Let’s face it, there are many of us who feel uncomfortable when we are either buying or selling, and the asking price is up for negotiation. If we are buying, we may shy away from putting forward a lower price; if we are selling it is difficult to keep the price as high as possible when we are asked ‘how much would you accept for it?’
Negotiating is not about one party getting the best deal, or even about meeting half-way. Rather it is about clarifying the other’s position and obtaining a price that both parties are happy with.
Being an effective negotiator is even more important when it comes to discussing a salary following a new job appointment. There is a substantial difference between negotiating a salary and the best price for a new car. If you get a reduction of £1000 off your car, then that is the total of what you have saved. However, your salary has a knock-on effect for years to come.
For example if your new salary is set at £30000, but with negotiation you may have been able to obtain £33000, you have not just lost £3000, but that amount for every year that you are in that position, plus the difference of any percentage increase on your annual salary review, plus any bonuses that are based on your final salary, plus any pension payments – the list goes on.
One of the tactics of good negotiating skills is not to give away your own position too early into the negotiating process. By doing this you have then set a ceiling on the price, which the other party may accept, particularly if they would have been prepared to go higher. Referring back to the example above, if you had stated that you would accept £32000, undoubtedly your new employer would have accepted this; therefore you would be missing out on a minimum of £1000 every year.
Your style of negotiating is also a major factor in the process. If you are passive, you may be influenced into accepting the base salary; if your approach is aggressive, this could promote a similar behaviour in your new employer – not the best foot to start your new career on. Having an assertive approach at the negotiating table demonstrates to your new employer that you have the necessary skills that he or she may be looking for in a senior manager. If anything, this should inspire their confidence in you, that you can handle tricky negotiating situations that may have an effect on the company’s performance. In the case of salary negotiation it is a useful mindset to have if you approach the situation with the knowledge that you have already been offered the position, and that you are happy to accept the job if the terms and conditions are agreeable to you both.
If there are other terms and conditions that are negotiable, you can use the same approach. Possible negotiable items could include:
- Bonuses
- Annual leave
- Benefits – company car, health insurance, hotel accommodation etc
- Overtime payments
- Commission
- Petrol allowance
- Pension matching
- Shares and/or share options
- Expenses
- Sponsorship for further education
- Legal assistance
- Salary review date
This list is not exhaustive.
As you practice these skills, you will find that negotiating becomes easier and you will start to use these negotiating skills in your personal life as well as business. Remember, for each negotiating interview, you may only get one chance. It is highly unlikely that you will be able to return to your new employer and renegotiate a higher salary once you have accepted the role. The types of negotiating skills needed to become an expert negotiator are usually found through employing the services of career consultants, or through on-line courses.
About the author
Steve Roberts has over 15 years experience in management and has achieved a Masters degree in Business Administration. He currently runs an on-line management college for people who want to advance their careers.
For more information visit:
You can email Steve at steve@careertech.co.uk for more information.
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