This is so, so true. Having a strong BATNA is 90% of negotiating.
It's not true at all.
No other offer? Unemployed for a year? It doesn't matter. When you get their offer, flinch, flare your nostrils, make an 'oof' noise on the phone - whatever, do what you need to do to convey you're not impressed. Then say "you'll need to do better than that," and shut up until they say something.
Often you'll get an additional raise on the spot; most likely, they'll ask what you'll need, you'll throw out some ludicrously high figure, and you'll split the difference somewhere in the middle.
By the time a company makes you an offer, they're emotionally invested. They're already thinking about all the work you're going to do for them, and how much longer it's going to take to find another suitable candidate. They also know that many candidates negotiate, so they likely didn't lead with their best offer. In this situation, you are extremely likely to improve your position, strong BATNA or no BATNA - you just have to have the courage to ask for what you want.
Really, I've never given someone a salary bump just because they asked and then shut up. That's a horrible way for a business to run.
I'll offer a competitive salaray that fits within my companies budget and salary framework. If an employee really wants more then the burden is on them to show that they've got a better BATNA.
I do agree with you that asking never hurts, but if a company caves just because you ask it's a very telling sign that whoever you talked to doesn't really know how to negotiate.
I feel that we may be ignoring the psychological aspects of having a strong BATNA here. It's easy to say that you should just "ask for a better offer", but it is waay easier to actually do that when you know how much you are worth to another employer.
Some people may be able to pull off something like what you describe, but all research I've read on negotiating indicate that knowing your BATNA and having a strong one is key to achieving good negotiation results.
Yes, a big part of negotiation is knowing what you should do and how you should react despite your internal feelings about your situation. I know I've looked utterly disgusted at offers that were already making me giddy on the inside.
It's always nice to have multiple offers to choose from, but sometimes you're just not in that situation. When that happens you can still master your own psychology, keep your feelings to yourself, and negotiate with confidence.
No other offer? Unemployed for a year? It doesn't matter.
Oh, but it most certainly does.
It may not affect how you negotiate, but it will certainly affect overall outcome.
By the time a company makes you an offer, they're emotionally invested.
With the exception of rare cases and poaching, no, they are not. This is not reflective of 99% of job offers. If you have built up a reputation as a superstar that can write their own ticket, then fair enough, you already have a BATNA and didn't even realize it - play hard ball.
If however, you are like a vast majority of job applicants, you are really nobody special. Some talent maybe, but not enough to make me drool. In this situation, the negotiation is very similar to every other purchase of goods. You are the vendor and the employer is the consumer.
In a land of multiple vendors, the consumer is king. I don't care how much you think your time is worth, I've already got a value in my head that I'm willing to pay for, and I'm going to do everything I can to pay less than that value and get myself a 'deal'.
Suppose instead of effort hours you are selling bananas. You and about 20 other banana stands. The first thing I as a consumer do is figure out how the banana market is looking these days, and determine the average quality and average price that the vendors are offering. I'm a savvy consumer now, so I figure that in order to not waste anyone's time, I'll pre-define the quality of the banana I'm willing to purchase (let's say higher than the average, but not the gold standard banana) and publicly state my intention to buy a fixed quantity.
Seeing a sale, you (along with others) contact me I take a look at your wares. I like what I see, and I know the market value, so I offer you the average price and see how things go....
Scenario A) You counter 30% higher. That's still in my price range, but I've still not seen the other banana vendors yet. I probably want to talk to them before I just give you that extra 30%. What's the rush after all? Your's isn't a bad offer, but I'm not sure it's the best...
Scenario B) You don't really counter, but simply tell me that you only have 50 bananas until next quarter and there's another guy down the street that's already told you he'd give you 20% more for them. He's on the other side of town though, so you don't really want to go out there...
In what scenario is the banana vendor in a stronger position to get that extra 30%?
If the outcome in this situation is so influenced by said externality, how do you figure it does not equally translate into a job negotiation?
A good BATNA can be an existing job, a high degree of skill, or a lot of comfort in your current situation. Regardless, having one gives you a tremendous advantage in any negotiation.
If however, you are like a vast majority of job applicants, you are really nobody special. Some talent maybe, but not enough to make me drool.
If this is the type of person you're extending an offer to, it's no wonder you don't care if you lose them. You're absolutely right - if you're not being selective in your hiring, you're not going to mind overly much if you lose a candidate.
On the other hand, why would anyone want to work for a company that's not selective in their hiring? Now that I think about it - if the company won't negotiate your offer, that probably indicates they're full of B-players and you're dodging a bullet.
Employers (as one would no doubt discover if you looked outside of the echo chamber) are as practical as they are selective.
On the other hand, why would anyone want to work for a company that's not selective in their hiring?
Limiting yourself to the top .25% of available employees is a rather stupid way to do business. Being flexible does not mean you are open to everyone, just that you are will to accept, say, the top 5% of employees.
if the company won't negotiate your offer, that probably indicates they're full of B-players and you're dodging a bullet.
The company IS negotiating. You are the one who isn't. Negotiation, by definition, is not the act of simply stating your demands as an ultimatum. If you figure this is a practical way to live life, by all means, continue down this path.
I'm pretty confident in saying though that after 15 years in business with more negotiations of all sorts than I can count in my past, whenever I've come across a person with your view point, I simply walk. Dealing with someone that can't find win-win is, in 100% of cases, more trouble than they can ever be worth. (As an aside, you see this a lot more with B2B deals than you do with hiring. Most people applying for work are a little more reasonable to simply demand a salary. The only time you normally see this is if the person in question is being poached/recruited, which is a different equation)
Getting 100% of what you initially want is a great goal and a reason to celebrate. Expecting this outcome all of the time is a recipe for failure.
It's not true at all.
No other offer? Unemployed for a year? It doesn't matter. When you get their offer, flinch, flare your nostrils, make an 'oof' noise on the phone - whatever, do what you need to do to convey you're not impressed. Then say "you'll need to do better than that," and shut up until they say something.
Often you'll get an additional raise on the spot; most likely, they'll ask what you'll need, you'll throw out some ludicrously high figure, and you'll split the difference somewhere in the middle.
By the time a company makes you an offer, they're emotionally invested. They're already thinking about all the work you're going to do for them, and how much longer it's going to take to find another suitable candidate. They also know that many candidates negotiate, so they likely didn't lead with their best offer. In this situation, you are extremely likely to improve your position, strong BATNA or no BATNA - you just have to have the courage to ask for what you want.