Sala­ry nego­tia­ti­on in the job inter­view

Per­haps the most lucra­ti­ve few minu­tes of life is the sala­ry nego­tia­ti­on at the job inter­view. Whe­ther you have a nego­tia­ti­on stra­tegy and use the right nego­tia­ti­on tech­ni­ques will make or break your for­tu­ne. If a 22 year old ent­rant accepts a job offer of 25,000 euros wit­hout any sala­ry nego­tia­ti­on, but ano­ther accepts it after visi­ting our Nego­tia­ti­on trai­ning up to 30,000 euros and both work until they are 65, then the one who has our Nego­tia­ti­on semi­nar atten­ded ear­ns a total of 360,000 euros more with a wage increase of 3 % per year. If he also inves­ted it with 3 % inte­rest, he final­ly has 568 000 euros more in his account. Not bad for a sala­ry nego­tia­ti­on that may have only las­ted a minu­te!

The gol­den bul­let of sala­ry nego­tia­ti­on

Salary negotiation

What gives you more bar­gai­ning power in a sala­ry nego­tia­ti­on? A loa­ded gun or the offer of ano­ther employ­er or the con­cre­te pos­si­bi­li­ty of self-employ­ment? Well: Your nego­tia­ting power depends on one thing abo­ve all: the BAT­NA. The con­cept of BAT­NA was defi­ned in the 1980s by Roger Fisher and Wil­liam Ury — who deve­lo­ped the Har­vard Con­cept deve­lo­ped — and stands for Best Alter­na­ti­ve To A Nego­tia­ted Agree­ment, i.e. for the best alter­na­ti­vethat you would have if you let the nego­tia­ti­on fall through, your ‘Plan B’. Kno­wing your BAT­NA means being awa­re of your best other nego­tia­ti­on opti­on be awa­re. The bet­ter your nego­tia­ti­on alter­na­ti­ve is, the less depen­dent you are on the nego­tia­ting part­ner and the hig­her is your bar­gai­ning power. Ima­gi­ne you are curr­ent­ly in the final round of sala­ry nego­tia­ti­ons at the Bos­ton Con­sul­ting Group. You are offe­red a start­ing sala­ry of 100,000 euros, which is usual­ly high in this indus­try. Your actu­al bar­gai­ning power is now depen­dent on your nego­tia­ti­on alter­na­ti­ve. If you alre­a­dy have two offers on the table for simi­lar­ly inte­res­t­ing jobs with sala­ries bet­ween 90,000 and 110,000 euros, then your BAT­NA is 110,000 euros. Just as the­re is only one best fri­end and no five very best ones, the­re is also only one BAT­NA, the best alter­na­ti­ve. But what if you don’t have any offers from the two alter­na­ti­ve jobs yet? Then you have no BAT­NA and your nego­tia­ting posi­ti­on is weak. Most nego­tia­tors untrai­ned in nego­tia­ti­on set arbi­tra­ry limits and say to them­sel­ves some­thing like, “There’s no way I’ll take less than 95,000 euros.” But only with a BAT­NA but have a meaningful lower limit in sala­ry nego­tia­ti­on.

So what to do?

1st step: Always take the time, to find out your BAT­NA befo­re con­duc­ting nego­tia­ti­ons. The alter­na­ti­ve nego­tia­ti­on opti­ons will not fall into your lap. So befo­re nego­tia­ting your sala­ry, do some rese­arch on other employ­ers or self-employ­ment opti­ons. And if you don’t have Nego­tia­ti­on alter­na­ti­ve then you are also bet­ter pre­pared for the sala­ry nego­tia­ti­on and know that you bet­ter not let it fall through.
2nd step: Increase your BAT­NA. Most of them first try to squeeze out as much as they can ever­y­whe­re they go. “I’d real­ly like to work at Bos­ton Con­sul­ting Group. Let’s see what I can get out of it. If it does­n’t work out, I’ll look else­whe­re. If that does­n’t work out eit­her, I’ll move on to the next one and try my best.” Wrong! Befo­re you go to your favor­ed offer, whip up the alter­na­ti­ves. If you go into the nego­tia­ti­on with offers from Bain and McK­in­sey that are both over 100,000 euros, then you will also come in over 100,000 euros in the nego­tia­ti­on that is decisi­ve for you. As Rudi Car­rell once said: You can only have one Ace up the slee­ve pull if you put it in befo­re. But how do you cal­cu­la­te BAT­NA when it’s not just about pri­ce? From sala­ry nego­tia­ti­ons to bil­li­on-dol­lar take­over nego­tia­ti­ons, it’s often a com­plex tang­le of opti­ons. In the fol­lo­wing artic­le you will learn how to deve­lop the opti­mal BAT­NA and how to enter each nego­tia­ti­on with a strong mind. NAS­HER Semi­nar. Sign up here on!

© Dani­el Ernst


If you lik­ed this tip, share it with your fri­ends and acquain­tances on your favo­ri­te net­work.

Share this post!