We would all love more money and better perks, but successfully negotiating a reward package can be one of the toughest and most nerve-racking experiences we encounter in our working lives
Why is it important?
We would all love more money and better perks, but successfully negotiating a reward package can be one of the toughest and most nerve-racking experiences we encounter in our working lives. It is a situation that we all face at some point in our careers, either when we join a new company, secure that well-deserved promotion, or at the annual pay review. So how can you make the most of this opportunity?
Prepare your case
Gather evidence to justify your value to the company. List responsibilities and major achievements, and if you are certain your talents make you unique or indispensable, emphasise them. Any initiative that has had a positive impact on the bottom line of the business will also strengthen your hand. So if you have managed a project that has saved money, be sure to point out how much.
Compile data on the salary range for your position so you can pitch yourself at a realistic level. Remember, you will seem more reasonable specifying a salary range rather than requesting an exact amount.
“Determine your ‘negotiation range’. What are your entry and exit points? What will you accept and where will you compromise?” says Peter Christie, director of reward at management consultancy Hay Group. “At what point will you refuse the job offer or resign?”
Hold a dry run
If you feel awkward about asking for this meeting, it can be constructive to work through the issues with a trusted friend.
“Use this conversation to determine your overall objective, map out the strategy you will use in the meeting, list the key points you wish to make and prepare for objections and/or counter arguments,” says Christie.
Consider the wider issues
Try to put yourself in the position of your manager. Are they subject to financial or other constraints? Are they able to authorise any agreement negotiated or will they need to convince other more senior executives? How familiar are they with your work and how you fit into the broader team?
You should also consider the company’s situation. If it is performing well, you will stand a far better chance of your request being met than if the company is about to embark on a redundancy programme in a less buoyant market.
Weigh up the benefits
Benefits packages are increasingly flexible, so if a hefty pay rise is not on the cards, think about what might make a fair trade-off, such as extra holiday allowance, a one-off bonus or employer commitment to more regular training and development. Also consider suggesting performance-related pay or developing a clear plan with your manager to help you step up to the next grade.
Above all, Christie advises individuals to remain dispassionate. “Don’t let your own emotional reaction cloud your judgement as to a fair and reasonable outcome,” he says.
Conducting the meeting
Keep the discussion focused on your reward, performance and promotion prospects. Make notes and write them up soon after the meeting, giving a copy to your manager so both of you have a record of key points and decisions made. Log any subsequent conversations and save relevant e-mails.
“Treat the meeting as the beginning of a dialogue,” says Christie. “If you can close the negotiation in the meeting, so much the better. If not, treat it as the first step towards getting what you want.”
For more information
Books
30 Minutes to Negotiate a Better Deal. By Brian Finch, Kogan Page, ISBN 0749426667.
By Scott Beagrie. Courtesy of Personnel Today magazine. www.personneltoday.com.
