7 Tips and Tricks on How to Negotiate Salary
A salary negotiation is a discussion between you and an administrator at your place of business who is responsible for the pay you receive. These negotiations can take place amongst people in all workplace industries.
Though it is called a salary negotiation, this is a necessary part of the working experience for anyone with a job. This includes people who are paid hourly and people who have part-time and full-time jobs.
Nobody strives to stay at the same pay rate during the entirety at their place of work. A salary negotiation, as an idea, is pretty straightforward. The reason to negotiate, well, is meant to secure a higher salary — compensating work and the importance an employee has to a company.
Wouldn’t you want more pay for your work?
If you said no, you must have an extraordinarily high-paying job or believe the quality of your work is not as good as it can be.
In fact, only 19 percent of Americans believe they earn what they deserve. This is according to a recent salary report conducted by Indeed.com.
For the 81 percent of unhappy workers, how do they get their salaries raised to better fit their expectations? Salary negotiations obviously. But how do you negotiate to ensure a worthwhile pay?
Tips and Tricks on How to Negotiate Salary
These tips and tricks are not only for people who have been at a job for a long period of time, new recruits can negotiate salary upon starting their new job.
Show Your Value and Understand Your Leverage
This is perhaps the most important tip on how to negotiate salary. If you do not provide a company with quality work, negotiations will not go the way you desire.
The salary increase needs to be justified. Just because you want a raise doesn’t mean you deserve one. A company needs to know that giving you a higher salary will be beneficial to them. They are investing in you as a worker, prove to them that this investment is worthwhile.
If you have been with the company for a long period, explain what you do on a daily basis and why you are an integral part of the business. Show the reasons why they need you. Make them want you more now than they did before you began your job.
If you are just starting at a company and you believe you deserve a higher salary, explain your credentials and why you are worth more than their original offer.
Maybe your educational background is better than what is required by the company. If you have an advanced degree appropriate for the job you are negotiating, show it off. Receiving a better salary is the reason why anyone gets a degree. You deserve to be paid for your education.
If you have experience in the field with another company, explain why your experience is worth a higher salary. Even though you are just beginning your time with a new business doesn't mean you are only deserving of what they offer. Show why you were valued in previous occupations and how this experience will be beneficial for the new company.
Your leverage is dependent on your current employment situation. If you are you are applying for a salary increase for the company you are currently employed by, you have more leverage.
If you were unemployed before going into a negotiation, your leverage is low. Don’t expect a higher salary as a new hire if you were not working for a long period of time before the new job.
Be Firm, Yet Flexible
If there is a certain salary you are dead-set on obtaining, it doesn’t mean you will get it. This is a negotiation, it takes flexibility by both parties to reach a number that makes sense for everyone. This doesn’t mean you have to take their first offer, but it also doesn’t mean you turn down every offer.
This is a fluid meeting. Based on your qualifications you will have a pretty fair understanding of what number is too low and what number is too high. Have a firm and confident mindset but be ready to compromise.
Be Prepared for Tough Questions
Do not go into a salary negotiation without prepping and practicing your points. In a negotiation, the employer will do what is best for the business. As the one negotiating, you will do what is best for you.
Odds are, this administrator is well-versed in negotiation, and they will do what they can to make sure this salary raise is appropriate. Their questioning will represent this idea.
Find a person to practice your negotiation on. Have them act as the employer. Verbalizing your ideas to someone will help avoid drawing a blank when the actual negotiation takes place. The more comfortable you are with your talking points, the better the chance of a successful negotiation.
Even if you are very deserving of the salary increase does not mean you receive it. If you cannot answer the question, “Why do you deserve this salary?” with a well thought out explanation — you probably won’t receive the raise.
How to Negotiate Salary and Other Benefits by Asking Questions
When you are presented with a salary offer, make sure that the salary can be negotiated.
“Can I negotiate the offer?”
This will get the process started. If your employer says anything but no, then it is game time.
“What other benefits are negotiable?”
Just because it is a salary negotiation doesn’t mean the base pay is the only negotiable part of the contract. Do not be afraid to ask for paid vacation or 401(k) contributions.
“How was this offer calculated?”
Asking about how your employer came up with a number can be telling on whether there is room for an increase. If they say something generic, explain how and why you deserve more than the average salary.
You would be amazed at how far a few questions can get you while negotiating salary.
Be Confident in Your Negotiation and Gracious with the Outcome
Avoid using filler words such as “like,” “umm” and “uh.” Using these words may not only annoy the administrator in charge of your raise, they are distracting and take away from the pitch.
Use confirming words such as “definitely,” and “certainly.” They not only make you sound confident, but they help reaffirm the key points on why you deserve the salary increase.
Be thankful for whatever number you and your employer agree on. If the salary isn’t the desired amount, that is ok. Being thankful for any increase – no matter how large – can help your case in future negotiations and show your employer you are flexible and understanding.
Set an Acceptable Salary Range Rather than a Certain Figure
Going into a negotiation with only one figure in mind is not how to negotiate salary. By deciding on multiple figures beforehand, you will feel successful in your attempts.
Once your employer reaches one of the figures in the acceptable range, you can now change your firm stance and start thinking about accepting an offer.
Research the Average Company Pay and Position Pay
Doing your research beforehand will go a long way in the negotiation process. This will give you an idea of what the company pays other employees as well as the pay other companies compensate for your position.
This will provide you with an acceptable salary range. Bring up these statistics during the negotiation. If people with less responsibility receive a higher salary, explain it. If other companies offer better pay for the same position, relay that information to the person in charge of your salary.
The company will not convey that you are underpaid unless you bring it to their attention. This is a strategic approach on how to negotiate salary. This type of planning will only help with the negotiation process but will help you understand your worth as an employee.
Now Go Negotiate
These are some of the best tips on how to negotiate salary. Some are obvious but are often overlooked when the negotiation takes place.
Make sure it is the right time to ask for a salary increase. If you are a new higher with leverage, start right away. If you have been with a company for a long period of time and they are expressing gratitude for your work, ask for an increase.
When to ask is almost as important as asking. If you have been receiving poor performance reviews, asking for a raise will not only hurt your next raise but also potential salary increases in the future.
Know your worth, be prepared, be confident, and be accepting. Your salary is an important part of life. Nobody knows your worth better than you. Negotiating salary is the negotiation toward a better life.