Can You Still Negotiate Your Salary in a Pandemic?

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Let’s break the suspense early.

Can you still negotiate in a pandemic? YES!?

Meggie Palmer's episode on the Negotiate Anything Podcast is coming up soon and she answers this question really well in this quick clip.

But let’s be honest, you're not here to just get the answer to that question.?

Most likely you already realize on some level that you can and should use negotiation to push your career forward, you’re just not sure how to do it.?

In order for us to figure out the how, we first need to understand the why. Namely, why it is so important to negotiate and why it’s still so difficult to do it.

Once we gain this understanding, we can talk about how to do it. This is important because, let’s face it, things have changed in 2020. We need to adapt our approach to these new circumstances.?

Let’s get started!?

The COVID-19 pandemic has been disruptive in a multitude of ways. We are dealing with two unprecedented crises, one in public health and the other economic.?

The current state of the world is causing anxiety and desperation in the job market. People are taking whatever they can get and they keep asking me “can we still negotiate in these times?”?

The best way to answer that question is to ask another one: What do we stand to lose if we don’t negotiate?

The Opportunity Cost of Not Negotiating

You’ll Miss Out on What Einstein Called the “8th Wonder of the World”

Negotiating doesn’t just get you more money today, it gets you more money in the future.?

“Glassdoor released a study that found that the average American could be earning about $7,500 more per year than their current annual base salary. Not only does that hurt your bank account in the short term — since raises and subsequent salary offers tend to be based on your previous salary, a lower initial salary has a compounding effect. Some studies estimate that failing to negotiate can cost you up to $600,000 over the course of your career.”?

Source: Glassdoor

The fact that you’re missing out on $600,000 is bad enough, but it gets worse. What happens if you were to take that $600,000 and invest it into the stock market? Now you’re missing out on the magical power of compound interest.?

Conservatively, choosing not to negotiate could cost you millions of dollars over the course of your career.

You’ll be doing the same work, providing the same value, you’ll just be grotesquely underpaid for it.?

Why?

Because fear held you back.?

We’re going to talk more about fear in a minute...

You’ll Miss Out on Strategic Opportunities to Advance Your Position in the Company.

The question you should ask yourself before all of your interactions at work is “how can I improve my position?” If you’re creative enough, you’ll be able to figure out some way to advance your career goals in each of your conversations.

On the flipside, if you don’t negotiate, you’ll lose the opportunity to strategically position yourself in your work setting to improve your financial, positional, and relational outcomes.

Negotiation isn’t just a tool for the present, it’s a tool for the future.

Let’s say they can’t give you more money now. That’s still okay. It doesn’t mean that the negotiation was a failure.

This conversation can and should still be part of your long term negotiation strategy. Engaging in a conversation and marketing yourself in a way that benefits both you and the company sets you apart from others. You can sow the seeds that will support your case and keep you top of mind when recovery begins and the time comes to review compensation.

Remember, if you don’t negotiate, someone else will.?

Don't let someone else jump in line simply because they were willing to stand up for themselves while you stayed quiet.

You’ll Miss Out on Learning Critical Information

Regardless of the outcome, these difficult conversations always provide you with access to critical information.

Knowledge is power. Negotiation gives you the opportunity to learn more about your company and the key players in it. You can use this information to inform your future negotiations and strategically position yourself more favorably within the company.?

The more you know about the person, the situation, and the company, the more high-level negotiation techniques you can use.

Preparation plays a huge role in this. That’s why we created over 15+ Free Negotiation Guides to help you to prepare for your difficult conversations. There’s a salary negotiation guide, car negotiation guide, introvert’s guide to negotiation, and much more!

You’ll Miss Out on the Opportunity to Showcase Your Skills

Here’s another unique way to think of your negotiation — it’s an audition. These difficult conversations provide you with a great opportunity to showcase your communication skills and build your reputation.?

People respect you when you advocate for yourself.?

If you are able to use the information gathered and find creative avenues to extend your demands without sounding tone-deaf or insensitive, you are not only securing better outcomes for yourself, you are presenting yourself as a valuable asset to the team.?

There are three goals in every negotiation:

1. Get more of what you want.
2. Avoid things you don't want.
3. Strengthen relationships.

People often forget about the third goal, but it might be the most important.

Regardless of whether or not you're successful, you can use negotiation as a tool to build strategic relationships with decision-makers in the company.

If you handle yourself the right way, negotiation can make them like you more, not less.

You’ll Miss Out on the Opportunity to Provide More Value

Remember, the company isn’t paying you because it feels bad for you, it’s paying you because you’re a valuable asset!

There’s a trade happening: you provide high-quality work and as a result, you receive compensation. Therefore, in your negotiation, you can communicate that you are able to provide even more value to the company in these difficult times and as a result, they should be willing to increase your compensation.

It’s a fair trade.?

Remember this: even if your employer is not now in a position to increase your salary, that does not mean there is no room for negotiation. They can also compensate you in the form of a title change, flexible work hours, bonuses down the road, and so on. The number of creative options is almost limitless.

When you download your Free Salary Negotiation Guide, you’ll see some of the creative options you can suggest during your negotiations.?

You’re not a cost, you’re an investment.

If you can offer a solution to their unique challenges, you are worthy of increased compensation. But if you don’t negotiate, you may never have the opportunity to prove your worth.?

Wrapping Up This Section

If you are a creative, intelligent, and respectful negotiator, there is virtually nothing you stand to lose by negotiating. However, if you choose not to negotiate, you’re going to miss out on myriad opportunities in the future. The list above is just a fraction of the risks.

To explore the strategic tools you can use to be an effective negotiator, make sure you take a listen to our podcast: Negotiate Anything!

With over 1.5 million downloads, listeners in over 180 countries, and more than 300 5-star reviews, it’s the most popular negotiation podcast in the world! We offer simple and effective ways to strengthen your negotiating skills and help equip you with strategies that empower you to get what you deserve!

What’s Holding You Back?

“It doesn’t make sense to give recipes to people who are afraid to get into the kitchen.”

It’s not as simple as just saying, “you should negotiate!” Why? Because there's a reason that you’re not negotiating — fear.

One of the many pernicious effects of fear is that fear focuses. The focusing effect can be a constructive survival tool in the face of a true threat.?

For example, if you are being chased by a tiger, you are not going to be distracted by the fact that you left your stove on. And that helps you focus and direct your energy toward saving your life.?

However, this same focusing effect can become counterproductive and create tunnel vision, leading to negatively-oriented myopia. You start focusing on unlikely outcomes that hinder you from discovering the possibilities that are on the other side of the negotiation.

Our minds are wired to attend to negative thoughts, and often you might find yourself seeking a strange comfort from that. Why? Well, because it is easy. If we pay attention to the negative possible outcomes of negotiating, we can convince ourselves to not engage. We create stories in our minds that directly and indirectly stand in the way of our own growth and success.?

Here’s a simple tool you can use to start to overcome your fear of negotiating:?

Ask yourself this question: what is the worst that can happen if I negotiate?

You might sift through different outcomes and realize that the worst that can happen is that they say no, and you don’t get what you want. Is that really that bad?

With all the people we have coached, and the hundreds of stories we have heard from the listeners of our podcast, we have only heard of one instance where someone lost their offer due to negotiating. Does that mean they shouldn’t have negotiated? No, it just means that the company was not the right fit for them and the expectations of the parties did not align.?

Fun fact: One year later she came back to me and said she was so glad that they pulled the offer. They went through 4 different candidates for that position in less than a year. It turns out that their decision to pull the offer was an indication of company-wide dysfunction.?

So ask yourself: does fear serve me in this situation? If you are escaping danger, then yes. But if it is simply minimizing your confidence and creating negative narratives in your mind, it may be best to pause, reflect, and perhaps consider a different perspective.

This is why it’s so important to address your mindset before we dive into strategies and tactics. Confidence is the key to success.?

To learn more about how you can gain the right perspective as you consider negotiating, watch our TedX on Finding Confidence in Conflict | Kwame Christian and if fear and confidence are things you struggle with, consider buying our book, Finding Confidence in Conflict: How to Negotiate Anything and Live Your Best Life. We go deep into the psychological tools you can use to be your best self in these difficult conversations.?

Handling the Negotiation

Now let’s assume we have realized the opportunity cost of not negotiating and shifted our mindset to operate from a place of confidence. Lest we forget, we are still in a pandemic. The economy is still suffering, the job market is still tight, and it’s safe to assume that many companies do not have a whole lot of spare change.?

This is where you need to think outside the box.?

Here's how to do it.

Establish Your Priorities.

What are the things, apart from financial compensation, that are the most important to you? Make a list of what you value. This will help you to be focused, passionate, and clear as you engage in the conversation.

A good strategy doesn't happen by accident.

Make sure to check out our Free Salary Negotiation guide to help you to come up with creative options and create a coherent strategy.

At the same time, you have to realize that not all deals are meant to be made. Sometimes saying no and walking away is the right answer. Here's a clip from an upcoming episode that gives a great framework for prioritizing your goals in your negotiations at work.

Know Your Worth.

What unique skills or knowledge do you bring to the team?

What can you offer that makes you an attractive investment?

How can you creatively solve some of the problems they’re facing?

Evaluate your expertise, align it with what the organization needs, and market yourself accordingly.

Even if the company is making less money because of the pandemic, they may still be willing to pay you more money because of the value you bring.

Also, make sure you understand your market value. How much do people with your skills and experience make in the field? You need to know the numbers.?

Communicate Your Goals Through a Collaborative Lens.

If you are engaging in negotiation, that means you see a future in the company. Be intentional about communicating your desire to be a continued asset to the organization. Use negotiation as a way to make your commitment to the company clear, something that will be especially remembered in difficult times like these.?

Take it Slow.

Don’t rush to accept offers. You may be tempted to accept the first thing that comes your way out of a sense of desperation.?

Slow down!

Listen to the offer, ask them how much time you have to consider it, and thoughtfully reflect on what it means for you.

Also, consider starting the negotiation process early. It might make sense to create a strategy that incorporates multiple conversations over the course of a few weeks or months. This will allow you to gather information, strengthen key relationships, build your evidence-based case for advancement, and choose the best time for the negotiation.

Show Appreciation While Still Asking for More

Let them know that you appreciate the offer before countering. People like to be acknowledged for their efforts and this little bit of recognition goes a long way. It shows respect and builds the relationship.?

Then transition into making your request.

IMPORTANT: Avoid the words “but” or “however.” Words like these are called “the great erasers” because they erase the positivity of the previous statements.?

Here are two examples from emails:?

Katherine,?

I appreciate your offer but I was hoping…

Vs.?

Katherine,?

I appreciate your offer. Thank you for trusting me with this position.

I’ve been researching the industry standard for positions like this and based on my skills and experience…

The second email will be taken more positively than the first.

Don’t Be Tone Deaf

This is going to be especially important for younger professionals because they are often unfairly stereotyped as being entitled and naive. Don’t be afraid to let your employer know that you recognize that these are challenging economic times.

You want to acknowledge the unique challenges without dwelling on them.?

Once you briefly acknowledge that you recognize that there may be economic challenges, explain why investing in you is still the right decision to make.?

Bringing it All Together

It can be daunting to negotiate in normal circumstances, let alone in these extraordinary times.?Know that the organization is probably just as disoriented by this pandemic as you are. Everyone is figuring out how to create new norms and best practices.?

Remember, most negotiations fail because they don’t happen. Don’t let this happen to you! The first step in being an effective and successful negotiator is to have enough confidence in yourself to actually have the negotiation.?

Don’t be afraid to ask for what you want and deserve. You’ve earned it!

About Us:

At the?American Negotiation Institute, we conduct negotiation and conflict resolution trainings that make difficult conversations easier.

Please reach out to our Head of Partnerships,?Shane Martin, if you're interested in learning more about our workshops in negotiation, conflict resolution, and DEI.

Shout out to our intern, Nandini Malhotra, for doing the heavy lifting with this article. Make sure to connect with her!