27
negotiating
compensation
EACH COLOR Q personality has its own strengths and weaknesses when it comes to money. But notice that the name of this chapter isn’t “negotiating salary.” Compensation for work takes two forms—monetary and nonmonetary. Each Color Q personality needs to feel adequately compensated, but the kinds and levels of each type of compensation differ by personality.
Monetary rewards include salary, bonuses, and perks, including vacation, sick time, education, health insurance, pension contributions, club memberships, and the like. Nonmonetary rewards include appreciation, mentoring, creative freedom, prestige, power, or control. With the exception of appreciation, you must negotiate to obtain most nonmonetary rewards, so negotiating skills blend with what you value to form your “compensation style.”
The personalities most comfortable with compensation negotiations are the Blues, Reds, and Gold/Blues. You leave nothing on the table and often walk out with the table, too! The Gold/Greens are in the middle. The least comfortable are the Greens. Arguing about money destroys the harmony you value. You’d almost rather quit a job than negotiate compensation beyond what is offered.
Here are two case studies of two workers in the same office:
Jake (a Blue/Red) strides into his boss’s office for his annual work evaluation. He has three things to work harder on and several areas that show improvement. “That’s cause for a celebration!” Jake says brightly to his boss. “How about a 15 percent raise to reward those improvements and incentivize me through next year’s challenges?” The boss has been green-lighted to give 7 percent raises across the board to all staff members; higher raises are to be given only in special cases to retain top talent. “Jake, I don’t think we’re in the ballpark for 15 percent,” he says. “I had a 5 percent raise in mind.”
“You and I both know that’s the mandatory lowball offer,” says Jake, warming to the challenge. “Give me your real numbers.”
“Well, I might discuss 6 percent, but I’d want to hear more about how you’re going to tackle these three areas where improvement is needed first,” says the boss.
Jake now has an idea where the real numbers lie. “You can see I’ve made all last year’s improvements. Plus you’ve said that you depend on me because I can solve problems quickly. Remember in February how I saved the Royster account? For that alone I deserve 10 percent.”
The boss pauses; the Royster account has contributed 5 percent to the bottom line of the firm this year. That would make his 10 percent an easy sell. “You’re right, Jake. I think I can coax 8 percent out of the budget for you.”
Jake frowns. “That only brings me up to $73,000. My college buddy over at LMN Company gets $80,000 for the same position, and he’s told me he’s being promoted this year and they’ll need someone. He says they’d start me at $75,000. I don’t want to leave here, but I have to do what’s best for me and my family. What can you do for me? Maybe pay my out-of-pocket health insurance premiums?”
His boss answers, “I can’t set that kind of precedent with the health insurance. But I think we can do $75,000.”
“Great, boss!” Jake says. “Gonna start those improvements today. By the way, the Royster people have invited me to their brainstorming retreat in March. It’s in Maui. Will the company pay for my wife to attend? She’s friends with Royster’s sister.”
“Of course, Jake.”
Tony’s evaluation is next. A Green/Red, Tony has a glowing report, with improvement in all areas and outstanding performance in one. He only needs to work on giving clearer critical feedback, a small item. Tony deflates. He had planned to ask the boss for a 3 percent raise; now his hopes of deserving it are dashed.
The boss starts with his opening gambit. “We’d like to give you a 5 percent raise this year.”
Tony is elated. His hard work has been appreciated, after all, he thinks. After his boss’s comment about his feedback abilities, he wasn’t sure he was going to get anything. “Five percent! That’s great, boss! Thank you so much! My family will be thrilled!” Tony sits back, hoping this will be the year they offer him a company car, which he really needs for his fieldwork.
“You’re welcome, Tony. Keep up the good work.” The boss stands and extends his hand, feeling good that the money he saved on Tony will help cover Jake. In the coming year, Tony hears snippets about the 7 percent raises others got, but thinks his lower raise is due to his inability to give good critical feedback.
It isn’t. Tony’s lower raise is due to his unhoned negotiating skills. Tony could have gotten at least 7 percent (or even more, because of his outstanding performance) and a company car with no problem . . . if he had just asked. But arguing about his worth makes him so uncomfortable that he relies on passive recognition instead. Tony needs to role-play to recognize what his outstanding performance is worth.
If you compare the Blue/Red with the Green/Red, you’ll see extremes—one goes for the whole enchilada, while the other just gets a little lettuce. Most Color Q personalities are in between.
The Green Compensation Style
Money motivates Greens less than other colors. It’s a means to support their personal development, aesthetic surroundings, and those they love. Greens are more motivated by nonmonetary compensations—creative freedom, personal improvements, appreciation, connection with coworkers, and belief in the company’s mission. Money produces tensions; Greens have a deep need for harmony. “My coworkers are like family,” says Theresa W. “The pay isn’t great here, but I would really grieve if I had to leave.”
Your preferred nonmonetary compensation is harmonious work relationships, creative expression, and ability to improve the world. Negotiate for education courses and additional time off for personal development.
Green/Gold Negotiating Tips. You usually don’t push hard enough for your raises. Recognize that the company isn’t withholding compensation as a reflection on you; the company is driven by the bottom line. This is one time to value money above a relationship.
Green/Red Negotiating Tips. Yes, we picked on you already (in the case study), but for your own good. Negotiate! You’ll be surprised by how much more you can get. If you can’t bring yourself to ask for money, request more vacation time, more skills improvement courses, or a senior-level mentor. Role-play with a Blue or Red, if possible. Focus on the value of your contributions and how to improve your negatives. Everyone else does.
The Red Compensation Style
Reds don’t worry about money—it comes, it goes; you’ll make more tomorrow. It’s the experiences it buys today that matter! “What good is money,” says Red Terence P., “if you can’t spend it on the better things in life, especially the fun?” Your savings account, if it exists at all, is frequently tapped to fund the next big thrill. Lucrative investments keep you afloat, because your keen observations lead you to be first in line. This helps the savings account situation, as does your easy ability with salary negotiations.
Your preferred nonmonetary compensation is collegiality, physical freedom, project independence, and excitement. Negotiate for project control, flexible hours, and travel.
Red/Blue Negotiating Tips. Do what you’re doing and be generous with your time to mentor other Color Q personality types, especially Greens. You’re one of the best.
Red/Green Negotiating Tips. You’re a good negotiator, perhaps more relaxed than Red/Blues, and you’ll leave them smiling as you walk out the door with every last possible dollar and perk. You, too, should mentor other colors.
The Blue Compensation Style
For you, money is validation of competence and accomplishments. You recognize money as a flow rather than a stagnant resource. Your superior strategic skills make you a more capable investor of your earned assets, but you can go wrong by being overconfident. Money mirrors emotion, and investments often act irrationally. Fortunately, your expertise and high achievements ultimately attract equally high compensation, as do your negotiating strategies. “To leave money on the table is simple incompetence,” says Martin O. “It’s unconscionable, especially if you want to send your kids to college.”
Your preferred nonmonetary compensation is underwritten education, prestige, and administrative support. Negotiate for an assistant, education, and time to write professional articles or make speeches at industry-recognized events.
Blue/Gold Negotiating Tips. You’ve researched your worth down to the penny before negotiating. You understand strategic give-and-take and never accept an initial offer. No money or benefit ever goes unclaimed; if it’s available, you’ll get it. Be careful not to let your confidence sound arrogant, or to ignore the human side. If the boss is tired or preoccupied, pressing the case could work against you.
Blue/Red Negotiating Tips. You know what you’re worth, what’s available, and how to get it. You are talented at compensation negotiations, combining strategy, innovation, and initiative. You are very likely to get more than the boss planned to give you, often including perks no one has thought of before. If the boss balks, use your substantial wit to blunt the tension of negotiation impasses.
The Gold Compensation Style
Your group was named the Golds for its ability to handle money. For you, money is security. Meticulous records are kept. Budgets are detailed. Statements are reconciled . . . promptly. Cash flow is accurately controlled, perhaps daily. Impulse purchases are forbidden; your “rainy day” fund always covers emergencies while preventing debt. Golds often achieve early retirement.
“About two months before job evaluations are due, I inventory all my accomplishments of the past year. Then I look at the company’s performance, especially compared to our competitors,” says Sarah A. “I have facts at my fingertips when I speak to my boss.”
Your preferred nonmonetary compensation includes titles that reflect your ability to handle details and the power to control all areas for which you are responsible. Negotiate for promotions that put you in charge and extra staff to oversee all procedures adequately.
Gold/Blue Negotiating Tips. You are tough negotiators, driven by fear of falling short and letting your family down. You do your homework and understand your value to the penny. You may come across more demanding or desperate than necessary; if your boss tries to give you a 5 percent raise rather than 7 percent, you may feel your security is on the line.
Gold/Green Negotiating Tips. Your Green component seeks harmony; arguing about money makes you uncomfortable. You research your worth, but may leave the bargaining table feeling that you didn’t get everything possible. You won’t accept the first offer, but will likely accept the second as discomfort with the process grows. Your highly developed work ethic deserves top-tier compensation, and your family is depending on you. Role-play with a Blue or Red friend to learn how to get more than expected.
The bottom line—know your personality type, work its strengths, and face its weaknesses. The word to remember when it comes to compensation is maximize.