.  You may be able to wangle a six-month review cycle, but you can't change your mind about the money.  You can decide not to accept the position, but trying to re-open the negotiation will condemn you to a prospective employer.  You'll seem untrustworthy at best and unstable at worst.  The result?  Very often a withdrawn offer and no job at all.

One last point.  If the offer isn't in writing, with all agreed-upon elements included - salary, benefits, anything else - it's unenforceable.  Sadly, I've also heard from a number of folks who have had unscrupulous companies renege on verbal offers.  Always, always get it in writing. 

Questions about job search or career issues?  Write to me at Jamie@jobCircle.com.

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Jamie Fabian spent more than 15 years as a human resources executive before changing careers to become a senior project manager for a growing IT consulting company.  Now in management consulting for a large Pharma company, Jamie would like to be seen as a hybrid of Tom Peters, Tom Jackson, and Tom Wolfe, but spends too much time working, driving carpool and watching mindless TV to write more than this column.  You can contact Jamie with questions and comments at jamie@jobcircle.com.