The Best Way to Handle the Dreaded Salary Negotiations

Salary negotiations, whether at the beginning of your new job or during a possible promotion, may be a harrowing time for any employee. Unfortunately, there may not be a tried-and-true method for approaching your boss about what you are truly worth in terms of a dollar amount.

Traditional pieces of advice for salary negotiations include not giving your number first, always telling your number first, and never giving a salary range. A new study by Columbia University promulgates that a higher range of dollar figures leads to better overall results for the employee. This method works because the starting point reduces time spent haggling, and polite offers lead to conversation points and social interaction.

More than half of all people involved in salary negotiations used a range of figures as a starting point. However, there is no solid way to determine what the range should be. Employees can research case studies from Glassdoor, take into account the local economy and look at the cost of living to form a starting point. Know exactly what you are worth, examine what unique skills you bring to the table and explain your value to your company.

Researchers at Columbia University found a so-called "bolstering range" can be an effective tool to start salary negotiations. Start with a relatively high number at the bottom range of the salary and then set a higher dollar figure as the top of the range. The bottom number should be the ideal one you want for a single-number offer.

The initial salary range becomes a talking point for a counter-offer. Your company does not want to insult you by naming a figure far below your lower number. Human resources managers may assume that you would not accept anything lower. However, the firm may start slightly below your range simply as a matter of politeness. At this point, you acknowledge that the company may have a tight budget or you do not want to cut into someone's bottom line.

In essence, the Columbia University study showed salary negotiations provide a way for both sides to get to know each other better over a short period of time. Setting higher ranges from the start led to higher counteroffers and better settlements for individuals. Five scenarios played out during the research, including negotiating a price for a used car. On average, the person giving the initial range received counter-offers as much as $200 higher than expected.

Salary negotiations do not have to be difficult. Both sides should see the process as a get-to-know-you session rather than a hair-pulling experience. The employee and the company can also use this time as a way to create honest appraisals of someone's worth to a firm.

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