GREED ISN'T GOOD - Page 1 of 2

You held out for more than the company wanted to pay.
Now get ready to suffer the consequences.

Among the "me" generation, it's fashionable to try to get all you can. This seems especially true when candidates negotiate new pay packages. Even when prospects say compensation isn't their first priority when evaluating job offers - ranking it below challenge, opportunity, chemistry, and other factors - pay always seems to rise to the top during the final discussions.

No one thinks this is unusual. In fact, articles in respected business publications cite reasons and ways to hold out for the highest amount possible from employers. But this approach may be a mistake. We all want to be paid well, but when considering a career move, compensation must be kept in perspective and balanced with other, perhaps more important, considerations and rewards.

Don't be greedy. Instead, seek a win-win agreement with a new employer. Not only does this cement good relations for both parties during the negotiations, it may save you from the career disaster that can result from holding out for the maximum. Consider these reasons:

• You don't want to create hard feelings.
• If you feel underpaid, you won't be happy. But if the company feels you're overpaid, you may be replaced or laid off if your performance isn't outstanding. Bosses are known to have long memories.
• You don't want to price yourself out of the market for similar positions. Being overpaid for your level is dangerous because now you're locked by golden handcuffs into working for that employer. This may not be the best company or career opportunity for you, and you may be miserable, but you won't be able to leave if you can't afford a serious pay cut. Of course, you're also the most expendable person if business declines.
• Self-interest isn't attractive to employers.

Taking the "what's-in-it-for-me?" attitude won't win respect or loyalty from a prospective employer. Too much self interest may create second thoughts about you and lead to a premature conclusion of interview talks. Many clients have turned down candidates because they said "I" too much during an interview, says Dallas search executive Karen Oney. Consultants from one well-known international consulting firm make such unrealistic pay demands on prospective employers that they frequently lose opportunities that meet their other criteria. "Many, many people have priced themselves out of contention quickly by wanting too much of an increase," she says.

Pay ranges dictate expected experience and performance capabilities. Pushing for the highest possible amount may put you at the top of a pay range. It also raises the company's expectations of your capabilities. This is dangerous because you may be promising more than you can deliver, which often leads to failure. Think of employees you knew who were in jobs that were too much of a stretch for them, if not beyond their abilities. "This 'raised bar' can set the stage for the perception of weak results and a higher potential for failure, slower ascent to ultimate goals, and/or possible termination," says Jim Winans, former CEO of a financial services firm in Dallas. One candidate negotiated an above-market pay package to join a firm which then went out of business, says Ms. Oney. Another company hired her and matched her previous pay, even though it was above the normal range for that job. Now that company feels her performance hasn't met its expectations.

If a prospective boss feels you'd be better off starting at a slightly lower level and being groomed for bigger things, take his or her suggestion seriously. "If you're able to deliver value early and often, and excel in the job, you'll build a much stronger foundation and reputation with the employer than if you have to struggle," says Mr. Winans. Many employers must maintain internal pay scale equity. You may not appreciate pay equity issues when you're hired, but you will later when an unproven candidate with less or equal experience asks to be paid more than you. Companies need to offer competitive pay rates and also earn a profit. Paying newcomers above what employed producers earn could cause mass mutiny.

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