Will Humphreys, a serial entrepreneur, breaks down the three most common mistakes people make when negotiating salary. He draws on years of job interview experience to show you what costs you money and how to avoid it.
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Are you in a position where it's time to negotiate your starting salary or a raise? You understand the importance of this moment because what you do now will impact the money and income you make over the duration of your time in this job. You want to make sure that you don't offend the employer by asking for too much, but yet you don't want to be taken advantage of and get low balled. In this video, I'm going to share with you lessons that I've learned as an employer to help you avoid the three most common pitfalls in negotiating. Coming right up.
Hey guys, my name is Will Humphries. Welcome back to my channel. I'm a serial entrepreneur. I've done literally thousands of job interviews and negotiations. And so let's just get right into it. The first mistake that people make is that they don't understand the full monetarial value of their offering. What that means is people are distracted by the salary or dollar per hour amount and they're not measuring the financial impact of all the other benefits that a simple offer has. I used to have employees get attracted to offers that my competitors would give them that were just a small bump in pay, but didn't have any of the other components that my company could provide them with. So whenever you're starting a negotiation, the first step is to list out the salary amount that you think they're offering or dollar per hour amount. And then you want to list everything else below that that has a monetarial impact. 401k the stock, especially if there's matching health care benefits, paid time off, sick leave. Add all of those numbers up and that number at the bottom will be useful for you to compare apples to apples. Before we get into mistake number two, guys, please consider hitting that subscribe button below. That makes it possible for me to make videos like these for you to increase your income impact, ultimately your freedom. So the second mistake people make is they don't do the right kind of research. People research what a position oftentimes gets compensated at, but they forget to monetize what it is relative to their area. So for example, a physical therapist in the United States could Google what an average physical therapist makes and they'll find out the average PT makes about $80,000 a year. However, if you're a new grad in the state of Arizona, that number is actually closer to 67 to 72,000 a year. So doing the right kind of research by talking to people in your industry who are about the same level as you will help give you the power when you go into negotiating so that you don't get cut below what you're worth, but then you're not going in there asking for numbers that make them dismiss you right out of the gate. All negotiating conversations need to begin with a mutual understanding of what compensation is for that position. And that leads me to mistake number three, which is that you never bring up money first. Chris Voss was a negotiator against terrorists for the United States government, and he wrote a book called Never Split the Difference. And in it, he talks about the power of never bringing up money first. This happens for a couple of reasons, but essentially when the other person or party brings up money in a negotiation, that puts you in a position to bounce and work off of that number in a way that aligns for you more powerfully. So whenever I was in an interview with a physical therapist and they would tell me or ask me, hey, so how much do you want to pay for this position? I was immediately put off because I felt like they were getting the cart before the horse. Once I knew the value was aligned, I would bring up money only from a place of knowing that I could serve them and the company. So when you're negotiating, let the other person bring up money. Don't make the mistake of putting them off by getting too close to that part of an offer before it's time, guys. What else did I miss? Are there other parts of the negotiating process that absolutely kill the deal? Please put them in the comments below. If I agree with what you put in the comments, I'll put claim accepted. If I see that it doesn't work, I'm going to say, claim denied and tell you why. Either way, I'll read every single comment. Thank you for your time. Until next time.
