This negotiation technique can aid in securing a cherished job offer, as utilized by CEOs.
Negotiating for what you want is the best time when you receive a new job offer, as companies anticipate it and various elements of your compensation package, including your base salary and PTO, are open for discussion.
Prioritize the benefits that are most important to you and develop a plan to acquire as many of them as possible.
Tessa White, a career coach with 20 years of HR experience and founder of The Job Doctor, suggests looking to how seasoned executives negotiate.
When you present two separate proposals for what you're willing to accept, it gives the company more options and makes it easier for them to find a compromise.
White suggests another key strategy is to propose an "if-then" agreement, where if you achieve a specific goal or excel in your work, you will receive compensation at a predetermined time.
DON'T MISS: The ultimate guide to negotiating a higher salary
White explains that CEOs often negotiate their stock-based pay based on the financial performance of the company under their leadership, similar to a common sales tactic.
Here's an example of how to apply these strategies in your own negotiation, White suggests.
You could counter the company's offer of $60,000 with a 10% bonus by suggesting a few alternatives, including:
- You receive a 10% bonus on the $60,000 base, but request a one-time $5,000 sign-on to offset any lost ground.
- You receive a 10% bonus on the $60,000 base, but request a performance review after six months. If you meet a specific benchmark, you will be eligible for a 20% bonus range.
To set up a performance-based proposal, ask: "What would it look like to be excelling in my role?" White suggests. "If I achieve that, could we discuss a second raise six months from now or a performance-based bonus?"
"Companies love to have you perform first and pay later," she remarks.
Showing commitment to the role by negotiating these proposals can also demonstrate your dedication.
As a new hire, you can "encourage the company to envision a significant achievement and a grand objective," which will provide you with direction in your early months on the job and "allow you to incorporate some financial rewards into your future endeavors."
While it may be challenging for the company to provide upfront payment in base salary, they may be open to negotiating for one-time pay, a delayed cost, or non-salary perks such as job title adjustments or flexible work arrangements.
Earn more money at work by taking CNBC's new online course, "How to Negotiate a Higher Salary." Expert instructors will teach you the necessary skills to increase your paycheck, including how to prepare and build confidence, what to say and do, and how to craft a counteroffer. Register now and use coupon code EARLYBIRD for a 50% discount through Nov. 26, 2024.
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