Avoid common negotiation mistakes and get paid what you deserve.
As someone who regularly negotiates on behalf of herself and her clients, I have identified 13 common salary negotiation mistakes. These mistakes emerge out of a lack of negotiation confidence, people-pleasing tendencies, and a misunderstanding that negotiation is a normal everyday practice (and not a conflict).
Read through the list below to avoid falling into these negotiation traps - all missteps I have personally made or see others making and help you avoid.
#1. You accept the first offer.
You got an offer, congrats! Don’t let your excitement overshadow a key part of the job - the compensation. You are more likely to be successful negotiating a higher starting pay when you’re initially hired than negotiating raises once you’re in the company.
Let them know how excited you are and that you will be back to them within 24 hours to talk about the offer. This signals that you will be negotiating. Good job! You get to negotiate the base pay and benefits beyond base pay. I put together this handy list of benefits to negotiate for beyond base pay.
#2. You don’t get the full offer in writing.
Do not trust verbal offers and commitments. Ask for the full offer in writing and make sure it includes the total compensation, meaning both pay and benefits. If it doesn’t, ask for the whole offer. You want a complete package to consider when strategizing your next negotiation move.
#3. You assume the compensation process is fixed.
In an ideal world, we wouldn’t need to negotiate because companies would be transparent about salary ranges and how they would communicate how they compensate their employees. Until that day comes, you will need to be your own best negotiation advocate. There is a whole “game” that is happening behind the scenes. As Leadership Coach Tara Mohr and author of Playing Big: Practical Wisdom for Women Who Want to Speak Up, Create, and Lead, puts it:
"They [women] didn’t see the hiring process as one where advocacy, relationships, or a creative approach to framing one’s expertise could overcome not having the skills and experiences outlined in the job qualifications.”
#4. You can’t clearly articulate your value when you attempt to negotiate.
If you don’t believe in yourself and the reasons to back up your ask for more money, benefits, etc., you are not ready to negotiate. Spend time on crafting your value statement and practice articulating your value out loud before approaching this conversation.
#5. You negotiate over email.
You get emailed an offer letter and it may be tempting to send back your counter offer. Don’t do it. Schedule a time to meet in person or talk by phone to discuss. Email doesn’t allow for open dialogue. It is also difficult to detect nuance in body language and tone, both of which are important to a successful negotiation strategy.
#6. You neglect to negotiate beyond base pay.
There are so many other benefits you can try negotiating for. You don’t have to automatically accept the benefits they offer. What would sweeten the offer even more for you? A professional development fund? A bonus? Equity? A specific week off during the year? [See my list of other benefits to negotiate for.]
#7. You don’t give yourself enough time to counter.
Again, it’s typical to ask for 24-48 hours to consider the offer. This time can be spent doing additional research, reviewing your personal finances, getting advice from trusted friends (only ask the ones who actually negotiate!), and putting together your final counter offer. When you ask for time to consider, this also indicates to the hiring manager that you’ll be making a counter offer.
#8. You continue to talk once you’ve said your salary expectations.
Silence is your best friend during a negotiation. If you are someone who is uncomfortable with silence (good news: you’re human), this negotiation tip is especially for you. You don’t want to keep talking and show your cards. I’ve seen people talk themselves out of the counter offer they just made. A lot of talking can also be a sign of nervousness.
#9. You make negotiating personal.
Sure, emotions are part of negotiating, but you don’t need to share personal information about why you are asking for more money or benefits, like you need a new car or your living situation has changed. It’s not their business. The only reason they need to know about why you’re negotiating is because you’re awesome and can back it up. (See #4)
#10. You don’t recognize opportunities to negotiate.
Opportunities to negotiate are all around us.
1. You can negotiate during the hiring process.
- On the application form: write down your target salary range in that blank space for salary expectations.
- In the cover letter: if you’re asked to include salary expectations in the cover letter, be sure to provide them.
You can write something like:
“I expect to be compensated fairly based on the role and the background and expertise I’d be bringing to it.”
Or
“I am expecting a salary between $_____ and $_____.”
Your target salary is the beginning number! Then bolster it based on your research to create a salary range.
- In the interview: if you’re asked in the interview about your salary expectations, you can use the same advice I gave you for negotiating in the cover letter.
- In the job offer process: when you’re given an offer letter, you negotiate salary and benefits.
- Getting hired back at a company you once worked for: it’s easier to negotiate pay when you’re first hired, so getting hired back at a company can create “a reset.” Use this as an opportunity to ask for the things you didn’t negotiate for before!
2. Negotiate when you change job function (and are given more responsibility).
Anytime you change up job roles or take on more responsibility can be an opportunity to negotiate. If the budget doesn’t allow for more pay, what other intangible benefits will keep you happy and out of the resentment zone?
3. Negotiate when you’re promoted.
A promotion doesn’t necessarily equal more money. You can start by asking about more pay, but you can also ask about a title change, increase in visibility opportunities, learning and development funds, coaching support, etc.
4. Negotiate when you’re asked to speak at an event or do contract work.
If you’re asked to do something that falls outside of your traditional role, like additional contract work or speaking, you can negotiate for additional compensation. Compensation can also come in the forms of marketing and promotion opportunities that will help you build business down the road.
#11. You think you’re protecting your relationship by not negotiating.
If you are feeling underpaid or undervalued, your relationship is already at stake because you’re feeling resentful. You will do more damage by not asking to talk about compensation. You are not protecting your relationship with your boss, colleague, friend, etc. by being evasive about what you want to be paid. By being a people-pleaser (the behavior that negotiation avoidance often stems from), you are manipulating the person into thinking you are someone you are not. It’s better to be upfront about what you think is equitable compensation and why. It is up to them to respond. Do not try to manage their experience of this conversation.
#12. You downplay what you’re giving them by focusing more on what they are giving you.
Your brain is primed to make you feel like they are doing you a favor by hiring you. Especially if you suffer from imposter syndrome (and we all do at some point). When you enter into a negotiation, you need to frame your ask and counter offer to showcase all the amazing contributions you will make to provide them value. You need to influence them by clearly stating what’s in it for them to give you an increase.
#13. You ask for a raise during your annual review.
It can be common to get into a cycle of asking for a raise during your performance review. If your company does this automatically, request making them into two different conversations.
Your performance review is a time for you to get constructive feedback on things you need to work on.
When you’re negotiating for a raise, you need to highlight all the ways you’re a rockstar and the value you bring. The best timing to have a conversation about a raise or promotion is when the company’s budget is being created. If you don’t know when that process happens, ask.
Have you identified a mistake or two that you’ve made out of the 13 that I covered above? That’s a good thing! Because now you have the chance to do something different.
I suggest watching my free webinar - Negotiating for Business Success. While it’s geared toward entrepreneurs, my belief is that we are all entrepreneurs (even those of us who have W2 work.)
If you want more help navigating negotiation conversations, get in touch.
