Millennials -- it’s time to negotiate
Millennials in the workforce are in for some unexpected and unknown rules of thumb that for the seasoned business person, come naturally. Negotiating a raise, more time off, or a promotion are just a few of the meetings new employees will need to have with their managers at some point in their careers. In fact, according to a Robert Half survey, millennials are most likely to negotiate a salary (45 percent).
A negotiation takes place whenever two or more people or groups desire outcomes which are interdependent. Successful negotiation results in a win-win agreement in which all parties gain overall, even though they may have to make concessions in the process. Of course, negotiations don’t always go smoothly or result in a win-win agreement. Without ample preparation, the meeting is likely to be ineffective, or worse, damage your professional reputation and future career prospects. Some salary negotiation pitfalls millennials can avoid include:
- Playing games. Tactics like misleading a prospective employer about your current salary or other job offers to obtain higher pay backfire. Be honest about your situation.
- Making it all about you. Don’t base your request for a larger starting salary on the fact that you want a new car or bigger down payment for a home. You’ll make a much more compelling argument by talking about the value you can bring to the organization.
- Viewing money as the only object. Salary is just one part of the equation; a generous benefits package or opportunities to learn and grow with the company may compensate for a lower starting salary. Remember to look at the full picture when evaluating a job offer.
While the younger generations might believe strong negotiators are “born naturals,” they do share common traits that can be observed, learned and adapted to your personal style. Often, their advantage comes from practice, preparation and consciously employing and adapting these skills to their own style for greatest effectiveness. Skilled negotiators:
- Prepare. They do their homework and research before the negotiation, gathering all the available and applicable information to have on hand when they need it. Often, this is the most overlooked step.
- Probe for information. Effective negotiators have the ability to “snoop like a nosy detective.” When meeting with their counterpart, they learn to pry information from them to see the picture from their point of view. The more you can learn about the other party, and what they want or need, the better you are able to develop your proposal or evaluate theirs.
- Find allies. Effective negotiators can find ways to enhance their position at the table, particularly when they aren’t operating from a position of strength or don’t have much to work with at the initial stages of negotiation. This often occurs in multi-party negotiations, either within an organization or with multiple external parties. An effective negotiator knows that there is strength in numbers and can ferret out allies to form coalitions to increase their negotiating power.
Successful negotiation depends on preparation. Those who are successful at getting what they want to take the time to think about what is – and is not – worth negotiating. For example, is it necessary to ask for a raise now? Is it crucial you work from home once a week? Do you really need extra time to complete a certain project? They think through their own position and that of their counterpart, so they can ultimately handle anything that may arise during the bargaining process. Basically, you don’t want to be the “squeaky wheel” – making absurd requests or making a mountain out of a mole hill. Ultimately, you want to have a clear sense of your bottom line and position in the negotiation process. And this means more than saying to yourself, “I want this” or “I want that.”
Before entering the crossfire, you’ll want to take these six steps:
- Know what you want. Before embarking on any kind of negotiation, you must know exactly what you are negotiating and what the best outcome for you would be. Most people have a general idea of what items they want or don’t want in a deal. Unfortunately, general objectives tend to render general results, leading to second guessing and dissatisfaction.
- Know what they want. The next step is to look at the situation from the other side. Knowing your counterpart’s goals, objectives and sought-after results will help you identify commonalities that could lead to creative solutions.
- Identify possible concessions. No one ever gets everything they ask for in life, and negotiation is no different. The process requires give and take from both parties, so you should always be prepared for compromise
- Have a Plan B. Think of alternatives as your safety net. If you can’t negotiate a deal that both parties agree with, you should always be prepared to walk away. For every Plan A you should have a Plan B.
- Do your research. Know your counterpart and subject matter. If you’re preparing for a salary negotiation, for example, research the average salary range for the position, keeping in mind the company and its culture (use annual reports, websites, Salary Guides, etc.) the geographic location and your own market value (years of experience, education, etc.).
- Rehearse. As the saying goes, the way to get to Carnegie Hall is practice, practice, practice. It’s the same road to negotiation success. Practice with a friend. Attend swap meets and flea markets to sharpen negotiation skills.
Strong negotiation skills will help you throughout your career, and even in your personal life. Most of us negotiate things every day with our colleagues, our spouses and our friends. Keep in mind that good negotiation takes practice. If you have one bad experience, remember that it will be easier the next time.
Kristen Stough is division director for Robert Half Finance & Accounting in Atlanta, the world’s first and largest specialized recruitment firm. With more than 330 offices worldwide, our recruiters provide companies with skilled finance and accounting professionals, while assisting financial professionals with their career advancement. For details, visit www.roberthalf.com/ga-atlanta