Salary Negotiations: Tips for Getting the Best Outcomes
By Heather Meeker Green
It can be a bit challenging to get ready for salary negotiations, especially in uncertain economic times. Add to that inexperience, general nervousness around negotiations, and a sense of a power differential, and it may feel intimidating. On the other side, there remain biases by hiring managers that perpetuate pay inequities. Women receive worse first offers, encounter more pressure to make concessions and receive less reciprocity in response to their own concessions. Due to racial bias and negative racial stereotypes, black candidates are perceived as less likely to negotiate and seen as less deserving when they ask for more money, and are also offered lower salaries, and given less in concessions. With the spotlight on corporate responsibility, many companies are focusing on improving their processes, systems, and policies and training their recruitment staff. Even with the growing knowledge of the inequities in 2021, women, BIPOC, LGBTQ+ and those with disabilities are still experiencing pay gaps.
Given the risk in pay gap, it is important to do your best and set a solid foundational salary package. Evidence from the business world suggests starting at a lower salary can add up over time, resulting in salary differentials of millions.
There are three main behaviors to avoid when negotiating salary packages:
Not asking
Asking for less
Discounting one’s value and expecting less
Let’s start with not asking for a higher salary or more benefits and other options in your package. While a survey of employers found that 74% of employers are able to improve their first offer, the same survey found that only 38% of graduates attempt to negotiate. (McGurran, 2015b) Unless you are offered the highest part of the salary range, it is in your interest to prepare to ask for more to start. Many organizations are trying to meet satisfy their interests of quality candidates and lower salaries for each position. This permits them to meet budgets and allows them to have room for movement up later in the negotiation or at later salary reviews.
Asking for less is one of the larger reasons some candidates end up with a lower starting salary and can explain the pay gaps with white men. The impact of asking for and receiving less to start can also add up to millions of dollars in a differential over a lifetime.
When it comes to the presenting of one’s own value in salary negotiations, there is also a noticeable difference between how white men present themselves and women and BIPOC and their salary expectations. This likely comes from centuries of inequality and internalizing the perception of being less than that happens societally and in our families. While it may feel uncomfortable and unfamiliar at first for some, it is important to become aware of how often you downplay, denigrate, brush off, or minimize your accomplishments, potential and value. It may take building up an awareness practice for catching yourself and speaking directly to what you have done, what you can contribute and how much you are worth.
To minimize pay discrepancy and other challenges in salary negotiations, there are concrete things you can do to prepare well and positively impact your outcome.
Prepare before you negotiate.
Know what is important to you and your value/what you bring and consider their interests.
Have in mind multiple creative options to set high expectations and starting target and bottom lines.
Do your research at a myriad of salary sites and consider what criteria, standards, and principles will be perceived as persuasive and fair for legitimacy (salary comparables, other compensation and benefit comparables).
Understand your BATNA and strengthen it by having another offer from elsewhere if you can; estimate theirs.
Practice with someone before the actual conversation.
Play to collaborative strengths: Use listening, understanding, creative development and relationship building skills.
Treat the negotiation conversation as a joint problem-solving opportunity.
Inquire to deepen the conversation and spend time listening and understanding to uncover interests rather than only telling and persuading.
Brainstorm solutions and possibilities together before evaluating them or committing.
Ask for a high target that you can justify with criteria to anchor the conversation at the top of the range and package.
Trade value for value, asking for something when giving something up.
Focus on both the substance and relationship throughout the negotiation.
Positive attitude: Come in as calm, curious, and confident as you can to create a collaborative atmosphere.
Lastly, here are some lessons I have learned over the years. Perhaps they will inspire you to try some new habits in any negotiations you are involved in, and particularly for your salary:
If I don’t ask for something, it is unlikely I will get it.
A true sense of curiosity can open up conversations and unlock potential.
When I ask “Why?” I understand better and can avoid making assumptions.
I become knowledgeable about relevant criteria before I negotiate. I ask, “Where does that number come from?”
If I try to sit in the other party’s shoes for a few minutes I can expand my view.
When I take time to prepare rather than winging it, I get better results.
Asking for time to think or decide is fine.
I can say no to the option on the table if it does not meet my needs.
Wishing you successful salary negotiations! Comment to let us know what works for you.