Negotiation Blog

Negotiating Salary: Tactics, Blunders or Best Negotiating Practices - Part II

By Marianne Eby

Continuing saga of Bill’s job salary negotiation from last month's blog: After Jen from HR offered Bill $78,000, Bill asked, “Why do you think $78,000 is the right salary for my talent?” Before Jen could answer, Bill pulled out his resume to demonstrate that he had relevant education and work experience. Bill went through his resume and pointed out specific relevant skills and experiences that would enhance his value to the organization. Was this a productive move?

Jen appeared not to be phased by Bill’s presentation, so Bill asked her what kind of person they were looking for in the position. Now Jen started talking in a more relaxed way. In response to the skills and characteristics Jen identified, Bill asked more questions this time rather than trying to prove himself. Finally Bill asked, “Given my resume and known work product and style, is there any area of the job requirements that you feel I don’t fit or am not up to par on?”

Jen told Bill that he fit the requirements in most areas. She named two items – experience managing a virtual team, and a specific knowledge of Latin American culture, that she felt Bill was lacking.

Bill used the opportunity to address those areas with what he had done previously, and asked Jen how he might build those areas if he were to stay with the company. Jen had some ideas, and Bill showed enthusiasm for following her advice.

What do you think Bill did next?

Bill next asked Jen to reconsider the salary she had indicated in light of their discussion, and asked her if he could check back in with her in a few days. Jen seemed amenable. Bill used the opportunity to reinforce with his current manager how excited he was to tackle the projects ahead and showed serious interest in building his skill set.

Jen came back a few days later with a salary of $102K.  She explained that she was able to change the salary classification based on the experiences Bill had shared with her that revealed he wasn’t entry level after all. It was less than Bill had wanted, but he realized this was a good opportunity to build the missing skill set, and he had no other options since he had stopped his search in reliance on this job opening.

Bill indicated that he could consider the lower pay if he could work a 9/80 schedule, giving him every other Friday off. This was something others in his group already did, so he knew it was certainly possible. Jen agreed, but reminded him that he would need to coordinate the off day depending on international travel needs.

Quick Negotiation Debrief

Bill spent more time engaging Jen, and it worked to his advantage. She probably found him credible, and not just angling for more money. Bill also allowed Jen a way to save face on her original low offer. Both Bill and Jen used some Best Negotiating Practices, but also made some blunders.

Next week my colleague, Tom Wood, will blog to explore Jen and Bill's various positions and moves.

Negotiating Tip

Believe in win-win, mutual gain. Win-win is an attitude, not an outcome.


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Negotiation Blog

Negotiating Salary: Tactics, Blunders or Best Negotiating Practices - Part III

By Thomas Wood

Let’s magnify the various moves Bill and Jen made in their salary negotiation that my colleague explored in previous blogs Part I and Part II. They reached a deal, but was it to thier mutual satisfaction? We’ll categorize the moves as Tactics, Blunders and Best Negotiating Practices (BNPs). Do you agree?

  1. Negotiating Tactics – moves made for short term advantage that risk losing credibility or trust;
  2. Negotiating Blunders – moves or approaches that fail to achieve their objective or any other positive outcome; and
  3. Best Negotiating Practices (BNP) – skills, strategies and behaviors that are designed to create and capture value in negotiations.
Tactic, Blunder or BNP?
 
 
Move
 
 
Response & Impact
Blunder
Bill relied on this part-time position and didn’t have a Plan B – other interviews or networking
Bill’s failure to continue to build his BATNAs (his Plan Bs) puts him at a disadvantage
BNP
Bill prepares an opening offer and support
He is ready when Jen asks
Tactic
Jen ignores Bill at first to make him feel unimportant
It works mildly, but Bill’s preparation keeps him confident
Blunder
Jill opens the conversation without any rapport building or excitement about Bill joining the organization
Jen misses the opportunity to build an alliance with Bill, which will make it more difficult for her to learn what matters to him. She also risks him deciding against the job.
BNP
Jen asks Bill what he wants
Hearing from Bill informs Jen up front if this conversation is worth her time. But it did come with the risk that Bill would anchor Jen by opening first.
BNP
Bill opens with his prepared opening offer of $127K.
Great opening offer – high, but justifiable, and therefore credible
Blunder
Jen says “Absolutely not” to Bill’s opening, which is the same as saying “No.”
Saying the word “No” or a similar negative response shuts down conversation
BNP
Jen opens with her opening offer of $78
Jen’s opening seems appropriate – she starts low but within a justifiable range
BNP
Bill asks “Why?”
Always a great probe, when said with sincere curiosity and not as an attack. Jen is so far from Bill’s preferred salary that he can only benefit from more information.
Blunder
Bill doesn’t wait for Jen’s answer. He starts defending his stature.
Jen is unfazed because Bill isn’t engaging her – he’s presenting to her. Bill is waiting too long to start asking questions – the best way to engage his counterpart.
BNP
Finally Bill realizes that he is not convincing Jen, and starts asking lots of engaging questions.
You can’t probe too much!
BNP
Bill next asks for Jen’s advice as to what he needs to succeed in this job.
Great open-ended question. Engaging the other side is critical. Jen’s inclination now is to help Bill, rather than to win against him.
BNP
Bill asks Jen to reconsider the salary given the information they have discussed about his background and fit for the position.
Bill needs Jen to move a lot, so his open request is a good strategy. He’s giving her a way to save face if she is convinced that his salary can go higher.
BNP
Jen makes a huge move from $73 to $103K.
Jen’s first move is big, but she saves face by having reconsidered the expertise required for the job and Bill’s fit for the position.
Blunder
Bill seems inclined to accept the offer.
Bill could have asked more questions about the new salary range, and further built the relationship. Jen probably had more to give. But Bill lacked confidence due to his non-existent BATNA (plan B).
Tactic
Bill asks about getting an alternative work schedule given the lower salary than what he had anticipated.
At least Bill asked for something to justify why he would move off his opening of $127K – the alternative work schedule. It was a “nibble,” but because he knew Jen could give it, there was little risk to the relationship in employing this tactic.

 

Negotiating Tip

When negotiating over the telephone, be slower than usual to agree to new ideas or requests. You can always call back once you've considered how to say "yes" in exchange for some value.


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Don’t “Just Ask”: 3 Keys to Negotiating a Raise

By Marianne Eby

 

Satya Nadella, Microsoft CEO, recently suggested that women should have faith in the “system” that will give them the right raise, rather than ask for a raise. He went further to call women superheroes for not asking. Nadella has since admitted that he was “completely wrong”. But in his mea culpa statement to Microsoft employees, Nadella got a few more things wrong, and that's where this blog begins.

In his original statement at the Grace Hopper Celebration of Women in Computing conference (GHC), Microsoft’s CEO, Satya Nadella, said that women shouldn’t ask for a raise; they should  have “faith that the system will actually give you the right raise as you go along.” He went on to say that women who don’t ask for a raise have a “super power” in that they know how to use this “good karma” of not asking in order to get what they want.

Every good negotiator knows that you have to ask for what you want, and certainly there’s been a lot said (BloombergCBCSalon, et al.) about Nadella's live interview comments. We can take some comfort in the fact that Nadella's other stories, and his post fumble tweet, give us some indication that he too can have his eyes opened and learn from mistakes -- the mark of a good leader, and a good negotiator.

Nadella was being interviewed by Maria Klawe, a Microsoft Board Director and President of Harvey Mudd College, who was very professional and passionate in disagreeing with this man she respects so much:

"This is one of the very few things that I disagree with you on."

She gave some examples from her own career, and then said to the audience:

Here's my advice to all of you. First of all, do your homework. Make sure you actually know what a reasonable salary is."

Klawe also reminded women to role-play, or practice, the ask.

Klawe was right of course. And Nadella acknowledged that Klawe was right when he issued his written mea culpa to Microsoft employees:

“And when it comes to career advice on getting a raise when you think it’s deserved, Maria’s advice was the right advice. If you think you deserve a raise, you should just ask.”

I want to share a negotiator’s perspective regarding what Nadella said in this more prepared written mea culpa. I want to talk about whether "deserving" is sufficient, and if the best way to go is to "just ask."

Deserve v Worth
Should you ask for a raise because you think it’s “deserved?”
Not exactly. You should ask for a raise because you are worth it.

You can accuse me of splicing words, but maybe the words we use to describe why we want something are critical to getting it.

You may deserve more money for lots of reasons, but are you worth it?

  • To “deserve” more connotes that you have been cheated out of something. This leave the boss on the defensive, feeling the need to protect her/his own past decisions.
  • "Worth," on the other hand, connotes value; value gets the boss’s attention. The boss starts to conjure visions of success, reward, and what happens if you leave.

Also, if you think in terms of deserve, you may talk yourself out of asking for a raise if you think the system is not able to adjust based on unique talent or results. For example, if you are working in a system that is stepped, like a training program, law firm associate, government jobs, or someone who recently got this year’s compensation increase and is not due another one for a year, you might hesitate to discuss what you “deserve.”

But if you think in terms of worth, you are more likely to initiate the conversation anyway, because a “worth” conversation leads to ideas – like higher profile assignments, other positions, switching geographic or subject areas, meetings with key leaders, etc. When possibilities emerge, you and your boss can find ways to compensate you for your worth.

Master negotiators leverage the worth v. deserve distinction all the time. Don’t pay us more, or provide a higher quality product, or meet a shorter deadline because our company deserves it after we took a hit on the last deal; instead master negotiators say (and demonstrate with legitimacy sources) --  give us more in this negotiation because our product or service is worth it. Now the counterpart feels psychologically motivated to give more.

“Just ask” v. Plan your approach strategically

“Just ask” rubs me the wrong way too. If you are worth more to the organization, more than likely you will have to show it, not “just ask.” And to do that effectively, Klawe was spot on when she said you have to do your homework.

There are 3 main considerations that should be part of your homework – People, Data and Plan B:

People Support

  • Decision maker: Who’s decision will it be? Has that person been exposed to you, and if not,  how can you get that exposure before you ask for the raise.
  • Influencers: Who influences the person who will make the ultimate decision?
  • Peer relationships: What will colleagues say about you? If asked, would they say you are worth it? Have you formed the relationships that will reinforce your request?
  • Ego needs: Know the ego needs of the person you are planning to ask for the raise. Is her/his ego need to be respected, right, in control, liked, feared, etc? Uncover the person’s ego need and find a way to satisfy it before you make the ask. If you don’t satisfy the boss’s ego need, it may conflict with your ask.

Data Support

  • Market data: How does the market value your skills, talent, position? Would another organization pay you more to come to it?
  • System Comparables: What does the internal measures say about your worth in your position? Are they paying you low for your position, or are you in the wrong position? In other words, should your ask be for a raise, a promotion and a raise, or a different position?
  • Results: What data or examples support your worth? What did you do that brought value to the organization – leadership, savings, revenue, margin, strategic partnerships, risk avoidance, team building, etc.?
  • Fairness: If you believe you are being unfairly compensated vis a vis similarly/less talented/skilled peers who deliver the same or less results, this is a far more delicate conversation and needs to be addressed with the right people. Be prepared to make fair comparisons so your credibility is never at risk in the discussions. But do make the ask - you are worth it!
  • Read more on Standards of Fairness as you negotiate.

Plan B

What’s your plan B or BATNA -- Best Alternative To a Negotiated Agreement? If this raise doesn’t work out, what are your next steps? Don’t wait. Network, share access and influence, help others. Test the market. Begin working on your plan B, or BATNA, now.

Remember...

Any “ask” is the beginning of a negotiation – a conversation about how to address your worth. To be a real superhero, don’t “Just Ask “– Plan strategically to ask for your worth! And all my fabulous male negotiator colleagues -- this applies to you too!

One absolute positive from Nadella’s comments is that the ensuing discussion is loud and hopefully has legs beyond the tech sector.

The tech industry has 30%/70% workforce split of women to men. And as reported in the New York Times, while female computer scientists are catching up and making 89 percent of what men in the same occupation make, other professions in the tech industry may not be so lucky. For finance professionals across professions, for example, women make only 66% of what men make. And across industries, another study showed that in 2013, women working full time earned only 78% of what similarly situated men earned.

Raising awareness about women lagging behind in salaries and leadership positions is always a good thing because it propels change. I always opt for controversy over silence; controversy sparks conversation, which can lead to solutions. Similarly in negotiation, controversy (you want x and I want y in exchange) drives conversation, and that conversation leads to solutions.

        (Review information on Watershed's Advancing Women Negotiators workshop.)​

Negotiating Tip

Don't anchor yourself: When preparing for a negotiation, remember to develop your 'ask' or opening offer first - before your goal and least acceptable agreement or walk-away.


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