In the current environment the prevailing wisdom appears to be that having a job at all is a blessing, and pay should not be a major motivating factor at the moment. Just this week we've had CIPD announce that pay rises are the preserve of a minority, and a Badenoch & Clark survey revealed pensions are more valued than pay in the public sector.However, those with the courage and ability to negotiate on salary can still achieve good results. This is especially so for women, for whom research suggests a lack of negotiating on salaries is a contributing factor to any pay inequalities. As pay-rises are typically percentage increases on your starting salary, poor negotiation at the outset can cost you for years.
Here are a few bits of research that should help you to negotitate better.
1. Be willing and able
If you don't ask, you won't get, so the first step is to be prepared to negotiate in the first place. One early study of graduating MBA students found that those who were prepared to negotiate achieved better starting salaries. So whilst it might seem obvious, you have to be in it to win it.2. Make the first move
Most articles on salary negotiation suggest that you wait for the employer to bring up salary first. If you make the first move however then you have the ability to establish a psychological anchor point. This point will then be used as reference for all further negotiations. If you let the employer set this anchor point then you are losing control over the negotiations.3. Shoot for the stars
So, when you're looking to set your anchor point, it pays to aim high. Obviously you can't begin with a ridiculous number, you need to research your industry and profession to provide a reasonable start point. A study from earlier this year found that high start points tend to lead to high offers.4. Keep it light
If you start your negotiations high it can lead to a tense environment. Research has shown that if you keep your opening offer framed in a light hearted way, it still influences the final offer but doesn't create a tense environment.5. Enjoy the game
Good negotiations are a bit like a game, so it pays if you learn to enjoy the to and fro. Research suggests that enjoying the competitive side of negotiations is essential if you want to succeed.6. Walk a mile in their shoes
Whilst competing is great, don't forget to understand things from the other parties point of view. If you can't empathise with how they want negotiations to go you'll never be very good.Don't forget your end goal however. Win-win negotiations feel great, but research suggests they result in lower salary offers. Win-lose outcomes by contrast made more money, even if they made people feel worse.
7. Nice girls finish last
Traditional advice seems to centre on being reasonable in negotiations. The research revealed here however shows that this approach does not work as it focuses too much on what is best for the employer, and not what is best for you.8. Forget your gender
Women are rubbish negotiators. Negotiation is a masculine act. Etc. etc. You've heard the theories but if you're to do this well you need to forget them all. Research from the 90's suggests that women are often more competitive than men in negotiations.9. Be brave
It's difficult to be good at negotiation if you are risk averse. Those that are so inclined tend not to compete in a negotiation, and as we've seen, competing works when it comes to winning that high salary. So think through how much overcoming your fear is worth to you before you enter negotiations.10. Believe in yourself
In the immortal words of Jenifer Aniston, you are worth it. It's essential to enter negotiations believing that very simple fact. Do your research and find out what people with similar skills and experience to you earn and use that as your anchor point to kick things off.Good luck and happy negotiations.
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