Salary and life situation
In a career workshop, we discuss two principles for salary negotiations. First of all, we need an anchor point. In salary negotiations, this is the market value, i.e., the usual salary for the position you aim for.
Unemployment with money is more pleasant than unemployment without money
With the first principle, you set your salary expectations at the upper end of this market value so that you have some buffer for the negotiation. The second principle is called BATNA, short for Best Alternative To a Negotiated Agreement. Think about it: What could happen if the negotiation does not lead to a satisfactory result? BATNA is the best result of all possible scenarios, i.e., your fallback option.
I want to know from the participants whether their personal financial situation influences their salary expectations: “Imagine that you or your partner were wealthy. Does that change your salary expectations?”
“If I am already rich, I don’t really need the money and don’t have to ask for much,” Ina answers. “Or the other way around,” Miroslav interjects. “You don’t want to lag behind your partner so much, do you?”
Your financial situation can influence your salary expectations – but it shouldn’t. You give a poor work sample if you ask for less than market value. If you don’t stand up for yourself, how can you negotiate on behalf of the employer in the future and adequately represent their interests? On the other hand, if you ask for more than market value, that makes you unattractive.
“Does your personal situation influence your BATNA?” I ask my second question. The participants quickly realise what I’m getting at. “Unemployment with money is more pleasant than unemployment without money,” Miranda states the obvious. And she’s right: If you’re doing well financially, you’re in the comfortable position of being able to turn down a mediocre offer.
Second earners in particular often sell themselves short. And because many people find salary negotiations unpleasant, they try to end them quickly with defensive tactics.
Stating salary expectations is a pretty mechanical affair. Think of it as a work sample: Show the employer that you can research your market value and appear confident.
This article was first published in Nachrichten aus der Chemie (issue 02-2025). See here the German original.
If you´re interested in the Negotiation Principles, which you can use in salary negotiations and to resolve conflicts, you might be interested in our workshop Negotiation.