Address All Relevant Terms During a Negotiation

In negotiations, your biggest enemy is a fixed pie mentality.

Consider a job negotiation. The employer offers $110,000. But you want $130,000. With a fixed pie, at least one party needs to concede. Typically, both parties concede to the middle — in this case $120,000.

But this final agreement is worse for both parties. With the right approach, your deals can be favorable to both parties.

How? Avoid fixating on a single metric (e.g., salary).

Instead, you need to address all terms. For job negotiations, address the terms beyond salary:

• Benefits
• Vacation days
• Commissions
• Working from home
• Scheduled raises
• Other perks

By listing all terms, your negotiation becomes more flexible. You might accept the $110,000 salary if you can work from home for two days each week.

How to Apply

• Diagnose Unspoken Reasons. Your boss tells you that a raise isn’t doable. No reason. No explanation. Just...no. Always diagnose the reason: What’s the issue? Budget? Timing? Performance? Once you get these answers, find a solution. When will the budget open up? When will the timing be better? What will it take to earn that raise?
• Address Terms Simultaneously. Never address terms sequentially. Don’t resolve salary, then commissions, then vacation days. Lump everything to maintain your bargaining power. You can concede in less important areas to receive value in more important areas.
• Rank Order Terms By Importance. You might value commissions, while your employer can be flexible with commissions. Find areas of flexibility.