For a new employee, salary negotiation skills can be the most important and the most intimidating, but the most important, of difficult conversations to have at the beginning of your career. A new employee, successfully negotiating a salary offer up by $5,000 could make a huge difference over the course of her career.
… Read More 
Learn how to negotiate like a diplomat, think on your feet like an improv performer, and master job offer negotiation like a professional athlete when you download a copy of our FREE special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from the Program on Negotiation at Harvard Law School.
salary negotiation
What is Salary Negotiation?
For a new employee, a salary negotiation can be intimidating, but it’s one of the most important conversations to have at the beginning of your career.
Job candidates are often eager for salary negotiation tips, and with good reason: they tend to be at a bargaining disadvantage relative to the hiring organization.
But for a new employee, successfully negotiating a salary offer up by $5,000 could make a huge difference over the course of her career. A 25-year-old employee who enters the job market at $55,000 will earn about $634,000 more over the course of a 40-year career (assuming annual 5% raises) than an employee who starts out at $50,000.
Before we negotiate price, however, negotiation experts typically advise us to first assess the zone of possible agreement (ZOPA)—that is, whether there is an overlap between your reservation point (the point at which you are indifferent between walking away or taking the deal) and the other party’s reservation point. In other words, in the context of a salary negotiation, is there at least one number on which you and the hiring company can agree?
You can figure this out by researching your industry, talking to others in your position, and assessing your own qualifications. Prepare to explain the value you would bring to the organization. Develop alternatives to the current negotiation to increase your flexibility at the table, and remember that the other party’s alternatives may be less attractive than yours.
Consider too, that during a salary negotiation, job candidates often focus on back-and-forth haggling strategies. But it’s at least as important to think about our broader goals, the type of organization we’d be joining, and the best way to frame an offer.
To learn more and refine your salary negotiation skills, download our FREE report, How to Negotiate Salary: Learn the Best Techniques to Help You Manage the Most Difficult Salary Negotiations and What You Need to Know When Asking for a Raise, today.
The following items are tagged salary negotiation:
Salary Negotiation: How to Negotiate Salary: Learn the Best Techniques to Help You Manage the Most Difficult Salary Negotiations and What You Need to Know When Asking for a Raise
Salary negotiations are often stressful and challenging. But with the right strategies, you can negotiate your employment terms with ease. In Salary Negotiation: How to Negotiate Salary: Learn the Best Techniques to Help You Manage the Most Difficult Salary Negotiations and What You Need to Know When Asking for a Raise, you’ll discover innovative ways … Read More
10 Real-World Negotiation Examples
Real-world negotiation examples can help us learn from the past and avoid repeating others’ mistakes. Here’s a recap of 10 real-world negotiation examples across government and industry that provide negotiation lessons for all business negotiators.
… Read 10 Real-World Negotiation Examples
Negotiation Strategies for Women: Secrets to Success
Whether you’re a woman or a man, you’ve probably seen gender gaps in the workplace and wondered how to overcome them. In Negotiation Strategies for Women: Secrets to Success, you’ll find critical ways to help women negotiators advance.
… Read More
Negotiating Salary: Confronting the Gender Pay Gap
In December 2014, leaks of data hacked from Sony Pictures revealed that when negotiating salary for their roles in the film American Hustle, actresses Jennifer Lawrence and Amy Adams came away with significantly less than their male costars in the ensemble cast. Lawrence and Adams were paid 7% of the film’s profits; Christian Bale, Bradley Cooper, … Read More
Signing Bonus Negotiation 101
After engaging in a successful salary negotiation for a coveted job, most people are ready to shake hands and start sharing the good news with friends and family. But these days, there may be one more negotiation you should consider launching before saying yes: a signing bonus negotiation.
… Read Signing Bonus Negotiation 101
What is Anchoring in Negotiation?
What exactly is anchoring in negotiation, and how does it play out at the bargaining table? Consider this anchoring bias example from Harvard Business School and Harvard Law School faculty member Guhan Subramanian. While running a negotiation simulation in one of his classes, Subramanian noticed that one student spent a considerable amount of time explaining … Read What is Anchoring in Negotiation?
Individual Differences in Negotiation—and How They Affect Results
Negotiation advice is often “one size fits all,” yet we approach negotiations with vastly different experiences and traits. How do individual differences in negotiation play out? In one study, Washington University professor Hillary Anger Elfenbein and her colleagues found evidence that individual differences, including personality, accounted for an impressive 49% of the variance in negotiators’ … Read More
How to Negotiate a Higher Salary after a Job Offer
If you’re wondering how to negotiate a higher salary after a job offer, congratulations: You’re aiming higher than many job candidates ever do. It’s common for prospective employees to accept whatever offer the would-be employer puts forth without negotiating for more. Unless the employer explicitly stipulates that their offers are nonnegotiable, that’s typically a mistake. … Read More
Renegotiate Salary to Your Advantage
As we prepare to renegotiate salary, most of us intend to ask for as much as we can without antagonizing our employer. But we sometimes undervalue our worth, with disappointing consequences.
… Read Renegotiate Salary to Your Advantage
How to Negotiate Salary: 3 Winning Strategies
The question of how to negotiate salary seems to preoccupy negotiators more than any other—and with good reason, considering how dramatically even a small salary increase can impact our lifetime earnings. The following three salary bargaining tips from leading negotiation experts will help you gain more from your new-job negotiations.
… Read How to Negotiate Salary: 3 Winning Strategies
Are Salary Negotiation Skills Different for Men and Women?
Most negotiators don’t engage in the kinds of high-stakes bargaining we read about in publications such as The Wall Street Journal and The Financial Times, but almost every negotiator will need advanced salary negotiation skills during the course of her career to deal with a scenario that is, in many ways, the definition of a … Read More
Chatbot Negotiations: What Can AI Do for You?
Seemingly all of a sudden, chatbots like ChatGPT and other forms of artificial intelligence (AI) are becoming ubiquitous in everyday life. These virtual conversation partners can do everything from make dinner reservations to write essays to flirt, if sometimes with unsettling results. No surprise, then, that chatbots are beginning to play a role in our … Read Chatbot Negotiations: What Can AI Do for You?
Negotiation Preparation Strategies
When an important negotiation is looming, “winging it” is never the answer. The best negotiators engage in thorough negotiation preparation. That means taking plenty of time to analyze what you want, your bargaining position, and the other side’s likely wants and alternatives.
… Read Negotiation Preparation Strategies
Salary Negotiation: How to Ask for a Higher Salary
For a new employee, salary negotiation skills can be the most important and the most intimidating, but the most important, of difficult conversations to have at the beginning of your career. A new employee, successfully negotiating a salary offer up by $5,000 could make a huge difference over the course of her career.
… Read More
Salary Negotiations in the NBA and Beyond
In negotiation, one great deal can beget another. For the National Basketball Association (NBA), its stellar 2016 national television contract begat dozens of stellar salary negotiations for top players and even mediocre ones. But after the boom year passed, players’ expectations bounced up against reality. The story, which could repeat itself after the next TV … Read Salary Negotiations in the NBA and Beyond
How to Negotiate a Higher Salary
When considering how to negotiate a higher salary, job candidates often focus on back-and-forth haggling strategies. But it’s at least as important to think about our broader goals, the type of organization we’d be joining, and the best way to frame an offer. The following advice on how to bargain salary should set you up … Read How to Negotiate a Higher Salary
Should Salary Expectations Be a Laughing Matter?
In salary negotiations, job candidates are often at a disadvantage relative to the hiring organization. Due to the well-documented anchoring effect, the first figure introduced into the discussion tends to strongly influence the salary expectations. Unfortunately for candidates, the first figure mentioned in a negotiation often is not in their favor.
… Read Should Salary Expectations Be a Laughing Matter?
Arbitration vs Mediation: What’s Wrong with Traditional Arbitration?
Arbitration vs mediation: Traditionally, the arbitrator is not limited to selecting one of the parties’ contract proposals but may determine the contract terms on his own. If negotiators know that impasse will lead to traditional arbitration, they typically assume that the arbitrator will reach a decision that’s an approximate midpoint between their final offers.
… Read More
Make the Most of Your Salary Negotiations
What salary negotiation skills can you use if a potential employer asks you about your past salary? If you earned a competitive wage, your concern may be whether the new employer can afford you.
… Read Make the Most of Your Salary Negotiations
How Negotiators Can Stay on Target at the Bargaining Table
An excerpt from PON faculty member Francesca Gino’s book Sidetracked: Why Our Decisions Get Derailed, and How We Can Stick to the Plan discusses the importance of staying on target in negotiations whether personal or business in nature.
… Read More
Salary Expectations: Calibrating Pay During a Labor Shortage
Employers may strive to set and negotiate salaries in a fair manner, but numerous factors can affect employees’ salary expectations and lead employees to believe they are being treated unfairly.
Consider Karen Womack, a warehouse manager at Seattle’s T-Mobile Park, the home of Major League Baseball’s Seattle Mariners. Womack was earning $16.70 per hour before the … Read More
Job Offer Negotiation Tips During the Pandemic
Amid the Covid-19 pandemic, many jobseekers have concluded that if they are lucky enough to be offered a good job in a tight market, they lack the power needed to negotiate better employment terms. In fact, a silver lining of the crisis is that it has created new opportunities to negotiate. With the coronavirus throwing … Read Job Offer Negotiation Tips During the Pandemic
Asking for More in Salary Negotiation: When Jennifer Lawrence and Jennifer Aniston Spoke Out
“We’re very much a sexist society,” actress Jennifer Aniston said in back in 2015 in an interview with the New York Times, addressing not just the constant questions she faces about marriage and children, but about recent revelations of pay discrimination and salary negotiation in Hollywood.
“Women are still not paid as much as men,” Aniston … Read More
The Importance of Negotiation for Female Negotiators: Women Should “Negotiate Hard”
When U.S. First Lady Michelle Obama was offered her first job after law school, it didn’t even occur to her to negotiate for a higher salary, she said in a recent interview in Parade magazine.
… Read More
In Employment Contract Negotiation, “No Haggling” Isn’t the Answer
Back in spring 2015, Ellen Pao, the former CEO of social networking and news website Reddit, revealed in an interview with the Wall Street Journal that her company had taken a bold move in its efforts to create an “equal opportunity environment for everyone” at the company. Specifically, Reddit no longer negotiates salary with job … Read More
Salary Negotiations and How to Negotiate Performance-Based Pay
Salary negotiations are never predictable. Imagine that you are a sales rep with a company that is getting hit hard by a financial crisis. No one has been laid off yet, but everyone is nervous about that possibility. In an effort to save jobs, your sales manager has quietly proposed that everyone take lower base … Read More
Negotiation Ethics: How to Navigate Ethical Dilemmas at the Bargaining Table
After buying a new car, you’re eager to sell your old car. It looks well kept, but you had problems with the engine last winter. Now it’s late summer. Should you tell prospective buyers about the engine, which might or might not act up when the weather turns?
… Read More
Mutually Beneficial Agreements: Tips for Creating Deals that Last
David Schwimmer, the actor who played Ross on the hit television comedy Friends, famously convinced the show’s five other leads in the early years of its run to negotiate their contracts with NBC as a team. The “mini union” formed by the actors ultimately helped them negotiate an unprecedented $1 million each per episode during … Read More
In BATNA Analysis, Knowledge Is Power
In negotiation, awareness of your BATNA, or your best alternative to negotiated agreement, is often your greatest source of power. What is a BATNA in negotiation? It can be thought of as the best back-up plan you can reasonably expect to achieve. Think of a solid job offer that you plan to accept if your … Read In BATNA Analysis, Knowledge Is Power
10 Notable Negotiations
In 2016, political dealmaking and corporate mergers took center stage. We look back on some of the most notable of these negotiations, which offer significant lessons to professional negotiators.
… Read 10 Notable Negotiations
Business Negotiation Solutions: Coping with Low Power
In business negotiations, a little power is better than none at all, right? After all, if talks with a prospective client fail, we’d rather have a few unpromising leads to turn to rather than none.
… Read More
10 Notable Negotiations of 2018
President Trump has dominated current negotiations in the news with a bevy of deals and withdrawals from existing agreements, but business negotiations and trends also made 2018 a memorable year. Here’s our list of 10 notable negotiations of 2018…
… Read 10 Notable Negotiations of 2018
How Negotiators Can Stay on Target at the Bargaining Table
An excerpt from PON faculty member Francesca Gino’s book Sidetracked: Why Our Decisions Get Derailed, and How We Can Stick to the Plan discusses the importance of staying on target in negotiations whether personal or business in nature.
… Read More
Compensation Negotiation Tips for Salary Bargaining
Job candidates are often eager for compensation negotiation tips, and with good reason: they tend to be at a bargaining disadvantage relative to the hiring organization. Due to the well-documented anchoring effect, the first figure introduced into the discussion can strongly influence the final outcome—and the wage or wage range cited by employers is likely … Read More
Negotiation Habits of Great Women Leaders
Pay inequities and a lack of great women leaders in upper management remain enduring problems in the workplace.
… Read Negotiation Habits of Great Women Leaders
Types of Power in Negotiation: Using Negotiation Research to Eliminate Gender Difference in Bargaining Scenarios
Here are four strategies from negotiation research on types of power in negotiation and how to minimize gender differences in bargaining scenarios and in negotiations.
… Read More
Tough Negotiation Tips from Jennifer Aniston?
Fans of the television show Friends got a treat last month when Netflix made all 236 episodes of the blockbuster hit available to stream online. At first glance actors Lisa Kudrow, Jennifer Aniston and the rest of the star-studded cast might not be your first pick to peg as formidable negotiators, but at the height … Read Tough Negotiation Tips from Jennifer Aniston?
Conflict Management: Becoming a Team Player
Show me the money!” That refrain from the 1996 movie Jerry Maguire, shouted by a football player to his agent, continues to echo through U.S. professional sports negotiations today. A public arena, enormous piles of cash, and even bigger egos combine to make sports negotiations a unique context. Yet anyone who has negotiated through agents, … Read Conflict Management: Becoming a Team Player
You Have Less Information Than You Think
Most negotiators understand the importance of preparation and will dedicate significant time and energy to analyzing important negotiations in advance.
Chances are, however, that powerful negotiators will undertake less informative and less accurate analyses than their weaker counterparts will.
For instance, in a hypothetical salary raise negotiation, a negotiator may be so confident of her contributions that … Read You Have Less Information Than You Think
Are You Avoiding a Key Negotiation?
Imagine that it’s time to shop for a new car. A friend has told you that she solicited bids from dealers on a no-haggle website and was offered a good, nonnegotiable price. You consider going this route but wonder if you could get an even better deal by negotiating at the dealership. Would you choose … Read Are You Avoiding a Key Negotiation?
Pitfalls of the Powerful
Adapted from “Are You Too Powerful for Your Own Good?” by Ann E. Tenbrunsel (professor, Notre Dame University), first published in the Negotiation newsletter.
Imagine that you’re a national account sales manager and are preparing to negotiate your annual raise. You have met all your sales objectives and feel that you are not only a valuable … Read Pitfalls of the Powerful
Be sure to give at the office
Reciprocation tactics are tried and true. Politicians “logroll” votes on pet projects, companies offer free product samples to consumers, and charitable organizations include small gifts when soliciting donations. According to the norm of reciprocity, if you’re nice to me, I’ll be nice in return, and vice versa.
In the realm of negotiation, you can gain many … Read Be sure to give at the office
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