The Art of Negotiation Salary
February 7th, 2012
For good or for bad, bargaining is not intrinsic part of the Western culture anymore. Virtually everything has its fixed price, printed on a label. A more cynical mind might muse that Americans and Europeans know the price of everything, but the value of nothing, and he would not be entirely wrong either. So unlike the Arab world, where negotiating the price of even the most basic of goods is an impressive display of skills – a mixture of knowledge, witticism, artistry, flair, and cunning, a dance of minds, nerves, and tongues. Be that as it may, the Western people live just fine with fixed prices, as long as they are present.
However, one of the most important aspects of life does not sport printed price tag or, when it does, it usually is hidden from plain sight. The price of labor, the evaluation of work effort, skill, dedication, passion, and professionalism is often – or should we say always? – debatable. At the very least, employers and employees look at it from the two diametrically opposite standpoints and it takes well-timed effort and negotiation skill to reach common, and equally satisfying common ground. Or equally unsatisfying, because once a wise man said that when both sides conclude the negotiations somewhat unhappy is a sign of a good deal
It is impossible to overstate the impact remuneration package has over the quality of life. The moments of negotiating wage at a new job or a raise usually are few and far between, which only increases their importance. It is absolutely crucial for one to be as prepared as possible. All the time spent looking for job or all the effort put over the last year could go down the drain, if you do not know how to ask for adequate reward for your skills and effort.
The purpose of the current article is to outline few very common mistakes employees make when trying to sell their skills at the best possible price. It is hard to gauge which of the following key points is the most crucial of them all, for bargaining is a complex process. Suffice to say that they form the mixture, which will give you the self-knowledge and self-belief to ask for a fair reward for your professional input.
For one, negotiating remuneration is a debate between two well-informed sides, which have unequal power-relation. The implications of the unequal dynamics between employer and employee should not be overstated. This power inequity can be negated through careful preparation and clear purpose. When one knows what s/he wants and when s/he has studied one’s qualities and qualifications the desired salary is within sight.
Be ready to negotiate – Let’s make it clear from the beginning: you should set your mind to the task. The fact that the salary negotiations in effect put price tag on one’s professional life causes unease in many people. This unease has to be left behind and the mind has to be focused, and calm, and the senses keen. If you are not willing to negotiate or are just half-heartedly committed, the battle is lost before the first shot, figuratively speaking.
The slightest trace of doubt can undermine your confidence and, what is more important, your position. Good, studied argumentation of your strong sides, as outlined below, and determination to get what you deserve will pave the route for your quest for fair reward. The very core of this negotiation process is to turn the table around and to make the employer want what you have to offer, instead of the other way around, when you seem dependent on the money at stake.
Research your skills – First and foremost, one has to be perfectly well-aware what one can bring to the company (or already brings, if negotiating a raise). You should take the time necessary to understand which of your skills fit the position at hand best. What is more, you must be well aware how the knowledge and prowess you possess will benefit the potential employer, what an asset to the organization you will be. Underline those skills, which give you the edge, which will make you look as an indispensable part of the imminent future of the company.
In order to make your professional image more attractive and full you should stress some of your professional values and ethics like dedication, passion, discretion, and whatever else suits the position. However, be honest. It is one to portrait your professional history in good light, and entirely different thing to brag about qualities you do not really possess. The former demonstrates eloquence, good self-knowledge and openness, while the latter can turn to be you digging your own professional grave.
The skills needed to be researched in case you negotiate a raise, rather than starting salary, are even easier. Document your activity and contribution to the company. The better the record you keep, the better understanding of your current position and possibilities you will gather. As you will see shortly, this record serves multiple purposes, but in the current step of your preparations it will help you find out your greatest achievements. They have to be carefully laid out on the table, discreetly shedding the said good light on your qualities as professional.
One side-effect, so to speak, of having such list is the confidence boost it brings. The prism of time such record provides will let you see yourself in different, more realistic perspective. It will allow you to see your assets out in the open and will extract the necessary conclusions from the mistakes you have made. There are no perfect people, do not pretend to be one in vain.
Research the reasonable salary range – It is very handy to know how much you can ask. There is a thin line between confident demand within reason and arrogant request within absurdity. There are many online tools, which can give you quite accurate projected estimates about the position at hand. You should also dedicate some time to research the company you are applying for, because salaries can vary to quite some extent even within the same sector.
In case you are negotiating a raise you should be able to find out what you can ask for via internal channels.
To put it differently, do not be greedy. Take the negotiations professionally and not personally. Knowing your skills and knowing what the company has to offer will give you good starting position. Do not think only about the numerical remuneration, but cover all aspects of the reward package you negotiate. Thanks to the economic crisis salaries in the United States were frozen in many sectors for about two years and the companies began to give additional importance on the bonuses they offer as compensation. The salaries are growing again, even though at a slower pace compared to four years ago, but perks and bonuses continue to gain more prominent role in many remuneration packages.
Evaluating realistically the full scope of reward you work for is an art in itself and a very useful bargaining tool.
Reasonable self-evaluation – Again, do not be greedy. Keep tight record of your professional life for the current or previous employer and get to know your strong sides. Learn what gives you the edge over others, aspiring for the same position or doing the same job, but resist the temptation to overstate it. Try to find at least three characteristics and/or achievements you have. Speak of all three of them, putting the emphasis on the smallest – which should be small, indeed, but somewhat noticeable – of them, then mention in between your greatest achievement.
The contrast between your words and the magnitude of the deeds will leave memorable trace. You should know your skills and contribution as well as possible, because this is what you are selling when negotiating salary. You need to know with certainty the value you (will) bring to the company and stick with it. Get to know thyself, it is written even in the holy books. It is definitely useful advice when trying to put a price on your professional skills – if you do not know their value, how do you expect others to pay the real price for it?
- Do not bring up the topic too early – The remuneration topic should be left untouched for as long as possible. This is true
particularly in cases when you compete for new job. Make sure to take your time to lay out all your skills and achievements, and pass all the evaluation tests requested. Some of the questionnaires you might need to answer could inquire about numerical estimate of the desired remuneration. Do not be afraid to leave the inquiry blank. The employers or their recruiters probably will try to get a number from you more than once, so be aware – the HR agents can be quite crafty in that regard.
Should you unveil such information too early in the negotiation process, you concede significant part of your position. It will shrink your room for maneuvering in later stages of the bargaining to such extent that bargaining might not happen at all.
On the contrary, if you manage to keep the desired numbers hidden until the appropriate moment, you would have the luxury to study the probing questions of the recruiter. You might be able to dig out valuable nuggets of information, hidden in them.
What is more, postponing the discussion of payment toward the end of the negotiations reduces the inequity in the employer-employee relation. Both sides realize the importance of the topic – the more time you have to present your position, the better your (reasonable and well-studied!) request will look. It should look like a logical extension / conclusion of the case you have been building for yourself throughout the entire bargaining process.
One well-studied and carefully planned approach toward the sensitive topic of professional remuneration can bring great benefits to both employee and employer. The benefits for the employee are obvious – greater professional and personal satisfaction and, as a result, improved quality of life. The employers might not see the immediate effect of increasing salary or paying more than initially anticipated to a new recruit.
The positive consequences of reasonable payment include improved performance from the workers not only through monetary stimulus. Actually, many studies show that an overly big remuneration can have rather negative effect on the professional performance. Inadequately high monetary reward increases the pressure for result and the fear of failure, which can have stiffening impact on creativity and focus.
Actually one can perform at optimal level once the issue of money is taken off the table. This allows one to concentrate at the task at hand, instead of being worried and sidetracked by financial issues. Bargain craftily, charmingly, professionally for your professional life and reap the fruits, while doing your job with a smile. Give yourself the chance to get what you deserve, to receive the just remuneration for you contribution to the organization.