Master The Art Of Salary Negotiation: 4 Tips To Secure Your Financial Future

Black people are more likely to receive lower salaries in hiring negotiations when racially biased evaluators believe they have negotiated too much, a recent study found.

Whether you’re establishing your career, feeling stagnant, or advancing onto bigger and better skills, there is often an opportunity to seize or tank salary negotiation. Yet, for Black job candidates and workers, research supports that there are numerous factors stacked against us for negotiating what we’re worth.

Black people are more likely to receive lower salaries in hiring negotiations when racially biased evaluators believe they have negotiated too much, a recent study found. The risk of bargaining while Black coupled with the staggering pay gap between Black men and women sheds light on the differences in how salary negotiations unfold.

What common fears do candidates have about salary negotiation?

Fears of rejection.
Fears of being stereotyped based on gendered racial identity.
Fears about not having enough experience.
Fears surrounding economic uncertainty.

If you’re gearing up for the next line of interviews, there’s no need to fret. A prepared mind is just as essential as planning. Here are four salary negotiation tips that can help you prepare for the upcoming interview or performance review and leave with confidence.

1. LEARN THE PSYCHOLOGY OF NEGOTIATION

Salary negotiations are never predictable. So, it’s imperative to understand the basics of negotiation 101. From setting expectations and anchoring high to maintaining appropriate body language, the mental psychology of negotiation can be complex.

“The goal is to learn how to get to a place where you are happy with the negotiation outcome, and your partner is also happy with the outcome and wants to negotiate with you further in the future. This is an invaluable skill in the dynamic business environment, in which reputation builds very quickly and is very important to maintain,” according to Rellie Derfler-Rozin, associate professor of management and organization at University of Maryland’s Robert H. Smith School of Business.

2. BE CONFIDENT IN YOUR OWN FINANCIAL HOUSE

There is power in walking away from a negotiation when your financial house is a priority. Many people are operating out of fear because the economy is seemingly vulnerable. However, according to Forbes, a path towards being debt-free gives you the confidence to seize better opportunities. Don’t settle for less when you can make a change now. Open a high-yield savings account with at least three months of expenses, be responsible for consistent budgeting, pay down high-interest credit cards or debt, and file your taxes on time and as close to owning zero dollars to the IRS.

3. RESEARCH ECONOMIC TRENDS

Over the past several months, the growth of advertised wages for new hires is slowing, according to a report from job-posting service ZipRecruiter. Companies are now posting lower pay ranges. Recent PYMNTS Intelligence shows that 72% of employed consumers say their wages have barely kept pace with inflation or have simply not kept up. But don’t let the face of uncertainty hinder you from asking for what you deserve in the position you’re applying for. Research today’s economic trends to give you a clearer approach to negotiation.

4. UPDATE YOUR BRAG BOOK

“Make sure you have your brag book so you can organize all your accomplishments as you prepare for interviews and annual reviews,” Niani Tolbert, founder and CEO of HIREBLACK said during a panel at the BLACK ENTERPRISE Women of Power Tech. If you’ve exceeded your past employer’s expectations or achieved a major project goal, do not hesitate to have fun jotting these down in a form you can refer to during interviews or performance reviews.

To reduce the insidious impact of racial and gender negotiation biases and fear-based salary negotiation, researchers call on broader organizational and societal changes. Preparedness is an advantage for those looking to bring prowess to a salary negotiation.