HOW TO TAKE A PROACTIVE APPROACH ON YOUR NEXT SALARY NEGOTIATION

Having said that, there are intrinsic factors in every individual's control. By understanding the dynamics of negotiation and honing preparation skills, everyone can do their own part in ensuring the best possible outcome of their salary negotiations.

THE RIGHT TO NEGOTIATE

Christina Macken, an expert in career development coaching and founder of Blueprintgreen Career Coaching and Consulting, recently shared tips at a salary negotiation workshop organized by the Women's Aquatic Network. For starters, she says women need to commit to negotiating more. “When I conduct workshops for salary negotiation for new jobs, often fewer than 30% of the women in the room had ever tried to negotiate a salary, or even considered that it was an option available to them,” Macken says. The simple step in being confident in the right to start a conversation about salaries can go a long way over the course of an entire career path—both for women and men. Macken coaches her clients in how to overcome nervousness of negotiations, understanding your worth and creating a mindset that enables a more fluent conversation. Her tips for success are certainly not gender-specific—anyone can benefit from advice on how to negotiate. The first step of preparation is identifying the type of salary negotiation one is about to engage in.

THE TWO TYPES OF SALARY NEGOTIATIONS

There are two common scenarios in which one might find themselves entering a salary negotiation process. One is during the process of acquiring a new job. The other is during the conversation of a promotion. Macken notes that “the two scenarios of salary negotiations have some key differences between them, all of which inform the preparation process.”

When a candidate enters salary negotiations in a new job, there is usually no personal relationship with the person sitting across from them. Except for what is on paper, they do not know what the candidate is capable of. Yet, often, negotiations are expected and considered part of the hiring process. The negotiation is an inherently more collaborative process in which the job candidate has significantly more leverage than during a promotion. When considering a new job position, the candidate does not begin work or commitment to the institution until the negotiations are completed—this gives the candidate significantly more freedom. Because it is less likely that the new employer knows the candidate's salary history, a new job is also the opportunity for one to rectify a previously underpaid position. All in all, coming to an agreement is imperative and therefore gives the job candidate strong footing in the negotiation.

On the other hand, promotion negotiations are a much more political process. More often than not, the conversation is instigated by the employee, making self-initiative extremely important. Furthermore, the salary negotiation may not necessarily be for a new position but for a job that is already being done. Seeing as the decision makers already know the employee's current salary, there are also restrictions in how much they will be willing to increase. In general, the incentive for the organization to act is more limited. The benefit of the candidate here, however, is that they know the company and understand it in more detail. If utilized properly, this can be to their advantage.

An important difference to note between these two negotiations is time frame. New job negotiations “will take place over a discrete amount of time in the days (or weeks).” Meanwhile, promotion negotiations may not have a specific timeline and “can take place over the course of months (or longer)” explains Macken. The two scenarios will influence the way the candidate will approach the conversation, but ultimately candidates need to identify their market value and practice the conversation they want to have.

KNOW YOUR WORTH

Defining your worth for a salary negotiation is about understanding your market value. “Ideally, salaries are tied to the market value for performing the functions described in your job description, in the city you're located, found through market research” states Macken. She recommends tools such as salary.com or similar sites to gain an overview of where they rank in terms of payment within their specific position and industry. The main goal is to translate your work into a salary estimate based on real market data. Equipped with this knowledge, you will be able to enter your negotiations prepared and informed. “The most common mistake is that people assume their current salary is related to (and should inform) their next salary,” Macken warns.

Once you have defined what your market value is, you need to define your priorities. Your compensation package can go a long way in helping you make a decision for a job offer or sweeten the deal for a promotion. Occasionally, there may not be more of an opportunity to raise the salary. Negotiating benefits and compensations are another way to increase the value you receive from a company. Determine what compensations are important to you and define how they could potentially be an addition to your negotiation discussion. Understanding how to use compensations to your advantage can provide alternatives for the salary.

The final step in determining your worth is your walk-away point. What is the minimum win that you are willing to take away from this? What losses can you afford to take? If it is a promotion negotiation: how long are you willing to wait to receive a salary adjustment? Are there other compensations you would be willing to receive to accept the current conditions? If it is a new job: do you have other job offers and how do these compare? Defining a walk-away point is important in order to define when you should cut the chase and decide to take alternative steps. The walk-away point is different for everyone and changes throughout our lives. It does not matter how it compares to someone else, it matters how it suits you and your interests in that moment. By being objective with one's personal needs and informed with market research facts, personally appropriate walk-away points can be determined.

“THE TALK”

Once market research, compensations, walk-away points, and preparations have been established, the next step is executing the pitch. In conversations relating to a promotional negotiation, “it is incredibly important to maintain an ally mindset and view everyone involved as a partner to get ‘on your team’ in support of the promotion process” explains Macken. Establish a group of people that can approve your promotion and speak highly of you. Apply the same concept to your negotiations: see the other person as someone that you need to create an alliance with, not someone you need to fight.

In a perfect scenario, you come to a suitable agreement at the end of the negotiations. In many cases, particularly if it is for a promotion, you may be told that you will hear back. Macken recommends her clients to prepare a follow-up email shortly after the negotiations. Be sure to summarize your case, the general discussion, and reiterate your request. If there was a tone of uncertainty during the meeting, you may also ask for guidance as to the next steps in the process. From here on, it depends on individual situations. Whatever may come next, remember your research, your worth, and your walk-away point.

Overall, this article is a call to think more proactively about salary negotiations, regardless of gender and career stage. Ultimately, the process of the salary negotiations will primarily depend on you. “You are the only person who can advocate for you” says Macken. “It is your personal responsibility to ensure that the right actions are being put in motion, the right people are engaged, and the process is moving forward to ensure your compensation matches the value you bring to the organization.” There are many books worth reading that elaborate on more tools and skills that can be beneficial during negotiations.

While you cannot change all external factors, understanding your position and being informed goes a long way. Achieving a successful salary negotiation may be easier said than done, but in the end you will not know until you have tried.