Money, Money, Money

Ah, the root of all pleasure and evil. At some point in everyone’s lives we are met with the issue of having to negotiate a higher salary. To many this is a nerve-wracking task, and yet without salary negotiation and asserting oneself, one may not get the starting salary they want to build up from.

In a PsyBlog article (see below), 10 steps were provided to help an employee successfully negotiate higher pay.

PsyBlog's Article on how to negotiate a higher salary

The article suggested the following ways:
1. Open Negotiations
2. You set the anchor
3. Start High
4. Make a Joke
5. Compete
6. Collaborate
7. Win-win feels better, but nets less (knowing when to ‘lose’ the negotiating debate)
8. Avoid Compromise and Accommodation
9. Forget Gender Stereotypes
10. Be Bold

Definitely a tricky thing, negotiating salary, yet this article does hold true. With the case of starting the negotiation at a higher salary, the article asks people to employ the door-in-the-face technique, through which asking for higher salary and then moving down towards the actual starting salary you want may make the actual salary you want less outrageous. This also relates to the theory of reciprocity by Robert Cialdini, because by stating a starting salary at a higher price to begin with and getting rejected, the employer may feel guilty for having rejected the first salary figure. If a future employee negotiates a higher salary figure than what he/she actually wants and then moves down to the figure he/she actually wants, they are more likely to get a ‘yes’ to the actual salary figure by comparison.

Also, by starting salary negotiation first, potential employees can have better control over the negotiation process because they can start with a higher figure and work from there. They can also showcase their boldness and their risk-taking.

In the end, salary negotiations are obviously easier said than done and it’s especially easier said than done correctly. One can only hope their future employer is an agreeable and understanding boss.

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5 thoughts on “Money, Money, Money

  1. Lisa Taylor says:

    It seems weird that the article didn’t discuss how to make a joke more. It mentions that making a joke, when done correctly, can diffuse the tension of the situation, but it never explains how to correctly utilize humor. It seems like an overuse of humor could be more harmful than helpful. Too much humor can just make salary negotiations seem like a joke that the boss can just dismiss.

    • alvinajng says:

      Very true! It also doesn’t really touch on the fine line between collaboration and competition, and how to manage walking on that fine line. I suppose it’s one of those articles that are vague enough so as to grab reader’s attention so they can research the topic more themselves? 😛

  2. 9. Forget Gender Stereotypes

    ^ Glad they mentioned this, but confused about their conclusion! A lot of conflicting research shows that women tend to be less aggressive in negotiating salary and frequently accept a lower starting salary, because they feel such aggressive behavior in inappropriate, and reasoning that they’ll “do a good job and move up quickly”. I’d be interested to see the different methodologies here so we could start to figure out what’s happening.

  3. Ahhhh… reading that article reminds me of negotiating salary in my first “real job”. Actively considering the evidence I mentioned above, I was purposely aggressive.. at first. But my boss – also female, cunning, and extremely intimidating – really knew her stuff. I was no match for her.

    Though I did get a good starting salary, in retrospect. I think I just trusted her so little as it was that, at the time, I was sure she was swindling me. LOL. I hated the idea of negotiating at the time. Now, of course, since memories are so often seen through rose-colored glasses, I’m seeing it as kind of fun.

    Personal advice: do a lot of research before even touching this topic. You need data. Talk to people. Try to be prepared for it before you even go in for that first interview. If, for whatever reason, you can’t prep before that first interview, evade the topic if it gets brought up. Say something like, “I’d be happy to discuss figures with you later, but right now I’d like to focus on figuring out of this opportunity is a good fit for us.”

  4. Oh – lots of good articles on theladders.com. Sign up for their newsletter!

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