The three biggest mistakes people make when negotiating a salary or raise

Through my own experience many years ago and my work with my coaching clients, I have identified some critical mistakes people make when negotiating a salary or raise, and today, I want to focus on the three biggest ones:

1.??????Not negotiate at all

2.??????Not prepare enough

3.??????Give up too fast

Let’s have a closer look at these:

1.??????Not negotiate at all

Many of my new clients report that they didn’t negotiate their salary at all when taking a new job or receiving communication about their salary increase as part of the annual review process. These stories usually entail disappointment or resentment, as their protagonists often find out about their predecessors’ higher paychecks or some other reason why they should get paid more, but they don’t… because they didn’t negotiate.

And while I would no longer fall into this trap now, I have my own story to tell about accepting a salary too quickly in the past, without negotiating (and without doing my due diligence). At the time, I was moving from Buenos Aires to San Francisco, and when I heard the number I was offered, it seemed high to me, for two reasons: First, I was moving from a country with a lower-value currency at the time, and second, I had never earned a salary this high before. (Now, we’re talking San Francisco, where the cost of living was one of the highest in the country...) Only to find out later that my counterpart in Los Angeles, who was in charge of a much smaller office and team, and who had not half the experience I had, was earning a salary that was 50% higher than mine – 150% of my salary!

My advice:

• Never accept the first salary offer for a new job
• When negotiating a raise, always make the first offer.

2.??????Not prepare enough

Never wing a meeting where you negotiate a salary or raise. Preparation is key.

In a previous article , I shared some ways to prepare, which included doing your due diligence, practicing your numbers and opening line, brainstorming on other compensation pieces, positioning your raise, anticipating objections, rehearsing, preparing physically & energetically, and more.

I recommend you do not skip any of these preparation steps. The potential ROI you get from a comprehensive preparation phase is well worth the energy and time you put into it.

3.??????Give up too fast

If you get an objection or even a “no” to the salary or raise you’ve asked for, this is not the end of the game.

Objections are part of most negotiations; in fact, negotiations without objections are extremely rare. That’s why it’s so critical to anticipate any possible objections, and be very thorough with your notes on how you can address them.

I am currently designing an online course on salary negotiations, which includes a list of typical objections with powerful ways to respond to them. In this course, I will also go over nine methods to address objections, which you then can apply to your specific situation. Some examples are: Asking a question, diverting from the objection, or addressing the objection before it is raised… but there are many more, and I’ll also share some specific examples in this course. Coming soon!

Want to find out more about my Dream Salary Course? DM me!

When you receive a “no,” this doesn’t always mean it’s an absolute “no.” Sometimes, it’s a “not now” and at other times, it’s a conditional “no.” I recommend you always ask for more details about the “why” – the specific reasons and context. This allows you to continue the conversation in a meaningful way and continue negotiating. It also gives you an opportunity to suggest a follow-up process.

For more concrete tips around this part, DM me and I’ll tell you more about my Dream Salary Course.

If the negotiation for the salary increase itself doesn’t go anywhere, you have the option to negotiate other components of the compensation package, such as a higher bonus or commission, better health insurance, benefits like additional paid time off, greater flexibility around your work schedule, or travel perks. The list of items you could negotiate is long; identify what has the greatest value and what makes the most sense for your particular case, also considering what’s possible in your team and work environment.

Negotiating for a salary or raise requires a good portion of confidence, extensive preparation and very specific skills. I’m packing all of this into my new online Dream Salary Course… it’s going to be available soon, and at a rate that won’t break your bank. Stay tuned!