Navigating Salary Negotiations: 10 Common Pitfalls with Proper Talk Tracks

Salary negotiations can be a tricky affair. While it’s a crucial step in advancing your career and ensuring you’re fairly compensated, many fall into common traps that can hinder their success. Here are the worst mistakes you can make during a salary negotiation and tips on how to steer clear of them.

1. Lack of Preparation

Imagine walking into a market without knowing the value of the items you want to buy. You wouldn’t know if you’re overpaying or getting a bargain. The same applies to salary negotiations.

Do: Research the industry standards and understand your worth.

Don’t: Enter negotiations without a clear understanding of what you should be paid.

Example:

• You: “I think I deserve a raise.”
• Manager: “Can you specify why?”
• You: “Uh, I just feel I’m not paid enough.”
  • Better Approach: “I’ve been reviewing my role and contributions over the past year and would like to discuss a salary adjustment. Based on my achievements in leading project X to success, which resulted in a 20% increase in efficiency, and considering the current market rates for similar roles, I believe an increase to $75,000 would more accurately reflect the value I bring to the team.”

Research the industry standards and know your worth. Be ready to present your achievements and market data to support your request.

2. Revealing Your Current Salary

If you’re buying a new house, the seller doesn’t need to know the cost of your current home. They should focus on the value of the house they’re selling.

Do: Focus on the value you bring to the new position.

Don’t: Base your negotiation on your current earnings.

Example:

• Interviewer: “What is your current salary?”
• You: “I’m currently making $50,000.”
  • Better Approach: “I’m looking for a role that pays in line with my skills and experience in the industry, which, based on my research, would be around $70,000.”

3. Accepting the First Offer

In a marketplace, the first price is often a starting point for negotiations, not the final deal.

Do: Politely decline the first offer and propose a counteroffer.

Don’t: Jump at the first figure presented to you.

Example:

• Employer: “We’re offering $60,000 for this position.”
• You: “That sounds great. I accept!”
  • Better Approach: “Thank you for the offer. Based on my qualifications and industry standards, I was expecting something around $70,000. Can we discuss this?”

4. Deciding Too Quickly

When presented with an offer, express gratitude but request time to consider it. Use this time to assess your market value, potential other offers, and if the offer aligns with your career goals. Remember, acting hastily can undermine your negotiating power. By taking a pause, you signal that you’re in demand and thoughtful about your career decisions. This approach, while intimidating, can significantly enhance the final outcome of your negotiations.

Do: Take time to consider the offer carefully.

Don’t: Accept the offer immediately without thought.

Example:

• Employer: “We’re excited to offer you the position with a salary of $70,000.”
• You: “Thank you so much for this opportunity. I appreciate the offer and would like to take a little time to think it over. Can we reconvene in a day or two to discuss further?”

5. Overestimating Your Worth

Picture selling a used car. If you ask for a brand-new price, potential buyers will walk away.

Do: Be realistic about your skills and experience.

Don’t: Demand an unreasonably high salary without justification.

Example:

• Employee: “I want a raise to $100,000.”
• You: “That’s way above our budget and your current role level.”
  • Better Approach: “Considering my contributions and market rates, I believe an adjustment to $75,000 would be fair.”

6. Not Negotiating Benefits

When planning a vacation, you don’t just consider the travel costs but also accommodations, meals, and activities to ensure the best experience.

Do: Consider the entire compensation package, including benefits and perks.

Don’t: Focus solely on the salary.

Example:

• You: “I accept the $60,000 salary.”
• Manager: “Great, welcome aboard.”
  • Better Approach: “Thank you for the offer. In addition to the salary, could we discuss possible flexible working hours and additional vacation days?”

7. Showing Desperation

A poker player never shows their hand early. Similarly, revealing your urgency can weaken your negotiating position.

Do: Keep a calm and confident demeanor.

Don’t: Let the employer sense any desperation.

Example:

• You: “I really need this job, so I’ll take whatever salary you offer.”
  • Better Approach: “I am very interested in this position and confident that I can bring significant value to your team. Let’s discuss a compensation package that reflects this.”

8. Lack of Alternatives

When shopping for a car, having another option gives you the leverage to walk away if the deal isn’t right.

Do: Have a back up plan, or another offer in hand, or be prepared to seek other opportunities, if your request is not met. This gives you leverage in negotiations.

Don’t: Put all your hopes into one negotiation.

9. Poor Timing

You wouldn’t discuss the price of a meal before seeing the menu. Similarly, wait until you and the employer have expressed mutual interest.

Do: Choose the right moment to discuss salary, such as after a job offer.

Don’t: Start the negotiation too early in the interview process.

Example:

• You: (During the first interview) “So, how much does this job pay?”
  • Better Approach: (After receiving the job offer) “Thank you for the offer. Could we discuss the compensation package now?”

10. Talking Too Much

After making your case, allow for a pause. Silence can be powerful. Resist the urge to fill the silence with more talk. This gives the employer time to think and often prompts them to speak next, potentially in your favor. Remember, in negotiations, sometimes less is more.

Do: Listen more and let the employer lead the conversation.

Don’t: Dominate the conversation or fill every silence.

Example:

• You: (After presenting their case) “…”
• Manager: (Silence)
• You (Better Approach): (Stays silent, waits patiently)
• Manager: (Breaks the silence) “Well, you’ve given us a lot to consider. Let’s discuss your proposal.”

Remember, salary negotiations are a two-way street. It’s about finding a balance that satisfies both you and your employer. By avoiding these common mistakes, you can navigate these discussions with confidence and grace, leading to a more rewarding outcome. Happy negotiating!