To get the best offer both employer and employee, what is the best approach in negotiating a salary for PM position?

Question

I would like to seek your advice in negotiating a salary for PM position. Below are some of the roles and responsibilities of the position

1. Directs and coordinates activities of an assigned project to ensure that budget, goals or objectives of the project are accomplished within the prescribed time frame.

2. Confers with project staff to describe the scope of the project, outline workplan and to assign duties and responsibilities.

3. Manages and tracks activities of project to ensure project deliverables are on schedule.

4. Assists the team to implement and improve project management methodology.

What should I remember when negotiating? What is the best thing to do to get a win-win situation both parties?

Answer 1

Consider the overall package, not just the salary:

• The salary is the basic compensation you get, but there are usually other things that top it up (depending on where you work and your employer), so look at the overall package which can include bonus scheme, pension plan, medical insurance, travel expenses, company car, tax benefits, vacations, shares schemes, memberships, etc.
• Sometimes it can be worth compromising a little on the base salary if benefits are great. They are also negotiating point (for example if the employer is set on the base salary, you can ask if the would be willing to negotiate on benefits, like a higher % bonus.

Be clear about what you want and be prepared to say it (and back it up):

• Be clear about the kind of salary you would be happy with for the job and your limits; you are going to have financial boundaries (you decide the minimum you need) but also consider how much you want the job and why: even if the salary offered is lower than expected, you should still look at the big picture of how this fits in your life. This will help your work out what you are prepared to compromise on and how much.
• Do as much research as you can to find out the typical compensations for a similar job in a similar location as this will give you a reference point to justify your expectations. You can look at other job adverts, get in touch with recruitment agencies dealing with PMs, or leverage your local PM network.
• When asked about how much you want, say a range (between X & Y) rather than an amount, as this will give you more room to maneuver and also shows that you are prepared and opened to discuss.
• Be ready to explain your rationale for it (e.g. I feel this is a fair salary for the type of responsibilities the job entails, for my experience and qualifications, etc.).
• If you can though, try to get them to tell you first what they are offering; in any negotiations it's much easier for the party who goes in "second".

Engage in a positive and constructive discussion:

• You talk about win-win, and it's a good thing to actually say that at the beginning of the discussion.
• Stay away from "hard" negotiations techniques, don't go into bargaining, and don't use aggressive or confrontational language.
• Don't push your prospective employer into a corner (with statements like "it's this or nothing", or "I have other options"). If you happen to have another job offer from someone else, be careful how you use it - I would only bring it up as a last resort and in a non-threatening way.
• Clarify with the employer the next steps. Ideally you can come to an agreement there and then, but if not, you should be clear on what happens next.

Answer 2

Negotiating salary is like negotiating anything else. You are better off if you have relevant and timely research and data, e.g., comparable salaries for similar PM jobs in that area at this time. And, establish alternatives; know your BATNA, your best alternative to a negotiated agreement. If you are out of work and have no other alternatives, getting your best salary should not be your primary goal.