The Successful Salary Negotiation Part I – Know the Landscape!

I recognize that the best sales jobs are still hard to come by.  There are still sales professionals that are changing jobs, and make no doubt about it, they are having to negotiate their salary.  I think these tips will help you whether you new or a veteran.  Good proven techniques for you to benefit from!

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The interview skills that you honed have been superb, and your ability to stay focused during the group interview was exemplary. The list of accomplishments on your resume gave you credibility, and your vision showed well.

Now, you have the pleasure of being selected for the job you coveted. Job one now is to make sure that you get a “deal” that you can live with. Too many sales professionals have avoided the discomfort of negotiating, which should be what you do best, and have settled for something that they later regret.

Salary- Know the Landscape

There is nothing more compelling for a sales professional than getting paid what they are worth. In order for this to happen for you, you need a brief education and awareness of the salary landscape. Getting what you deserve requires this understanding, as it is the basis for your ability to effectively negotiate. This requires some background, some homework, and a little bit of intuition.

The good part is that if you’re currently an employee of the desired company, you most likely have knowledge of their compensation. Also, the databank of information that you have accumulated during your business and sales career, no matter how long it has been, is useful.

One useful yet controversial “tool” that will help to define the landscape is called Glass Door. Many professionals from numerous occupations use this tool, and it is abused by just as many. One of the most common uses is to determine a baseline and as I explain further you will have better understanding of Glass Doors’ worth and veracity. I will provide a link to Glass Door’s site below, but first let me give you some caveats.

Glass Door depends on user/member reporting to build its database of information. Each participant must give up some information on himself or herself before having full access to the information provided by others in this database. It is extremely popular at this time, yet is probably to some degree a good place for “liars poker” as well. With that in mind, I suggest you take it with a “grain of salt.” It does not mean that you can’t use this in your quest for information, but you do need to do it with an understanding of the limitations of the tool.  You can get to Glass Door by using this link, or putting http://www.glassdoor.com in your browser.

Glass Door gives you salary information on a number of different positions, including those involving sales and service. Interestingly enough, that may include sales positions at your current employer, as well as sales positions at your prospective employer. It also factors in your geographic area as well.

This gives you a jumping off point, as you look to understand what sales professionals of like experience and position will make. Keep in mind the Glass Door is not limited to sales.

This tool gives you more information than salary, but…keep in perspective.

Before we leave this brief discussion on salary expectations and requests we should also recognize that the salary probably should not be your driving issue. You’re driving issue probably should be total compensation, and that should will be driven by the strength or weakness of the sales compensation plan that you are on. You will need a solid review of the plan to get an idea of your earning potential.  You should ask questions liberally, and I would suggest that you see the mechanics of the plan using some real sales situations.

You should get this in spoken to in the offer letter.

Lock in your “Conditions”

I will simplify this to avoid confusion. Your “conditions” would be anything that is not salary and not employee benefit driven. This will include the following items:

  • Territory
  • Goal Expectations
  • Expense allowance–per diem
  • Company Vehicle
  • Inherited business
  • Inherited prospects
  • Issues regarding assistance and support
  • Expectations on any legal costs and issues regarding any non-competes or contracts

These items are important as well, and need to be negotiated just like the salary. I call them conditions because they are a condition of the agreement that should be observed by either party.  These are part of the employment agreement and should be discussed and recorded.

Above all, get it in writing.

Lock-in your benefits

This is ultra important, not because it makes the job any less difficult, but because it makes the working conditions palatable.

I would include in that discussion the following items:

Vacation
Personal days
Employee Benefit Issues

You may not be negotiating employee benefit issues as they should be going “by the book”, yet you should get definite clarification on these issues and have a meeting of the minds as you will feel abused if you lose a dispute about these in the future.

Above all, get it in writing as no one wants to hear what you understood to be the deal; they want to see the agreement.  Remember, as you have heard before, it is not what you know; it is what you can prove!

The Power of Commitment

I think that you know my sentiments reducing all agreements to writing.  It is best for both sides.  You should also be prepared to live with it.  You negotiate for a living, and this is the most important negotiation that you are going to be involved with for years to come.

Do your homework, and be knowledgeable.  Close the deal and get to the business of selling.  No one likes surprises!

Next Post will cover the actual salary negotiation.  Knowing the landscape definitely puts you in position.

Good luck and good selling.

We welcome your comments.  You can reach me at Michael.Parker@blacksalesjournal.com.

Prejudice Vs. Discrimination – Which Makes a Difference?

A manager might be  prejudiced, but if this individual does not discriminate, legally it does not make any difference.   We don’t care what people think, we care what they do!   Know the difference between these two unfortunate situations and know what might be actionable if it affects you.  When it comes to prejudice, thicken your skin and when it comes to discrimination know the rules.  Above all…always be the professional!

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If you have read Black Sales Journal before, you recognize that I frequently comment on racial prejudice, racial preference, and the effects of negative racial perceptions.  It is natural to provide comment on these topics as they represent the 8,000-pound elephant in the room and as a result are not discussed openly in most forums.

We spend time discussing how the Black sales professional can successfully use tactics to neutralize racial preference and how we all (all Black professionals) can nullify and improve negative racial perceptions.  We also face the fact that racial prejudice is a different and difficult beast and that we may never change it.   Psychiatrists often characterize prejudice as a deep-seated attitude.  We all are aware that something negative has been cast into someone’s personal life, it can have a permanent effect.

Importantly, we should recognize the relationship between racial prejudice and racial discrimination and how they manifest themselves in sales.

The Attitude versus the Action!

For the purpose of this explanation let’s define both of these:

Prejudice – Unreasonable feelings, opinions, or attitudes, especially of a hostile nature, regarding a racial, religious, or national group.

Discrimination – Treatment or consideration of, or making a distinction in favor of or against, a person or thing based on the group, class, or category to which that person or thing belongs rather than on individual merit:  racial and religious intolerance and discrimination.

(Courtesy of Dictionary.com definitions 3/5/2012)

So there you have it, racial prejudice is an attitude.  It can reach deep into ones fiber, but an individual will never be tried in a court based on this attitude, as it is not a crime.  If a customer has this attitude, they still remain a viable customer for someone, but possibly not for a Black sales professional.  If your employer has this attitude it is unfortunate yet as long as they make objective and meritorious decisions, they are not guilty.   In other words they can be prejudice but not discriminate strange as it may sound.

Racial discrimination is a different animal as it is action oriented.  A distinction made on the basis of race can potentially be afoul of the laws and regulations, and is almost always ethnically wrong.  It goes without saying that racial discrimination is unfair and although a customer is free to do anything they want, in the case of an employer it could be legally actionable.

The Vicious Circle

The relationship between prejudice and racial discrimination is suggested to be ‘circular’; meaning one leads to the other.  You document racial discrimination but you talk about prejudice as someones disposition or attitude.  Racial discrimination might mean that you get no ‘call-in’ prospects, bad territories, or no house (orphaned by another rep leaving) accounts.  Discrimination may be hard to prove, yet there is evidence, especially when you are able to compare the situation on a relative basis between all sales professionals at a location.  Know what extras you get and how well you performed when you get the chances and if you feel aggrieved read Black Sales Journal 3/9/2011 When You Feel Screwed  – Three Steps to Getting Help.

I make the suggestion that from the standpoint of professional sales that we realize that the most important activities that we can undertake are as follows:

  • Look for and expect fairness from the managers that we work for and be prepared to professionally point out inequities, in a professional manner, as they happen.
  • Document important milestones and activities correctly recognizing that it is “not what you know, it’s what you can prove!”
  • Master your company’s performance system (Black Sales Journal 1/10/2011 – Preparing for the Performance Review Discussion).  Always be pro-active and prepared.
  • Document every thing you get and what you don’t get.  Know the prospects, house accounts, and special benefits you get, and document them well.  Especially document the situation if you are not getting any.  You will need to know what others are getting to have a chance of success.  The facts count.
  • Be the expert on you! Know your sales totals, close ratios, and what percentage of your success came from the company giving you prospects or accounts.

When Bad Gets Worse – Racial Harassment

The unfairness of racial discrimination creates frustration and ill will.  Things are even worse when there is racial harassment.  Racial harassment normally comes from the employer and can emanate from management or coworkers.  A strong example of this is the Montrelle Reese vs. ThyssenKrupp (see Black Sales Journal February 13, 2012).

Racial harassment has a primary purpose of demeaning and driving an individual out of the particular work environment.  It is akin to racial bullying and has no place anywhere, especially in the work environment.  Making someone miserable is awful, and anyone who witnesses it and does nothing is full of fault as well.  It makes no difference as to the colors involved.

Know the facts and know your options.  Most importantly, recognize that acts of discrimination, harassment, and bullying may be actionable, but prejudice is not.  It is an attitude.

Additionally, always be the professional.

Your comments are welcome.