Negotiating a salary can make you uncomfortable; especially when you aren’t working. You tend to accept the very first offer thrown your way.
You aren’t struggling alone.
Studies show that 60% of people are uncomfortable talking about salary.
How do you go about negotiating your salary effectively?
In this article, we will look at 5 basic points to negotiate well and not have to accept just anything.
Let’s get to it.
#1 Preparing Your Negotiation
Preparing for a job interview increases the probability of a higher salary offer by 60%.
It’s important to prepare your salary negotiation beforehand. You must present a valid reason to your hiring manager as to why you deserve more pay (which you most likely do).
This is important because if you haven’t prepared yourself; you risk falling into awkward situations…you’ll come off as nervous..sound unsure…all factors that can greatly reduce your chances of getting the salary you want.
Perception is everything. If you don’t value yourself you can’t expect your new employer to do it for you.
To do this you must:
Put yourself in the recruiter’s shoes and imagine the questions he or she might potentially ask. Prepare precise and convincing answers. To effectively persuade them and convince them to grant you the salary you deserve.
To do this, you must have an answer to these 3 questions.
- What are your convincing achievements?
- What makes you different from the others?
- How can you specifically help the company solve it’s current challenges?
#2 Preparing your arguments
You have to study your market and the company in which you are applying. The goal is to show the added value you can bring. Focus on promoting those skills of yours that are both crucial and relevant to the job at hand.
Recruitment is no longer based solely on a diploma or experience. Behavioral/Soft skills can make the difference and are just as important.
#3 Know your value in relation to the market.
It is essential to know your value on the job market; to know what you’re worth and what you will personally bring to the company. If you’re confident in the value you can contribute to the growth of the company your hiring manager will take note and will want to learn more. You’re making them understand you’ve done your research and you know you’re worth. This will aid greatly in your persuasive efforts to achieve a better offer.
Here’s what you need to do:
Research the fair market value of your position. Use sites such as Glassdoor’s Know Your Worth tool to estimate what employers are paying professionals with your job title in your area. Once you have this information compare it to what the company is offering then add tax based solely upon what you can specifically offer the company to justify your request for more pay.
Glassdoor is also an excellent source for salary data. It can come in handy when you’re looking for a number to start your negotiations at.
4# Best time to negotiate the salary
So, what are your salary expectations? The most frequently asked question in 80% of job interviews…
There is no need to rush when it comes to salary negotiations, It’s usually better to let the employer address this question on their own. Currently most employers are quick to mention salary early in the process to prevent wasted time for both parties.
Talk about salary can sometimes begin as early as the first meeting, but Nick Deligiannis, Managing Director for recruiting firm Hays, suggests jumping in on the discussions no sooner than toward the end of second interview. This is because most hiring managers will raise the topic of salary during this stage if you are the preferred candidate – and that is the ideal position to be in for negotiations. If your potential future employer doesn’t talk salary then, the verbal offer stage (not after a written offer) is pretty good timing as well. It may be tempting to discuss salary early but the longer you wait the more power you have. At this point they’ve invested invaluable time getting to know you and your value on a more intimate level.
“…If salary isn’t brought up, a job offer will be made verbally before a formal written offer is made,” said Deligiannis in Lifehacker. “This verbal offer stage is the next best time to negotiate since you’re now firstly positioned as the employer’s top choice. Thank your hiring manager for their offer, affirm your enthusiasm for the role and organization and explain that you’d like to discuss the compensation package on offer.”
What Salary Should You Ask For?
Part of the problem is not knowing how much to go for.
Here are some guidelines that I use every day:
- Up to $90K, go for up to $5K extra
- From $95-125K, go for up to $10K extra
- If offered over $125K, go for up to $15-30K extra or more even depending on the level and your courage/confidence level.
The higher the initial number is, the greater is the “extra” money available. What is built into these numbers is what can be called a “fear factor”; that is, the fear that if you ask for too much you will lose the offer. Don’t fall for this. And if a company decides to retract the offer because of your request; be thankful. You dodged a bullet by not forcing yourself to work for a company who will never pay you what you’re worth.
