Benchmarks, indices, proxies and standards can help you influence and defend your position.
It’s always a good idea to ground your proposals with some widely accepted objective benchmarks. People negotiating salary or wage packages often use the Consumer Price Index as a benchmark. Plastics traders use the price of petroleum as their benchmark. You can also use published prices at competitors, industry standard practices, percentages or ratios. Deciding on how to benchmark your proposal is an important skill for a negotiator.
Basing your offer or counter-offer on an accepted objective standard gives you credibility and helps establish value — but you have to be sure to pick the right measure. If you want a raise, you are probably better off talking about the 20% increase in your firm’s standard base salary in the 18 months since you were hired, not a 3% rise in the consumer price index.
Learn to find the benchmark that helps you — and then position to get that accepted as the standard. Look at what he’s using as a benchmark, and decide what that means to your negotiation.
Take the Benchmarking quiz — match the index or standard to the appropriate negotiation…