To follow, are a dozen salary questions to see what you know (or don’t know) about negotiating your salary. Do your best on each question, then click the Show answer link to reveal the correct answer. The Quiz is reproduced here with permission from my partner, Jack Chapman, author of “Negotiating Your Salary: How to Make $1000 a Minute” (10 Speed Press).
Salary Negotiations affect not only your paycheck, but your performance on the job, too.
If the employer’s offer is significantly higher than your market value, you should accept it and get it in writing right away.
Employers often will compute a salary offer as a percentage increase over your present earnings. To make the interview process go smoothly, get clarity on that range toward the beginning of the interview process.
Avoid interviewing for jobs whose salary is significantly below your expectations, because it wastes both your time and the interviewer’s.
At the time of final negotiations, you should start with a number that is at the high end of your range; that way you don’t come in too low, and still have room to negotiate.
Good benefits won’t make up for a poor base salary.
To find your fair market value, you just need to find what others in similar positions are earning.
Straight commission is the riskiest type of compensation, although you might have to accept it if you are inexperienced in the particular type of sales in question.
An average wage earner would add an additional million dollars to his career earnings if salary negotiation skills increased his income ten percent.
You should tell recruiters and employment agents about your current compensation in complete detail–even corroborating earnings with W-2s if needed.
One acceptable way to increase your negotiation leverage is to increase the answer to “What are your present earnings?” Add 10% to your base salary to cover benefits, and add in any anticipated bonuses when you give the employer or recruiter your “number.”
Companies today restrict their managers to a percentage-range for raises. The goal in raise negotiations is to get the maximum in that range.
Any one of these questions you answered incorrectly could easily cost you thousands of dollars in a salary or raise negotiation.