UK-based management consultant Michael W Phillips has over three decades of experience in corporate deal-making, particularly in the world of procurement. As an international commercial negotiator and the author of The Naked Negotiator: How to Negotiate the Salary You Deserve, Michael to share his expert advice for successful salary negotiations.
Becoming ‘The Naked Negotiator’
While the majority of Michael’s experience has been in procurement and corporate negotiations, he’s remained keenly aware of the obstacles his wife and daughters faced when it came to negotiating salary. Through research and personal experience, it was clear that women are not only asking for salary increases less frequently than men, but they receive less when they do ask.
This inspired him to break down the core principles of effective negotiations in a way that is specific to conversations about salary, but also relatable. The Naked Negotiator is that resource.
Know Your Marketplace Value
According to Michael, from corporate deal-making to salary negotiations, preparation is the most important factor in effective negotiations. He recommends people begin by clarifying their marketplace value.
Do as much research as you can on what somebody in your position, and with your level of experience, should be earning. Factor in location and industry as well. The more specific you can be, the better. Beyond industry research, Michael recommends compiling data on your specific performance as well. Keep track of your key performance indicators, as well as major projects or deals that you’ve contributed to.
By identifying your value, you’re better equipped to present a strong case during negotiations. It will also help to ease anxiety.
“If you feel you’ve really done your homework, then you will be more confident when it comes to having the discussion,” he shared.
Know Your Audience
A critical aspect often overlooked in negotiations is understanding your audience. As humans, we tend to be very biased in favor of ourselves. This can cause us to communicate in terms that are persuasive to us, but not necessarily our counterpart.
Phillips highlights the importance of tailoring your message to match your audience’s style. Whether they’re empathetic or more logically inclined, speaking their language is key. By reflecting their communication style, there’s a higher chance of creating a meaningful connection. Meaningful connections are critical to any persuasive strategy.
Empathy is helpful with this approach. Take some time to consider their perspective, including their challenges and needs in the situation.
The Value of Data
While empathy is vital in understanding the other party’s perspective, Phillips emphasizes the importance of data. Depersonalizing the negotiation process is key. It’s not about defeating the other person; it’s about finding a solution that works for everyone. Using factual data to support your stance can help make the negotiation more objective and less confrontational.
Fair vs. Reasonable
When it comes to negotiating salary, Michael advises avoiding the term ‘fair’ and focusing more on what is ‘reasonable’. Fairness is a subjective concept, often shaped by personal bias. He suggests that relying on the idea of fairness in negotiations can be a risky strategy. It’s more effective to negotiate based on what’s reasonable for both parties. This approach helps avoid making negotiations a competition and instead positions them as collaborative problem-solving.
Michael W Phillips’ insights into salary negotiation offer a strategic and compassionate approach. By preparing meticulously, understanding your value, and speaking your audience’s language, individuals can navigate these negotiations more effectively.
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