Each of these situations is difficult in its own way – and emblematic of the complexity of labour negotiations. In many companies, compensation is increasingly taking the form of shares, options and bonuses related to personal performance and group performance. In MBA recruitment, more and more companies are using „exploding” offers or sliding bonuses based on when a candidate takes the job, making it difficult to compare offers. Faced with increasing executive mobility, people who compete for similar positions often have very different contexts, assets and salary backgrounds, making it difficult for employers to set benchmarks or create standard packages. It is not enough for them to love you. You also have to believe that you are worth the offer you want. Never let your proposal speak for itself, always tell the story that goes with it. Don`t just indicate your wish (a 15% higher salary, say, or permission to work one day a week at home); Explain precisely why it is justified (the reasons why you earn more money than others who may have hired them or why your children come home early on Friday from school). If you have no justification for an application, it may be unwise to do so. Also remember the inherent tension between sympathy and the explanation why you earn more: if you suggest that you are particularly valuable, you may seem arrogant if you haven`t thought about the best way to communicate the message. If you look at your numbers, you should also find a „Walk away Point” – a final offer so low that you have to reject it. This could be based on financial necessity, market value, or just what you need good on the salary you can bring home. Explain exactly why you think you`re earning a higher salary or how an extra day`s work from home will improve your performance – if you have support data, it`s even better! It`s a fine line, though, as you don`t want to come as arrogant.
Successful wage negotiations result in an employment contract that is acceptable to both the employer and the new worker. On the other hand, compromising and accommodating strategies were not related to wage increases. Participants who were risk-averse were less likely to negotiate a salary, and if they did, they had an accommodating style that made them dissatisfied with their results. It may not sound like much, but as Margaret A. Neale, a Stanford negotiation professor, says, if you get a $100,000 salary and your employee negotiates up to $107,000, provided that from then on you are treated the same with the same increases and promotions, you would have to work eight more years to be as rich as you are in retirement. She explains: „It`s not a real negotiation when you ask for something that you know your negotiating partner wants too. Negotiation is a dialogue whose objective is to reach an agreement with someone whose interests do not correspond perfectly to yours. This may seem obvious, but many people forget that they should be prepared to negotiate their contract. Just like preparing for your interview, you should do some leg work and do some research ahead of the meeting. Another key factor in wage negotiations is the level of position; You probably have more bargaining space with higher employees and employees who are the only employee to perform a particular task in your company.
They are also subject to additional benefits and ask for benefits if they don`t give you more money to offer. In some sectors, the weak labour market has left fewer options and less leverage for candidates, and employers are better able to dictate conditions.