Negotiating your salary can be a daunting task, whether you are beginning a new employment or hoping to secure a promotion within your existing role.
A recent survey found that just 37% of workers had endeavored to negotiate their payment, with 18% confessing they had never attempted to do so. The most worrying discovery, however, was that 44% of those surveyed admitted to never having broached the topic of a salary increase during performance evaluations.
It is not uncommon for people to feel uneasy about salary negotiation and accept the first number proposed without question. While this is understandable, it is crucial to bear in mind that companies often suggest a lower salary than what they truly intend to pay, leaving some scope for negotiation. Therefore, it is imperative to seize this chance and not let apprehension about negotiating hold one back from securing a wage that is more fitting with their expertise.
The prospect of negotiating a salary may seem daunting and overwhelming. Nevertheless, with the correct guidance, one can approach the situation with certainty and achieve a positive result. This blog article furnishes practical tips to assist individuals in skillfully negotiating their wage and guaranteeing that they attain the remuneration they merit.
Pre-negotiation Tip: Research salary trends within the industry
To ensure that your compensation corresponds with the value you bring to the table, it is essential to research the average pay for your position in your particular region ahead of any job interviews or salary negotiations. Various platforms, such as Payscale, Glassdoor, LinkedIn, and more, are available to assist with this research. You may also consider seeking guidance from acquaintances and colleagues who are currently employed in your specific field.
Factor in the entirety of the offer
It is crucial to always inquire about the supplementary employee benefits that come alongside your basic salary. These benefits can comprise of insurance, extra leave, adaptable work arrangements, paid holidays, bonuses, incentives, perquisites, and additional compensation packages. It is vital to be aware of the possibilities for additional perks that are associated with your job.
Make strategic use of pauses
When presented with the initial salary offer from an employer, it is recommended to take a moment to pause prior to responding. This pause provides an opportunity for reflection on the offer and allows the employer to either justify their proposed figure or to suggest a more appealing alternative.
Factor in other considerations beyond basic pay
When negotiating your salary, it is vital to never accept the initial offer. If the Human Resources department discloses that a specific amount is the maximum basic pay for that position, you could consider requesting a signing bonus or a raise at the end of six months rather than a yearly performance review. If your request is denied, do not be discouraged; ensure that your reasoning is thoroughly explained, and this approach could result in other advantageous options such as increased flexibility in your working hours, enhanced health insurance, or a larger variable bonus.
During salary negotiations, make clear requests for what you desire
When developing a counteroffer to the hiring manager, it is important to include an exact salary amount or range in your communication. This expresses to the hiring manager that you understand the value of your capabilities and have done meticulous research on the market. Additionally, it demonstrates that you are confident in your abilities and are prepared to negotiate a more advantageous compensation package.
Additionally, it is crucial to ensure that your salary negotiation email is concise and to-the-point. A lengthy email from the candidate may convey the impression that they are overstating their worth.
Clarify the reasons why you believe you merit a higher compensation
When presenting a counteroffer, it is crucial to confidently articulate the reasons why you merit a higher salary. Ensure that your abilities, expertise, and potential are highlighted, while maintaining an appropriate level of modesty in your presentation. This is an opportunity to showcase the value that you can bring to the organisation and how you can continue to make constructive contributions to the company’s success.
It is vital to maintain a professional tone in your salary negotiation email and to avoid discussing personal issues, such as student loans or living expenses. It is important to remember that the primary concern of the recruiter is understanding how you can contribute to the overall success of the company, rather than how you can resolve your individual financial difficulties.
Resolve all issues comprehensively
When engaging in negotiations on several elements of an employment contract, such as compensation, job title, bonus, benefits, and expenses, it is best to address all of these topics together rather than individually. This method allows the employer to have a complete understanding of the total desired agreement.
Additionally, it is recommended to quote a higher figure than what you require to allow for a potential compromise at a later stage.
Allocate adequate time for the negotiations
It is not recommended to immediately accept or reject an offer. Making a hasty decision can result in the loss of funds that could have been earned by taking more time to consider the offer. Similarly, refusing an offer too quickly can lead to the forfeit of supplementary benefits that might have been included in the ultimate offer. Therefore, it is important to take ample time to carefully evaluate any offer before making a final decision.
Above all, ensure to request a written offer at all times. A reasonable employer will not object to your request for a written offer. If they do, it is a significant warning sign.
An Illustration of Salary Negotiation
If a company has made an informal verbal job offer providing a starting salary of $50,000, it is important to acknowledge that this amount may be lower than what you expected based on your research. Consider this amount as a starting point for negotiations, as the employer may have suggested this lower figure with the aim of reaching a compromise.
In this situation, you may initiate the negotiation by stating:
Employee: I am thrilled to have received this opportunity, and I am certain I will be a valuable addition to the team. With that in mind, would it be possible to consider a starting salary of $60,000, as this figure aligns with the industry standard for this position? I am confident in my abilities to deliver substantial value to the team, and I am optimistic that you will be satisfied with the results that I can produce.
It is understandable to feel anxious when expressing this, but it is essential to remain composed. Do not be overly concerned about the possibility of the offer being rescinded, as this is a rare occurrence. During the discussions, the recruiting manager may attempt to negotiate certain aspects of the offer.
Recruiting Manager: I am pleased that you have demonstrated interest in this position, and the team is excited to work with you. Concerning the budget for this position, it has been established at fifty thousand dollars ($50,000).
Employee: While cognizant of the current financial situation, I’m still interested in joining your team. I’m extremely excited about this opportunity but would appreciate you letting me know if the salary of $60,000 seems reasonable based on my prior experience and skills.
At this stage, the uncertainty of the negotiation can be unsettling. From this point, the negotiations can proceed in two different directions.
When the manager expresses something like this, it signifies the end of the negotiation.
Recruiting Manager: I am sorry, but this is our ultimate offer.
At the very least, you made an effort. However, in most cases, the response will be along these lines.
Recruiting Manager: Alright, I’m uncertain if this aligns with our budget, but I will inquire about it. We will provide you with an answer by tomorrow.
It is feasible that the hiring manager approached the HR team for consent to bargain for a salary that aligns with your expectations.
Recruiting Manager: Because we all want you on our team so much, I managed to secure approval for a starting salary of $55,000. However, that is the highest amount we can offer.
Now, it is up to you to make the ultimate decision.
If you follow these guidelines, you will be suitably compensated. Salary negotiations can be uneasy, but they are crucial for a successful professional career. Keep in mind that the main reason employees don’t receive an appropriate salary is not because they are not capable, but because they don’t express their salary expectations.