Negotiating for a Pay Rise, the Three Stages of Negotiation

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We all want our bosses to pay us better. That is certain. However, if you do not communicate your intentions for better pay, your boss may not get the message.

You will have to take matters into your own hands and negotiate for the pay rise that you deserve.

But how do you do this? You will first have to understand some aspects in the negotiation process. Recall in a previous post, i gave an introduction to negotiation.

What is negotiation anyway? How is negotiation defined?

Well, negotiation is defined as a process between two or more parties in which they consider alternatives to arrive at a mutually agreeable solution(s) or reach mutually satisfactory objectives.

We need to treat negotiation as an agreeable process. Without it, you cannot do or achieve what you want.

View negotiation as a process. Without the other party, you cannot achieve what you want.

Treat negotiation as an opportunity to work together to achieve a mutual goal that would have been impossible for either one person to achieve alone.

Now, let us look at the three stages of negotiation. They are,

Preparation, Interaction and Agreement.

1st Stage - Preparation

In preparation, the situation is established such that both parties understand the entire situation.

2nd Stage - Interaction

In the interaction phase of negotiation, both parties establish rapport, verify assumptions and information about the situation and work towards establishing a mutually beneficially situation.

Rapport is important as it is important to establishing a positive relationship between both parties.

3rd Stage - Agreement

In this final stage, the parties come to an agreement.

Sound simple, it is. Let us see how this is applied to a negotiation for a pay rise.

Negotiating for a Pay Rise

In stage one, you will have to know your objective. Know how much to ask and how much to settle for before hand. Find out if you are able to throw in any sweeteners that you can throw in on your part such as offering to take up additional tasks or responsibilities.

Finally, do find out the hiring limitations that are imposed on your boss. For example, your boss may not be authorized to give pay increases, but may be authorized to dispense other benefits such as additional paid leave.

In the interaction phase of stage two, know beforehand what to say before you step in to the office. Perhaps you could schedule a meeting to discuss the review to ensure that your boss has the free time and will be mentally prepared to discuss the situation in an objective manner.

Have material ready to verify any assumptions that your boss might make. Have quantifiable evidence to justify your achievements over this period.

The final agreement phase, you will discover whether your boss is ready to meet your requests.

Strive to agree. If your boss denies your request, do find out what is the limiting factor and agree to review the situation in a few months time.

I do hope that the next time you negotiate for a pay rise, it will go well for you!!! Do bookmark this article if you found it useful.

If you are interested in this post, do consider checking out the related posts in the negotiation mini series.
- An Introduction to Negotiation
- Negotiation Tactics - Part 1
- Negotiation Tactics - Part 2

Presentation Tips

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Just imagine. You're presenting the results of your technical analysis to a group of managers. What do you do?

Please select the appropriate choice.

Do you...

a) Give a detailed, drawn-out elaboration about your recommendation, how you arrived at it, leaving out no details, including every technical tidbit hoping to impress everybody with your meticulous attitude.

b) Give a simple and to the point presentation of the results together with a basic outline. Hoping that your simple and clear presentation brings the message across.

The answer? ......


It depends on the audience!!!


Every presentation should always be centered on the audience. Do profile your audience before you prepare your presentation.

If your audience is a group of technical managers who are really into technical details, by all means, go wild with choice A.

On the other hand, if your audience is a mixed group of managers from many external departments with limited technical knowledge about the subject, avoid boring them with lengthy details.

Provide them with just enough background information to give understanding. Focus on their objectives for attending this presentation. The recommended approach here would be choice B.

Its that simple...

If you enjoyed this post, do bookmark it or subscribe to the feed. Many thanks.

Introduction to Negotiation

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Negotiation skills are essential in everyday life.

Nope, i’m not talking about the struggle with the used car salesman. I’m talking about our daily everyday lives. We negotiate everyday without even knowing about it.

Take for instance you are with a friend and you feel like having pizza for lunch while your friend on the other hand, wants Mexican food. It is up to you to negotiate a win-win situation.

So, this being an introduction to the different aspects of negotiation, i will now compare and contrast the various aspects of negotiations.

Firstly, lets look at bargaining.

This is the most obvious form of negotiation know to us, such as the used car salesman example mentioned earlier.

It occurs when a buyer interacts with a seller, and the objective for each party is to maximise each individual’s maximum gains.

However, this case presents a zero sum game to the buyer as well as the seller. A party’s gain is the other party’s loss.

If the salesman manages to convince the buyer to buy at a high price, the salesman wins but the buyer loses. It is a zero-sum game.

The second type of negotiation is the auction.

In this case, the buyers bid against each other, with no interaction between seller and buyer. It is a form of reverse bargaining where the buyers are trying to out-do one another to get the highest price.

Finally, the last form is negotiation.

Negotiation is a form of corporation, and not a confrontation. The unique thing about negotiation is that additional values can be created to provide a win-win senerio, and this distinguishes it from bargaining.

Let me illustrate this point with an example. In bargaining, when the car salesman and buyer haggle over the price, one party has to lose for the other party to win.

However, in negotiation, each individual can create additional pockets of value to sweeten the pot. The car salesman could throw in some freebies such as rust protector coating while the buyer could offer to pay upfront in cash. These allows a win-win situation to be created more easily.

Negotiation is a process between two or more parties in which they consider alternatives to arrive at mutually agreeable solutions. Do consider alternatives when trying to influence people to get your way. Be a better communicator, today!

If you are interested in this post, do consider checking out the related posts in the negotiation mini series.
- An Introduction to Negotiation
- The Three Stages of Negotiation
- Negotiation Tactics - Part 1
- Negotiation Tactics - Part 2