How to Use BATNA and WATNA to Negotiate Your Salary Like a Pro
- Tammy Mifflin, MBA, CPRW, CDCS
- Jan 20
- 8 min read
Most people walk into negotiations hoping the conversation goes well—few walk in knowing exactly what happens if it does not.
That difference is not confidence. It is preparation.
Two concepts quietly shape every negotiation, whether you name them or not: BATNA and WATNA. Understanding both is what separates reactive negotiators from strategic ones, especially when it comes to salary, promotions, contracts, or career transitions.
What is BATNA?
BATNA stands for Best Alternative To a Negotiated Agreement. It's the most advantageous course of action you can take if negotiations fail and you walk away from the table.
Your BATNA is your safety net, your plan B, your exit strategy. It answers the question: "What will I do if this deal doesn't work out?"
BATNA Example: Salary Negotiation
You're negotiating a job offer at Company A for $85,000. Your BATNA might be:
A standing offer from Company B for $80,000
Staying at your current job, making $75,000 with an upcoming promotion opportunity
Starting a consulting practice with two confirmed clients worth $70,000 annually
Taking a sabbatical you've been saving for while you search for the perfect role
In this scenario, your strongest BATNA is the $80,000 offer from Company B. This becomes your real walk-away point.
BATNA is not about posturing or ultimatums. It is about clarity. When I know my BATNA, I know my floor. I know my leverage. I know when a deal is no longer worth pursuing.
Why BATNA Creates Leverage
Leverage does not come from sounding confident. It comes from having options. Your BATNA determines your negotiating power. Here's why it's crucial:
You're less likely to accept an offer that undervalues you. If Company A offers $78,000 and your BATNA is $80,000 elsewhere, you can confidently decline or counteroffer because you know your actual walk-away point. No bluffing is required since you have concrete alternatives that inform your decisions.
It creates authentic confidence. Knowing you have options eliminates desperate energy from negotiations. You're not begging; you're evaluating whether this deal serves you better than your alternatives. You negotiate more calmly because you're not desperate for a yes. This calm energy is palpable and actually makes you more persuasive. When you're not anxious about the outcome, you ask better questions and listen more closely to what the other party is really saying, which helps you craft stronger counteroffers and find creative solutions.
It prevents bad deals. Without knowing your BATNA, you're negotiating blind. You might accept $78,000 when you could make $80,000 elsewhere, or you might lose a good opportunity by demanding $95,000 without justification.
It helps you recognize good deals. If Company A offers $90,000 and your BATNA is $80,000, you know you're getting a deal worth $10,000 more than your next-best option. This clarity helps you say yes at the right time.
Strong BATNAs give you confidence that shows. Even when you don't explicitly reveal your BATNA, knowing you have solid alternatives changes how you negotiate. You're less likely to make concessions out of fear, more willing to ask for what you deserve, and more comfortable with silence when they make a low offer. This quiet confidence signals to the other party that you have options, which often motivates them to make more competitive offers without you ever having to mention your alternatives directly.
It protects relationships. Perhaps most importantly, knowing your BATNA means you can walk away without burning bridges. When you decline an offer because you have a better alternative (not because you're offended or frustrated), you can do so gracefully and professionally. You might say, "I really appreciate the offer and enjoyed our conversations. I've decided to pursue another opportunity that's a better fit right now, but I'd love to stay in touch." This leaves the door open for future opportunities and maintains your reputation.
Understanding your BATNA transforms you from a reactive negotiator into a strategic decision-maker. But knowing only your best alternative gives you an incomplete picture. To truly understand your negotiating position, you also need to know what happens when things go wrong.
What is WATNA?
WATNA stands for Worst Alternative To a Negotiated Agreement. It's the worst possible outcome you'll face if negotiations fail and everything goes wrong. This is the scenario most people avoid thinking about, but it is just as important.
Your WATNA represents your downside risk. It answers the question: "What's the worst that could happen if this deal falls through?"
WATNA Example: Salary Negotiation
Using the same scenario from before, your WATNA might be:
Company B withdraws its offer due to your delay
Your current employer eliminates your position during restructuring
Your consulting clients back out
You end up unemployed, burning through savings at $5,000 per month
In this case, your WATNA is unemployment with depleting savings, a scenario you absolutely want to avoid.
The Benefits and Risks of WATNA
While BATNA shows you what you're moving toward, WATNA shows you what you're moving away from. Knowing your worst-case scenario is a double-edged sword—it can sharpen your strategic thinking or undermine your confidence depending on how you use it. Here's what understanding your WATNA can do for (and against) you in negotiations.
Benefits:
Reality check on risk. WATNA forces you to confront the real downside, not just the optimistic scenarios. This prevents reckless decision-making based on false confidence.
Motivation to improve your position. When you realize your WATNA is dire (like unemployment with no savings), you're motivated to strengthen your alternatives before negotiating.
Better risk assessment. Knowing the gap between your BATNA and WATNA helps you evaluate whether a deal is worth pursuing. A narrow gap means you're in a risky position. A wide gap means you have a cushion.
Prevents paralysis from fear. By clearly defining your worst case, you often realize it's not as catastrophic as the vague anxiety in your head. This can actually make you more willing to negotiate boldly.
Potential Risks:
Can create unnecessary fear. If you focus too heavily on your WATNA, you might negotiate from a place of desperation rather than from a position of strength. Your WATNA should inform you, not paralyze you.
May lead to overly conservative choices. Fear of the worst-case scenario can make you accept mediocre deals to avoid risk, leaving value on the table.
Discourages calculated risks. Sometimes the best opportunities require some risk. Obsessing over WATNA can make you too risk-averse to seize them.
The key is to know your WATNA, but negotiate based on your BATNA.
BATNA vs. WATNA: Two Different Roles in Negotiation
BATNA and WATNA serve very different purposes in a negotiation, and confusion between the two is what leads people to either accept too quickly or push too far.
Think of BATNA as the lens for decision quality. It answers the question: Is this deal worth accepting compared to my other options? If an agreement does not outperform your BATNA, it is not the right deal.
WATNA, by contrast, is the lens through which risk management is viewed. It answers a different question: How much risk am I taking if this negotiation fails? Its role is not to dictate what you accept, but to inform how aggressively you negotiate and how prepared you are for the downside.
One tells you what is good enough.
The other tells you what you are protecting against.
A Practical Comparison
Consider a job offer scenario.
You are offered $85,000, and you already hold an $80,000 alternative. On the surface, the higher number appears to be the better choice. But BATNA and WATNA are not designed to evaluate salary in isolation. They help you with total value analysis.
Let's say the $85,000 role introduces trade-offs such as:
Alonger commute or relocation costs
Weaker benefits or higher healthcare premiums
Limited growth potential or role instability
Poor manager fit or cultural red flags
Restrictive non-compete clauses
Reduced flexibility
Then, the lower-paying alternative may represent the stronger overall outcome when benefits, stability, growth potential, and quality of life are considered.
This is where BATNA and WATNA work together. BATNA keeps you anchored to the total value of the agreement, not just the headline number. WATNA keeps you aware of risk without letting fear dictate your decision.
The Sweet Spot
The best negotiating position is when:
Your BATNA is strong (yoexcellente great alternatives)
Your WATNA is manageable (your worst case isn't catastrophic)
The gap between them is wide (you have breathing room)
This combination gives you both confidence and flexibility.
Best Practices: Putting BATNA and WATNA to Work
Understanding BATNA and WATNA is only useful if you know how to apply them. These concepts are not theoretical. They are practical tools that shape how you prepare, how you show up at the table, and how you evaluate what is in front of you. The best practices below outline how to prepare, negotiate, and decide with intention by putting these concepts into action before, during, and after the conversation so that you can negotiate with clarity, discipline, and purpose rather than emotion or urgency.
Before You Negotiate
Research and develop your BATNA. Don't just assume you know your alternatives. Actively explore them. Apply to multiple companies. Get competing bids. Talk to other potential partners. Your BATNA is only as strong as the effort you put into creating it.
Be brutally honest about the value of your BATNA. A "potential" offer isn't a BATNA. Only count alternatives that are real, concrete, and achievable. Overestimating your BATNA leads to rejected deals and regret.
Identify your WATNA clearly. Map out what actually happens if negotiations fail and your backup plans fall through as well. Be specific. "Things will be bad" isn't useful. "I'll be unemployed for three months, burning $15,000 in savings, with a 70% chance of finding a $75,000 job based on market data" is useful.
Improve your BATNA when possible. If your BATNA is weak, delay negotiations while you strengthen it. Get another job offer. Build your savings. Develop your skills. A stronger BATNA is worth the wait.
Reduce your WATNA risk. If your worst case is truly terrible, take steps to mitigate it before negotiating. Build an emergency fund. Secure a safety net. Create backup plans for your backup plans.
During Negotiation
Never reveal your BATNA unless it strengthens your position. If your alternative is better than another company's offer, strategically mentioning it creates urgency: "I appreciate the offer, but I do have another opportunity at a higher salary that I'm considering." If your BATNA is weaker, keep it private. Be aware that mentioning another offer might occasionally cause potential employers to delay. Therefore, while you can mention having another offer, exercise caution when sharing offer timelines to generate negotiation urgency.
Don't bluff about your BATNA. Claiming you have alternatives you don't actually have is unethical and often backfires. If they call your bluff, you lose all credibility and leverage.
Use your BATNA as an anchor, not a threat. Frame it as information that helps both parties reach a fair deal, not as a weapon. "Based on market research and other opportunities I'm exploring, I'm looking for something in the $90,000 range" is better than "I have another offer for $90,000, so beat it or I walk."
Remember your WATNA without letting it control you. Your WATNA should inform your risk tolerance, but don't negotiate from fear. If someone senses you're desperate to avoid your WATNA, they'll use it against you.
Focus on value, not just alternatives. While your BATNA sets your floor, you should still negotiate for the best possible deal. Just because your BATNA is $80,000 doesn't mean you should accept $81,000 if the position is worth $95,000 in the market.
After Negotiation
Evaluate deals against your BATNA, not your hopes. You might have hoped for $100,000, but if you got $88,000 and your BATNA was $80,000, you got a good deal. Don't let unrealistic expectations cloud your judgment.
Keep developing alternatives even after accepting a deal. Your current job becomes your BATNA for future negotiations. Always be building.
Learn from the gap between your expectations and reality. If your BATNA was weaker than you thought, or your WATNA was closer than comfortable, use that information to prepare better for next time.
The Power of Knowing Your Position
The person with the better BATNA has more power at the negotiating table. The person who understands both their BATNA and WATNA has more clarity.
Together, these concepts transform negotiation from an emotional, stressful experience into a strategic decision-making process. You're no longer guessing whether to accept or reject an offer—you're evaluating it against concrete alternatives and real risks.
Know your BATNA. Understand your WATNA. Improve both when possible. And negotiate with the confidence that comes from knowing exactly where you stand.
The best deals aren't made by people who hope for the best. They're made by people who know their alternatives, understand their risks, and act accordingly.
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