Salary Negotiations

I want to tell you the story of my “successful” salary negotiation. The year was 2003 and I had a temporary visiting position at Princeton University. I wanted to move to Boston and my friend showed my resume to Alphatech. The interview went well and they offered me a position as Lead Analyst with a salary of $110.000. This was particularly good news considering that the tech job market was very weak in 2003.

At that time, I was working very hard on building my self-esteem. I read lots of books and was in therapy for two years. I decided to practice what I had learned to try to negotiate a bigger paycheck. While speaking to the HR guy on the phone, I was standing up, as I was taught, and projecting my voice firmly with my chest opened up. I could hardly believe it when I heard myself ask for a $10,000 increase.

Despite my wonderful posture, the human resource person refused. However, he remembered that they had forgotten to give me a moving bonus. He asked me about my living conditions. I told him that I lived in a four-bedroom house. I didn’t elaborate: it was a tiny four-bedroom house made out of a garage. I made a counter offer: forget the moving bonus, but give me my salary increase as I asked. He agreed.

For the first year, there was no real difference, because the salary increase was equal to the moving bonus. But I was planning to stay with the company for a long time, so by the second year, my clever negotiation would start to pay off. My negotiations were a success. But were they?

Things change. The boss who hired me and appreciated me stopped being my boss. The company was bought by BAE Systems who were not interested in research. To my surprise, I started getting non-glowing performance reviews. Luckily, by that time I had made a lot of friends at work, and one of them not only knew what was going on, but was willing to tell me. My salary was higher than that of other employees in the same position. Salary increases were tied to performance. They wanted to minimize my increases to bring my salary into the range of others at my level. So to justify it, they needed a negative performance review. After one negative review it is difficult to change the trend. A negative review stays on the record and affects the future reputation.

In a long run I am not sure that my salary negotiations were a success.

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