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The Art of Salary Negotiation

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To negotiate your salary successfully, you should avoid the following mistakes:

Unreasonable opening demands: By aiming high, you give yourself room to negotiate. However, your opening demands should not be so unrealistic that your supervisor either postpones meeting with you or refuses to listen to what you have to say.

Free concessions: Never make a concession without getting one in return. Unconditioned concessions frequently turn into freebies for which your supervisor generally will not reciprocate.



Rapid negotiations: Rapid settlements are frequently extreme win/lose deals. The less prepared and the less skilled negotiator is often victimized by his or her opponent. Put yourself in command; slow things down.

Settling too quickly: Agreeing too quickly incurs a greater chance of not reaching or even nearing your objective. Be ready to "sleep on it," particularly if you have any doubts about accepting the raise offered. Resist any pressure for acceptance. Good deals are almost never bargained quickly.

Negotiating when surprised: Don't bargain unless you're fully prepared! If something unforeseen comes up, take a break. Ask your supervisor for time to review the proposition.

Fear of silence: If you keep your mouth shut and show that you're listening, your supervisor may reciprocate. After you have asked a question or if you're in the process of thinking, keep quiet. Don't be embarrassed about long silences.

Getting angry: Keeping cool is a great advantage. Never lose your temper (at least, not obviously). Remember: You will probably continue to work with your supervisor after this review session. Also, emotion hampers the ability to think clearly. If you respond negatively to your supervisor, you may forget your prepared strategy and hence lose the "game"!

Failure to get the agreement in writing: It is not enough just to reach an agreement; you need to get a written record. A handshake is fine, but you need to ask your supervisor to put the agreed-to rate and perks in writing to avoid a lapse of memory. But be tactful in requesting the written agreement.

Negotiating when fatigued: Tired negotiators often make foolish errors and may be easily influenced by their opponents. For this reason be sure to get enough sleep the night before the meeting. Also, avoid drinking or smoking immediately before and while negotiating.

Letting your guard down: A few moments of carelessness can destroy the results of a hitherto successful session. Your supervisor may have been waiting for his or her chance to take advantage of you. Don't relax until an agreement has been reached.

Unduly prolonging the negotiation: In negotiating, as in playing poker, there's a time to hold and a time to fold. If you push too far, your irritated supervisor may react by calling off the meeting or even taking a more drastic step, such as getting rid of you.

Unethical Behavior: Negotiations can be abused by using misleading statements to exaggerate your worth and capability. Unethical behavior may involve promoting yourself against those vying for the same or like positions or salary advancements, or for getting a better raise than you deserve. If you are caught bending the truth, it could lead to the company taking disastrous action against you, from holding back a raise or promotion to dismissal.

Assess Your Supervisor and His or Her Position

If possible, be aware of some personal details about your supervisor: marital status, spouse's name, ages of children, hobbies, and any job-related interests that parallel yours, for example. Perhaps you can also find out something about his or her track record in awarding raises and promotions. To obtain this information, you may want to invite your supervisor to lunch or get together for an informal chat during or after working hours.

Most people are predictable. If a person does something once, he or she is likely to do it again. What can other people tell you about strategies your supervisor has used in the past? Is there anything on record that can give you clues?

Consider the decision-making hierarchy of your firm. With whom does your supervisor consult on salary administration matters? If he or she isn't authorized to get you a raise, who is?

Review your prior pay increases for frequency and rate. Seek out information about the frequency of increases given to your peers, how the raises compare to yours, the company's financial condition, and your department's current and future budgets.

Be Ready to Respond Effectively to Conflict

Conflict is a part of life. To get the raise you want, you may have to endure conflict, and you should be prepared for it. During the meeting you may say things your supervisor may not like or doesn't want to hear; therefore, you must expect negative reactions. Negotiating is by nature a stressful task, and the stress increases as the level of difficulty rises.

During a salary negotiation, belligerence and argumentativeness gain you nothing. Questions are much less threatening than statements. Whenever possible, phrase your statements in the form of questions. By remaining calm and courteous, you are more likely to achieve a successful outcome.

Improve Your Listening Skills

Practice active listening. During the negotiation you shouldn't stop listening to plan what you'll say next, or drift away because you think you know what your supervisor will say. Instead, plan to jot down notes. Probably your supervisor, even if sympathetic to your case, has some points to make. Patiently listen-and don't interrupt! If you don't understand what's being said, say so-and ask specific questions.

Ensure Physical Comfort and an Appropriate Setting

Here are some points to consider:
  • Come to the meeting well rested and physically comfortable. Eat sensibly, not gluttonously, before the meeting; and wear clothes and shoes that fit properly.

  • If you have a choice, sit alongside your supervisor at his or her desk or at the conference table. (Sitting in front of your supervisor's desk or at the opposite side of the table creates the appearance of separation by rank.)

  • Request that the meeting take place where there won't be any interruptions by other employees or by telephone calls. You will need the supervisor's undivided attention during the negotiation.

  • Refrain from smoking, even if your supervisor lights up.
Bear in mind that your supervisor may be bound by company policy to accept only a counteroffer that falls within his or her authority, even if a higher offer can be reasonably supported. If the company-authorized rate is below the lower end of your range, you will have to start applying your bargaining skills. You must be prepared to show, perhaps by citing your extraordinary performance or comparable higher salaries for the same job, why the numbers must be bumped up.

Written agreements detailing salaries and fringe benefits are the preferred way of summing up salary negotiations. Other terms of employment, such as working conditions, severance pay, advance notification of termination, and so on, are generally covered by law or written company policy. If some of these items are not specified, make sure they are provided in any agreement. (Prior to the negotiation, refresh your memory or check your files. Perhaps you had signed an employment agreement as a new employee. Compare the original with the later agreement for concurrence of items or for conflicting items that may not be beneficial to you.) If the resultant agreement is unsatisfactory-whether it be for raises or other benefits-you may have to weigh staying in your current job against seeking new employment.

The four tactics described below are helpful in reaching an agreement:
  1. Patience: This tactic involves delaying, suspending, or postponing an answer at the moment to give one party a chance to think over the other's proposition. However, the other side also has the same opportunity and may change his or her offer after further consideration. Any counteroffer should be withheld until it is felt that the other party will seriously reconsider the original proposition. This tactic is often useful when a supervisor responds to your demands with a statement such as "You've got to be kidding!"

  2. Timing: The ideal time for initiating discussions about a raise may be when your supervisor comes into your office for a chat. However, you should keep this exchange informal; use it to set up a formal meeting at a later date that allows you adequate time for preparation.

  3. Surprise: This requires a sudden shift in position. For example, you may request that your supervisor call in an immediate superior when an obstacle to reaching a salary agreement creates an impasse. Once the superior is included in the session, major factors should be reiterated and emphasized in the hope that the new negotiator is more reasonable and that a satisfactory agreement can be reached. However, this tactic is recommended only as a last resort, since it may offend your supervisor.

  4. Diversion: This tactic calls for one party to exaggerate the information under discussion. Because this can be construed as a bluff, you should be cautious and avoid unfounded claims. Your supervisor is using the diversion tactic when he or she makes questionable promises about future raises in the hope that you will withdraw or reduce your present demands.

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