According to Glass Door, 3 in 5 employees did not negotiate salary. They found that 59% of American employees accepted the salary that they were first offered, and did not negotiate. The study also revealed that 1 in 10 successfully secured more money from a negotiation. Age and gender differences also played into negotiation rates and outcomes. Feeling confident and empowered in negotiations can lead to major differences (both emotional and financial) in the process. We repeat “let them tell you no” frequently with our coaching clients. You don’t get what you don’t ask for. Here are our tips for negotiating with confidence.
Preparation:
Feelings about money. Start way before the negotiations begin by determining your feelings and thoughts regarding money. What was your experience with money growing up, and how does that play into your mindset now? Is money the main motivator for you in negotiations or are other things equally or more important?
Motivations. Determine your main motivators for making a job change or asking for a raise. Motivators can be money, benefits, time off, location, work environment, or hours. Try to assign a ‘value’ to these items.
Do the math. Figure your total salary including things like year base, bonus potential, past payouts, car allowance, and internet or phone allowance. Don’t forget to calculate the value of health insurance with low premiums or costs, time off, education benefits, etc.
Research. Look on the web at sites like Glassdoor.com, LinkedIn, or statistics gathered by your University to determine the average salary range for the job that you are interviewing for. Compare job descriptions in order to match up job duties and salary ranges. Talk with people in your network about what potential salary to expect. Also, consider pay differences for changing industries or if you might be currently paid above industry norms for your job.
Identify your assets. Make a list of the qualities and skills that you bring to the table that could justify asking for more. Amount of experience, special experiences, certifications, and education. Determine what sets you apart from other candidates.
During negotiation:
Stay positive. Don’t underestimate the power of likeability. Continually relay that you are flattered to receive the offer and are excited about the job and company. This is not the time to play hardball.
Practice delivery. Write down what you’d like to say. Repeat it out loud a few times. Run it past someone else to get feedback.
Be reasonable. Negotiate within reason based on things that set you apart, that you are walking away from, or leaving behind. Consider bonus payouts, stock grants, or education benefits to finish a degree that you will now try to make up. It is easy to ask for a sign-on bonus or pay increase to make up for the exact amounts that you will leave behind. Hiring Managers have likely been in this position themselves and understand these factors.
Assume power. Flip the power script by being prepared to walk away. I’m not saying play hardball (see the section on staying positive). When you are prepared to walk away from an offer that puts you in a position of power and gives you more confidence.
Competition. Having a competing offer can also put you in a position of power. This might not always be the case, but if you do have multiple offers on the table it is ok to mention the differences and use this to negotiate.
Prepare to accept. Negotiate your best ask and be prepared to accept the offer if they are able to meet it. This should not turn into two or three rounds. If they are able to meet your ‘ask’ then they will be expecting an acceptance. I’ve seen people walk away from an offer situation like this and come to regret it a few days later. Their hope of getting the company to reconsider is slim.
Get it in writing. (Speaks for itself.)
I hope you get the feeling after reading this that preparation builds confidence in negotiating. Doing research, practicing your pitch, and staying within reason all lead to good feelings during the process and hopefully good outcomes. Things might not always go your way, but you will feel much better about your efforts by following these tips. Skills Lab is available for last-minute help during a negotiation. While you are still in the interview process we can help you prepare, and then walk through the final stage alongside you.
