How thinking like a poker player can help you get a raise

Published: Tuesday, January 06, 2015 @ 10:02 AM
Updated: Tuesday, January 06, 2015 @ 10:02 AM

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Not everyone has a taste for poker, and people choose to not play it for a variety of reasons. Perhaps they don’t have the math skills or they just don’t understand the game. It could be they have little tolerance for risk and don’t enjoy formulating and following game strategy. Some people don’t handle losing well, so it’s best to avoid games with high stakes.

That’s fine. You don’t need to like poker. You can go your whole life without needing to play it — no one will force you to.

That doesn’t mean you can’t use the basic poker skills to your advantage. There are a lot of lessons you can learn from poker that will help you thrive personally and professionally. Rather than have you put money on the line to learn them, we decided it made more sense to ask experienced poker players to share the most valuable things they’ve learned from the game and apply them to something most people experience but many don’t enjoy doing: salary negotiation.

1. Read the Situation

When going into your boss’ office to ask for a pay raise, there are a lot of factors in play that will impact the outcome of your discussion. There are the facts — you know what skills you bring to the table, and the employer knows how much he or she can afford to pay you — and there’s not much you can do to alter those.

Here’s where the dynamics of your meeting come in. You have no control over the cards your boss is holding, but you can persuade him or her to play in your favor by delivering a convincing pitch without appearing vulnerable. Just as in poker, body language has a huge impact on someone’s perception of you and can affect the way they respond.

David Daneshgar, a former professional poker player who won an event at the 2008 World Series of Poker, said everything from posture to breathing patterns can have a huge impact in how seriously you’re taken by the person across the table.

“Act genuine and normal,” Daneshgar said. “I wouldn’t come off too cocky — people in poker with a bad hand would overcompensate with action.”

2. Get Comfortable With an Uncomfortable Situation

The stakes can be high when asking for a raise. For some people, it may mean the difference between paying off debt or having to make tough personal budget cuts. No matter how badly you want to win, you have to understand that you may not and be willing to accept that. Negotiating for a raise may be extremely stressful, but you can’t let your emotions derail your game plan. If you’ve given your strategy a lot of thought and believe you’ve come up with the best course of action you can think of, stick to it, even when things aren’t going well. Desperation won’t win you anything.

“One of the things in poker is, ‘don’t reveal your hand till it’s time’,” said John Rogers, an amateur poker player who has used his 12 years of experience to guide him through the tough stages of entrepreneurship. One of the most common things Rogers sees among new players is a tendency to hold their cards too high or have to look back at their hand frequently, allowing other players to pounce on that vulnerability.

3. Learn to Make Quick Decisions

In poker, quick decision-making indicates you know what you’re doing, Daneshgar said. Don’t mistake immediate action for impulsiveness, because making good decisions requires a lot of thought — just make sure you’re done thinking before you head into negotiations.

It requires a lot of prep work. Daneshgar said poker players run through the scenarios in their minds, knowing exactly what they’ll do in any given situation. A slow response indicates unpreparedness. If you’re asking to receive a larger paycheck, your boss should rightly expect you to have given your request a lot of thought and be able to stand behind everything you’re asking for.

“If they’re thinking on the spot, they haven’t thought it through,” Daneshgar said. To get what you want out of a negotiation, you need to know what you want before the back-and-forth even starts. Even if the situation doesn’t end up the way you would have liked it to, you can reflect on it knowing you did everything you could to have it play in your favor, and you can’t always win.

4. Assess the Risks Associated With Each Scenario

If you play poker, you will lose a lot. When you ask for changes to your compensation, you may not get everything you want. When deciding how to proceed through salary negotiations, decide what’s worth fighting for,based on how much you have to lose if you don’t get it.

This is a process we do daily. If you’re driving to a meeting and the traffic light turns yellow, you’re quickly assessing the risk of the situation: “I’ll definitely get in trouble if I’m late for this meeting, but there’s a good chance I won’t get a ticket if the light turns red as I pass through the intersection,” you think, as you press down on the gas pedal.

If you submit a long list of demands to your supervisor, there’s a very good chance he or she will deny some of them. On the flip side, you’re likely to get what you ask for if you’re requesting something very small — but is that really what you want? You have to know when — and if — you’re willing to walk away. Daneshgar gave an example: If he asks for nothing, his employer will certainly keep him around. If he asks for a $20,000 raise (a massive raise, in this scenario), he risks offending his employer, damaging his relationship with his boss or getting fired. Given those options, he’ll ask for something in between, knowing it’s not worth it to him to risk his job or settle for no raise.

5. Leave Emotions Out of It

Even with all the preparation you’ve put into asking for a raise, no matter how well you think you can read the temperature of your meeting, it’s possible the situation will not go at all the way you want it to. If nothing else, you want to walk away feeling good about the way you handled yourself and confident in your ability to learn from the experience.

“If you change your strategy because of emotional response, that’s a flaw, that’s a crack in the game,” Rogers said. In poker, it’s called tilt — allowing one hand to affect the way you play the next.

“In poker here’s the reality: If you lose a hand for $50,000 and you can’t let that go by and play another game, you’re going to lose a lot of money,” Daneshgar said. Getting emotional when you don’t get what you want in the workplace could translate into a loss of respect or credibility, which severely hampers your ability to succeed. If you don’t get what you asked for the first time, don’t let disappointment filter into your work. If you keep doing a good job and prove your value to the company, you have a much better chance of getting what you want the next time you have an opportunity to ask.

These skills are extremely useful in many career-related situations, not just asking for a raise. Both Rogers and Daneshgar used what they learned in poker to start their own businesses — Rogers is creating a digital poker table called Nucleus, and Daneshgar started online floral business BloomNation.com — and they say their ability to mitigate risk and take emotions out of their decisions have helped them succeed.

Such attitudes are extremely helpful in the world of personal finance, because things often don’t go the way you’d like them to (think home price negotiations). Planning is crucial to any kind of financial success, and as frustrating as failure can be, minimizing the amount of emotion you let dictate your decisions is likely to help you reach your goals.

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This article originally appeared on Credit.com.

Numbers don’t lie: 5 things to know about your FICO score

Published: Tuesday, October 03, 2017 @ 10:37 AM
Updated: Tuesday, October 03, 2017 @ 10:37 AM

To get into the all-important "good credit" score range, experts recommend these five strategies Check and re-check your credit report Avoid quick-fix promises Delinquent payments can seriously damage your FICO scores Pay off more of what you owe Apply for credit cards one at a time

With the 2017 hacking of credit bureau Equifax, credit scores have been in the spotlight recently. But credit scores are important every day for adults who earn or borrow money, especially the FICO score, which is used by 90 of the top 100 largest U.S. financial institutions. 

RELATED: Equifax data breach: What to know

Just what is a FICO score? The short answer: the global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries, created by Fair Isaac Corporation. The average adult has FICO scores from each of the three main credit bureaus: Equifax, TransUnion and Experian. FICO scores are based on amounts owed (30 percent), new credit (10 percent), length of credit history (15 percent), payment history (35 percent) and credit mix (10 percent).

A low FICO score might contribute to a lender's decision to deny you credit and could increase the cost of an auto loan by almost $5,000, according to Consumer Reports. A high FICO can save you thousands annually on everything from reduced credit card interest to the size of the deposit you must pay for electric utility service.

RELATED: Uber isn't everything: 7 other lucrative part-time side gigs 

To get into the all-important "good credit" score range, Consumer Reports and myFICO.com recommend these five strategies:

Atlanta-based consumer credit reporting agency Equifax reversed a decision to include forced arbitration language in its terms of service for its free credit monitoring products after a public outcry earlier this month. The company said a breach of its computer systems had exposed the Social Security numbers and birthdates of up to 143 million U.S. consumers. (Dreamstime/TNS)(The Atlanta Journal-Constitution)

Check and re-check your credit report

Request one free credit report from a different reporting agency every four months through AnnualCreditReport.com and check for errors, according to Consumer Reports. If you find an error, dispute it with the credit bureau. Pay particular attention to make sure no one has incorrectly listed a late payment on any of your accounts or miscalculated amounts owed on any open accounts. "Hard pull" credit inquiries, which are made by potential lenders with your permission, can lower your FICO score slightly, but this is different. When you check on your own credit, there's no penalty. 

Avoid quick-fix promises

According to myFICO.com, so-called "quick fix" efforts to repair your credit history are the most likely to backfire, so consumers should be leery of any advertisements or credit counselors claiming they can improve your credit score fast. Depending on the reason for a low score, you may need 12 to 24 months before any efforts (except for error corrections) start showing on your score. You can accelerate the improvement by enrolling in a debt-management program and making payments on time, but there's no instant fix.

(Contributed by nestiny.com/For the AJC)

Persistently pay your bills on time

Even if you are only missing payments by a few days, delinquent payments can seriously damage your FICO scores, particularly since you can't fix previous missed or late payments. If you have missed payments, get current and stay current so you can demonstrate that the problem is in the past. Accoding to myFICO, older credit problems count for less and will fade as your new on-time payment pattern starts showing up on your credit report. Some older versions of FICO keep collection accounts on your credit report for up to seven years even if they're paid off, but the most current versions of FICO ignore any collections when the balance is zero, according to Consumer Reports.

Pay off more of what you owe

The "amounts owed" category makes up 30 percent to your FICO score calculation. Unlike payment history, you can address it immediately, but you'll need financial discipline: "The most effective way to improve your credit scores in this area is by paying down your revolving–credit card–debt." Don't close unused credit cards as a short-term plan to up your scores, since it may just increase the percentage of available credit you are using - a no-no for high credit scores. The same goes for opening a new credit cards you don't need: while it will increase your available credit, it could negatively impact the average age of your credit accounts and damage your FICO scores.

Apply for credit cards one at a time

When you apply for multiple credit cards at the same time, you generate several "hard pull" requests for your credit history, which can hurt your FICO score, according to Consumer Reports. This advice only holds true for credit cards, not house, car or student loans. 

MyFICO also reminds consumers that while FICO scores are important, they're not the be-all and end-all. Lenders look at information such as the amount of debt you can reasonably handle given your income, your employment history and your credit history. Based on their perception of this information, as well as their specific underwriting policies, lenders may extend credit to you even if your score is low - or decline your request for credit even though your score is high.

To get started improving your FICO score, access myFICO's estimator tool, which helps you approximate your score range without any identifying information. It also offers a direct link that allows you to file an online credit report dispute and gives more detailed answers to the question "What is FICO?"

Scene 75 CEO buys former ITT property

Published: Tuesday, September 26, 2017 @ 2:34 PM

Jonah Sandler is the CEO of Scene 75 Entertainment Center. LISA POWELL / STAFF
Jonah Sandler is the CEO of Scene 75 Entertainment Center. LISA POWELL / STAFF

A holding company run by the chief executive of Scene 75 Entertainment has bought the nearby former ITT Tech school property on Stop Eight Road.

JDS Commercial Holdings LLC — of which Jonah D. Sandler is the principal — bought the former school property at 3325 Stop Eight Road for $740,000, Montgomery County property records show.

RELATEDMental health agency plans $1 million property investment

Five years ago, Sandler opened Scene 75 at 6196 Poe Ave. Since then, he has announced plans to open a third entertainment location 30 miles south of Cleveland in Brunswick, Ohio. Besides the Dayton center, the company also has a 84,000-square-foot Cincinnati-area venue in Milford.

The former school — which closed last September — is just south of Scene 75 on Poe, near the intersection of Poe and Stop Eight.

RELATEDBuyer pays $4.3M for property near airport

Last year, ITT Technical Institute closed all 130 of its campuses nationally in a move that put 8,000 employees out of work, in the wake of federal sanctions against the school.

A message seeking comment was left with Sandler Tuesday.

Eastway plans total $1M property investment

Published: Tuesday, September 26, 2017 @ 8:26 AM

A model of the newly remodeled Eastway Behavioral Healthcare headquarters on Wayne Avenue. The agency is purchasing a former print shop on Bainbridge near the headquarters. In total, the agency is investing $1 million into both its headquarters remodeling and the property purchase. THOMAS GNAU/STAFF
A model of the newly remodeled Eastway Behavioral Healthcare headquarters on Wayne Avenue. The agency is purchasing a former print shop on Bainbridge near the headquarters. In total, the agency is investing $1 million into both its headquarters remodeling and the property purchase. THOMAS GNAU/STAFF

Eastway Behavioral Healthcare, a mental health services agency, is purchasing an industrial building and parking lot across Bainbridge Street near its Dayton headquarters, with plans to create a center for job training there, agency leaders announced Monday evening.

Dayton-based Eastway Behavioral Healthcare has already announced an investment of about $500,000 into remaking its 600 Wayne Ave. headquarters and pharmacy — and agency leaders announced their plans for the Bainbridge property Monday at a 60th anniversary celebration at the Victoria Theatre.

Together, the refurbishing of the headquarters and the purchase of the Bainbridge property amount to a total investment of about $1 million, Eastway officers said.

RELATEDDayton mental health agency has national impact

Krystal Burke, Eastway director of business development, said she recently approached the owner of the property about the possibility of leasing some of his parking spaces to Eastway. Instead, he offered to sell the entire site, including the building where a printing and packing business had been located for decades, Burke said.

The business was Print Products Inc., 419 Bainbridge.

“It’s a very attractive building on the inside,” Burke said. “There were a lot of upgrades.”

RELATEDMental health agency to make $5ooK headquarters investment

She added: “I told John (Strahm, Eastway president and chief executive), ‘Just hear me out. I think I stumbled on a really great opportunity.’”

One of Ohio’s largest mental health care agencies, Eastway in recent months has expanded its service footprint to include Columbus and Washington Court House, even serving clients nationally from as far away as Idaho.

“Our message to the Dayton community, although we have expanded our catchment areas to Columbus … our primary commitment for 60 years has been serving the needs of these people in Dayton.”

In the past decade, the agency’s revenue has nearly doubled, from $16 million annually in 2007 to an expected $30 million in this fiscal year, Eastway leaders said.

“It’s planned growth,” Burke said. “It’s not just to see how big or how fast we can grow.”

Each year, the agency treat 3,500 adults in Dayton. The agency manages 24 facilities across mostly Southern and Central Ohio.

Jury trial scheduled in Reynolds lawsuit

Published: Thursday, August 31, 2017 @ 9:29 AM

Kettering-based Reynolds and Reynolds has about 1,300 local employees. TY GREENLEES / STAFF
Kettering-based Reynolds and Reynolds has about 1,300 local employees. TY GREENLEES / STAFF

A jury trial has been scheduled in an antitrust lawsuit against a major Kettering employer and a second company in federal court.

According to a schedule filed Wednesday in federal court in Wisconsin’s western district, a trial in Authenticom’s lawsuit against Kettering’s Reynolds and Reynolds and CDK Global LLC is set to happen Oct. 22, 2018.

That’s if the case gets that far: Confidential settlement proposals — outlining terms of a possible settlement in the case — are due by Aug. 20, 2018. Those letters will not be part of the lawsuit’s public record, the filing said.

RELATEDDC attorney: FTC probes not to be taken lightly

Both Reynolds and CDK are being sued by a third company, LaCrosse, Wisc.-based Authenticom Inc., which has accused the two companies of forming an agreement or business relationship against it. Authenticom charges that the two defendants have kept it out of auto dealership databases, even when auto dealers approved Authenticom’s use of those databases.

A spokesman for Reynolds has said the company believes that its policy of not allowing “unauthorized intermediaries” into its auto dealer database systems ultimately protects dealership data.

RELATEDCourt stays injunction against Reynolds

Authenticom is an auto dealer data integration service provider, while Reynolds and CDK are much larger companies offering auto dealer business management systems.

Meanwhile, publicly traded CDK recently revealed in a Securities and Exchange Commission filing that the Federal Trade Commission has asked CDK to “produce documents relating to any agreements between ourselves and Reynolds and Reynolds.”

CDK has said the company is cooperating with the request. A Reynolds spokesman has not commented on the FTC questions.

“The parties and their attorneys must at all times treat everyone involved in this lawsuit with courtesy and consideration,” Magistrate Judge Stephen Crocker wrote in Wednesday’s filing. “The parties must attend diligently to their obligation in this lawsuit and must reasonably accommodate each other in all matters so as to secure the just, speedy and inexpensive resolution of each proceeding in this matter.”

Reynolds has about 1,300 employees in a County Line Road campus near the Kettering-Beavercreek border.