Employment
Mastering negotiation
In this extensive lesson, you will learn how to prepare effectively by researching market trends, understanding your value, and leveraging timing. Explore strategies for discussing compensation, including benefits beyond salary, and discover techniques to approach raises with confidence and evidence-based arguments.
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Salary and Job Offer Negotiation
Performance Reviews and Raise Negotiation
Promotion or Role Transition Discussions
Career Development Opportunities (e.g., training, mentorship)
Focus: Maximizing financial rewards, advancing career goals, and securing growth opportunities.
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Role and Responsibility Negotiation
Work Schedule and Flexibility Requests
Project Scopes and Resource Allocation Discussions
Conflict Resolution in the Workplace
Focus: Creating a fair, balanced, and manageable work environment.
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Vendor or Client Contract Negotiation
Equity, Partnership, or Business Collaboration Discussions
Cross-Cultural or International Negotiations
Focus: Building favorable external agreements and fostering partnerships.
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Exit Negotiation (e.g., severance, resignation terms)
Transition Plans for Role Changes
Focus: Ensuring smooth transitions and protecting long-term opportunities during career shifts.
Compensation and Career Advancement
Negotiating compensation and career advancement is a vital skill for achieving professional growth and financial security. Understanding when and how to approach these discussions can set you up for success throughout your career.
There are three general categories, where negotiation applies and can impact your career progression.
Salary Negotiation
Research is critical when negotiating your salary. Platforms like Duunitori and Oikotie provide information on how to compare salaries within the industry, or within your own workplace. Various industry reports can provide valuable insights into market rates for your role, experience level, and location. When discussing compensation, avoid disclosing your current salary if it’s lower than market rates. Instead, base your salary expectations on data and market research. For example, suggest a range rather than a fixed amount, such as "I’m seeking €5,000–€6,000 per month based on my experience." Be prepared to justify your request with data or specific examples that highlight the value you bring to the company.
Be wary of baseless comparisons - salaries in Finland are largely based on qualifications, and that doesn’t mean just formal degree education and work title. As mentioned in our previous lesson, one of the disadvantages foreigners face in Finland is not having those non-formal learning opportunities, that companies here provide to their workers. It’s very possible to miss those in comparing to someone who has a higher salary, with the same degree and job title as you.
Job Offer Negotiation
Negotiating a job offer isn’t just about the salary; it’s also an opportunity to secure benefits that can enhance your work-life balance and financial stability. In addition to salary, consider negotiating for equity options, extra vacation days, flexible work arrangements, or a professional development budget. It's essential to understand the total compensation package, including taxes, health benefits, and retirement contributions. When negotiating, ask about the company’s compensation structure—such as performance bonuses or stock options—and prioritize what matters most to you, whether it's work-life balance, financial perks, or long-term growth opportunities.
Performance Review and Raise Negotiation
During performance reviews, you have the chance to negotiate a raise based on your contributions and achievements. Document your accomplishments, including exceeding goals, leading successful projects, or making a measurable impact on company revenue. Annual raises typically range from 2–4%, but if you’re aiming for more, you’ll need to provide a solid justification. Timing is also key; ask for a raise after successful projects, company growth periods, or when your impact is most visible. Frame your request around your achievements by saying something like, “Given my impact on [specific result], I’d like to discuss adjusting my compensation to reflect this value.” If a raise isn’t possible, explore other alternatives, such as additional benefits or a timeline for revisiting the discussion in the future.
General Guidelines for Timing:
Avoid Busy Periods: Choose a time when your manager is less stressed and can focus on the discussion.
Pick a Positive Moment: Initiate negotiations when your contributions are most visible and appreciated.
Be Strategic About Market Context: Consider the company’s financial health or broader economic conditions before approaching.
Below you can find a variety of windows of opportunity. Don’t worry, if none of these situations apply to your situation at the moment. All industries are different in how they handle career progression. It is good to keep in mind, at what windows of opportunity you can approach your employer, both to protect your interests as a worker receiving fair compensation, as well as your career progression. And you can always come back to this lesson, when you reach a certain milestone.
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When: After receiving a job offer but before accepting it. Particularly, if a competitive offer is at hand.
Why: This is the optimal time to negotiate salary, benefits, and role specifics because the employer is invested in securing you.
Key Tip: Be prepared to articulate your value and justify your requests based on market data and personal qualifications.
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When: At the conclusion of a probationary period (typically 1–6 months in Finland) or after demonstrating strong early performance, for example solving a problem or completing successfully a project.
Why: Employers often review new hires' performance at this stage, making it an appropriate time to discuss continuation of employment, salary adjustments, role expectations, or benefits.
Key Tip: Use this opportunity to highlight the value you have added since joining.
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When: Typically once a year, during scheduled performance evaluations.
Why: These meetings are designed for discussing achievements, setting goals, and addressing compensation or role changes.
Key Tip: Arrive prepared with evidence of your contributions and market comparisons for your role, as well as additional qualifications you have acquired during the time you’ve been on the current position.
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When: Following the successful completion of a major project, exceeding targets, being ahead of time, or delivering measurable results.
Why: These moments demonstrate your value and provide leverage to negotiate a raise, promotion, or additional responsibilities.
Key Tip: Frame your request in terms of the impact you’ve made on the team or organization - cost reduction, successful client relationship, .
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When: If your role expands significantly or you’re consistently performing duties beyond your job description.
Why: This is an indicator that your role's scope or value has increased, making a renegotiation justified.
Key Tip: Clarify how the added responsibilities align with a need for revised compensation or title. Be aware of taking on too much responsibilities, setting clear boundaries and making sure, that you are not advancing your career at the expense of your mental health, and causing yourself a burnout.
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When: If you’ve been in the same position for 18–24 months without a significant change in compensation or role.
Why: Regular reviews of your career trajectory ensure that your growth aligns with industry standards.
Key Tip: Use market research to present a case for updated compensation, even outside of standard review periods. To be noted, that will not apply to all industries, unfortunately. In these cases, it would help to have a competitor offer at hand, so you can still progress your career, even if your current employer can’t provide it.
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When: If industry demand for your skills increases or you acquire certifications that elevate your value.
Why: External factors, like a competitive job market or improved qualifications, justify revisiting your compensation or role.
Key Tip: Position the discussion as aligning your compensation with evolving market standards. Follow market trends and statistics - for example unemployment office is a good reference and typically publish annual list of biggest market needs. If your profession has become in surplus, for EU-wide information check EURES statistics on which country requires/pays more for your skillset.
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When: If you’re considering leaving for another role or opportunity but would prefer to stay if terms improve.
Why: Employers often prefer to retain talent than incur the costs of replacement, recruitment process, training, etc. making this a negotiation window.
Key Tip: Approach the discussion tactfully, emphasizing loyalty and your desire to continue contributing to the company.
2. Work Conditions and Responsibilities
Understanding your work conditions and responsibilities is vital for a successful career, as they directly affect your job satisfaction, productivity, and long-term well-being. Clear communication regarding expectations, working hours, job duties, and workplace environment helps you navigate your role effectively while ensuring a positive and respectful relationship with your employer.
Your role and responsibilities should be clearly defined in your employment contract. There are two areas in which conflicts may appear:
Role Clarity: Ensure you have a clear understanding of your core responsibilities, reporting structure, and any key performance indicators (KPIs).
Flexibility in Duties: Many Finnish companies value flexibility, so employees may be expected to take on additional responsibilities or adapt to changing needs within the company.
Negotiation plays a crucial role in shaping many aspects of work conditions and responsibilities. While certain benefits, like vacation days and health coverage, are often fixed or standard in Finnish employment contracts, other elements can be negotiated, depending on the individual’s priorities and the company's flexibility.
Work hours and remote work: Negotiating work hours and flexibility has become increasingly important in recent years, particularly as remote and hybrid work models have become more common. While many Finnish companies offer flexible working arrangements, the extent of flexibility can vary.
Job role, or career training and development: If you're interested in shifting or expanding your role, you may negotiate with your employer to take on different responsibilities or project work that aligns with your career goals, or gain access to further education, training programs, or conference opportunities that will help you develop new skills and enhance your career growth.
Conflict in the workplace: Conflicts often arise due to misunderstandings, miscommunication, cultural differences, differences in expectations, or even competition for resources. Most commonly, when employees perceive that the workload is unfairly distributed, especially when some individuals are taking on more responsibilities than others, or not being recognized for their contributions.
During any conflict, maintaining professionalism and emotional control is crucial. In a negotiation, try to focus on facts and avoid becoming defensive or overly emotional. If a conflict cannot be resolved through direct negotiation between the parties involved, consider escalating the issue to a higher authority, such as a manager or human resources representative. HR professionals are trained in conflict resolution and can mediate between employees and employers to find a resolution. If it cannot be helped, having good friends to help you vent is a plus to keeping one’s sanity as well!
3. External and Strategic Relationships
Negotiation plays a vital role in external and strategic relationships, where the goal is to establish favorable agreements with vendors, clients, business partners, and collaborators. Whether it involves negotiating contracts, equity, or partnerships, effective negotiation ensures mutually beneficial outcomes and fosters long-term, productive relationships.
Key Areas Where Negotiation Applies:
Vendor or Client Contract Negotiation: Ensuring that both parties are clear on expectations, deliverables, pricing, and timelines. Strong negotiation skills are essential for securing the best possible terms for your business or project while maintaining positive working relationships. Key points are to clarify scope, deadlines, payment terms, and penalties for missed obligations. Be prepared to negotiate for discounts, additional services, or extended support, in order to establish agreements that maximize value, ensure smooth service delivery, and prevent future disputes.
Equity, Partnership, or Business Collaboration Discussions: When negotiating equity stakes or business partnerships, it's important to outline clear expectations regarding ownership, responsibilities, and profit-sharing arrangements. These discussions can determine the trajectory of your company or business relationships, so negotiating terms that align with your long-term objectives is critical. Ensure that roles, decision-making authority, and profit-sharing are well-defined and fair. Highly recommended to to seek legal advice when negotiating equity splits or partnership terms, in order to secure agreements that protect your interests, while promoting collaboration and sustainable business growth.
Cross-Cultural or International Negotiations: Understanding cultural norms and communication styles is essential. Different countries have different negotiation tactics, attitudes toward hierarchy, and approaches to conflict resolution, so it's crucial to be adaptable and respectful of those differences. If you’re a foreigner and the company is interested in expansion within your home country, it would be a great opportunity window to bring your experience and cultural background, in order to secure a successful deal.
4. Transitions and Exits
In the context of transitions and exits, negotiation is crucial to ensure that career shifts, whether voluntary or involuntary, proceed smoothly and with favorable terms. Whether leaving a role, negotiating severance terms, or planning a transition within the company, effective negotiation ensures that both personal and professional goals are met during these changes.
Exit Negotiation (Severance, Resignation Terms): When leaving a company, negotiating your exit terms ensures that you are compensated fairly and that you leave on good terms. Severance packages, resignation timelines, and benefits should be clearly defined to avoid potential misunderstandings or disputes. Be prepared to discuss severance pay, unused vacation days, and a reference letter. Consider asking for a flexible exit timeline to ensure a smooth handover. Protect your financial and professional interests while maintaining a positive relationship with the employer for future opportunities or references.
Transition Plans for Role Changes: When transitioning to a new role, whether internally or externally, negotiating transition plans ensures that expectations are clear, responsibilities are understood, and the change is seamless. This applies to both leadership changes within the organization and transitions to new professional opportunities. Clarify your role, timelines, and the expectations surrounding the transition. If transitioning within the company, negotiate for training or mentorship to ensure a smooth adjustment. Ensure that you are properly equipped for the new role and that both the company and you are aligned in terms of expectations, timelines, and goals.
FAQ on Handling Pushback During Negotiations
Negotiations can sometimes meet resistance, but how you respond is crucial for keeping the discussion constructive and professional. Here are common objections you might encounter and strategies to handle them:
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How to Respond:
Acknowledge the constraint while keeping the conversation open:
"I understand budget constraints can be challenging. Can we explore other options, like additional vacation days, flexible working arrangements, or a professional development budget?"
Suggest revisiting the conversation:
"I appreciate your transparency. Could we set a timeline to revisit this discussion in six months?"
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How to Respond:
Focus on market data and value:
"I appreciate that perspective. Based on my research and the impact I’ve made on [specific project or goal], I’d like to ensure my compensation reflects both my performance and the market standard."
Offer a compromise:
"If a salary adjustment isn’t possible, could we discuss a performance bonus or other benefits to align my compensation with my contributions?"
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How to Respond:
Seek clarity and commitment:
"That sounds reasonable. Can we set a specific date to revisit this? In the meantime, I’d love to know what specific goals I should meet to ensure a positive outcome."
Document the agreement:
"I’ll follow up with a summary of our discussion to keep track of our agreed-upon timeline."
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How to Respond:
Emphasize your unique contributions:
"I understand this may not be standard, but I believe my contributions to [specific example] have had a significant impact. I’d like to explore how we can reflect that in my compensation."
Offer to set a precedent:
"This could be a great opportunity to set a benchmark for recognizing exceptional performance in this role."
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How to Respond:
Point out expanded responsibilities:
"While my title hasn’t changed, I’ve taken on additional responsibilities like [specific examples]. I’d like to discuss how my role can be formally recognized, including adjustments to my compensation."
Ask about formalizing the role:
"What steps would be required to redefine my role or title to align with my current responsibilities?"
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How to Respond:
Provide data and examples:
"I’d be happy to share specific examples of my impact. For instance, my work on [project] resulted in [quantifiable outcome]. Would you like me to provide a detailed breakdown?"
Set measurable goals:
"If more evidence is needed, could we agree on specific objectives for me to achieve in the next few months to revisit this conversation?"
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How to Respond:
Acknowledge the sentiment and explore alternatives:
"I appreciate hearing that. If we can’t adjust the salary, could we look into other benefits like a one-time bonus, additional leave, or support for professional development?"
Keep the door open:
"Thank you for your honesty. I’d like to revisit this in the future as circumstances allow. In the meantime, I’d love to hear how I can continue to grow here."
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How to Respond:
Position yourself as an exception:
"I understand. My request is based on my specific contributions and results, which I believe make this a unique case."
Focus on collaboration:
"I’d be happy to explore a solution that works for both of us without disrupting broader policies."
Key Strategies for Handling Pushback
Stay Calm and Professional:
Avoid showing frustration or defensiveness. Instead, acknowledge the objection and guide the conversation constructively.
Reframe the Discussion:
Turn "no" into "not yet" by seeking timelines, measurable goals, or alternative forms of compensation.
Be Flexible:
If your ideal outcome isn’t possible, suggest other options that could provide similar value (e.g., bonuses, benefits, flexible work).
Document Agreements:
Summarize discussions in writing to create accountability and track progress toward future negotiations.