5 Power Moves to Command Your Next Power Pay Negotiation
Power pay negotiations aren't for the faint of heart. Whether you’re facing an upcoming annual performance review or hoping to land that next dream role, the dreaded salary negotiation can leave most feeling ill-equipped and nauseous. Don’t despair! Today, I’ll share 5 simple tips -- including my coveted future state negotiation tactic which led to exponential salary increases and numerous six figure offers. I believe if you’re clear on what you want and have a solid understanding of the power of leverage, timing, and value, you can confidently negotiate a salary package that ensures you’re not leaving anything on the table.
1) First & Foremost: Know Yourself
Shakespeare said it best: “to thine own self be true.” No greater leverage and power exists than knowing what matters. Before you strike the deal, know yourself. This includes an honest and fair assessment of your recent work performance.
Just to get a seat at the power negotiation table, your recent performance must be on par with industry standards. If you are honestly not meeting or exceeding at least 75-80% of industry and/or “dream” role requirements then don't proceed with negotiations.
Believe me, your negotiation won't end well because quite frankly you don’t have enough leverage. Instead, position yourself for victory by quickly getting up to speed in your current role or identifying roles that will enable you to build the requisite momentum to successfully position yourself as an A-Player. This approach will save you from embarrassment and lost wages, and it will give you a firm foundation to negotiate a better package from a position of power.
Before you enter any negotiation, it’s imperative that you identify and prioritize the core areas that matter most to you. Money is not everything. I repeat money is not everything when it comes to a power negotiation. Before emotions and adrenaline enter the scene, clearly defining ideal outcomes ensures you remain focused on the right battle and don’t do something fool hardy that leaves you in an unfulfilling career that is not in alignment with your mission or core values.
Some key things to consider are the following components:
i) Type of Company- What are their core values, beliefs, culture, locations, and core missions?
ii) Title- Is the title higher priority because it will open more doors toward your ultimate career vision?
iii) Salary- What is your ideal based on market value? What is your bottom line number?
iv) Growth and Development- Do growth and development opportunities matter more to you?
For example: Is it more important to work for a dream company in your ideal industry with an undesirable title than working for another company and having title/role you desire?
Is Salary more important than title?
Again, only you can answer these tough questions, but knowing these ahead of time allows you to negotiate with integrity in your core values.
Now that we have tackled the importance of knowing yourself, if you are angling for >10% raise it’s important that you master Future State Negotiation Tactics:
2) Your current results and performance alone are not enough to command an exponential salary increase.
This is a major mistake that several individuals make -- you must give more. Companies are clamoring for individuals that are committed to the organization’s future growth and viability. These individuals, however, must also have a relentless commitment to delivering results today. In short you are painting the picture for your investors (e.g. future employer/current employer) as to how you can improve their ROI (return on investment) by investing in you (e.g. paying you a ton of cash).
Exponential increases are warranted when you have increased leverage. This leverage is created by increasing your strategic value to the bottom line. Now the beauty of how you do this is up to you, but if you can look for ways to improve processes, drive efficiencies, impact a substantial number of end users both internal and external today, and more importantly create a sustainable process that has positive future implications, you will be leaps and bounds above the pack. Following my fix the fire tactic (e.g. finding major organizational or industry challenges) is one of the proven ways to help you strategically increase your leverage and value.
3) Be Descriptive- Use facts and figures.
Use data to give you additional leverage.
A few examples:
- Predicted increase in revenue by pursuing a new opportunity
- Increased % of market share that the company could capture
- Amount of projected savings
Paint the picture, you are negotiating with human beings, not robots. Have fun enrolling them in the future vision of how you can solve their most pressing problems. As a note of caution, don't overwhelm people with data; have a few targeted bullets to support why you are a sure thing investment that they won't regret.
4) Be Prepared-
Understand what the other party values most. What is keeping your senior leadership up at night? What are major industry challenges? Have a strategic game plan prepared. Know your strengths and document any investments in yourself that have allowed you to further enhance your skills so you can tackle these challenges. This will help you build greater leverage as you position yourself as the ideal future leader for them to invest in. Understanding these matters beforehand will enable you to more effectively articulate why you're uniquely qualified to support the organization in this capacity
5) It's Not about You-
As counterintuitive as this last power negotiation tip may seem, the more you can come from a place of value as to why this investment (higher salary) is great for the organization, manager, customers etc., the better it works for you. As Jim Rohn said, "if you help enough people get what they want YOU always get what you want."
[Related: 7 Tips to Help You Ask For What You Want]
Ms. Ryan Pack, CEO Impackt Squared Solutions is a business and career peak performance strategist and coach helping organizations and individuals achieve exponential results.
Have more questions? Follow up with the expert herself.
Impackt Squared Solutions
Ryan is an RESULTS driven businesswoman, success coach, and motivational speaker. Her experience as a change agent includes leading global teams and bringing out the best in others. Over her 10.5 years of corporate experience, she’s developed proven strategies to overcome mediocrity and blaze the corporate ladder. Her experiences range from working at a Fortune 500 company, developing diversity recruitment strategies for a leading research institution, to closing multi-million dollar deals (~$250M+) in the... Continue Reading
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