Let’s be honest. It is no one else’s business but your own to take care of your finances. While your boss or manager might be the kindest person on the planet, they will only agree to pay you as much as you think you deserve. It is in your own interest to negotiate your salary.
How to prepare?
Do your research and know your market value.
There are websites that can help you understand how much you can expect to earn. One of them is Glassdoor which gives you an average salary range and job opportunities matching your job title & location. Reed holds a database of average salaries per industry in the UK. If you want a more detailed information, check Payscale and fill in their lengthy information form. Their data is research-based so your information will also contribute to the overall market results. Note: Resist sharing the number you are interested in first.
Know why you deserve the pay rise.
This is where selling skills come in place. Focus your arguments on your outstanding performance as well as savings/sales that the company has made thanks to your hardship. Your achievements and how important you are to the business are what makes you an asset. Make it a case of a mutual interest
Timing is everything so know when to ask for a pay rise.
The best time to negotiate your salary is when you’re accepting a new job offer. If you don’t have this luxury, find the best time to talk about salary increase. Avoid negotiations at the end of the year and peak season when everyone is busy and stretched. The best times to talk about salary are after you successfully completed a project, your job responsibilities have changed or during your performance review.
Practice the tone and language.
The way you talk to someone has as much impact as what you say to them, so make sure your language is measured and tone is inviting. You want to sound professional and confident yet welcoming and friendly. If you know the person you are going to talk to well, know the language they speak and what would interest them in giving you what you are asking for.
Be flexible and prepared for rejection.
How you handle a rejection is as important as how negotiations itself. When you hear an answer you aren’t pleased with seek a solution and compromise. Instead of emotionally jumping into the I am leaving then mode, ask leading questions to establish when it will be possible. Sometimes what you are missing is revised KPIs, additional training or projects you should take on to prove yourself, so make sure you are open to alternatives.
Why is it important?
Apart from the obvious reasons, like having more money in your bank account, it also boosts your confidence and self-worth, which in return oftentimes results in better work results. It also gives you the leverage to negotiate salaries when you’re looking to progress in your career, because recruiters judge your seniority on a number of aspects, salary included. Moreover, it helps you practice and improve your negotiation skills and improve your selling skills.
Other aspects to take into consideration when negotiating a salary:
- Bonus Scheme. Oftentimes companies offer a performance-based bonus on top of your salary, so if the salary is not negotiable, use the bonus scheme as an opportunity to negotiate an increase on your terms.
- Benefits package. A lot companies offer great benefits (some more useful than others), so review the entire offer and whether the benefits are actually of use for you or not.
- Training and development opportunities. This is very important for your career goals. If the training opportunities are a selling point for your potential employer, find out how it exactly works in practice.
- Career progression opportunities. All companies say the career progression opportunities are endless. Ask for specifics and express your interest.
Are you considering accepting a new job offer? Find out what warning signs you should look out for in a new job offer.