When it comes to negotiating a salary, whether it is with a prospective employee or a current one, remember one thing: you have the upper hand. In most of these situations, the employer maintains control of the outcome and can set the parameters, as well as change the parameters, as needed.
     As in any negotiation, there are some basic guidelines that an employer can learn to be successful during the negotiation process:
     1. Research your candidate.
     Do as much homework as possible on the candidate’s current financial situation and mindset. Know as much as you can about how this particular person is motivated and what incentives have proven to be important to the individual’s attitude and job performance. Make sure you have the correct information regarding the candidate’s current salary, perks and any other types of compensation.
     2. Research the position.
     Make sure you have an accurate sense of what the compensation levels for the same job are at other companies by doing a compensation study. This enables you to find out what the competition is paying and what incentives are being offered other employees at the same stage in their careers, making your offer competitive.
     3. Never be involved in preliminary negotiations.
     The decision maker should wait to join the discussion until all points of the candidate’s expectations and requirements are on the table. Once the employer knows what the potential employee (potential because this point is mainly for new hires) wants and the initial dialogue has begun, then the decision maker should come in to finish the negotiation and close the deal. This is a psychological tactic that helps underline the employer’s status and power within the organization and set the protocol for future negotiations with the employee.
     A key point when hiring a new executive is to really "embrace" the candidate. Give him/her an exact sense of what they will be receiving, both professionally and financially, by joining your company. Explain the importance of the position within your business objectives and give them a clear picture of the future, plans for growth, company goals, and how they will contribute and prosper.
     4. Stay focused on reeling them in.
     Be careful that the finalist is not an opportunist or one who is vulnerable to going back to their present employer to seek a counter-offer. You must prevent this at all costs because if the employee is of value to his/her present employer, they are not going to give up without a fight. This would obviously give the candidate the upper hand in two conflicting negotiations. To prevent this, make it your objective to get a commitment from the candidate when you present a formal offer. Then make a point of saying, "Do we have a deal?" Prepare a letter of intent stating on paper their commitment to your company and ask them to initial it.
     On the subject of retaining and promoting current employees, young executives tend to move around within their industry to keep their salary competitive with their peers, build on their skills, and advance their career profile. Some employees have no issue with staying only a year or two in one job and companies can be ruthless in raiding a competitor for their good employees who are satisfied in their present positions by offering them lucrative deals. This can be frustrating for business owners who groom their staff to suit the style and ideals of their organization and therefore look forward to a return on their investment.
     5. Build a collegial atmosphere with your company.
     Make your employees feel that they are an integral part of the organization and have an investment in the company’s success.
     Providing perks can build loyalty and keep an employee happy. Many employers offer incentives that are individual to an employee – sports, concert or show tickets, a day off for a birthday or special event, flex hours, and extra vacation time are typical perks. Companies are increasingly trying to figure out what they employees like to do with their leisure time and then find ways to allow employees the time to become involved in a particular activity. If the position involves a lot of travel to a major city, sometimes a senior executive will be given access to a corporate apartment. One company I know of often flies executives to a two-day stress management seminar at a cost to the company of $3,500 per person. Another organization offers leased BMWs for every employee that has been with the company for more than a year. Some employers provide access to the corporate jet or a condo in Hawaii. Sign-on bonuses and forgivable (no interest, no tax, no payback) loans for a new house or apartment are also incentives afforded key executives.
     6. Anticipate potential problems in advance.
     Some contracts include scheduled and agreed salary increases negotiated at the time of hire, although that can still become a bone of contention each year as the executive gains seniority within the organization. This is when some of the perks and incentives mentioned above come into play. If applicable, stock options can be a valuable negotiating component, when it is necessary to keep the salary increase to a previously agreed upon level.

     When preparing for an employer negotiation, there are also some key "Don’ts," especially when hiring someone new.

• Potential employees don’t like to be lectured and are often uncomfortable discussing aspects of their personal lives during an interview. Most appropriate topics of discussion (experience, education, skills, management style, etc.) can be found on a standard job application.
• It is always inappropriate to ask someone’s age.
• Don’t get too chummy with a candidate – always stay professional and focused on the task at hand.

     Keep in close contact with a potential candidate. After they leave the building, make sure you follow up with them regularly and keep them in the loop on where you are in the hiring process. Communication is always important to the candidate and most negotiations should not take more than a couple of days to complete. The object in keeping or hiring an employee is to make them feel valuable. If you can’t do that, you’ll never have the "dream team."

     In the dog-eat-dog corporate universe, learning to effectively negotiate your salary and benefits is just as important as the skill sets that got you through the door. When you started in business, you probably did not negotiate when you were being hired. At this point in your career, however, there is much more at stake. Along with the basic salary, there are questions of contracts, equity, bonuses, relocation expenses and even mitigation clauses to consider. As a businesswoman, you should know what you should be earning at this juncture of your career. But simply proving how indispensable you are is not enough in today’s business world. To get the terms you deserve – you also need to be deal-maker.
     The good news about negotiating is it does not have to be confrontational. My first piece of advice is to allow an attorney to represent you – let them negotiate! I have seen many executives who because of their loyalty to a company, were afraid to ask for the terms they actually deserved. Once you leave the bargaining table, the window of opportunity has usually passed. If you can afford to retain counsel, allow an attorney who is well versed in these matters do the talking, taking you out of the offensive position and away from potential confrontation. Let your lawyer look like the bad guy, not you.
     Whether you retain an attorney or not, you still need to be a part of the process, most importantly so that your employer recognizes your continued personal interest.
     Negotiation isn’t a battle. If you want to come away from the table a winner, look at the proceedings as a game. A game must have rules. The rules are:
     1. Have a game plan and specific objectives.
     Understand what it is going to take to make the deal you want and devise a strategy to get there. Have a list of points, both "deal-breakers" (non-negotiable items) and points you are will to concede. Negotiating is a give-and-take and being able to "give-up" certain things to achieve others is an important part of your strategy. In some cases, for example, you might be able to take a lower salary and in turn receive a higher level of equity in the company. I have found this to be more of a factor in today’s negotiations. This is especially true at Internet and new media companies where, due to the current IPO fever, an equity stake has turned into a gold mine. Having said that, you also need to enter the negotiation process with a total compensation package value in mind and find a way-through bonuses, equity and perks – to get to the financial place you need to be.
     Consider what perks you want. Will they give you moving expenses, a company car or business-class travel? Most companies have made such expenses a standard part of the package they offer to lure executives. I have also been seeing more mitigation clauses in contracts. What happens if you are terminated without cause, because of downsizing, a merger or an elimination of your position? Executives, especially those at the senior level looking for a soft-landing, should indicate a specified "golden parachute" on their list of non-negotiable items.
     When planning your negotiation tactics consider how they are relevant to the type of work in which you are involved. For example, salespeople are traditionally trained early on to set goals and map out the path for obtaining them. A self-confident lost for the most part, sales executives should typically aim for a contract calling for performance-based perks and bonuses. Companies use performance incentives as a way to motivate staff. Use that to your advantage – make them believe you can perform magic and they will give you a golden castle. Other executives need to do the opposite. Many product campaigns falter in the marketplace for reasons that are not the fault of the executives heading the marketing for technology departments. For that reason, marketing or other generic position players are better off negotiating base compensation and bonuses computed on parameters not linked to a single product success or performance. This type of deal can be used as insurance against a manufacturing disaster (or a bad script) killing off a beautifully conceived and executed marketing campaign.
     2. Put the sizzle in your steak.
     Spend time preparing and rehearsing your presentation. Rehearse your presentation. Rehearse with your lawyer, if you have retained one. Whether you are interviewing for a new position or renegotiating, it is important to make the case for why you deserve to earn more. Graphs and charts are always a great way to illustrate your intentions. Show management your previous performance (for this company or your previous job association), what you’ve accomplished, what you expect to accomplish and what the company should expect to accomplish with you at the wheel. Show them that you are the person to take the company to the next level.
     3. Have self-confidence.
     This rule is important for every part of this process. The first place to apply this is in considering changing jobs. Know your worth. CFOs, for example, have a great grasp on the numbers involved and know what the company can afford to do, which places them in a superior position of strength, an edge that other executives don’t usually have. However, financial executives also have a tendency to be low key, which can be a problem. CFOs need to try and break out of that mold and come across as assertive. Even if you’re not a salesman, you need to have salesmanship at the bargaining table. If you are very confident in your abilities, take a shorter-term contract (greater risk) in order to demand more in other areas. If you deliver, they’ll still want you after the term is up and you can negotiate an even better arrangement next time. It is also important to show some humility. You may believe you carry the whole company on your shoulders, but make sure you take notice of the people and circumstance that got you there.
     4. Don’t turn off your audience.
     Don’t beat a dead horse – sell your position, make your point but know when to move on. If you aren’t getting anywhere with one of your deal points, try and get more somewhere else. Don’t oversell yourself – confidence is one thing but don’t make any promises you can’t keep and don’t make yourself out to be something you’re not – it will come back to bite you in the future. Don’t get too assertive – be even and steady in your approach, know when to drive hard and when to back off.

     Whether you have an attorney or are negotiating yourself, be cunning, tough and adept in the negotiating process. Many women have complained that in the business world of today, if you’re too nice you’re considered soft, too tough you’re considered unapproachable. The trick is to achieve balance – have an executive presence but don’t be overly assertive. Don’t be bland or inhibited but know when to back off and be well prepared. The cumulative effect of your style, emotion and well thought out presentation will make you a winner in the executive compensation and "advancing your career" game.