3 winning strategies to negotiate a better salary

Negotiating a better salary – whether you’re already in a job, or interviewing for one – is something we a) all know we need to do at times and b) probably dread. But if your attempts do pay off, you’ll be glad you tried – simply because of the positive benefit to your life overall.

And experts say that success is all about having some winning strategies under your belt. In one study by George Mason University and Temple University, researchers examined five strategies used in salary negotiations: being accommodating in negotiations, avoiding negotiating entirely, collaborating during negotiations, competing during negotiations or compromising during negotiations. Candidates who used collaborative or competitive strategies – i.e., working with the other party but also being assertive in asking for what they wanted – had the most luck at the negotiation table, said researchers.

And with that in mind, here are three strategies to try the next time you’re in the HR hot seat.

1. Be prepared

It’s so easy to overthink the negotiation before you even get there – and perhaps even talk yourself out of pushing and rather accepting whatever you can get. Instead, recognise when you’re sabotaging yourself – and get strategic.

This means doing your research to find out what your role is worth, what you’re worth to the company – and preparing responses to any pushback you might get. For example, they may say times are tough and there’s no budget to give you a pay rise, but you counter with what you bring to the role, the time and money you save the company due to sales you’ve brought in or systems you’ve implemented – and the salary you feel matches your input.

Similarly, if you’re negotiating at the interview – make sure you’re prepared to compensate for anything that might put you on the back foot, such as gaps in your work history or even stints in different industries entirely, and think about how to build a case for yourself and present any perceived negatives in a valuable way to the employer.

2. Suggest a figure first (and ask for more)

If you’ve researched the pay categories you fit into according to your experience and skills, the remuneration question shouldn’t scare you. On the contrary: some experts believe that the person who states a salary figure first is the one who’ll triumph in the end.

That said, successful negotiation often comes down to your approach. So for example. if you know the salary bracket is $80,000 to $90,000, you don’t want to go in saying something like, ‘I think I deserve $90.000’. You want to be a bit more strategic than that, say David Lax and James Sebenius, authors of 3-D Negotiation (Harvard Business School Press, 2006).

They suggest making a ‘non-offer offer’, which might involve saying, “I understand that candidates like me would typically earn $90,000 to $100,000’. Setting the baseline higher is a psychological trick that can anchor the negotiation in your favour and experts say you’re more likely to land closer to $90,000 (which is the upper range of the actual salary bracket, and probably what you were hoping to get anyway).

3. Have a plan B

What if you’re in an existing job and due to get a pay rise, but it’s a hard no from your boss? This is a tricky one, and again a bit of psychology comes into play, say negotiation experts.

Ideally, you want to respond by saying what you’re hearing is that the company cannot give you a better salary due to the following factors (and list them – a technique known as reflecting or paraphrasing). The next part of your strategy should be to suggest that if circumstances were to change, and you were to do X or Y by a certain date, that the salary or pay rise conversation would be back on the table.

If HR or your boss agrees that it would be, you then need to go forth and fulfil those intentions in order to revisit the salary negotiation down the track (and if you’re not successful a second time, it could be time to think about finding a better job that values your contributions more).

You’ve tried negotiating, what’s next?

Pay rise or no pay rise… our latest research found that although decent salary is great, it’s not the highest priority for a lot of job-seekers. If you want to read our latest insights on what makes people happy at work? Our 2022 Frontline Feel Good Index Report is available now!