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What is the Noel Smith-Wenkle Method and Why Does It Matter?
Key Facts
A salary negotiation strategy developed by negotiation expert Noel Smith-Wenkle
Focuses on making the employer provide the first salary figure
Consists of four specific responses to the "What are your salary requirements?" question
Aims to avoid undervaluing oneself in salary negotiations
Emphasizes the importance of market research and knowing one's value
Can be adapted for various types of negotiations beyond just salary
Requires confidence and preparation to execute effectively
What is the Noel Smith-Wenkle Method?
The Noel Smith-Wenkle Method is a salary negotiation strategy designed to shift the responsibility of naming the first salary figure to the employer. This method was developed by Noel Smith-Wenkle, a noted expert in negotiation techniques.
The method consists of four specific responses to be used in sequence when asked about salary requirements:
First Response: "I'm more interested in doing (type of work) here at (name of company) than I am in the size of the initial offer."
Second Response: "I will consider any reasonable offer."
Third Response: "You're in a much better position to know how much I'm worth to you than I am."
Final Response: "I don't have a specific figure in mind. I'm interested in knowing what you typically pay someone with my qualifications."
The idea behind this method is to avoid anchoring the negotiation with a potentially low figure and to gather more information about the employer's budget and valuation of the position. It's based on the principle that the first person to name a specific salary figure in a negotiation is often at a disadvantage.
Why Does the Noel Smith-Wenkle Method Matter?
The Noel Smith-Wenkle Method matters in salary negotiations for several important reasons:
1. Avoids Undervaluation
By not naming the first figure, you avoid the risk of undervaluing yourself or anchoring the negotiation too low.
3. Shifts Responsibility
It puts the onus on the employer to provide a salary figure, which can often be to the candidate's advantage.
3. Gathers Information
This method allows you to gain more information about the employer's budget and how they value the position.
4. Demonstrates Confidence
Using this method can show that you're a confident negotiator who understands your value.
5. Maintains Flexibility
By not committing to a specific figure early on, you maintain flexibility in the negotiation process.
6. Emphasizes Value
The method shifts the focus from salary to the value you can bring to the company.
7. Teaches Negotiation Skills
Practicing this method can improve overall negotiation skills, which are valuable in many aspects of business and life.
In What Kind of Scenarios is the Noel Smith-Wenkle Method Applicable?
While primarily designed for salary negotiations, the principles of the Noel Smith-Wenkle Method can be applied in various scenarios:
1. Job Interviews
When asked about salary expectations during the interview process.
2. Annual Performance Reviews
When discussing raises or promotions with current employers.
3. Freelance Rate Negotiations
When discussing rates for freelance or contract work.
4. Business Deal Negotiations
When negotiating terms of a business deal or partnership.
5. Vendor Negotiations
When discussing prices with suppliers or service providers.
6. Real Estate Transactions
When negotiating the price of a property (buying or selling).
7. Car Sales
When negotiating the price of a vehicle.
8. Consulting Fee Discussions
When setting fees for consulting services.
9. Salary Negotiations for a Promotion
When moving to a higher position within the same company.
10. Benefits Package Negotiations
When discussing non-salary components of a compensation package.
How Can You Apply the Noel Smith-Wenkle Method at Work?
Applying the Noel Smith-Wenkle Method effectively requires preparation and confidence. Here are steps to implement this method:
1. Research Thoroughly
Before the negotiation, research salary ranges for your position, industry, and location.
2. Practice the Responses
Familiarize yourself with the four responses and practice delivering them confidently.
3. Stay Calm
Remain composed when asked about salary requirements. Don't rush to fill silences.
4. Use the Responses in Order
Start with the first response and only move to the next if pressed.
5. Focus on Value
Throughout the conversation, emphasize the value you bring to the role and company.
6. Be Prepared to Walk Away
Know your minimum acceptable offer and be prepared to decline if necessary.
7. Consider the Entire Package
Remember to consider benefits, bonuses, and other perks in addition to base salary.
8. Adapt as Needed
Be flexible and adjust your approach based on the specific situation and the employer's responses.
9. Follow Up in Writing
After verbal negotiations, follow up with written confirmation of what was agreed upon.
10. Practice Ethical Negotiation
While being strategic, always maintain honesty and integrity throughout the process.
Examples
Job Interview Scenario: Interviewer: "What are your salary expectations for this role?" Candidate: "I'm more interested in the opportunity to contribute to your team's success than in the initial salary figure. Can you tell me more about the responsibilities of the role?"
Freelance Work Negotiation: Client: "What's your rate for this project?" Freelancer: "I'm excited about the project and will consider any reasonable offer. Could you share what you typically budget for this type of work?"
Internal Promotion Discussion: Manager: "What salary increase are you looking for with this promotion?" Employee: "You're in a much better position to know how much value this new role will bring to the company. I'm interested in understanding what you typically offer for this level of responsibility."
Consulting Agreement Negotiation: Potential Client: "What are your consulting fees?" Consultant: "My fees vary depending on the scope and duration of the project. I don't have a specific figure in mind, but I'm interested in knowing what you typically invest in this type of consultation."
Annual Review Salary Discussion: Manager: "What kind of raise were you hoping for this year?" Employee: "I'm more focused on continuing to grow and contribute to our team's success. I trust that you'll offer a raise that reflects my contributions and aligns with industry standards."
Useful Tips
Always do your research on market rates before entering negotiations.
Practice delivering the responses confidently and naturally.
Be prepared for some employers to insist on a number; know your worth if pushed.
Remember that salary is just one part of a compensation package; consider the whole offer.
Use this method in conjunction with highlighting your unique value and achievements.
Be patient; the process may take longer than simply stating a number.
Adapt the language of the responses to fit your personal style and the specific situation.
Remember that building a positive relationship is often more important than winning every point in a negotiation.
Other Useful Frameworks
While the Noel Smith-Wenkle Method is a specific strategy for salary negotiations, it can be complemented by other negotiation frameworks and concepts:
1. BATNA (Best Alternative To a Negotiated Agreement)
Understanding your BATNA can give you confidence in using the Noel Smith-Wenkle Method and knowing when to walk away.
2. Anchoring
The Noel Smith-Wenkle Method is essentially an anti-anchoring technique, preventing you from setting a low anchor.
3. The Flinch
This technique of showing surprise at an offer can be used if the employer's initial offer is lower than expected.
4. Principled Negotiation
This approach, focusing on interests rather than positions, can be used alongside the Noel Smith-Wenkle Method.
5. The Briefcase Technique
This method of demonstrating your value can be used to justify a higher salary once figures are discussed.
6. ZOPA (Zone of Possible Agreement)
Understanding the ZOPA can help you evaluate offers once the employer provides a figure.
7. MESOs (Multiple Equivalent Simultaneous Offers)
This technique of presenting multiple options can be used once salary discussions progress beyond the initial stages.
By integrating the Noel Smith-Wenkle Method with these broader negotiation frameworks, you can develop a more comprehensive approach to salary and other negotiations. Remember, the goal is not just to secure a higher salary, but to reach an agreement that is satisfactory for both parties and sets the stage for a positive working relationship.
