The letters “O.K.” are the two most expensive letters in the alphabet. Why? Because this is how many respond when offered a job and don’t even bother to counter.
Of course, this is often a mistake, as described in last week’s column (the first three major mistakes being 1) not recognizing this as a negotiation, 2) focusing too much on the money, and 3) underestimating your leverage).
Here are two more.
4. Not justifying your counter with standards/benchmarks
Let’s face it – many people experience a significant degree of discomfort when negotiating for themselves, especially over jobs and salary. In effect, we have to sell ourselves and our personal value, and many grew up viewing active self-promotion as culturally inappropriate and even arrogant.
The “I’m worth more” statement just feels wrong and too egotistical, to many, which is one reason why we don’t engage. On the other hand, we leave a lot on the table as a result.
The solution?
Not only ask for more but include a reason or justification for why you deserve more. It’s far more powerful and effective if you support your counter with a standard or benchmark. But many don’t. This is mistake number four.
“I deserve an additional week of vacation time BECAUSE the last person you hired in this position had three weeks’ vacation versus the two weeks in your offer [precedent here being the standard].”
Or “according to my research on job and compensation sites, your offer underestimates my market value by not considering my MBA and the financial expertise I can bring to your company [market value here being the benchmark].”
Or “my executive compensation expert tells me that the industry standard for AI senior engineers at Seed Stage start-ups like this include 1% in stock options, not the ½% you offered [expert opinion here being the standard].”
By researching and including standards and benchmarks in your counters (like market value, precedent, expert opinion, costs/profits, etc.), you will substantially increase your counter’s likelihood of success.
Doing this also depersonalizes the negotiation and can alleviate your discomfort. You’re not just saying “I want more” but instead are communicating “I just want to be treated fairly and reasonably based on these objective criteria.”
This crucial move is founded on my Third Golden Rule of Negotiation: Employ “Fair” Objective Criteria.
5. Focusing too little on agenda control elements
It’s easier to say “no” in an online versus an in-person meeting. And it’s easier to say “no” by e-mail than in an online meeting. It’s even easier to say “no” in an old-fashioned letter than by e-mail.
So if you want a “yes” to your counter, tactically evaluate how to engage.
What does this have to do with salary and job negotiation mistakes? It’s a significant mistake to discount the critical nature of agenda-control issues like where, when and how you should negotiate this. Yet many make this mistake. Don’t.
Years ago, I asked the Chair and CEO of a multi-billion-dollar multinational consumer products company if he would volunteer three hours of his time to serve on one of my seminar panels. I didn’t know him well, but I served on a board with his wife.
He said “yes” without much hesitation. And three hours of his time was a big deal! After the seminar, he told me he had enjoyed it but wasn’t sure why he said yes without asking me for something in return.
I thanked him, of course, and remarked that it probably related to the fact that I had called and spoken to his wife first about this and then asked him. In effect, I asked him through his wife. That made all the difference in the world.
Latz’s Lesson: When offered a job, counter with standards/benchmarks and strategically decide where, when and how to engage. This way you will avoid making these common mistakes.
* Marty Latz is the founder of Latz Negotiation, a national negotiation training and consulting company that helps individuals and organizations achieve better results with best practices based on the experts’ research. He can be reached at 480.951.3222 or Marty@LatzNegotiation.com.