Negotiators are the winners of the world. The win could be easy, like asking a flea market vendor for a lower price on an antique. Or it could be tricky, like requesting a better salary and benefits package after you’ve been offered a new job.
Some people are experienced negotiators that can handle the challenge of wrangling more money out of their future employer. However, chances are you’re not that person.
For freelancers or full-timers, if you feel queasy asking for a raise during your a review, the idea of countering a new employer’s salary offer with a request for more money would probably have you shaking in your shoes.
You’re not alone. Here’s how you can improve your chances of a better job offer and win the salary and benefits you deserve.
CareerBuilder studied the difficulties inherent in salary negotiations and found out which job seekers are asking for more—and which are not.
In 2017, CareerBuilder surveyed 2,369 employers and 3,462 full-time U.S. workers across multiple industries. They found:
There are indicators that employers are willing to pay more than what they initially offer. The survey showed 63% of employers believe they should pay workers more because of the competitive job market. But 71% of workers say they have accepted a position when they knew their experience should be worth more than the offered pay.
There is room for negotiation after the job offer, if only workers could find the courage to ask.
If you’re a job candidate who thinks negotiating a new job offer is as nerve-wracking as meeting your significant other’s parents, this next section will teach you all the skills you need to relax and get what you deserve.
If you want us to provide you with a clear way to negotiate successfully in every situation, forget it.
Negotiating salary and benefits when the first offer letter comes in is tricky. Negotiating isn’t easy. Situations are different. People vary. Your perceived skills may not match up with the salary the employer is willing to pay.
Two words: It’s complicated. And luck may also play a role.
In 2012, Forbes reported on a study by the MarketWatch Centre for Negotiation. The controlled exercise of 1,000 participants had fixed criteria that didn’t require specialized negotiation skills. The study showed only two-thirds of participants were able to close the negotiation successfully. Of those that closed the deal, they still left about 40% of additional revenue on the table.
Forbes concluded:
“With this in mind, a good negotiator is not only someone who can close the deal, but who also has a strategy, understands the value of cooperative partnerships, and sees opportunities for creating added value above and beyond considerations that are typically restricted to only price and quantity.”
This is an interesting point for the job seeker to consider. If you don’t go into the interview process confident in the value you’re bringing to the employer, how will you have the courage to ask for what you think you’re worth? Before that first interview and certainly before you open your mouth to negotiate above that first offer, consider your personal value proposition.
In business, a value proposition spells out why a consumer should buy your product. What need does the product fulfill for the buyer? Why is your product better than the competition?
These are the same kinds of questions you should bring to your job search. Your value proposition is the unique skills you bring to the job:
If you want to be a strong negotiator, the first thing you need to do is map out what accomplishments, skills, and strengths make you a good match for the position you’re applying for. You’ll come back to this assessment every time an interviewer asks you, “Why do you think you’re a good fit for this job?” It’s a good exercise to build your confidence and improve your interview skills.
Harvard Business Review is a fan of the personal value proposition. Its article on the topic suggests a few steps to help you understand your UVP:
Highlight your value proposition on your resume and in your interviews, and you’ll have your targeted job offer before you know it. Then it’s time to put your negotiation skills to work.
Now that you’re armed with a value proposition, let’s look at the personality characteristics of successful negotiators.
The HBR quantified some of the traits of negotiators in global business dealings. According to the Journal, the negotiator should be:
Other research suggests that being too nice in the negotiation can backfire. In the case of the new job offer, this means losing income or perks. Here’s what you should consider.
Negotiators can be aggressive yet coldly effective. At the same time, we’ve all heard the expression, “You catch more flies with honey.” So, which is it?
Harvard Business Review suggests that early research shows being nice in a negotiation will usually get you what you want. But not so fast. Just this year, the journal released the findings of four experiments with more than 1,500 participants. Their goal was to test “the economic and interpersonal implications of being warm and friendly in a negotiation.” They did this by varying how participants negotiated. The studies used Craigslist as a negotiating venue, crafting email messages that were either naughty (“tough and firm language”) or nice (“warm and friendly language”).
The study found:
To confirm these findings, they conducted one-on-one testing in the laboratory. The participants were able to verbally negotiate a purchase as opposed to simply emailing a seller.
The research confirmed that warm and friendly negotiators ended up paying 15% more for the same item as tough and firm negotiators.
Researchers suggested that sellers may have felt guilty during the negotiation with the buyer and lowered the price tag. The study concluded:
“Although our findings highlight the clear economic costs of being ‘warm and friendly,’ they do not imply that everyone should become a jerk. All negotiations are a combination of value-creating and value-claiming, of making the overall pie bigger and securing a slice of it for ourselves.”
Today’s job market puts candidates in the driver’s seat. You have power as a worker in a low unemployment market. Your bargaining power depends on your skills and experience, the type of job you’re applying to, and other factors you can’t control, such as the size of the company’s hiring budget.
Landing the offer letter is a great step. Before you make a counteroffer, know that the employer may walk away from what you suggest. Try not to let that dissuade you. Some risk is worthwhile.
Here are some tips to confidently request a better offer:
Don’t drag out the salary negotiation. If the employer won’t meet your terms, you have the option to walk away. The important point to remember here is that it is okay to ask. There’s no harm in asking for more money. But if could be harmful in the sense that if you don’t ask you might leave money on the table. So be brave, dial up your courage, and make your play.
Of course, you also have the option of talking to a Talent Professional at Artisan. Our team is skilled in the art of salary negotiation and would be pleased to represent you to future employers. We offer our services to candidates for free and provide resume reviews and interview coaching, in addition to representing you in salary negotiations. We’re standing by to help you win. All you have to do is make the call.