I was recently asked why men are paid more than women. It’s a hot topic which was then debated around the table and one of the explanations put forward was that women are poor negotiators. I disagree with that but afterwards it got me thinking. Can I translate some of my knowledge from major deal negotiations to negotiating a pay increase? Instead of waiting for “karma” to do the work to secure a pay rise
Here are some of my suggestions:
1. Know your end goal
- What’s your compromise position; ideal state and perfect world?
- What will you do if you don’t get what you want?
2. Think for the person you are negotiating with
- Are they the decision maker? If not, consider how you can help your manager sell this up the chain.
- What creative alternatives to cash are available? (Additional leave, increase bonus, shorter working hours, car space, less staff, additional training.)
3. Be prepared, have a succinct message and supporting documentation at the first discussion (otherwise it will be the last).
- Have a script (particularly useful if you’re nervous), write out why you believe you are entitled to an increase.
- Managers can’t give you an increase because you’ve been there for a long time or they like you or because of your lifestyle choices. Something tangible has to have changed: more responsibility, more staff, working in a bigger geographic area.
- Know your company’s policy for pay increases and have a copy with you (highlighted).
4. Create the best opportunity for this conversation to succeed.
- Make sure your manager knows the purpose of the meeting in advance.
- Pick a time/day they are typically quiet, if something major comes up, move it.
- Consider what they might say or how they may react – brainstorm this with people you know, your mentor and someone who knows your manager. Have notes for your response to these potential reactions.
5. Whoever speaks first loses!
- This is the biggest lesson I have learnt in negotiation. Once you have walked through your case you have 2 choices to either put a BIG number on the table (my preferred) or put no figure on the table.
- Whichever path you choose, you need to end with “So, what are your thoughts?” then say nothing for as long as you can – about 45 seconds should do it “shhhhh”!?! They are the manager, let them lead.
Negotiation, by definition, is about reaching an agreement so it shouldn’t be a hostile situation. It can be stressful, but if you are prepared it can be a great opportunity to remind the business what an asset you are (and to take time to remind yourself of that too).
I might be alone on this but negotiation should also be fun. You start with “nothing” then push and pull a bit until you both end up with a bit of this and that, shake hands and move on – so try and keep things in perspective from where you start this process.
In my experience if you don’t have this conversation and your peer does, you will kick yourself. And finally consider what advice you would give your best friend in the same situation, and go for it!