Five Steps to a
Successful Negotiation
By
Lena Bottos, CCP
Salary.com Compensation Market
Analyst
______________________________
Everything is negotiable. Or so the saying goes, but is it true? Is
everything negotiable? At work, many aspects of your job are still
negotiable. When done well, a solid negotiation will result in a win-win
situation for both you and your employer and will get you closer to your
dream job. Whether you’re looking for a new job or just trying to get
more compensation for your current job, good negotiation is essential to
attaining that ever-elusive ideal deal.
Step 1: Reflect
Look in mirror and assess your strengths and weaknesses. Be honest with
yourself. Two of the biggest mistakes people make when negotiating on their
own behalf are to ignore their failures and weaknesses and to underemphasize
their accomplishments and strengths. Make a list of each and commit it to
memory. Your existing employer is already aware of items on both lists, so
use the strengths and be prepared for the weaknesses.
Tip: Individual strengths and weaknesses are valued differently
job-by-job. If you’re interviewing for jobs, highlight your most
relevant strengths for that job. Also, if you’re looking for a raise at
a current job and you're concerned about a specific weakness, look for ways
to address that weakness such as training programs, books, or even asking
your boss for advice before the negotiation itself.
Step 2: Prepare
Nothing can sour a negotiation more than an ill-prepared employee or
candidate. If you are trying to negotiate for a higher salary, do your
research and find out what an employee like you should be making. Talk with
recruiters, your peers and visit salary websites, such as www.salary.com.
Also make sure that you have a good understanding of the company’s
policies on the salary or benefits for which you are negotiating.
Tip: Gather and organize all necessary documentation and facts, such as
transcripts, prior reviews, current salary, and salary expectations, so that
you don’t have to struggle with facts and figures during your
negotiation.
Step 3: Prioritize
Many people overlook that fact that total compensation is made up of
numerous components – it's not just base pay. You’re more likely
to get what you want if you know what you want most. For some it's base pay.
For others (e.g., sales people), commission rates are more important.
Entrepreneurs will focus on stock or stock options. Still others, such as
second wage earners, find health benefits or flexible work schedules are the
most valuable component of compensation.
Tip: Knowing what’s important to you sounds simple, but it requires
some thought. You might even find it worthwhile to give up on something less
important to get something more important.
Step 4: Present Your Case
Make an appointment with your manager or human resources department
– preferably before budgets are set and reviews are done to give the
employer an opportunity to plan ahead. Discuss point-by-point what you can
bring to the organization as an employee and take time to highlight specific
major achievements or special skills. Make clear to the employer exactly what
your compensation expectations are and why you deserve them.
Tip: Be careful to use only business-related reasons for deserving a raise
or benefit increase. Not being able to take the family vacation you want is
not a valid reason for deserving a raise. Also, be sure to connect your past
achievements and future abilities to the manager’s (and
company’s) goals. This will help put a value on what you can do.
Step 5: Negotiate!
This is where you and the employer discuss what you have presented. In
today's sparse job market, chances are you’ll have to make a few
sacrifices when it comes to negotiating a deal. It is therefore important to
define ahead of time the minimum salary and other compensation figures you
are willing to accept. You will need to gauge the employer’s
willingness or ability to negotiate. It’s okay to be firm about stating
your requirements after an offer has been made, but remember that the company
has its own requirements as well, so a certain amount of compromise is
necessary for both sides to achieve their goals.
Tip: It is important to stay level-headed during this meeting. Your
negotiation is just a conversation between two parties looking to achieve a
common goal of either employee acquisition or retention. Companies want
happy, productive employees and the negotiation process highlights the
specifics of what is needed to get you there.
Always: Follow Through
An important part of the negotiation process is discussing your abilities
to deliver outstanding results. Do it. Your best negotiating leverage next
time around is to over-deliver on the promises you made to get the raise or
job offer. Remember, even in a down economy, the top performers will be taken
care of.
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