5 “win-win” salary negotiation hacks.

In a previous article, I shared some key concepts and strategies that can be used in “win-win” negotiations for recruiters. 

Here I would like to mention different negotiation hacks. 

To learn more you can visit the course  “Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator”.

First: Start by asking

The idea of this negotiation hack is to ask candidates as many questions as possible. We cannot negotiate when we do not have information. This negotiation hack once again emphasizes all the issues that we covered in the previous article. 

We are interested in having a collaborative strategy in negotiations with our candidates. In order to build a good strategy for such type of negotiations we need to know the:

• Candidates’ and company’s BATNA
• Candidates’ and company’s reservation value
• Candidates’ and company’s target salary
• ZOPA
• Candidates’ motivation factors, company’s needs, and their priority. 

The second point is that you will not know the answer until you ask. Even if candidates told you previously that they have other offers for a higher base salary. And you know that you cannot provide a matching base salary. It's still better to ask them if they are willing to consider your offer with a lower base salary. In the worst case, they will just say no, in the best case, it will be accepted. Because base salary is only a part of the compensation offer. Your compensation can still be more appealing. 

Second: Never say no

Do not say "no" first. Let others say “no” to you. In this case, we consider a “no” as “not interested”, “not ready to consider/proceed”, etc. This negotiation hack comes as a logical continuation of the previous one. If candidates’ expectations are higher than your position budget, do not say “no” immediately to candidates. Allow candidates to say “no” to you. You can ask about some other expectations besides base salary, and send them a description of the project, full compensation package, future opportunities, and benefits. Yes, they may say “no” to your proposal. But many say a “yes”.

Third: Know details of candidates’ BATNA

We discussed that the BATNA (Best Alternative To a Negotiated Agreement) is the best option that each side of the negotiations has if those negotiations fail. From the candidates’ point of view, BATNA can be a current salary, an offer from other companies, or a counter-offer from the current company.

Our task is not only to find out the candidates’ BATNA, i.e. what other base salary options they were offered, but details also, what benefits and flaws those offers have.

Identify weak points that other offers have, can you cover them with your offer? If yes, great, emphasize this to candidates. As an example, there can be a situation when the current company has not increased the base salary until a candidate brought another offer. Bring this to the attention of a candidate. Why now? Is a candidate okay to bring another offer every time for the promotion? Point out that the offer may be good now, but what will happen in the future? 

Fourth: Anchoring

Anchoring (from anchor) describes our predisposition on focusing on the first number as a guide throughout the negotiation process. That’s a negotiation hack that actually we do need to use as recruiters, but to be able to recognize it if others use it. Remember not to focus on the first number of base salary expectations, but to dig deeper into other motivations factors in compensation packages and benefits.

Fifth: “No” to round numbers

This technique is about research that shows that offers with round rates receive a lower response. So it’s more about the first reach-out that you are drafting. 

To sum up,

Remember to take your negotiations seriously, be prepared, and draw your strategy. Use different approaches in each negotiation process.

We are interested in having collaborative “win-win” negotiations with our candidate.