Salary Negotiation — Easy Role Playing Exercise
Let’s set the scene for our role-play.
You are an inside sales representative for an insurance company, currently earning $95,000. Your goal is to negotiate a raise to $125,000. Your main concern is about countering with sufficient data during the negotiation.
Today, you are speaking with Steve, your direct manager. Steve is able to champion for your raise but he needs additional approval from HR and Finance.
Let’s begin.
You: Hello Steve, thank you for meeting with me today. I would like to discuss my current role and the value I bring to the team, as well as my compensation.
Steve (Manager): Absolutely, I’m glad you brought this up. As you know, I always appreciate feedback the team. Tell me more about what you’re thinking.
[Your turn to continue the negotiation, focusing on presenting your case with data. You will use specific contributions you’ve made, any targets you’ve exceeded, and your future plan to add value to the organization.]
You: As you are aware, I have continued to serve the organization delivering 10% sales growth in 2023. And my 5 year strategic plan is reflecting a 15% growth in sales. I have also conducted some in-depth market triangulation. Based on this, I need my base salary to be at $130,000.
Steve: Yes, I agree you have had a great year. It’s also great to see you owning our accomplishments, and looking ahead to the projected growth you’ve outlined. Your dedication is evident, and we certainly recognize your contributions. However, a jump from $95,000 to $130,000 is quite significant.
Can you help me understand how you arrived at this figure?
[Your turn to justify your request. This is where you can bring in the market research and data you’ve gathered. Explain how your requested salary aligns with the market rate for someone with your experience and achievements in your industry and region. Remember, the goal is to make a compelling case that your request is reasonable and justified.]
You: Here is one data point from Team Blind that shows the average for someone with my 15 years of experience in our region; it’s based on three data points. Additionally, here is a testimonial from a peer in the same industry, and data from the Indeed salary calculator. They all suggest a salary range of $130,000 to $150,000.
Steve: Thank you for providing this information. It’s helpful to see the data from Team Blind, the peer testimonial, and the Indeed salary calculator. It certainly gives us a clearer picture of the industry standards for someone with your level of experience. I appreciate the time you’ve taken to research and present this.
While we do need to consider our internal salary structures and budgets, your contributions to the company are highly valued. Let me discuss this with our finance and HR teams to see what we can do. We might not be able to meet the exact figure you’re asking for, but we’re certainly open to finding a fair solution.
Would you be open to discussing additional benefits or perks, in case we can’t reach the full $130,000? Things like additional vacation days, flexible working arrangements, or a performance-based bonus could be part of the package.
[Your turn to respond. This is an opportunity to show some flexibility while still aiming for your main goal. You can also use this moment to negotiate other terms that might be important to you, in addition to the base salary. But remember to stay confident in your initial ask.]
You: I am cognizant of our budget limitations, which is why I asked for $130,000 and not $150,000. I would also consider the inclusion of leadership coach training as an additional incentive (assumed value is $20,000).
Steve: That’s a very reasonable approach. I’m glad to see that you’re considering the company’s position as well. Investing in your professional development, especially with leadership coaching, aligns with our organization’s goals too. It’s a valuable addition that can benefit both you and the company in the long run.
Let me propose this to HR and Finance: A base salary of $120,000, which is a substantial increase from your current compensation, and include the leadership coaching program you’re interested in. This package reflects your valuable contributions and our commitment to your professional growth. Additionally, we can revisit the salary discussion in a year, and if your performance continues to align with the company’s growth, we can explore further adjustments to your compensation. Of course, this will need to be blessed by our appropriate channels.
[Your turn to respond. Here you can either accept the offer, negotiate further, or ask for time to consider the proposal. I always recommend asking for more time because it shows you as a calm professional who is willing to take her time to review the offer. But, remember to acknowledge the offer and express your appreciation for their willingness to negotiate and meet your needs.]
[Note that with this offer, your total value from the negotiation, including the leadership coaching, amounts to $140,000. This is above the original target base salary of $125,000. Being flexible allows you to extract more value from a negotiation.]
You: I appreciate the offer and your support of my career growth. I sincerely appreciate it. I would like to take 24 hours to review the proposal with my spouse. Will that be ok?
Steve: Absolutely, I completely understand that this is an important decision and discussing it with your spouse is a wise step. Take the time you need. Let’s reconvene tomorrow, and you can share your thoughts or any further questions you might have. I am looking forward to championing your salary increase with our leaders and finding a mutually beneficial arrangement.
[End of Role-Play]
After action review: I recommend to my clients that they reflect on the nuances and approaches in a negotiation. Here are some questions to consider:
- What were the original objectives or goals of this negotiation or activity? Did you accomplish them exactly? Did you exceed them, and how?
- What could have been done differently for a better outcome?
- Are there any areas or skills that require further development or practice?
- How can the lessons learned be applied to future negotiations or similar situations?
- How do you feel about your performance in this negotiation?
- Were there any personal strengths or weaknesses that became apparent?
Every negotiation offers insights into our style and skills. Doing an after action review allows us to refine our methods for the next conversation.
Dorothy Mashburn is an interview and salary negotiation coach on a mission to close the pay gap. Subscribe to her podcast, Salary Negotiations Made Simple, for action packed tips on doubling your paycheck. Know your worth and fight for it!
You are also welcome to download a FREE pay raise script here.
