0 hidden charges. 0 forex

Five Secrets for Successful Negotiation

article image

Five Secrets for Successful Negotiation

Table of Contents

Whether you are in line for a promotion at work or you’re switching jobs, learning how to negotiate your salary is an essential skill you need to pick up. After all, you can never earn too much. That said, new employees who may be up for a promotion for the first time or professionals applying for a new job may often be too nervous about negotiating their salary. The result of this is that they may settle for less than they deserve, or may negotiate too hard and lose the opportunity altogether.

If you’ve been in either of these situations before (or if you want to avoid them altogether), you need to know what it takes for a successful negotiation. Fortunately, I have some negotiation tips and tricks to share that can help you negotiate your salary smartly. 

Check out the top five secrets that can help you execute a successful negotiation the next time your salary comes up for a discussion.

1. Do your homework well

Negotiating your salary does not mean taking a shot in the dark. If you ask for too much, you’re going to be turned down by your employer. On the other hand, if your asking salary is too low, you’re going to be short-changed. To start your negotiation at the right figure, you need to gather the facts needed for your discussion.

There are many strategies that you can employ to get to know the industry average for the position you’re taking on. Here are the best ways to do your homework and identify the right salary range for your discussion.

  • Talk to your colleagues and supervisors
  • Look up reviews and tips from experts in the same role
  • Check out websites that offer crowdsourced details about the average salary for different roles

In addition to knowing the market average, you also need to know what your personal value is. If you’ve worked on expert projects in your previous role, or if you have some additional skill sets that can make you more efficient at your job, you can factor these aspects into the salary you expect. 

2. Don’t be afraid to make the first offer

Employees often wait for recruiters to make the first offer. Sometimes, this is acceptable because, as an employee, you may want to see where the recruiter’s budget begins. However, you don’t always have to play defence. It’s advisable — and even advantageous — to make the first offer in some situations.

If you know that you bring something to the table that few of your peers do, and if you have your facts right, it can be a good move to seize control of the negotiation from the start. Making the first offer also lets you steer the discussion in a direction that is favourable to you.

When you’re making the first move, it’s always a good idea to begin at the upper end of the range if you have a salary in mind. For example, if you are aiming for an annual package in the range of Rs. 40 lakhs to Rs. 50 lakhs, always begin at the upper end. This gives you room to negotiate downward if you need to.

3. Know your hard limits

Another important aspect of learning how to negotiate your salary is being aware of your hard limits. Experts suggest splitting your expectations into three key figures, as follows —

a. Your wish figure

This is the figure that you wish you would earn. It may often be outrageously high, but it’s the number that a part you hopes you would earn. In other words, it is the salary that you aim for — if not right away, at least sometime in the future.

b. Your want figure 

This is the salary that you want to earn. It is a fair amount to earn each month, and it is what you’re willing to settle for. You may not be excited about this number, but it is enough to encourage you to work hard at your job.

c. Your walk figure 

As you may have guessed, this is the salary level that you would absolutely not be willing to settle for. If a number below this level is offered as the final option, you shouldn’t be afraid to walk out in search of a better position.

4. Listen to the other party

A negotiation for your salary is not a one-sided discussion. It is equally important to hear what your recruiter has to say. This not only makes you more personable but also gives you a key advantage — it lets you know facts about the role that you cannot find online or via other sources.

If you want to know more about where the recruiter’s coming from, you can ask open-ended questions. This has the advantage of giving you more information about the job — information that you can use to steer the salary negotiation in a manner that is favourable to you. Plus, it gives the impression that you are curious and willing to learn more about the role. And that’s always a good sign.

5. Be open to some compromise

The common misconception is that in a successful negotiation, you get what you want. While this may be true on paper, it is rarely so in practice. Every discussion to arrive at a suitable salary involves some degree of compromise for both the parties involved. The recruiter may have to up their budget a bit, while the employee may have to settle for a salary that’s less than the top range figure.

If you find that you may not be getting the salary you opened with, ask your employer if they can offer other kinds of non-monetary compensation instead. In most cases, your recruiter will be willing to offer perks or other benefits to compensate for the adjustment you’ve made. This way, you may not leave the negotiation room with the exact figure you had in mind, but you will still have other allowances and perquisites to take advantage of.

Summing up

These negotiation tips may seem subtle, but if you mindfully incorporate them into your negotiation tactics, you’ll be surprised how they work wonders for you. To get better at learning how to negotiate, you can even practice what you’re going to say in front of a mirror or in the company of a friend. 

Rehearsing what you intend to discuss gives you more confidence for the actual meeting. And nothing works quite like confidence during a salary negotiation, isn’t it?

Frequently Asked Questions (FAQs)

1. How do you become a successful negotiator?

To become a successful negotiator, you need to do your research and be clear about the outcome you want. You also need to be confident without being pushy, and you must be willing to listen to what the other party brings to the table. A successful negotiation is not one where you get what you want — rather, it is one where both parties leave the table satisfied.

2. What makes a successful negotiator?

A successful negotiator is someone who is thorough in their research and is confident, but also very personable and accommodative. To be successful at negotiation, the goal is to maximise your benefits without compromising too much. 

Time to switch to Fi. Smart banking and only that.
Related Posts
Get the Fi app