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In this kind of scenario, what will you do? How can you go about it so that you guarantee success? The answer to these questions is negotiation.
Negotiation can be quite challenging for many people, especially when they don't know how to go about it.
But hey, should it be a daunting task? The fact is that you'll need to negotiate your salary at one point or another.
Whether you just got a job offer and are new to the process of negotiation or you're a staff member of a company who has earned a raise but hasn't gotten one, it's important you know how to negotiate effectively.
In this article, we'll be discussing 15 tips that you could employ to effectively negotiate your salary, including researching your market value, knowing the value you're bringing to the company, having a positive attitude, knowing when to walk away, being grateful, etc.
These tips will help you even as you negotiate your salary.
What does it mean to Negotiate a Salary?
Negotiating a salary means discussing the compensation package offered by an employer for a particular job position, with the goal of reaching a mutually acceptable agreement between the employer and the job candidate.
During salary negotiations, the job candidate may ask for a higher salary, additional benefits or perks, or more vacation time.
The employer may make a counter-offer, and the two parties may continue to negotiate until they reach an agreement that both find satisfactory.
Salary negotiations are often a standard part of the hiring process and are an opportunity for both the employer and the job candidate to ensure that the compensation package aligns with the value that the candidate can bring to the job.
15 Tips on How to Prepare for Your Salary Negotiation
Negotiating a salary can be a nerve-wracking experience, but it's also an important part of advancing your career and earning what you're worth. Here are the top 15 tips for negotiating a salary effectively:
1. Do your Research on your Market Value
The first tip to be considered as you prepare to negotiate your salary is to do research on the salary range for the position you're currently in, the industry, and your geographical location.
This will inform you how much to expect from your employer for that position and how much to demand for it.
2. Know the Value you're bringing to the Company
It's important that you know the exact value you're bringing to the company.
You need to be clear on what you bring to the table, which includes your skills, years of industry experience, your achievements, education level, career level, years of leadership experience, etc.
This will give you a better understanding of your value in the job market.
3. Be Confident
You need to meet your employer wearing the "confidence" outfit. You have to believe in yourself, in what you can do, and in the value you're bringing to the company.
The reason you're negotiating in the first instance is because you believe you're worth more than what you're being offered. So you don't want to go into an important occasion like that with a timid look.
4. Practice your Delivery
You are about to engage in a discussion that'll be a major leap for you in your workplace. You have to practice your delivery with close friends, family, or colleagues.
They could play the role of your employer and make the scenario a little less tense. Doing this can help you feel more comfortable during the actual negotiation.
5. Know the Best Time to Negotiate
When you want to negotiate a salary increase, whether you just got the job or you've been working for some years, timing matters.
You need to seek the best time to negotiate. It's important that the time you choose is perfect for both you and your employer to be comfortable having the negotiation.
Research shows that the best time to negotiate with your employer is on Thursdays and Fridays.
These days are good for negotiation because it's almost the weekend and most work loads have been completed as everyone is preparing to end their work schedule for the week.
6. Start your Negotiation on the High Range
The reason you're at this point is because you need a higher salary than your current one or than the one your employer is offering you.
So to ace this, you need to begin the negotiation by asking for a higher salary than you expect to receive.
According to Chris Voss, a former FBI hostage negotiator, "Start high. Studies show that the result of a negotiation is often closer to the first number mentioned than to the actual value of the item being negotiated. So, start with an aggressive but reasonable opening number that is on the high end of what you'd be happy with."
In agreement with Chris Voss, starting with a high range would eventually end up in a close figure you will actually be happy to settle for.
7. Be Flexible
While it's important to have a salary range in mind, it's also important to be flexible and willing to compromise.
You also need to be prepared to listen to your employer's offer and come to a compromise.
Flexibility is needed in your negotiation process, as it shows that you're willing to work with the employer to find a mutually beneficial solution.
8. Present Useful Data
When you get to the negotiation table, it's important to know exactly what to use as a reference that will give you an advantage.
To make this on your side, present meaningful and useful data and facts to back up your negotiation points.
For instance, you could point out your work history and achievements that make you worthy of the salary you're expecting.
Also, gather information about salary ranges from people who work in the same position at other companies in the industry.
9. Maintain a Positive Attitude
In the negotiation process, it's important that you stay positive. Have it in mind that many employers do not like being in a negotiation scenario.
Do not get yourself thinking too much about how the process is going. Take a breather; take the process one step at a time.
Just as it's important to go in with confidence, having a positive attitude will really help you.
Not knowing the outcome of the negotiation process is even the best reason why you need to remain positive rather than be negative.
10. Get Ready for Questions
As you prepare for the negotiation process, one useful tip you should know is that there is a high possibility of questions.
Your employer would want to ask you some questions as to why you want a salary increase.
These questions could be tough, and you'll need to provide detailed answers if you must get your intended results.
So get prepared for them, and make sure the answers you'll be providing are convincing enough to get you that salary increment.
11. Be Patient with your Employer
During your negotiation with your employer, the tendency for you to want to hasten the process may arise.
To get the most out of the negotiation, you should not rush the process.
Take the time to listen to what your employer has to say and the offer he or she is making you.
Also, ask questions and listen to your employer's perspective.
12. Consider Non-salary Benefits
Aside from the salary increase you're seeking, you should also consider some other benefits that come with the salary you're being offered.
Some of the other benefits, which include bonuses, stock options, and vacation time, could really be worth your consideration before coming to a decision.
These non-salary benefits could add significant value to your overall compensation package.
13. Don't be Scared to Walk Away
Knowing when to walk away from a negotiation table is an important tip when preparing for a negotiation.
Sometimes, when you negotiate your salary for an increase, it doesn't go as planned.
So, while it's important to negotiate, it's also important to know your limits.
If your employer isn't willing to meet your salary expectations, you should be prepared to walk away. Do not be scared to "take that walk."
Many times, walking away turns out to be more beneficial than just staying there.
14. Show Gratitude
Many times, the salary negotiation process may not be successful.
So, regardless of how the negotiation process goes, be sure to express gratitude to your employer for their time and consideration.
Doing this shows that you're a professional and a respectful individual.
Sometimes, when your employer sees how you express gratitude, it may lead to a rescheduling of another negotiation.
15. Get the Agreement in Writing
Ask for written evidence of the remuneration package once you and your employer have reached an agreement.
It should also include a job description and a list of responsibilities for your new position, in addition to the salary amount and any unique arrangements, like a signing bonus or allowance for moving expenses.
Make sure that your signature and that of your employer are on the document.
In some cases, employers may automatically include this in an employment contract; in the absence of such, they may require some kind of informal documentation.
Conclusion
It's important you know how to effectively negotiate your salary after you've been offered a job or after you've worked for a while with the company. Being prepared to negotiate is as important as the negotiation process itself.
These 15 tips to effectively negotiate a salary will be helpful if only you apply them. Don't get scared to begin the negotiation process, because until you make the move, you may not have that salary increase anytime soon.