Every time you start looking for a job, salary negotiation is something you must come across. It is therefore essential for someone to master the guidelines and way of ensuring that you earn what you are worth.
Salary negotiation is the process of discussing a job offer with a would-be employer, in negotiating for a salary or other benefits that meet the standard of the current market and those of your personal needs. For negotiation to be successful both the employer and the employee have to realise that they have a common goal. Moreover, the goal is to ensure that the employee is paid accordingly for their experience and skills.
For an employee, it is crucial that you build an evidence-based case before you start the process of negotiating for a better salary. This article is going to cover some of the basics and guides on how to ensure a successful salary negotiation. It is worth noting that negotiations need not be adversarial and parties do not need to be aggressive to one another when making their point.
Importance of Salary Negotiation
Salary negotiation is a regular thing, and it is part of the process of employment. Getting the salary you want is part of your career development. Pay is a way of the company showing gratitude to you for the services you have rendered to them.
There are so many reasons why it is crucial for one to negotiate their salary and they include
In the corporate world today when you are looking for a new job the first question is always about your salary history. By failing to negotiate your salary, you are decreasing the value you will show to the next employer to evaluate your prospective pay. If you settle for more money now, your future employer is also likely to pay you more.
You will also be able to earn more income currently and over the long haul. Various studies have shown that when you negotiate for your pay before accepting a particular job, then you increase your chances of earning a lot at that job and also in the future. A research done Babcock showed that men who regularly negotiated their initial salaries were able to raise their income by an average of 74%. Also, for the women, they at least earned one million more over their lifetime.
Parents can also negotiate for children care in their companies. If you are a parent, you will realize that the cost and time that is required for childcare add-up quickly. You can, therefore, use salary negotiation to ensure that you secure a better working arrangement that will enable you to take good care of your child.
Negotiating for a better salary also helps show your employer that you know your value. Salary negotiation is also a way of showing your employers that you are confident and bold enough to show them what you bring on the table and that you know your worth. It also shows your employer that you are optimistic about the skills you have to offer. These skills are what the employers will use to give you more responsibilities in the company. There is an old saying that goes ‘no one will Know your Worth Unless You Do.’ Those are just some of the few reasons why it is important to negotiate your salary and to ensure you earn what you are worth.
Salary negotiations might not necessarily involve the cheque. There are also some benefits, which you should consider during negotiations before singing or resigning the contract. Some of these perquisites or benefits include university tuition reimbursement. As college tuitions continue to get expensive, those who want to keep learning will prefer this benefit to a higher raise. There is also the mentoring and coaching benefit. This benefit is priceless as it can lead to professional growth and even the growth of an interpersonal relationship with other talented members of your organisation. You can also negotiate for health and fitness benefits such as fitness stipends, health care coverage and many others. This benefit is different from health and dental insurance.
Finding out your worth.
Before you begin any salary negotiations, it is essential that you know your worth. Knowing your worth is the starting point for anyone who wants to negotiate their salary. It is also the most important thing, as it will give you a range on how much you should be asking. Without knowing your worth, you might ask for too much and end up pricing yourself out of a job. On the other hand, you might ask for too little, and the manager ends up seeing you as someone who is not confident with his or her skills. You might end up getting the salary that you don’t deserve. For you to get this right, you need to take several steps to ensure that you get a salary that is reasonable and meets your needs. Some of these steps include.
Do online research; this will help you compare different salaries of different people in the industry that you want to join. For example, you can use the glassdoor’s’ know your worth tool’ to see the estimated market value or what other people on your field are earning. It would be best if you never went to a negating table without proper research.
For you to know your worth, you should also factor in your experience. Your experience will give you an added advantage especially if you are a job seeker.
You should also factor in your flexibility. Being flexible will always be an added advantage as it not only makes you worth hiring it also keeps you from being underpaid. Your flexibility is what sets you apart from the others.
Lastly, you should also factor in your education. As it will help you in a long way especially the additional licenses and certifications that you have earned. All these become a powerful bargaining chip when negotiating for your salary.
Once you have factored all these, you will be able to determine the range of the salary you are worth.
Salary Negotiation Tips
After determining your worth, the next thing to do is learn some of the tips that are necessary during negotiations. As long as you have researched well and have the material required and evidence to back up your claim, then you should worry about nothing. Some of these tips discussed below will help you have a productive and successful salary negotiation.
Know your salary range
First, it is vital that you have a salary range rather than having an exact figure of what you want. A variety will help you negotiate and finding a compromise will be an easy task.
Choose the appropriate moment
It would be best if you also waited for the proper time before asking for compensation. You should be patient especially when you are being interviewed and try your best not to bring the issue until the employer makes an offer.
Base your claim on evidence
If asked to give a specific figure make sure you provide a salary range that based on particular evidence or research that you have done before. This evidence should form the basis of your negotiation. Ensure that you talk about the requirements for the role based on the experience you have. It is crucial to resist talking about your personal financial needs.
Do not sell yourself short.
When negotiating it is also crucial that you don’t sell yourself short. The common mistake made by most people when talking about their previous salary is that they do not include benefits as part of their total compensation. For this reason, they undervalue themselves, which leads to a lower wage.
Consider other alternatives
When negotiating, it is vital that you consider other options. For example, whether there are employee benefits and perks that are negotiable especially in companies whereby salary is not transferable.
Practice your pitch
Before going to the negotiation ensure you practice your tone more than once. You should find someone to listen and critique your proposal. Exercising will help you feel the cadence of speaking points loud in a conversational setting. The foundation of a successful negotiation is comfortable, and this only happens when you practice
Do not be afraid to say No
If you are sure of what you are offering a simple No can also bring you a better offer. So in any negotiations, you will be doing you must consider saying ‘NO.’
Be gracious at all times
Lastly, you should be polite at all the times even if the decision arrived at is demanding and ungrateful. Make sure you re appreciative, understanding and thankful for the opportunity given to you.
Listed above are some of the basic tips that will ensure you have a successful negotiation between you and your employer. If you follow these tips, I assure you bargaining will run smoothly, and you will come out the victor. Now that we have talked about the tips for consultation it is also essential that we focus on the actual negotiation especially if you are already working and you need a pay rise.
How to Negotiate a Raise
Even if your employer knows your worth and the value, you add to the company it does not necessarily mean that he or she will give you a salary raise. In most cases, you must prove your claim to receive the increase you want. It is just the same as when you are establishing your case for higher starting salary when you are entering a new job. We will discuss some of the tips below.
Make sure you prepare
The first thing to do if you are looking for a new job is to develop. It would help if you started by gathering all the necessary documents, your salary survey information, recent performance and appraisals that documents the position you are currently doing. It would be best if you are also aware of the company’s policies regarding compensations. You should also have a clear idea of what you want and the justification for your claims. All these should be available and ready for review by you superior.
Use internal moves
You can also use internal steps as leverage for your negotiation. Whenever there is a new role in your company, you should take the opportunity to negotiate your salary increase. If you are considering making a new position or a promotion in your company, then it is crucial that you also ensure the management gives you a salary increase.
Choose the right moment
You must ensure that you choose the moment to pitch your proposal correctly. Even though it might be a while since you were given a salary increase it is still vital that you wish the right moment. For example, a good moment can be the time when your employer is quite impressed with your performance or when the firm is experiencing an increase in revenue and profits.
Be flexible and consider other options
During negotiations, you must also ensure that you were flexible. For example, you could think a vacation for some months instead of a salary increase. You must also ensure that you are firm and persuasive when laying down your claim. Whether your negotiations are a success or not it is essential that you start setting up yourself immediately for another round of talks. You can only do this by ensuring that you perform better in your new role. In many cases, a salary increase accompanies an increase in responsibilities. Since you had shown your worth, it is essential you prove that you deserved the increase in your salary.
Most of the managers will now expect a lot from you even if your pay increase did not come with changes in responsibilities. To ensure that you increase your chances of getting another pay rise next time you negotiate it is crucial that you exceed their expectations on whatever you are doing. You must also ensure that you get in writing, all the necessary information about your new responsibilities from your boss. After any salary negotiation, it is important to note that it is not always the last one. You must also note that your job might become more difficult and hard or you might end up with another promotion. All you have to do is ensure that at all times you only get what you are worth.