Posted by Dave Lorenzo - Business Coach

Unfortunately, lying has become a part of business negotiation.  During the negotiation process, this is often referred to as a “bluff”.  

Here are some tips on how to tell when someone is lying to you.

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Posted by Dave Lorenzo - Business Coach

The key to getting more money is to negotiate a better deal when you take the job.  After you’re in place you’re likely only to receive small annual increases for the remainder of your time with the company.

One of the most common questions I am asked is: “Will my prospective employer be turned off if I negotiate with him?”

CareerBuilder.com’s survey of 875 hiring managers revealed that about 60% leave room in the first offer for salary negotiations, 30% say their first offer is final, and 10% say it depends on the candidate. Combine that with the additional result – four out of five corporate recruiters said they are willing to negotiate compensation (according to a study conducted by the Society for Human Resource Management) and you can feel secure that you have about a 60–70% chance of getting more money by asking. 

The chances are good that you will receive an affirmative response when you attempt to extract more money from the company in a salary negotiation.  Even if you don’t get any additional cash, there is relatively little chance the prospective employer will be offended.   At worst, you will have make a decision on the offer that is on the table.

You have little to lose. 

How do you go about this particularly thorny task?  Here are the steps we have previously discussed:

Thank the person for the offer. This is the time to appear humble.  You’ve spent a significant amount of time telling your counterpart how great you are and now they believe you.  Let them know that you are honored and flattered that they value you.

Ask for time to think about it. Even if they offer you the most money you ever thought you’d get try to let some time pass.  If nothing else, it shows your future employer that you are a rational decision maker.  If you join them, they will be investing in you.  An impulsive person is seldom given big responsibility.  Even if you just take an hour, take some time before responding.

Ask if that’s the best they can do.  It takes courage and tact but it works.  After you have taken the time you need to think things over, simply ask your counterpart if that is the best offer they can make.  On some occasions (and this has happened to me and a few people I know) they will counter-offer right away.  The key to doing this is to appear nonjudgmental and unemotional. Say something like: “Once again, I want to express how flattered I’m am with your consideration. Before I make my final decision I’d like to know if that is your best possible.”

Once you say that shut up.  Watch the reaction (if you are in person) or listen to their reaction (if on the phone) carefully.  If there is silence, DO NOT SPEAK.  Let the other party break the silence. If they ask why you are asking this question, simply say something like: “This is a major decision and I want to be certain I have all the information.  Is this your best possible offer?”

If they ask you what you are looking for and you feel compelled to answer directly give them something that is a stretch but not impossible. Ask for more than you expect to get but not so much that you look like a pig. If you want more money, say you want (insert salary here – 10% more). 

Now comes the gut-wrenching part.  Ask for more time again after they answer.  Even if they counter offer.  When you call back the next time you need to have a decision.

Accept or reject the offer with grace. This is the time for flattery. Complement the company. Complement the offer presenter.  If you reject the offer, give them a reason. If you accept, make sure you get the information in writing before you quit.

No matter what happens, keep in mind that you are worth it.  You deserve the extra money.

Thanks to FreeMoneyFinance for the stats.  Please revisit How to Receive a Job Offer for the entire post.

 

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Posted by Dave Lorenzo - Business Coach

In any negotiation, know your bottom line, and stick to it. Let’s say your bottom line for salary is $40,000 a year. Think long and hard about this number. What if you’re offered the perfect job for $38,000 a year? Define your absolute bottom line, and do not let yourself be talked below it. When you are offered the job and the time to discuss salary arrives, give yourself some elbow room. Ask for more than you want. This is a good idea for two reasons: first of all, you might just get it. Secondly, even if you don’t, you’ve got a built-it cushion to ensure you at least meet your bottom line.

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Posted by Dave Lorenzo - Business Coach

A client, Shawn, told me recently that he had been offered a job he really wanted. Better work, better pay, better location. The only problem was that the new company wanted him to start within three days. If he did that, he would not be able to give his old company the standard two weeks’ notice of his resignation. He asked me if I thought he should take the new job and skip out on the old employer early or insist upon two weeks’ notice and risk not getting the new job.

My advice was that he let his current supervisor know he was resigning and find out if they would be OK with letting him go before the two weeks had elapsed. I suggested that he emphasize that he valued the company and had benefited from his time there, and that he didn’t want to leave them high and dry, but that a speedier departure would be helpful to him, if they could manage without him. Chances were good that they would be willing to release him amicably, on a peaceful departing note, after a week or even just a few days.

Though your first loyalty should certainly be to yourself, two weeks’ notice is standard, and I would wonder about the business practices of a company that would not accommodate it. You never want to burn any bridges, especially with business associates with whom you have established strong and positive relationships. If a new hiring manager doesn’t understand that, how are his relationships with his own colleagues?

Shawn spoke with his manager, and they agreed that one final week of employment would work for everyone involved. The new employer was willing to be flexible on the start date, and Shawn began his new job a week later.

With business partners—and, in fact, with anyone you value—respect and honesty are non-negotiable. If you treat clients or co-workers poorly or lie to them, it will always come back to haunt you eventually. Stand by your commitments and be firm in your own values of excellence. They won’t let you down, and if you remain true to yourself, you can’t lose.

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Posted by Dave Lorenzo - Business Coach

There are four possible outcomes in any negotiation. They are:

 

Lose – Lose

 

This is a situation where neither party achieves their desired outcome. 

 

This frequently occurs during a labor strike.  In a strike (or any work slowdown or stoppage) the company loses revenue and profit, the workers lose pay and the customer loses the benefit of the company’s product or service.

 

Lose – Lose situations should be avoided at all costs. 

 

Win – Lose or Lose – Win

 

Simply put – this is when one party achieves something at the expense of the other party.

 

On the surface it would seem that creating a win-lose scenario is the desired result of a negotiation.  Nothing could be further from the truth.  Anytime you get the best of someone in a bargaining situation you increase the likelihood that they will refuse to do business with you in the future.

 

Win – Win

 

This is a scenario where both parties achieve their goals in the negotiation.

 

Just about any time you make a major purchase it is the result of a win-win scenario.  Even something as tough as buying a car can be the result of a win-win agreement.  You receive the car you want at a price you can afford and the car dealer sells the car at a comfortable profit margin.

 

No Deal

 

This is a scenario where one or both parties simply walk away from the deal. 

 

In many cases this is a matter of perception.  In the case of a sale of goods from one party to another, the opportunity to make that sale may never present itself again.  In that case the seller in this case may consider himself to have “lost”.  But the reality is that he will have an additional opportunity to sell the product at a higher price in the future.

 

No deal takes some of the adversarial relationship out of negotiation because it allows both parties to agree to construct a win-win deal or walk away.  If negotiation is viewed only from the lens of win-lose then this type of scenario is not possible.

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Posted by Dave Lorenzo - Business Coach

Unfortunately, lying has become a part of business negotiation.  During the negotiation process, this is often referred to as a “bluff”.  Below are some tips on how to tell when someone is lying to you.

Not Making eye contact. Generally, if someone is lying they will not look you in the eye, at least during a certain part of the conversation. Normally, people make eye contact for at least half of a conversation, so anything less than this could be suspicious. One important point: there are some people who will take great pains to make eye contact with you even if they’re lying, simply to make you think they’re not

A change in voice pattern. A change in the pitch of a person’s tone, or a lot of stammering (umm, ah), or throat clearing could indicate a lie.

Extreme body language. If a person taps their foot a lot, fidgets with their hands, raises their shoulders, turns away from you or brings their hand to their face (to touch their chin or nose, etc.) — in other words, if they act nervous or uncomfortable — it could mean they’re telling a lie. Also watch out for blushing (or becoming pale) and increased blinking.

Something sounds “a bit off”. Making statements that contradict each other, are inconsistent or don’t sound quite right are usually part of a lie.

Defensive behavior and a personal attack. Sometimes when a person is lying they will become extremely defensive, refusing to answer any questions and even accusing you of lying. Often the person will shift the focus from the topic at hand to a personal attack.  This may mean they have something to hide.

Changing the subject quickly. If someone is lying and you change the subject, chances are high that they’ll go right along with it. A person telling the truth, however, will likely ask why you changed the subject and want to go back to it.

Unnatural use of humor or sarcasm. A guilty person will often try to change the subject using humor or sarcasm. The key is that the humor is often misplaced and seems inappropriate.

Providing lots of detail.  A liar will often provide too much detail to make their story seem more believable. These details are difficult to remember so you may be able to detect an inconsistency in their story.

In the end, you need to trust your instinct when involved in a negotiation.  Getting to know the person across the table is the best way to tell if they are telling the truth.  Look for behavior that is out of the norm for them. If you have never met your counterpart, start the conversation by talking about some personal or everyday things.  Ask questions like:  Do you live around here?  How long have you been with XYZ company?  Did you hit traffic on the way here?  How do you like that brand of car?

Most people will not lie when they answer these personal and mundane questions.  Pay careful attention to their body language.  This gives you a sense of their body language when they are telling the truth.  Any subtitle differences from this body language during the negotiation can be a sign of trouble.

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Posted by Dave Lorenzo - Business Coach

Wikipedia describes two approaches to negotiating:

Advocate’s approach: In this type of negotiation, one party argues for the benefit of himself or the person he represents. This is sometimes called the “win/lose” approach because the focus of the negotiation is on one person’s gain.

Win/win approach: When the needs and wishes of both parties are met, a win/win negotiation is achieved. Emphasis is placed on the benefits and mutual gains to both sides.

For maximum career gains, I am a strong advocate of the win/win approach. While our needs and ambitions are naturally the root of all our negotiation, we can take ourselves much further by arguing for our needs with an “everybody wins” emphasis. A double positive situation, in which each party’s needs are met, is hard to refuse. The most successful negotiators make their counterparts believe that they are gaining a lot and giving up nothing, or very little. How can you use a win/win approach to get what you want in a way that contributes to lasting career success?

Be clear about what you want. Stating your needs clearly not only communicates confidence and determination, it also establishes a framework for the discussion. Establishing a clear target helps keep the negotiation simple and focused and increases your chances of getting what you want. The more clear you can be, the stronger you can make your argument.

Illuminate the benefits to your counterpart. Whatever you want—a salary increase, an extension, new projects, or time off—if the potential gains to your business partner or the company are clearly outlined, he’s going to be much more willing to grant your request. Rather than focusing on how the changes will be good for you, point out what extra value you will be able to contribute as a result.

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Posted by Dave Lorenzo - Business Coach

“Pay raises for most salaried workers will increase by 3.5 percent this year as employers keep budgets in check, the Conference Board reported on Thursday.”

When your next annual review comes up, keep this in mind. Negotiate for a strong salary increase by showing what value you add to the company—how you save money, bring in more money, and improve processes across the board. People who do not make this effort receive minimal increases, while those who do are rewarded for their hard work.

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Posted by Dave Lorenzo - Business Coach

Work911 gives guidelines for negotiating:

Focus on a solution, not on winning.

If you ‘win’ there must be a loser, and that can create more difficulty down the road. The best perspective in negotiation is to try to find a solution where both parties ‘win’. Try not to view negotiation as a contest that must be won.”

Solicit The Other’s Perspective

In a negotiating situation use questions to find out what the other person’s concerns and needs might be. You might try:

What do you need from me on this?
What are your concerns about what I am suggesting / asking?

When you hear the other person express their needs or concerns, use listening responses to make sure you heard correctly.

In negotiating terms, you want to accomplish your goals while making sure the other party feels respected and leaves the situation feeling positive about your relationship. Overpowering business partners and making them feel bullied into giving you want you want will never result in long-term gain. Similarly, buckling and letting yourself be conquered will leave you feeling unsatisfied and stuck. Try to come up with a solution in which everyone wins.

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Posted by Dave Lorenzo - Business Coach

Career Journal identifies four mistakes that women often make in negotiating. Though this is geared toward women, the concepts are relevant for all of us.

“Many women don’t recognize that opportunities to negotiate exist in almost every interaction. They look at situations in terms of decisions that have to be made, rather than opportunities to negotiate. Often this is because women fail to realize that they don’t have to simply accept or reject what’s being offered. Rather they have the option of asking for something different.

If you assume everything is negotiable, you’ll find that it’s true. Ordinarily, a situation doesn’t preclude you from negotiating. Instead, it dictates how you need to go about trying to get what you want. Successful women recognize that almost everything is negotiable, although you don’t want to negotiate everything. You decide what’s worth negotiating.”

A colleague of mine, Lisa, recently relocated to a smaller city. After a while of searching, she found a job she liked with a salary that was less than impressive. When the time came for her performance review, which was glowing, she attempted to negotiate a better salary—successfully. Her boss, the owner of a small company of approximately 15 employees, told her than no one had ever asked him for a raise. Who knows why they didn’t? Maybe they thought he couldn’t manage it, given the size of the company. In any case, pay clearly was negotiable, and when Lisa seized the opportunity to ask him to bend on that, it paid off.

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Posted by Dave Lorenzo - Business Coach

When you want something, make it happen. When someone stands in your way, or stands at the gate holding the key, negotiate with her. Almost everything is up for discussion. Not only is this often the only way to get what you want, it propels you forward. First of all, in negotiating, you develop socializing skills and self-confidence. Secondly, in being your own advocate, you communicate that you are skilled and valuable, which increases others’ confidence in you. Lastly, you earn respect. No one respects a doormat, but most of us are impressed by people who know what they want, ask for it, and make it happen.

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Posted by Dave Lorenzo - Business Coach

When is a job offer not a good deal? There are three times when it may be best to walk away from a job:

When it compromises your integrity.  If you have to do something that will make you feel dishonest, unethical or immoral, you should walk away.  In the end a person’s character is demonstrated by what he does when nobody is looking.  If you don’t feel good about it, you shouldn’t do it.

When you sacrifice the long-term potential for a short-term gain.  If you need to mortgage your future for the instant gratification of quick cash, you should walk away.  Career strategy is about playing the “long game”  – that is taking positions that build upon one another and allow you to build up career equity.  A short-term solution that damages long-term potential success is bad business.

When you question the intentions of the business or your superiors. If you think the firm you are joining or your future supervisor is “up to no good” you should walk away. In addition, if you think you will be entering into a situation where you will do all the work and get little or no credit, you should think about passing on the opportunity.

Walking away from a new opportunity is tough.  The phrase “the grass is always greener on the other side of the fence” is definitely true.  New opportunities always appear attractive.

Do your homework.  Trust your instincts. Set some guidelines and stick to them. 

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Posted by Dave Lorenzo - Business Coach

Last week I encouraged interviewees to ask their future employers the question, “Is that the best you can do”?  This is a tactic to feel out the company making a job offer to see if there is potential to increase the compensation package. 

Careerbuilder surveyed 875 hiring managers and found that 60% of them leave some “slack” in their offers to candidates.  So six times out of ten you would get a favorable response to my favorite question.  What is even more interesting is that one in ten of these managers thought less of a candidate if he didn’t ask for more money.

When you ask, you should bring some evidence for your request.  In that same study, 34% of the respondents said that they wanted some type of evidence to justify giving the increase.  The managers said they wanted specific examples from past employment to justify upping the ante. 

Thanks to Free Money Finance for pointing us to this information.

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Posted by Dave Lorenzo - Business Coach

Are you being underpaid?

Use this salary wizard to find statistics on pay in your field. Compare these figures to your income. If you are earning less than you should be, take a printout of this information to your next performance review and negotiate a better salary.

Many people are daunted by the prospect of asking for better pay, but remember—the worst thing they can say is no. You have nothing to lose and everything to gain.

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Posted by Dave Lorenzo - Business Coach

When someone offers you a job you need to stop telling them why you deserve it and start thinking about how to make the situation work to your advantage. When an offer is presented, for the first time in the interview process, the candidate has the power. Here is an effective protocol for receiving a job offer:

Thank the person for the offer. This is the time to appear humble.  You’ve spent a significant amount of time telling your counterpart how great you are and now they believe you.  Let them know that you are honored and flattered that they value you.

Ask for time to think about it. Even if they offer you the most money you ever thought you’d get try to let some time pass.  If nothing else, it shows your future employer that you are a rational decision maker.  If you join them, they will be investing in you.  An impulsive person is seldom given big responsibility.  Even if you just take an hour, take some time before responding.

Ask if that’s the best they can do.  It takes courage and tact but it works.  After you have taken the time you need to think things over, simply ask your counterpart if that is the best offer they can make.  On some occasions (and this has happened to me and a few people I know) they will counter-offer right away.  The key to doing this is to appear nonjudgmental and unemotional. Say something like: “Once again, I want to express how flattered I’m am with your consideration. Before I make my final decision I’d like to know if that is your best possible.”

Once you say that shut up.  Watch the reaction (if you are in person) or listen to their reaction (if on the phone) carefully.  If there is silence, DO NOT SPEAK.  Let the other party break the silence. If they ask why you are asking this question, simply say something like: “This is a major decision and I want to be certain I have all the information.  Is this your best possible offer?”

If they ask you what you are looking for and you feel compelled to answer directly give them something that is a stretch but not impossible. Ask for more than you expect to get but not so much that you look like a pig. If you want more money, say you want (insert salary here – 10% more). 

Now comes the gut-wrenching part.  Ask for more time again after they answer.  Even if they counter offer.  When you call back the next time you need to have a decision.

Accept or reject the offer with grace. This is the time for flattery. Complement the company. Complement the offer presenter.  If you reject the offer, give them a reason. If you accept, make sure you get the information in writing before you quit.

Every situation is different so you must use your best judgment when you receive a job offer.  Keep in mind that few companies, if any, offer the maximum amount of pay and benefits right of the bat.  There is almost always more you can get (either in an additional benefit or more pay) if you ask.   

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Posted by Dave Lorenzo - Business Coach

This Economist article, which focuses on the wage gap between women and men, makes an excellent point about negotiating:

“Sometimes women are their own worst enemies. Ms. Babcock noticed that male graduates with a master’s degree…were paid starting salaries almost $4,000 above those of female students. On closer investigation, she found that the vast majority of the women had accepted the initial pay offer, but that 57% of the men (against only 7% of the women) had asked for more. Those who haggled raised their starting offer by an average of $4,053—almost exactly the difference in men’s and women’s initial pay.”

Price yourself too low and you devalue yourself. Refuse to settle for less than you’re worth and you send the loud and clear message that you are a valuable commodity.

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Posted by Dave Lorenzo - Business Coach

But you should almost always take the job that pays the most money. Here are three reasons why:

1.) If you have a choice between two jobs (or among multiple jobs) and you don’t take the job that pays the most you will always regret it. You will always wonder what you could have bought with the extra money. You will wonder how bad the job could have been. You will wonder if you have let your spouse or significant other down.

2.) The highest paying jobs always get the most attention. This is true in any company. The people the boss invests in better deliver and that’s why the spotlight is always on them. The good thing is that when you are in a high profile position and you succeed you are perceived as providing great value.

3.) If you’re unhappy you can always find a job that will pay less and have more (insert your favorite word here- quality of life, health care benefits, vacation time, office furniture, etc.).

Some people may not agree with this philosophy. This advice comes from my own personal experience. In the future I will be happy to be the guy who follows the elephant with the shovel if they pay me enough money.

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