4 Avoidable Salary Negotiation Mistakes
“Executives have mastered the art of business deals, but some don’t bargain well for themselves” especially when it comes to salary negotiations. (Wall Street Journal).
Salary negotiation is a crucial skill for all hotel/hospitality workers, including executives. However, “a surprising number of executives in the hotel/hospitality industry stumble in negotiating for job offers, pay raises, or promotions,” says Noah Hanft, chief counsel and chief franchise officer of MasterCard®. Despite their significant levels of career success, some feel uncomfortable advocating for themselves, while others simply don’t understand the best ways to reach an agreement. “It’s a real challenge to be as business-based as possible” in managing your career, says Hanft.
“When you negotiate for yourself, it can be quite emotional – and nerve-racking,” says Deborah Kolb, a leadership consultant and coach for executive women. The best thing you can do is not take it personally. Just as you wouldn’t take an offer with a potential business client personally, don’t be personally insulted by a salary offer below your expectations. Below is a list of the four most important mistakes for hotel/hospitality executives to avoid when negotiating your salary.
4. Forgetting to do your research
What would you think of a candidate who came into an interview with you unprepared? You’d probably eliminate him/her from the potential candidate pool pretty quickly. The same goes for executives interviewing for a position with a new hotel. Before going into an interview, learn as much as you can about the history and performance of the company, the employees who work there, etc.
3. Making aggressive demands too early in the process
Often times, executives vying for upper-level positions will overstate how much they earn and initiate pay negotiations too soon. Before you begin making demands or talking salary, you need to be sure the employer knows you’re qualified for the role and that you fit well with company culture.
When executives appear to be interested mainly in earning more money, employers may conclude they are “not be the best fit,” says Geoff Hoffmann, CEO of DHR International search firm. To find out where your hotel/hospitality executive salary ranks among competitors, download our 2015 Hotel Executive Salary Guide.
2. Giving your bottom line salary
If you’ve already talked about salary expectations, the last thing you want to do is to give them your bottom dollar. If you give your minimum salary requirement, many hotel organizations will use that as the ceiling rather than the basement.
Forgetting to consider non-salary items during your negotiation
For many hotel/hospitality organizations, compensation won’t get in the way of the organizations ability to hire the right person, but there are other things to negotiate besides monetary compensation. These include vacation time, incentive stock options, fringe benefits, and more. By the time you receive an offer, you should have a good feel of what is and isn’t negotiable.
There are many important tips to know when negotiating your executive salary, and many things you should avoid as well. The easiest way to avoid the most common salary negotiation mistakes is to picture how you would want a candidate to approach the salary negotiation process, or how you would negotiate business with a potential client in your industry.
Check out our previous blog post on “Top Questions Hotel Executives Should Ask Before Accepting a Job Offer.”
Sources:
Career Profiles. (n.d.). Most common salary negotiation mistakes [Blog post]. Retrieved from http://www.careerprofiles.info/salary-negotiation-mistakes.html
Gouveia, A. (n.d.). 9 salary negotiation mistakes you should avoid [Blog post]. Retrieved from http://www.salary.com/9-salary-negotiation-mistakes/
Hcareers.com. (2014, April 17). 4 avoidable salary negotiation mistakes [Blog post]. Retrieved from http://www.hcareers.com/us/resourcecenter/tabid/306/articleid/1325/default.aspx
Lublin, J. S. (2014, August 22). Everyone’s an amateur when it comes to negotiation [Blog post]. Retrieved from http://www.wsj.com/articles/negotiation-tips-for-executives-1408718237
Whitler, K. A. (2014, June 4). The biggest mistakes c-level candidates make when seeking a new job [Blog post]. Retrieved from http://www.forbes.com/sites/kimberlywhitler/2014/06/05/the-biggest-mistakes-c-level-candidates-make-when-seeking-a-new-job/