May 26th 2015

Negotiations: How to ask for what you want

The wage gap, based on both gender and race, has been a hot topic in recent months, fueled in part by the passionate Oscar acceptance speech from Patricia Arquette on February 22nd. It may be surprising to some people that not everyone holding the same position within an organization receives equal pay when completing the same tasks with the same level of expertise. But this is the case in most organizations. Studies have found a persistent wage gap between men and women, with Canadian women earning $0.71 to every dollar earned by their male counterparts as of 2008 (Cool, 2010), as well as an average wage gap of approximately $7,000 a year for members of visible minorities regardless of gender (Block & Galabuzi, 2011). While there are many reasons for this disparity, recent research has uncovered that there is one piece of the puzzle that an employee has some control over: differing negotiation practices employed by men and women (Babcock & Laschever, 2003). Research has found that women are less likely to ask for money when discussing starting salaries and also tend to ask for less money than their male counterparts. Some researchers suggest that society has taught women that they may come across as pushy or lose job opportunities by asking for too much. However, men and women alike can find workplace negotiations intimidating.
While one person cannot change the societal and personal prejudices that might have an impact on the offers he or she is given, there are some steps that anyone can take for more fair and pleasant negotiations.
1. Choose to negotiate
Simply choosing to engage in negotiation is half the battle, which is something many people do not do. Most employers are not going to offer you the highest salary they are willing to pay you, and will make an offer based on the assumption that you will be negotiating for more. In cases where you accept the initial offer, employers are happy to keep the savings while still hiring the employee they want.
2. Know what you are worth
Many people do not negotiate salaries or hourly wages because they are unaware of what would be considered a fair asking price for their expertise. This is something that you can remedy by doing your research ahead of time. Look for other job offers for similar positions and see what constitutes a normal salary or wage. You may even be able to find published lists of average salaries within your industry. Use this as a starting point to calculate your request.
3. Establish your BATNA
Always know what your Best Alternative to the Negotiated Agreement (BATNA) is. If you are currently employed, it may be your current position. If not, it could mean other job offers you receive, returning to school or long-term travel opportunities. The key is to know what your next best choice is, and how much it is worth to you. Judge its value both in monetary terms and in personal terms. This will help keep you from settling for an option that will leave you less satisfied.
4. Make your case
Often, when applying for jobs, we only include a 1 or 2 page résumé and a brief cover letter. While this allows you to present your best skills and experience clearly and concisely, it also means that potential employers do not know everything about you. If you have unlisted skills and experience that would add value to the organization you are applying to, you need to speak up before agreeing on your terms of employment. This is the perfect time to mention that you manage the finances for your church, you have served as an interpreter in another language, or any additional information you can link to success on the job.
5. Negotiate in person
Negotiate in person or at least over the phone. This way there is a dialogue in which you can respond to “counter offers” by suggesting other things that you would take in lieu of your first request. For example, if an employer is not willing to meet your salary request, you can ask for more vacation time, or training sessions paid by the company. Yet if you are requesting these things over email, keep in mind that sending a list of all the things you want, though they may be perfectly sensible requests, could come off as pushy or overly entitled.
6. Know what is most important to you
Do not get hung up on “winning” the negotiation. Remember what things are most important for you to obtain from your potential job and try to focus on getting these, as opposed to the highest dollar amount possible. If you value the experience or benefits you might receive from the position, do not throw it away because you were unable to get your new employer to budge from the initial salary offer.
7. Keep the door open for future negotiations
In most cases, this will not be the last interaction, or even negotiation you have with your potential employer. For this reason it is important to keep things as polite and amicable as possible. Focus on what you have to offer, and you will often come to a win-win agreement, or realize that there are better options available to you. You might not get everything you want in this negotiation, but if you allow yourself to be rude or focus on getting a better deal than your potential employer, you are setting yourself up for an uphill battle in future negotiations.
These tips cannot guarantee a successful negotiation, but are meant to encourage productive and mutually beneficial agreements. Using these tips will also reduce the chances of you being steamrolled into taking the first offer that comes your way. It is also important to remember that you can apply these principles to all types of negotiation, including pay raise discussions, automotive purchases, or even personal agreements.

References
Babcock, L., & Laschever, S. (2003). Women don’t ask. Negotiation and the Gender Divide, Princeton University Press, Princeton.
Block, S., & Galabuzi, G. E. (2011). Canada’s colour coded labour market: The gap for racialized workers. Wellesley Institute.
Cool, J. (2010). Wage Gap Between Women and Men. Library of Parliament.
Fisher, R., Ury, W., & Patton, B. (1987). Getting to yes. Simon & Schuster Sound Ideas.
Hill, C. (2014, March 10). The Simple Truth about the Gender Pay Gap. The American Association of University Women (AAUW), http://www.aauw.org/research/the-simple-truth-about-the-gender-pay-gap/.