if you have an ace up your sleeve, nothing can go wrong. Find out  how to prepare for the poker game of salaries and what to pay attention to here!

As the old saying goes: „New year, new luck“. Are performance reviews coming up? Last year’s goals have been evaluated and expectations for the coming year have been communicated. Now is always a good time to bring up the topic of salary. However, caution is advised – as we all know, this is a sensitive subject!

Here are 5 tips for the fine art of negotiation

On the one hand, you don’t want to undersell yourself, but on the other hand, you don’t want to set your demands too high. Finding the right balance is the fine art of negotiation. Good preparation is key. Once you have the right cards in your hand, you can start playing for higher stakes. Here are my five tips to help you approach this conversation feeling relaxed and confident:

Know your market value

First, research what salary might be appropriate for your position, either online or offline.

• • Online sourcse such as Monster, Glassdoor and Stepstone, for example, offer interesting salary data for your industry. Experts such as Conrad Pramböck regularly write on this topic and publish salary study data.
  • Offline: Ask someone in your circle of friends who holds a similar position or works in human resources. Another option is to talk to headhunters, who usually have an in-depth knowledge of the market. You could even treat yourself to some coaching in this area – an outside perspective can be very helpful!

„I asked around and found out that others in my position earn X pounds. That’s 5% more than my current income.“

What would you like to earn?

• First, think about your desired salary, i.e. what the total package should look like (fixed and variable components). Once you have done this, determine your minimum and maximum demands. How much room for negotiation are you willing to allow? (Keyword: step plans / distribution between fixed and variable components)
• Next, write down the reasons why you deserve a pay rise. Now is the time to share your personal success stories come in, such as achieving customer satisfaction or completing special project, etc. Make sure your arguments are measurable and verifiable, using figures, facts, data.

For example, you could say: „Despite the pandemic, I successfully completed four more projects this year than last year, saving X€ in the process. One of our regular customera, Ms. Müller, even sent me a gift basket to thank me for my good work.“

Alternatives to the salary package

If discussions arise regarding financial aspects arise, you should also consider non-financial salary components in advance. Examples include a company car, a private pension or health insurance, new/better IT equipment, training, additional holiday days or increased homeworking days.

If we cannot reach a satisfactory agreement for all parties today, shall we discuss alternatives? Would an additional five holiday days be possible?“

Stay calm and remain flexible

Try to appear as calm and confident as possible during the conversation. This sounds very simple in theory. Breathe slowly and steadily, and avoid holding your breath or breathing too quickly. Speaking carefully and taking frequent pauses will make you appear thoughtful. If the negotiation gets out of hand, either postpone the conversation or show flexibility. Don’t let your counterpart rattle you too easily; think of it as a game of poker: does the other person really have better hand than you?

• What does flexibility mean? If you cannot agree on your desired salary, for example, discuss a step-by-step plan for how you could achieve your target salary in the medium term. So don’t lose your nerve and react emotionally – that would definitely backfire.

„If my demands are not feasible as they stand, then let’s consider how we can achieve the target salary together. A good timeframe for this would be six months. if my salary demands are linked to specific targets, then they will also be concretely measurable.“

 

Inner attitude

This is probably the most important point of all. You must be convinced that you deserve this salary package. If you radiate this self-confidence and awareness, your negotiating partner will sense it immediately and it will have an effect on them.

„I am worth it and I can do it!“

 

Beware of these no-gos

In such a delicate negotiations, you have to pay attention to many small details. Your statements should always be positive, goal-oriented and solution-focused. There are clear no-gos and pitfalls in salary negotiations that you should avoid!

Do not compare yourself to other employees in the company:

„My colleague earns X£ and has been with the company for much less time than I have,“

„Employees below me earn almost as much as I do now.“

If there are inconsistencies here, point them out objectively and clearly rather than emotionally.  Appeal to your employer’s conscience, as this is also necessary for „fair and correct“ treatment of one another.

Blackmail

„If I don’t get this salary, I’ll leave the company.“

This may work in some cases, but it is not a long-term solution. This argument can also backfire. In my opinion, it is often more about general dissatisfactions than money. I recommend identifying what the sources of frustration are. Then address them openly and respectfully with your supervisor.

I am good enough!

My top credo when it comes to salary negotiations is always:

„If I do good work, have the right attitude and am successful, then I will be rewarded accordingly.“

If you need a pay rise to overcome financial difficulties, you can openly communicate this to your employer. We all know that these are not easy times, but there are still some ways to support your employees financially such as advance payments or low-interest employee loans! If internal support is not possible, external help can be offered instead, such as an Employee Assistance Programme (e.g. Instahelp, online psychological counselling via video, audio or text chat)!

There are many possibilities – you just have to be brave enough to bring up the subject. Of course, all of this requires a trusting working relationship.

If an employee requests a meeting to discuss their salary, make time for the conversation and consider the reasons behind it. There are often underlying reasons that are not always obvious and that people are reluctant to talk about openly such as financial hardship, separation, job loss of a partner or general dissatisfaction. Money is a hygiene factor that must be fulfilled in order for motivation to occur in the first place.