How To Successfully Negotiate Salaries

How To Successfully Negotiate Salaries

To negotiate the most desirable payroll salary, you must emphasize the interests of each side, while maintaining principles which are ethical. It is best to avoid rigidity in favor of flexibility, and you should also do your research prior to beginning negotiations so you can be sure you have firm ground to stand on. Below are some additional best practices.

Ask Lots of Questions

By asking lots of questions, you’ll gain insights and information from the other side that you can use to your advantage. You might also surprise them a bit, since many people expect more statements than questions during the negotiation process. The questions which you intend to ask should always be prepared in advance.

Don’t Draw A Line In The Sand Too Early

For every action there is an opposite and equal reaction. If you begin the negotiations by drawing a line in the sand regarding what you will and will not accept, the process will become negative and nonproductive. The last thing you want when negotiating with someone is an unneeded altercation. If you’re going to draw a hard line, be patient and do so later, when it’s time to make concessions or tradeoffs. Ultimatums and threats rarely bring desirable results.

Learn As Much As Possible About The Other Party

The more you know about the people you’re negotiating with, the easier it will be to get the results you want. For instance, if you’re a prospective employee, you should have done research on the company, the average amount they pay for the job you’re applying for, and how it stacks up compared to similar jobs in the area. You should also have a rough idea of the supply/demand of people in the area with your specialty. Having this knowledge will place you in an excellent negotiating position where your asking price won’t be too high or low.

Keep Things Simple

A common mistake that is made during negotiations is overcomplicating things. To avoid this, you will want to keep the negotiations as simple as possible, at least initially. Find common ground that you and the other party agree on. Once you’ve established this, you’ll be able to transition into the more challenging areas which are potential deal breakers for both sides.

 Be Flexible

Giving too many concessions during negotiations is just as bad as giving none. Your goal is to find a balance, and the best way to accomplish this is by being flexible. Again, preparation is essential. Before beginning negotiations you should have a good idea of what you’re willing to accept. For instance, if you’re the employer you could agree to pay the employee more than you prefer, with the understanding that they would lose certain benefits in the process. Or, you could agree to pay them a nice signing bonus up front with subsequent salary that is lower than they prefer. Flexibility is indispensable when it comes to effective negotiation.