6 Practical Tips for Your Next Pay Negotiation

Photo Credit: Maria Kotyshova

Written By Katie Johnson, WIN Staff

The art of negotiation is a lifelong learning process.  Arming yourself with techniques and strategies can give you leverage in any negotiation, especially when it comes to pay.   

Here, we have compiled the top six practical tips to utilize the next time your salary is up for negotiation.

1.   Understand the Benefits

When preparing to negotiate, keep in mind the other people and things that may benefit.  Research from Harvard Law School showed that people – especially women – tend to do better when they negotiate on behalf of someone or something else.  Think about what you are asking for and how it will impact those around you. You are not only negotiating for yourself, but also for your family and future.  Ask yourself: What is important to me? Why am I negotiating in the first place? What do I hope to gain? Who else will benefit? This approach can positively impact both you and your employer. Employees that are happy with their position and compensation are more likely to work hard and succeed at their jobs.

2.    Understand What You Can Negotiate

Most people enter into a negotiation thinking salary is the only thing to negotiate. However, there are many other factors in job satisfaction such as:

• Preferred work schedule

• Vacation accrual

• Certification or education stipend

• Conferences or external training opportunities

• Tuition reimbursement

• Stock in the company

• Childcare benefits

• Relocation expenses

• Health and wellness stipend

Don’t walk away empty-handed!  If your company isn’t in a position to give you a raise, see if you can negotiate something else!  If they’re concerned about your lack of experience, see if there is anything you can do to make sure you meet the requirements the next time you are up for a raise.  If you don’t walk away with a definitive yes, be sure to set a date for a future meeting.

3.   Know Your Worth

Self-evaluation is important.  Don’t assume your boss has been paying attention to everything you’ve accomplished.  Kathleen O’Malley of Babble recommends a “brag sheet,” which she describes as a one-page summary listing all of your accomplishments, awards, and customer/co-worker testimonials. You’ll want to walk through these accomplishments with your manager.  It is on you, and you alone, to build your case proving you deserve a raise!

You are your best ambassador and advocate.  Demonstrate your value by emphasizing efficiency and productivity through contributions you’ve made.  Jonathan Astbury, Associate Partner at Newington International in London advises: “…aim for a competitive deal that you are happy with. Employers will respect this, especially if you are looking at a leadership role.”

4.   Know the Market

Do your research to understand current market scenarios and job demand.  Analyze the industry and familiarize yourself with compensation for similar positions. 

If you are going to get the salary you deserve, it is crucial to know the market value for your position in your geographical area.  The best way to do this is through an online search using sites such as Payscale or Glassdoor.  When you know your market value, you can focus the conversation around that, rather than your current or past salary.  Try to keep the discussion on dollars rather than percentages.

It is best to walk in to a salary negotiation with a number in mind. Through your market research, you’ll likely come up with a range for your position. Instead of asking for something in the middle, ask for something towards the top. Always assume you deserve top pay – with an understanding your employer will likely negotiate down.

Prepare for a pay negotiation as you would a job interview.  Knowledge is power. Do your homework and anticipate a push-back.

5.   Aim High

You should always ask for more than you want.  Psychology shows that your bargaining partner will feel like they are getting a better deal if they negotiate down from your original ask.  The first number put on the table (the anchor) is the most important number in a negotiation. If you start the ask towards the middle of your market value, there’s a good chance you’ll end up with a final offer lower than you want.

Columbia Business School suggests asking for a precise – not rounded number.  In negotiation scenarios, professors found that people making a specific offer gave the illusion they had done their homework.  Perceived as better informed, the counter party assumes there is less room to negotiate.  

Though it is scary to be the first person to mention a number, this ensures you control the anchor.  Aiming high tells the person you are confident in your skills and what you bring to the table. Don’t be afraid of push-back and be open to a counter-offer.

6.   Practice then Execute

Negotiation is a complicated process with hundreds of books, podcasts, blogs, scripts, and tactics to help guide you. Don’t expect to be an expert the first time you sit down. But like anything, it will get easier the more you prepare.  Write down what you want to say, practice in a mirror, record it on video, or go over it with a trusted mentor or friend. Become comfortable with asking for what you want.

During your negotiation, aim to start with a simple, “Thank you for taking the time to meet with me.” If you begin with a list of demands, your counter party may feel attacked. Next, frame the conversation as a cooperative effort.  Use phrases like, “Here’s how we can both benefit,” “Let’s work together,” and “Best outcome.” Be aware of your body language to make sure you’re conveying positive emotions. Be open to presenting multiple options and ask for input on how you can problem solve together.

Don’t be afraid of the no.  A “no” is just part of the process – not a statement on you.   Try not to interpret a failed negotiation as a personal rejection.  Instead, view it as an opportunity for growth. Exposure to both positive and negative outcomes will make future negotiations easier and enable you to push past the fear of the “no.”  

Regardless of the outcome, by practicing these six strategies, you will walk away from your next salary negotiations head held high, a more skilled and confident negotiator.