What are the most common mistakes in executive pay negotiations?

1 Lack of research

One of the biggest mistakes you can make is to enter a negotiation without doing your homework. You need to research the market value of your position, the compensation structure and practices of your employer, and the expectations and goals of both parties. You also need to benchmark your skills, experience, and achievements against your peers and competitors. This will help you set realistic and reasonable expectations, justify your requests, and identify your leverage points.

2 Poor timing

Another common mistake is to negotiate your pay at the wrong time. You should avoid bringing up the topic when your employer is under pressure, facing challenges, or dealing with crises. You should also avoid negotiating too early or too late in the hiring process. Too early and you may seem presumptuous or greedy; too late and you may lose your bargaining power or appear desperate. The best time to negotiate is when you have a clear and credible offer on the table, when your employer is eager to hire you, and when you have demonstrated your value and fit.

3 Lack of strategy

A third mistake is to negotiate without a clear and coherent strategy. You need to have a plan that outlines your objectives, priorities, alternatives, and concessions. You also need to have a clear communication style that conveys your confidence, professionalism, and respect. You should avoid being too aggressive or too passive, too vague or too rigid, too emotional or too detached. You should also anticipate and prepare for possible objections, counteroffers, and scenarios.

4 Lack of transparency

A fourth mistake is to negotiate without being transparent and honest. You need to disclose relevant information, such as your current or expected salary, your other offers or opportunities, and your motivations and preferences. You also need to be truthful about your qualifications, achievements, and expectations. You should avoid exaggerating, misrepresenting, or withholding information that may affect your credibility, trust, or relationship with your employer.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?