How to Get Ice Cream and Negotiate Pay
Wooo it's been a long week! Big Room Planning, lots of meetings, hackathon, and so much more. But I'm logged into LinkedIn late tonight updating my profile and writing this post. Why? Next month I'm excited to be moderating a panel on negotiation at a women's conference in NYC.
I love building roadmaps and looking at new interface designs, but one of my favorite parts of my job is mentoring. I love helping others push their careers forward. And one of the most valuable skills available for that is negotiation. Make no mistake that negotiation is a skill and something you should study. Having a clear goal of what you're trying to accomplish, understanding deal-breakers on both sides, recognizing the power dynamics, and having a game plan going in are key to success.
What do I want
Let's say I'd like to negotiate more money. I need to define what I want to ask for. Gathering an understanding of what my options are within the company is a good place to start. Are there pay bands, if so what is mine and where am I at? Am I interested in base pay increase or bonus? Am I open to a one time bonus? Am I open to options outside of money that might be offered (more time off, working remotely, other perks)? I should also gather data around what someone in my role, with my experience, and performing my duties should be paid or perks that are typical. Regionally and nationally. In my sector and in general. Also ask other people you know in the same role or similar ones what they make if they're willing to share.
After some digging I discover for my imaginary role the business has determined this position can make anywhere from $50,000-$70,000. I'm currently making $62,900, but I feel my duties are somewhat beyond what my peers do and my experience in the industry is highly valuable. Some quick searches across sites like Salary.com and Glassdoor tell me the average salary is $60,000 and can range from $34,000 to $82,000 depending on industry, location, and even individual companies. I settle on wanting to ask for $70,000, an increase of $7,100. I'm going to want to back this up with a list of accomplishments during the last 6-12 months, my experience/skills, and the market data I've compiled.
Finding the limits
Next what are my deal breakers. If I get turned down, am I willing to quit? What is the minimum I'll accept if I am willing to leave? Am I willing to accept more responsibility to get more pay? Am I willing to change teams, departments, or positions for more pay?
So back to my imaginary job. I'm not willing to quit, so if they offer nothing then I'll have to decide on next steps. This can be as benign as I just drop it. Ask to lose some responsibility. Or consider exploring options with other teams or even other companies. For now though, I am open to more responsibility and maybe moving to an adjacent job in the same department.
I've covered my deal breakers, but what can I anticipate my boss' deal breakers are or the company's? This can vary widely between companies and positions. Government vs private sector. Layers between your boss and where raises are determined.
Now for some assumptions. It's unlikely my boss is willing to let me quit over anything at or under $3,000. But I'm less sure of that as I push against the top of my pay band or over $5,000. I'm also going to assume I'm not impossible to replace, but it might cost the company more to hire someone new as well as time to train that person up. So letting me walk after a certain amount is possible if they think I might be willing to do so. I also know there are no other positions open, so moving up or to another role to get more money is unlikely.
Who has the power
This feeds well into the power dynamic. There are lots of explanations around this, so I highly encourage you to do your own digging. Let's look at the obvious dynamics for now.
There is inherent power in roles. My boss is by default in a more powerful role than me.
There is power in your Best Alternative to a Negotiated Agreement (BATNA). If you have little or no dependence on the outcome you're in a more powerful position than if you have high reliance on the outcome.
And finally psychological power. This can manifest in all sorts of ways. Feeling powerful can have an outcome on your appetite for risk, your ability to maintain your emotions, your ability to think creatively during a negotiation, or your ability to empathize and understand the other party's position better.
No game plan = less advantage
Which brings me at last to a game plan. Determine what you want to ask for and the upper and lower limits of your ask, gather data to support your position, understand deal breakers on both sides, and recognize the power dynamics at play. Will you open with an offer or ask them to, what are the potential outcomes with either option? Do you have a strong BATNA, do they? What are alternatives I can ask for or am I open to ideas from them I haven't considered? When you walk in without a game plan for the negotiation it is more likely you leave the other person with a more advantageous position.
One last go at my imaginary salary ask. I've decided I'll start with my higher ask of $7,100. I'm willing to come down to $2,000 or a split between base pay and bonus (but I do not lead with this). I'm also willing to accept more responsibility, but not willing to move departments. Though, with no open positions, I'm not certain how likely this option is. I have my market data, the pay band for my role, and a list of accomplishments over the last 12 months. I understand the position my boss is in and their likely areas for wiggle room, as well as the likely limits to their ability to get me what I'm asking for. Then its just a matter of setting up a time to ask!
I've written all of this to say... go read more. Take a class, watch a YouTube video, ask a friend for their tips. I'm still learning new skills around negotiation too, this is just a snippet of what I've gathered. Staring down my wall of text on the screen has made me hungry. I'm considering negotiating with my partner to drive us to get ice cream if I pay. What are your tactics when going into negotiations?
