Mini-course /01 - How to negotiate your salary?
Learn how to win your salary negotiation by studying practical tactics from movies & TV shows.
🎬 Welcome
Hey there! 👋 Welcome to Watch, Learn & Win, the one-stop newsletter to learn practical life and work skills from your favourite movies & TV shows.
The format here is meant to help you remember the concepts and tactics presented to you through characters, situations and stories that you resonate with, so you can apply them easier every day.
In this mini-course, you'll learn about a variety of pyschological and game theory tactics you can apply to conquer your next salary negotiation.
💡Who is this for:
Do you want a salary raise?
Do you want to learn psychological and persuasion tactics to increase your chances of success?
Do you want to learn how to handle specific work situations like a winner?
🧘♀️🧘♂️ Level 1: Get your mind right
You've been frustrated for a few weeks now.
You've been thinking about all the time and effort you've put in to be working at this place.
You thought you were done with applications and could just focus on building you career and growing. You thought performing well was enough.
Now, your boss hasn't given you any indication of a promotion or raise.
From benchmarks, you know it's time. You've been doing well. The company's been growing, the team's been growing and you're building strong advantages for yourself. You thought they'd want to keep the best and pay for it. So, what the hell is happening?
Who hasn't or won't experience something like this? Call me cynical, but come on, everyone at least once! If you haven't yet, I suggest you prepare yourself, because it's coming one way or another.
But, wait...let me share a secret with you... this isn't all bad.
It's all a question of mindset. Echoing Shakespeare, there's nothing good or bad, but thinking makes it so. We know that to be true! Just think about how many things you've overcome up to today. Aren't you impressed by it?
Of course you can handle one more. This is nothing. In fact, this is a blessing in disguise. Every crisis is an opportunity. Those are the moments with the greatest opportunities for drastic inflection points. And that's not how your boss is thinking. So there you go - there's your starting advantage.
Now, let's get to work prepping you with the tools you'll need to win this battle!
🎥 🍿 Level 2: Applying it to scenes
Now that we have a clear picture about how to look at a salary negotiation scenario, we can dive into the specific case studies. Lets see how some admirable and shrewd characters got their way.
Movies referenced:
Rush (2013 film)
The Butler (2013 film)
TV Shows referenced:
Billions
House of Cards
How To Get Away With Murder
Suits
🚀 Go after what you want:
Case Study #1:
Show: Suits; Season 3, Episode
Scene: Rachel pitches Jessica (the firm's Managing Partner) for the firm to pay her >$100,000 law school tuition check, using Harvey (the firm's top Senior Partner) as leverage.
Context: Rachel is a long-time paralegal at the firm who just entered law school at Columbia. She wants to pay for it herself, but can't. She was promised that the firm would pay for her, but nothing in writing. She now needs to persuade the leaders to do so. Jessica is clever, tough and ahead of most people. Throughout the series, she doesn't respond well to force or influence tactics. Although, she does have a soft spot for Harvey, and she invested in him early on in his career, which was an investment that really paid off for her. Rachel discovered that and will try to employ that.
Always enter a negotiation prepared with evidence.
Success favours the prepared. Notice how Rachel has prepared ahead and came into the room with a plan. There's a scene before in this episode where she comes to Jessica without a plan, but she shuts Rachel down. This time is different.
How to apply:
Know and write down what you're offering, what you're value is, what your opponent values, what they don't want to lose, what they want to gain, and find intersections that make sense. Next step, is gather evidence of each. Now, you have a plan. Off you go.
Know your opponent and play to what moves them.
Rachel understands that Jessica's job is to manage money and focused all her bargaining argument around cost and benefit analysis. She displays the optionality in not only keeping her at the firm, but making her a lawyer over a paralegal. She implies the cost of not doing so, having her leave and leaving the firm without a trusted and smart employee with a successful track record at the firm, who understand the firm and people, and who is more experienced that any other fresh law graduate they could hire.
She brings in Harvey and using him as a case study for the precedent she wants to extend to her situation. Knowing how Jessica feels about Harvey's value to the firm, Rachel gets an upper hand in the negotiations.
How to apply:
In high-pressure and high-stakes corporate environments like a corporate law firm, cost-benefit analysis is a no-brainer. But it only works if you've planned ahead, as noted above. Next, bringing in 'positive' and non-combatative forms of leverage that accentuate your benefits>costs argument, is a winning strategy most of the time.
Speak the language of your opponent.
Rachel is mindful to employ the necessary vernacular to connect with Jessica and eliminate any chance at confusion. This would be "precedent", "contract", etc. That connects them and established respect.
How to apply:
This has two key effect. One, it eliminates confusion, which is critical as confusion creates uncertainty and destabilises the playing field, allowing a wide range of outcomes to be possible. And two, speaking the same language allows you to create empathy and show you belong to the same side. This decreases the combatative nature of the negotiation, which if you do belong to the same team, is always an effective tactic.
Case Study #2:
Movie: The Butler
Scene: Cecil Gaines who's dedicated his life to the service of being a professional domestic worker, asks for salary raises at two different points of his career.
Context: Cecil repeatedly confronts his supervisor at the White House over the unequal pay and career advancement provided to the black White House staff. With President Ronald Reagan's support, Cecil prevails, his reputation growing to the point that he and his wife are invited by the Reagans to be guests at a state dinner. Cecil becomes uncomfortable with the class divisions in the White House. After witnessing Reagan's refusal to support economic sanctions against Apartheid South Africa, Cecil resigns.
Be mindful of the key patterns.
The first scene depicts one of the most common situations we can find ourselves in when asking for salary raises. As well as the arguments we would use; namely, comparing to other people, using effort and longevity as a proxy, and using opportunities as a rationale. Call me cynical, but that rarely works. The reason relates mainly to the psychology of money. Everyone treats money differently, and making this move without knowing exactly how one thinks about money - which in on of itself is crazy tough - is a bad move. People don't like giving away money. That's a fact. That's why persuasion and influence and game theory are so critical to situations like salary negotiations. Rest assured, if you don't plan ahead, you'll lose, because the other party - who clearly has some money to lose - will be preparing.
“Shake with your right hand, but hold a rock with your left.” I don’t mean it literally, but the principle of “trust but verify” is extremely valuable to any form of negotiation.
The second scene shows Cecil more prepared, confident, but with the same humility and respectful nature. He clearly and assertively requests equal pay from his supervisor, stating that if he doesn't get it, he'll leave. He raises the stakes by introducing opportunity cost and loss aversion. That works...but later. His supervisor still calls his play. However, Cecil had the President's name as a trump card. Now that with the ultimatum of him leaving puts the spotlight and pressure on his supervisor who now only has one hand to play. So why was the ultimatum so critical? Surely the President's card would be enough? Sure, it would. But the threat of leaving makes it clear to them two, as well as to any other person who enters the picture, who the instigator of conflict is. And the supervisor knows that. That leaves him with no other move.
How to apply:
Know the main moves in order to play better and prepare for the downside scenario. Every time, if you're prepared to lose, you'll have a higher chance of winning. What I mean by this is to know your odds and probabilities. If you have an idea of what the worst scenario is and how you'd react and respond to that, you're good. Cecil didn't in the first scene, but he sure had it ready in the second. Every battle is won before it's ever fought.
⛳️ Positioning is everything
Case Study #3:
Show: House of Cards; Season 3, Episode 5
Scene: Doug Stamper being offered a job by his existing employer's main rival.
Context: Doug Stamper worked as the Chief of Staff to Frank Underwood, Congressman turned Vice President, who bacame President after impeachment. Extremely loyal, effective and ruthless.
Informational asymmetry is an advantage.
A key element of position relates to the order of action. Namely, who’s the first and last to act in a game scenario, like a negotiation. The right position can create a huge advantage. In this clip, Stamper is the last one to act. He asks what number they're thinking of offering. They lose by giving out the first number. He now knows what to expect and what the paying field's like. He has more information than them. Point Stamper.
How to apply:
Like so, he's able to get a positive reaction from them by making a counter that makes sense, based on what he knows they think is fair. The same can and should be applied to your negotiations. Be mindful of who’s acting first and then, who knows more about what the other sides wants.
Make use of leverage to imply optionality as well as induce loss aversion.
When put on the spot about his 'idealistic' intentions, he quickly shifts the weight of the decision to them instead. Introducing the element of risk and reward, Stamper is able to reach a level playing field they understand. That's highly effective if you already have leverage in terms of what you've accomplished so far, and the other part know it. He knows his worth, his price. And he makes sure they know it too.
How to apply:
Make sure you know your value as well. Then, make sure your opponent knows it too. Literally. Know your market price and state it. But be sure to be able to back it up if confronted. Research is your weapon of choice here. Check Glassdoor and all other relevant platforms, as well as reaching out to current or previous employees of a firm, to understand what to expect and how to counter.
Effective delivery allows for confidence which is required to apply the point above successfully.
His body language is exceptional. Soft tone. Direct, short sentences. Direct eye contact. Steady body and hands. No stress indication. Implies control and confidence. All ingredients of success.
How to apply:
Body language and communication skills can be trained and practiced to perfection. I’ve added some links to the Resources section at the end of the post.
Case Study #4:
Show: How To Get Away With Murder; Season 5, Episode 1
Scene: Annalise shopping for offers from other law firms, but limited given her desire for senior partner and a high salary.
Leverage multiple offers to get the highest price.
The main lesson we can take from this clip, which isn't really explored on the other clips in this mini-course, is the fact that Annalise leverages different offers against each other to generate an auction-like scenario, hoping for price increases. This is a highly effective tactic that allows for a sense of abundance and induces competition for the other side.
What we can take from this that any negotiation goes better if you have one or both of these two following elements: making decisions from a position of abundance (other offers) + sparking opportunity cost and loss aversion on your 'oppenent' (meaning, instigating competitive behaviour as well as making them feel like they have something to lose, both of which can force errors on their part and/or put you in a better position).
Both elements put pressure on the other side to act, allowing you time and giving you more information before making your move, as well as aiding in clarity for you to make a decision. With this, the probability of success drastically increases.
How to apply:
The key to success with this move is being transparent, confident and humble. It requires a delicate balance. That's why delivery is so important to pay attention to and study.
Reframing with a bluff can be a high risk/high reward move.
Being a top criminal litigator, Annalise is also a master of reframing. It's like she can't help it - it's a reflex. That's definitely not a bad skill to have in any type of negotiation. In this clip, Annalise shifts from buyer (the usual position we are at when asking for money) to a seller, by firstly, letting them make the first offer, secondly, employing the leverage as described above, and thirdly, by listing her track record. One point after another, up to the point where she gets control.
How to apply:
Be sure to find an opening to make yourself the seller, even if only at some spots during the negotiation. This dynamic doesn't need to persist throughout. But one shift alone can change how your opponent views you - from charity case to someone to be persuaded to stay.
Labelling as a delivery tactic, with the right body language, can induce the right positioning on any opponent.
On the first interview, Annalise's body language exudes confidence. She's seated relaxed, open posture, not leaning in. Direct eye contact. Her speech is clear and short, with a calming voice. On the second, her body and hand gestures mirror that of her opponent. On the third, on top of the techniques employed in the previous ones, she adds a labelling tactic, addressing at the women as part of a 'small firm', the effect of which is shifting power dynamics, forcing them to prove themselves to her and try to pitch to her rather than the other way around.
How to apply:
Definitely a shot to beware - if you don't have the ammo to back it up, it can be a fatal move. But labelling can definitely work most of the times, if not condescending. Self-aware labelling coupled with an excellent delivery and some leverage can be an unbeatable combination.
💪 Impose yourself
Case Study #5:
Movie: Rush
Scene: Coming from Formula 3, Niki Lauda begins at the BRM Formula 1 team as a 'rookie', which he only got in because he paid for his seat. He then proves his value in order to secure a guaranteed place on the team and a paid contract for 2 years.
Context: Rush is a 2013 biographical sports film centred on the Hunt–Lauda rivalry between two Formula One drivers, the British James Hunt and the Austrian Niki Lauda during the 1976 Formula 1 motor-racing season.
Know the competitive advantage you have that guarantees defensibility.
Niki is only able to succeed here because he knows he has a competitive advantage and brings value to the team. He understands mechanics, engineering and racing at a more nuanced level that even the team's mechanics. Plus, he's a good racer with a good track record in karting. These advantages create a personal moat for him over any other person that could take his position. Not to mention, that the effect of this results in him earning the respect of his team, which creates an additional moat for him, and even bigger costs in the team manager losing him. So, try to be like Niki.
How to apply:
Find your strengths and develop them. Be better than most of the rest at one thing or at the interesection of a couple of things. And build alliances. This is a recipe for success. It's very hard, if not impossible ignore and not reward.
What's the point of having an advantage to press if you don't press it?
Don't wait, just press it. Make your advantage clear to everyone. Don't be afraid to put it to the test. That type of confidence is a winning move and can get you closer to your desired position to win the negotiation. Niki does that. He states very clearly his value and why they should care about it. He also puts it to the test in order to make it exigent.
How to apply:
Do the same. This is perhaps one of the best moves you could make, because once you do that, that point jumps to the front of the queue where all the attention rests. In a salary negotiation, like almost everything else in life, 80% of the result rest on 20% of the factors. That's why controlling power and position is so critical. And nuance helps you secure that for longer.
Tap into your opponent’s competitive juices.
By displaying his advantages and his value-add, he shows that he could easily do the same for another team, even if he had to buy his way in. That sparks FOMO in his opponent, creating the possibility of losing Niki because of greed or ego. That’s a very powerful tactic used by Niki to impose himself into the outcome he wants.
How to apply:
As the previous clips have shown - especially Case Study #4 - any time you tap into your opponent’s competitive spirt, you are in a better position. If they feel they have something to lose by not meeting your demands or have a lot to gain from doing so, then you know you're in a good position. By following the tactics that Niki uses in this clip, as well as other clips we've analysed in this mini-course, you'll be able to do that much more consistently, and then, the negotiation will become far easier to conquer.
Case Study #6:
Show: Billions; Season 3; Episode 11
Scene: The scene in focus here is Taylor Mason's compensation meeting. The first scene. They feel undervalued given their contribution to the firm.
Context: Taylor works for Axelrod and is his star employee and a financial genius. They ascended from intern, to analyst, to head of analysts, to chief investment officer (when Axelrod left his seat momentarily while being sued by the government). Now, exonerated, Axelrod is back to leading the firm. However, throughout the difficult year, Taylor kept the firm alive and generated fantastic performance. It's important to understand the payout structures of hedge funds, namely their business model of 2-20 (they take 2% out of all the money they manage for fixed costs and 20% of any excess performance they generate annually, which is pre-agreed). Given this fact, payout to heads and partners at hedge funds can be very high. Both Axe and Taylor know this.
Know yourself, know your enemy, know the game.
Taylor is in control of all three. They know what they've accomplished and what they've done. They also know they're young and that that might come back to bite them during the negotiation. But they also know they won't let that fly. They also know her man. They know Axelrod plays hardball and is stingy with his money. But they also know their value to the firm and how costly having her leave would be to Axelrod. Taylor, being an avid poker player and exceptional investor, understands game theory and plays almost every situation perfectly. They definitely have a game plan, but they make sure to be the last to act and get the information before. After receiving the 15m offer, they clearly explain the rationale. Again, connecting to what they know about Axelrod and how he thinks logically, Taylor makes their case with deductive reasoning, evidence of their accomplishments, clear figures and succinct delivery. All things that Axelrod appreciates throughout the show. Following is definitely a winning strategy over the long run. We must be mindful of the mistakes that exist in this scene.
Because both characters are such masters of psychology and game theory, it's clear that there isn't a winner and that both make mistakes. Analyzing them is just as instructive as their good moves.
Axelrod's mistake was not being prepared with enough evidence as Taylor was. He also makes the negotiation highly personal from his end, which have unintended consequences (Billions fans, you know what I mean). On top of that, he does make the first move - shame on you Mr. Axelrod! Where's that poker-mind at?
Taylor's mistake was not understanding the terrain and position. The fund isn't theirs. The money isn't theirs. They didn't just go through hell and back dealing with a potentially crippling lawsuit, only to then be fully exonerated. Can you imagine the sense of freedom we'd all get after all that? The drive to gain control over all things? They should've factored all that in, which is a great lesson for us. Read your man and make sure you play his tendencies. Taylor usually know this. Come on, TayTay.
How to apply:
So first and foremost, profile your man or woman. Understand what moves them at that particular point in time, at that level of seniority. Know who has the winning hand and play with that in mind. And please...please... don't get emotional. There are very few cases where emotional negotiation strategy can work. But 99 times out of 100, in a corporate context, emotion not only loses but has great unseen costs. The costs of doing so are beyond a failed negotiation. It can hamper a relationship, or even your personal brand and reputation.
Lessons from the remaining scenes in this clip could be the following:
If you don't ask, you don't get.
Stand your ground and don't let yourself be put below them. You might not be above, but with the right tactic, you can get in the same level.
Lastly, beware of 'name promotions' as actual promotions. They can be used many times to replace salary raises or actual promotions. Very smart trick used by bosses. How to tackle it? Well, being direct and courteous here is the best approach, but don't forget to bring in some leverage. You can't fight force just with words. That's why it's better to either bring in the leverage or make it clear it exists, before such an offer is made.
⛏💎 Level 3: Excercises and project
🤓 Quiz
(10 quick questions) ==> Answers at the end of the post
What’s the desired outcome with mirroring?
A: Show lack of confidence to give more power to our opponent
B: Incite unconscious empathy and connection from our opponent
C: Display confidence to show who has the most power
D: Joke around and lighten the mood of the negotiation
What’s the desired outcome with employing leverage?
A: To increase the downside risk for the other party
B: To strong arm the other party into giving what you want
C: To decrease the downside risk for the other party
D: To decrease risk for yourself when asking what you want
Why is your position in a negotiation so important?
A: Increase authenticity
B: More analytical
C: Confidence booster
D: Informational asymmetry
Why do we need to work on delivery?
A: To display charm, and consequently, calm our opponent down
B: To offset the risks and lower the downside of any bad scenario
C: To display confidence, and as a result, increase the strength of our moves
D: To show you know another skill and be seen as having more value
Which of these scenarios are better?
A: Come into a negotiation very prepared but quiet, not stating what you want and waiting for the other party to dictate the rhythm
B: Ask directly what you want straight from the beginning, ready to fight to get what you want
C: Sweet talk the other party to persuade the other party to give you what you’re asking for
D: Depends, negotiation is a situational game - what matters is knowing the key behavioural patterns to come prepared, and the key tactics to know how to adapt.
What are the top 3 things to come to a salary negotiation scenario knowing?
A: The correct salary levels, how financially healthy the company is, and how rich the other party is
B: How much your peers are earning, how much other companies pay, and how the industry is performing
C: How you’re viewed by the other party, what the other party wants, and what your value is
D: The fuckups you’ve made, the number of firings during that year, and problems with the economy
What’s main purpose of leveraging multiple offers?
A: To use abundance and competition to get a higher offer
B: To strong arm our opponent into doing what we want
C: To uphold our pride and show our worth
D: To increase our chances of getting lucky with an outcome
Why is it important to enter a negotiation with evidence?
A: To protect against any legal risk of false claims
B: To increase the psychological and analytical power of your arguments
C: To show off and make everyone see you as the smartest person in the room
D: To make sure the other party is valuing you accurately and fairly
What type of evidence should you enter a negotiation with?
A: Private documents from the organisation to strong arm
B: Testimonials of colleagues attesting to your value
C: Examples of side projects to display creativity and initiative
D: Samples of and quantitative results from your work
What’s the main reason profiling the other party is so important?
A: To impress everyone in the organisation and increase your popularity inside the organisation
B: Study the other party to know how they got to the position of being ahead of you and how you can do the same
C: Come to the table knowing how you’re viewed by the other party, what they value, the things they’re moved by and stopped by, and possible risks
D: Come prepared knowing what they like so you can easily connect with them and charm them into getting what you want
Reflective exercise:
What are your strengths & weaknesses?
How do you think your bosses see you?
How your body language?
How are your communication skills?
When answering these, don’t think about aptitude or anything. Think about what gives you energy. The rest you can learn with the right amount and format of practice.
Write these down, and then think through them. In this order.
Passive learning here won’t get you towards the next level of self-awareness.
Take-home exercise:
Teens: try to test these tactics with your parents, family members or teachers. Negotiate your chores, your computer/TV/video game time, your access to sweets and desserts, your homework, your deadlines, etc.
Adults at home: try to practice your new found negotiating skills with your spouses, kids, family members…try to solve a problem that’s been bothering you or negotiate compromises which you can measure success from.
Adults at work: once practiced, try to employ your skills with your bosses, colleagues, or potential hires.
Regardless, let us know how it goes in the comments section below! 😇
⭐Feedback⭐
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That’s why I'm just asking for 2 minutes to answer 4 quick multiple choice questions to help me deliver the best content and experience I can for you.
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Resources
Top Books:
Interesting links:
Answers to the quiz:
B
A
D
C
D
C
A
B
D
C
Explanations with be sent to subscribers later this week, so don’t forget to stay tuned and hit that subscribe button. 👇👇👇
Lastly…can you keep a secret? 🤫
This is one of my favourite series - highly recommend!
So much useful knowledge, helping us tap into our most childlike - not childish - elements, sparking creativity and joy in our day-to-day. Not to mention, it's the best medicine to any worry you're facing.
Tell me you don't smile at those chubby cheeks...?! 👶
DISCLAIMER: The clips used in this post are for educational purposes only. I do not own nor claim to own any credits or rights to any the clips linked here. All credit goes to the creators/owners.