Salary negotiation is vital for maximizing the compensation you receive for all the hard work that you put in. Hence, it is critical for enhancing financial stability and standing. Yet, very few care about salary negotiation tips.
One Jobvite study shows that only about a third of employees negotiate their salaries. This is a disturbingly low number. The overwhelming majority are losing out on opportunities for higher earnings. Over 80% of those who negotiate their salaries receive more pay.
Since you spend the best hours of your life working, maximizing the monetary reward for your hard work, dedication and sacrifice only makes sense.
Besides, the extra money that you get from higher pay can go into your 401(k) for a safer and better financial future.
Here are the best salary negotiation tips.
1. Assess Yourself
There are a few factors that you can consider for arriving at a reasonable salary.
One of them is location. If you live in a more expensive area where living costs are above the national average, then requesting higher pay may be justified.
Another is experience. If the job requires three years of experience while you have more than that, you could ask for more pay.
Your qualifications, licenses, and certifications may also put you in a good position to negotiate more pay.
2. No, Your Boss Won’t Fire You
The biggest reason why we shy away from salary negotiations is that we think that the boss or employer will be offended. The employer might look for a cheaper replacement that is less demanding. This is a widely prevalent misconception.
Employers and bosses expect salary negotiations with their employees. So they won’t be offended, nor will they dismiss you instantly.
3. Be the Success Story That You Deserve to Be
Smart, motivated, and successful people negotiate higher salaries. They know that they deserve better than the current market rate due to their high skill, success rate, and experience.
You should not be afraid to speak up for yourself.
4. Explain Mutual Benefits
While negotiating salary, don’t just make it about yourself. Explain clearly how the company will win by paying you more. Say that a raise will convince you to commit in the long term for the company. This is a very attractive benefit since companies have to spend large amounts on hiring and training newcomers.
4. Check the Market Average
One way of finding out the market average for your position and experience is by looking up salaries offered under the same conditions at various job sites.
For a more accurate assessment of market rates, you can read up data available on Indeed Salaries. Find out figures for the national average as well the average pay in your area.
5. Capitalize On Your Success
If you are acing your targets, exceeding expectations, and going the extra mile, then you deserve higher pay. Don’t feel afraid to point it out.
You should cite the goals that you achieved and rewards and recognition earned. Try as far as possible to quote numbers.
6. Schedule a Meeting
You should schedule a meeting with the hiring manager or recruiter. It is acceptable to negotiate over the phone or via email. But negotiating in person is better. You can express your gratitude and show appreciation for your company personally. Be clear on your requirements while negotiating your salary with the hiring manager or recruiter. They will directly communicate your request and suggestions to senior persons who will settle the matter.
7. Rehearse With a Good Friend
You can try rehearsing salary negotiations with a sincere friend. This will give you the poise and finesse that you need to confidently make your case.
Your friend will be able to provide feedback and suggestions for improvement. It may be a good idea to record the exercise to see how effective you were.
8. Balanced Approach
While you should appear grateful and appreciative, you should not be meek. Likewise, while you should be confident, you should not appear vain. Carefully rehearse the persona that you will be presenting at the meeting.
You should definitely be yourself. But at the same time, you should look calm, respectful, understanding, and appreciative.
9. Go Above the Target Amount
While negotiating, you must request more than the target amount that you have in mind. Negotiations inevitably entail a lot of bargaining. Hence, the recruiter will almost certainly insist on an amount that is lower than what you suggested. Bearing this in mind, you should leave some room for compromise.
If the recruiter asks for a range, pay close attention to the lower limit in your suggested range. For your employer will likely propose an amount that is closer to this lower limit. Hence, this lower limit must be higher than your target.
10. Be Flexible
Play it smart and be flexible. Your employer might refuse to raise your pay, but they might increase benefits. Take a close look at the benefits to see if they are worth it. They could offer you a work-from-home allowance on certain days which could save the cost of traveling. Or they might offer more leaves or extra stock options. Assess their monetary value and don’t hesitate to accept them in lieu of a greater salary if the monetary gain is reasonable.
Salary negotiation is not an option. It is absolutely essential for earning more, and you know you deserve it.
The extra money that you earn via salary negotiation should not all be spent on leisure. It is best to save most of it for a happier and safer future.
If your spending habits are not ideal, then your worries are over. The Doctor Money App can help you to spend smart and save more.
Download the Doctor Money App to make the most of your salary and pay raise.