REVEALED: These are the 4 mistakes to avoid in a salary negotiation
So you went into your salary negotiation armed with a game plan – but it didn’t go exactly how you wanted it to.
Any attempts to fix the situation didn’t get far, either.
So where is it all going wrong?
According to LA-based negotiation expert and executive coach Hamilton Chan, these are the missteps you might be making when you’re angling for higher pay:
1. Not having a good back-up
A good negotiator should always know what their ‘BATNA’ is – or their best alternative to a negotiated agreement, Chan told Yahoo Finance.
“In other words, they need to know what their backup plan is, in case the negotiation fails to reach agreement,” he said.
But it’s not just about having a backup plan.
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Chan says a good negotiator should also be proactively improving on their backup options, too.
“When I negotiate a critical deal, the first thing I do is work on improving my backup plans so that I can have as much leverage as possible in my current negotiation.
“For people hoping to negotiate a better salary, get another job offer on the table!”
But on the other side of the fence, recruitment firm Robert Half argues it could actually be counter-productive to angle for a pay rise by having another job lined up.
2. Not displaying enough tact
Negotiating salary will be sensitive for both parties, and Chan has known of employers pulling the pin on job offers just because a new hire asked for more pay.
“The key is to ask tactfully,” he said. “Always express appreciation for the job first, and ask gently and with an open-minded tone about the possibility of more compensation.”
Whether you’re a new hire or an existing employee, there are right ways to approach this.
3. Not being creative enough
Did you know that it’s not just money you can ask for in a salary negotiation?
Chan says you can get creative with workplace benefits, so have a think about what other workplace benefits or perks appeal to you, and push for those.
“What about vacation, remote work, parking benefits, healthcare, title, office, job role, staffing, bonus, and the myriad other dimensions that make your job a multi-faceted experience?” he said.
“Be prepared to negotiate on matters other than pay.”
4. Not asking at all
Not asking is just as bad as asking for too much, Chan pointed out. But be realistic: as a rule of thumb, a 10 per cent bump is about right, but this can vary depending on the circumstances.
“You don’t want to be a wallflower short-changing yourself, so ask for what you believe you deserve and what you can credibly argue for.”
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