Stronger employment market provides a more favorable environment for compensation negotiation

Data released by the U.S. Department of Labor earlier this month, showing an unexpectedly high gain of 337,000 jobs in October, reinforced a trend executive recruiters have been seeing for much of the year - after three years of poor employment market growth - companies are hiring.

According to a recent survey of 106 recruiters conducted by ExecuNet, the executive job search and recruiting network, the demand for executive talent will continue to climb, increasing an additional 20% in the six months ahead. If recruitersí expectations continue to prove accurate, companies will be forced to devote more attention to recruitment and retention in 2005 - a shift that will provide executives with an opportunity to increase their compensation.

ìWeíre just starting to hear from members that are benefiting financially from the turnaround in the employment market,î says Dave Opton, CEO and Founder of ExecuNet. ìIn nearly every case, the bigger paychecks are a product of strategic negotiation.î

A separate survey of 952 executives conducted by ExecuNet, revealed just 20% of executives believe they are ìvery preparedî to negotiate a compensation package, 49% say they are ìprepared,î and 31% are ìsomewhat preparedî or ìunprepared.î

To help executives take advantage of an improving job market, ExecuNet suggests avoiding these three common compensation negotiation mistakes:

1. Lack of preparation

Successful compensation negotiation is ultimately about preparation. Long before sitting down to discuss compensation with a decision-maker, obtain as much salary information as possible for your company, industry, job title, and region. Itís hard to negotiate effectively if the only data point you have is your current salary.

2. Poor positioning

Many executives make the mistake of starting their negotiation with a focus on background information such as years of experience and responsibilities. A more effective approach is to begin by articulating the value you bring to the company. Positioning the discussion around the organizationís goals and your specific contributions creates an environment in which there are no losers.

3. Waiting for a formal review

Timing is a critical component in all negotiations. Concentrating all of your efforts on an annual performance review is never a good idea because these discussions tend to focus on how you can improve your performance. To avoid adding unnecessary pressure to your review, initiate a discussion about your compensation a few months beforehand. This approach will help ease any anxiety and provide you with better control over the conversation.

For more information on compensation negotiation executives can sign up for a free copy of Executive Insider at http://www.execunet.com/ei

ExecuNet, a career management and recruiting resource center for executives and recruiters, is a recognized authority in executive career and recruiting trends. It helps members identify career opportunities and attain professional success by providing exclusive job postings, opportunities and tactics designed to expand personal and professional networks, and career advancement strategies.

Founded in 1988, ExecuNet also serves recruiters and corporations as a leading source of top-tier executive talent and proprietary research. For more information on ExecuNet visit www.execunet.com