The Art of Negotiation
Hi Nickels! It has been a while, I know. A lot has happened since we last caught up. This week in particular has been quite eventful. My employer sold their entire retirement division and as a result I was terminated but offered employment with a new company.
I have been trying to make my mark in the financial industry for over a decade and there have been many impediments such as graduating during a recession, lack of sponsorship and diversity in corporations, and my failed attempts to get into a graduate program of my choice. It has been a wild ride but for some reason I have continued to stay on this path to nowhere despite its many challenges. In 2019, I finally landed a role with my dream employer who has an astounding reputation in the financial industry. I felt hopeful about my future in Finance for the first time since graduating college. However, that all changed after a 30 minute conference call on Tuesday. That’s right, in 30 minutes a decade worth of struggle, triumph, pivots, and plans were all derailed once again. I am still somewhat hopeful as I have decided to pursue my CFP designation in 2020 and recently finished my coursework. I am now eligible to sit for the board exam and accumulate work experience. The road to my designation is long but I believe will be worth it. In the near future I will finally have more control over my career path. Needless to say, the events this week have inspired today’s topic, the art of negotiation. Below are some tips I have learned along the way that may help you or someone you know.
Nic #1: Do not overvalue benefits and bonuses when negotiating the terms of your salary.
I recall my older and wiser cousin encouraging me to error on the side of caution when considering the other benefit offerings during a salary negotiation. Bonuses are not guaranteed income and benefits such health insurance, profit sharing contributions, or match formulas are subject to change. I am so glad I listened to my cousin because when the Merger & Acquisition happened this week my benefits were drastically changed and the future of my bonus is uncertain. It gave me some peace of mind knowing I did not settle on substituting my salary with bonuses and benefits.
Nic #2: You can negotiate more than your salary
It is not all about the money! I know, that sounds crazy lol. Well, it is mostly about the money because you have to be able to support yourself and your family. However, do not be shallow during negotiation time. Think about other opportunities you would like. For me, when I left my prior employer I knew I would be forfeiting much needed vacation time so during negotiations with my new employer I asked for vacation time. I only asked for a few days but I was so happy I made the request. It was not long after I was hired that we endured a global pandemic and were placed on travel restrictions. Before then I was able to utilize the time I had requested during negotiation to take 2 much needed vacations.
Nic #3: You do not have to wait to receive a new employment opportunity to negotiate
I like to keep an annual log of my accomplishments and values adds to a position. I learned this technique from a mentor with my prior employer. Also, I like to be mindful of my value season which is a time of year where my value at a company is exponentially higher than any other time during the year. In my industry, this season is the first quarter. Knowing these two things I am able to narrow down a time of the year I may have the most success with negotiating a change in my position, schedule, or salary.
Nic #4: Do not be afraid to ask and do not be afraid to walk away.
The art of negotiation was not taught in college. I did not realize it was a skill I needed to know until I was well into my career. Once I caught wind of this wondrous art form I worked to hone the skill. My first attempt at negotiating was unsuccessful. I highlighted my positive attributes, endorsed my skills, and explained how I would bring value to my new role to no avail. I requested a de-minis raise and to put it into perspective, I only requested an extra, $1500 a year. That’s right, I only wanted an extra $57 a paycheck. My request was denied. In fact, the recruiter made a point to share with me that the department’s head approved my request but that the organization was denying my raise. Furthermore, I was encouraged to work overtime if I wanted to make more money. In hindsight I should have used my common sense and walked away from the position. At the time I was young and naive. I quickly learned the power of negotiation depends on one’s ability to walk away from an unfair deal.
Not too long after I reluctantly accepted the role, a white male colleague from my previous department asked me about the process as he was anxious to change roles too. I shared my experience and warned about the negotiation process. A few months later my white male colleague was hired by another department. He shared his experience with me and bragged about successfully negotiating a new salary. I now ask myself ‘what would a white man do?’ lol. Never again will I walk away from a negotiation table empty handed.
Nic #5: Do your research
I think this is where it is important to know your value and to stay up to date with your industry’s trends. I like to stay in communication with recruiters to have a pulse on the job market. My motto is always be prepared. I always have an idea of what my salary should be and what others companies would pay someone with my skillset. This allows me to prudently negotiate my salary when the time comes without insulting the recruiter or undercutting myself. Use tools like Glassdoors to monitor your salary range and LinkedIn to build rapport with recruiters in your field or fields you are interested in. This will keep you on your toes as opportunities open up.