The Art Of Salary Negotiations
Perhaps one of the most feared part of the job seeking process is what happens after the job offer is made. It is also a necessary step when gunning for a promotion at our current job. It is negotiating the salary.
Salary negotiation can be scary. But what’s even scarier is not doing it. A study revealed that of those people who negotiated, they were able to increase their salary by over 7%. That may not sound like much, but if you get 7% less than your co-worker, assuming you’re treated identically from then on, with the same raises and promotions, you’d have to work eight years longer to be as wealthy as them at retirement.
So, it’s time to learn how to negotiate. The tips described in this article will get you totally prepped.
1. Know Your Value If you’re going to get the pay you deserve, it’s crucial to know the going rate for your position in your specific industry and in your geographic area by doing an online search on sites such as Payscale or Glassdoor, or by asking others in your field. If you walk into a salary negotiation without a number, you’re at the mercy of an experienced hiring manager.
2. Pick The Top Of The Range With a range that represents your market value, ask for something toward the top. First, you should assume you’re entitled to top pay. Second, your employer will almost certainly negotiate down, so you need wiggle room to still end up with a salary you’re pleased with.
3. Know The (Exact) Number According to researchers at Columbia Business School, you should ask for a very specific number say, $44,750 rather than $45,000. Turns out, when employees use a more precise number, they are more likely to get a final offer closer to what they were hoping for because the employer will assume you’ve done extensive research to reach that specific number.
4. Be Willing To Walk Away When considering your numbers, you should also come up with a “walk away point,” a final offer that’s so low that you have to turn it down. This could be based on financial need, market value, or simply what you need to feel good about the salary you’re bringing home. Walking away from an offer will not be easy, but it’s important to know when to do it, and powerful to be able to say “no.”
5. Make Sure You’re Ready Before you ask for a raise, ask yourself a few questions. Have you been at your job for a year? Have you taken on new responsibilities since you’ve been hired? Have you been exceeding expectations rather than just meeting them? The answer to all of these should be “yes.”
6. Plan The Right Timing Timing is everything. Don't wait until performance review season to ask for a salary adjustment. By that time, your boss has probably already decided what raises will be doled out to the team. Start talking to your boss about getting a raise three to four months in advance. That’s when they decide the budget.
7. Prepare A One-Sheet Prepare a “brag sheet." It’s a one-page summary that shows exactly how awesome you are. List any awards, accomplishments, customer/co-worker testimonials you’ve received since your last review. You want to demonstrate your value to your boss.
8. Remember Practice Makes Perfect Rehearse, rehearse, rehearse. Write down what you want to say, and practice to a mirror, on video, or with a friend until you’re super comfortable having the conversation.
9. Set The Meeting For Thursday Studies show that you’re more likely to get a raise if you ask on Thursday. We tend to start off the week more hard-nosed and even disagreeable, but become more flexible and accommodating as the week wears on. Thursdays and Fridays find us most open to negotiation and compromise because we want to finish our work before the week is out.
STARTING THE CONVERSATION
10. Power Up Before you go into the negotiation, try doing a power pose. Perhaps in the bathroom, standing tall with hands on your hips, chin and chest raised proud, and your feet firm on the ground. Doing so raises testosterone, which influences confidence/reduces stress hormone cortisol.
11. Walk With Confidence The way you enter a room can dictate how the rest of an interaction will be. Keep your head high and smile. Starting off with a positive vibe is very important.
12. Start With Questions Start the negotiation conversation by asking diagnostic questions to understand more about the other party’s true needs, desires, fears, preferences, and priorities, then offer up solutions that will help.
13. Show What You Can Do
Remember that brag sheet (bring a copy for your mamager)? Before talking numbers, talk about what you’ve accomplished and more importantly, what you can do. Summarize what you’ve achieved this year. Highlight times you’ve gone above and beyond, which will build the case that you deserve a raise. Be prepared with a few thoughts on what you’re excited to take on going forward, whether that’s freeing up your manager’s bandwidth by taking on an existing project, or proposing a new idea that you’re excited to own.
14. Think About The Other Person When preparing for negotiating, get in the mindset of thinking about the situation from your opponent’s perspective. When we consider the other person’s thoughts and interests, we are more likely to find solutions that work well for both of us.
15. Stay Positive, Not Pushy You should always keep the conversation on a positive note. Kick off with something like, ‘I really enjoy working here and find my projects very challenging. In the last year, I’ve been feeling that the scope of my work has expanded quite a bit. I believe my roles, responsibilities, and my contributions have risen. I’d like to discuss with you the possibilities of reviewing my compensation.’
MAKING THE ASK
16. Put Your Number Out First The anchor, or the first number put on the table is the most important in negotiation, since it’s what the rest of the conversation is based off of. If it’s too low, you’ll end up with a lower final offer than you probably want. You should always be the first person to mention a number so that you, not your counterpart, controls the anchor.
17. Ask For More Than What You Want You should always ask for more than you actually want. Psychology shows that your bargaining partner will feel like he or she is getting a better deal if he or she negotiates down from your original ask. The worst that can happen if you give a high number is that the other party will counteroffer, but the worst that can happen if you don’t negotiate is that you’ll get nothing.
18. Don’t Use A Range Never use the word “between” when negotiating. In other words, never give a range: “I’m looking for between $50K and $55K.” That suggests you’re willing to concede, and the person you’re negotiating with will immediately jump to the smaller number.
19. Focus On Market Value Rather than discussing a raise or new salary based on what you make now, keep the conversation focused on what the market is paying for people like you (your “market value”). Re-frame any metric your negotiation partner uses, like percentage differences as market value, re-focusing the discussion on hard dollars.
20. Prioritize Your Requests Research shows that rank-ordering is a powerful way to help your counterparts understand your interests without giving away too much information. You can then ask them to share their priorities, and look for opportunities for mutually beneficial tradeoffs: both sides win on the issues that are most important to them.
21. Don’t Mention Personal Needs Don’t focus on your personal needs, like the fact that your rent’s gone up or childcare expenses have increased. You make a much better case to your boss (and his or her boss!) that you’re worth more when you focus on your performance and achievements.
22. Ask For Advice Asking, “I trust you, and I’d very much value your recommendations. What would you suggest?” By doing so, you’ve flattered your negotiating partner, encouraging him to take your perspective (hopefully), persuading him to advocate for you and your request.
23. Don’t Forget To Listen Listening to the other party during a negotiation is almost as important as your ask and argument. By really paying attention to what the other person is saying, you can understand his or her needs and incorporate them into finding a solution that makes you both happy.
GETTING AN ANSWER
24. Use Stalling To Your Advantage When you hear the other person’s first offer, don’t say ‘OK.' Say ‘Hmmm,’ Give yourself some time, and in the seconds of silence, the other person is more likely to improve in some way.
25. Ask Questions Does the person you’re negotiating with flinch or otherwise react negatively to the number you put on the table? Don’t let that deter you; instead, ask open-ended questions to keep the conversation moving and show you’re willing to work together.
26. But Don’t Make Threats Again, you ideally want to work (or keep working) with this person, so it’s important to keep the conversation positive. Whatever you do, don’t threaten to leave if you don’t get the raise.
27. Consider Other Options If your boss (or the hiring manager) really, really won’t budge? Try negotiating for flex time, more vacation time, a better title, or plum projects and assignments.
28. Keep Negotiating Negotiation is a complicated process with volumes of books on techniques, tactics, and scripts. The good news? The more you do it, the easier it becomes. Even better, the more money you’ll bring home! So, get out there and start negotiating. You’ve now got the skills to do it right.
Follow Me For Weekly Informative Articles Patrick Coppedge
Very interesting podcast about gender pay gap http://freakonomics.com/2016/01/07/the-true-story-of-the-gender-pay-gap-a-new-freakonomics-radio-podcast/
Hopefully, with all technology advances, the pay gap will go away.
I working Maintenans for 9 years I welder-fabricate little electric- set up the capper filler do pm the machine #salary
After reading all of the responses, I noticed I am not alone in the searching for a job!!! What is going on?? I have an excellent work history, my background relates to Compliance; Insurance and Banking. I have a Bachelor's degree in Business Administrative, which seems to be not relevant anymore, employers are looking for candidates with a Master's degree and offering a salary of $45,000!!! I don't understand!! This is crazy!!! However, I have faith in "GOD" that the perfect opportunity will be presented to me in due season. To all of my job-seekers, keep the faith and know this too shall pass!!!
All the hype around the half a billion lottery drawing last week got me thinking… How much money is really enough for me and my family? I know this type of thinking goes against the get rich or die trying mentality that seems to be so popular today but I’ve made too many mistakes in the past trying to find the gold at the end of the rainbow. Caught up in one now, in fact, working in a high pressure sales job I have absolutely no passion or desire to be doing anymore. Maybe this my midlife crisis moment but the thought of 20 more years of this day to day grind is depressing. What does money mean to you? Would you be happy if you had just enough to cover your bills?