Executive Transition – Overestimating Market Value & Checklist

Top 10 Mistakes Executives Make When Searching for a Job

#6 Overestimating your market value.

Overview

There tends to be a gap between what you want to earn and what you’re likely to earn. To close that gap and avoid being disappointed, be as realistic, objective and informed as you can. Your market value depends on many things (e.g. experience, skills, economy, the state of your industry, your geography). Therefore it’s inaccurate to base current expectations on your most recent salary, particularly if you’ve made a significant career transition or the economy has turned. It’s a widespread practice among novice negotiators to ask for more than they expect. This will make you appear both greedy and unaware of the market reality. It’s better for you to know your marketable range and negotiate within that. You need to validate any assumptions by doing appropriate research and consulting experts in the field. Also keep in mind that your are likely not the only candidate in the running and you don’t know what experiences and expectations your competition might bring to the negotiation table.

Coaching

Take some time to research your market worth and gather as much market intelligence as possible. Ask friends, colleagues and industry experts – including recruiters, for any insight they may have. Determining the salary range for any given job depends on a number of criteria including experience, responsibility level and geographic location. Demonstrate that you know your market worth and that you are putting your best foot forward. Don’t price yourself out of the market by having unrealistic expectations and making unvalidated demands. Understand that there will be three numbers being considered – their number, your number and the number you agree on. If all of these fall into your marketable range, then you’re in a good position. The number you agree upon should fall within a range that is agreeable to both of you and the employer. It should also reflect your worth based on a combination of your experience, market trends and the employer’s compensation policy.

Dos & Don’ts

• Invest the time to research and understand how employees in similar companies and roles are compensated.

• Don't overlook total compensation when considering an offer; salary is only part of the deal.

Executive Transition

Negotiating Checklist

PREPARATION

AdviceI obtained advice from knowledgeable people on how to best proceed with my negotiation.

Key stakeholdersI’ve discussed negotiating elements with key stakeholders, including my family.

Practice I’ve practiced my negotiating tactics and approach with others, and received feedback on my performance.

Recruiters/ 3rd parties I am prepared to work with a recruiter or 3rd party negotiator if necessary.

ELEMENTS

Market worthI’ve researched my market worth and I know what range of compensation would be appropriate for me.

What’s important to me I’ve identified and prioritized what’s important to me.

Must haves Nice to haves

I’ve identified which elements are negotiable and non-negotiable for me.

Salary range Benefits Incentives

Perks Time off Other

I’ve outlined my expectations on a number of elements.

PROCESS

TacticsI am prepared to manage this negotiation and have outlined my tactics.

Points of agreementI will focus on points of agreement before moving on to points of negotiation.

Points to negotiateI will discuss points of negotiation in a professional, open manner. I will be able to rationalize my position, and will invite the other party to rationalize theirs.

Win-winI will approach the negotiation with a win-win attitude. I want the best outcome for myself and my employer.

Get it in writingWhen appropriate, I will get the elements of the agreement in writing for my review.

OutcomeI have visualized what I want the outcome to be, and have worked toward it in my preparation and in the negotiation. process. I am content with the outcome.

© 2011 Bill Holland All Rights Reserved.