Negotiating salary can be daunting, especially for an employee. A lot can be at stake when you ask for the right compensation, and the possibility of conflict doesn’t help either. Although difficult, it’s not impossible. Let’s talk about how you can get paid fairly for your skills and effort the right way.
By understanding the process, you’ll be able to converse about salary negotiations in a way that favors you.
What is Salary Negotiation?
Salary negotiation is a process employees appeal to usually with their superiors to alter their pay, benefits, or other forms of personal or financial gain. It’s fairly common and most people go through it, even multiple times throughout their careers..
Salary negotiations just might be as old as business itself. Workers demanding more compensation while business owners wanting more labor in exchange is a cycle that doesn’t seem to end.
There are several benefits to negotiating with a hiring manager. A better 401k company match, stock options, company maintained vehicles are all on the table if you know how to participate in a salary negotiation.
Negotiating salary is a great way to get an immediate boost for financial compensation, but it can be a double edged sword. If carried out without adequate foresight, you might end up losing your job prospects with your current business. Suffice to say that you need to be in tune with how these negotiations work.
Why is Negotiating Salary Important?
Negotiating salary is important for a number of reasons.
The best case scenario would be if your salary increases with other benefits. Having more money to spend for preferably the same or a bit more work is always going to be a good thing. In addition, meeting your personal needs while being able to help out your family brings fulfillment and peace to your life.
While it may not be obvious, negotiating your salary also shows your employer how much you have grown and improved. An increase in skill, experience or learning is something that you should never discount.
Frequently Asked Questions
Can you lose a job offer by negotiating salary?
Yes, you can absolutely lose a job offer by negotiating the salary. There could be many reasons why this could happen. You might not have read the room correctly, done adequate research or even overestimate your worth to the company.
Most of the time, negotiating salary does not warrant an instant termination letter. However, if you want to increase your chances of success, you should be aware of the situation. Make sure to form a connection during the meeting and do the groundwork beforehand.
How do I negotiate a higher salary with HR?
To negotiate a higher salary with HR, you will need to show your value to them. You need to clearly state the value you bring to the organization. Showing past results, recent certifications and successes are great ways to set the ground to negotiate a higher salary with HR managers.
Does HR expect you to negotiate salary?
This depends, but the short answer is yes. HR managers are usually experienced and are familiar with salary negotiations for current and prospective employees. However, HR might not be so inclined to negotiate salary if it’s an entry level position.
It is best to negotiate your compensation either way. But remember to do so respectfully and professionally. Show what you have to offer to the organization and HR will definitely take that into consideration when making their final decision.
How can you Negotiate your Salary?
Negotiating your salary can be a challenge if you haven’t been in that position before or lack certain social skills. But these skills can be learnt by almost anyone that pays attention and applies them.
Here is how you can negotiate your salary:
Speak with your manager beforehand.
If you are applying for a job, this might not apply to you. Speaking with your immediate manager is a great way to understand the situation. You can ask them about your performance and whether starting a negotiation dialogue would be in your best interest.
Having solid relationships within the organization will help you get the best advice. Cultivating these professional ties is vital if you want to climb the organizational hierarchy while getting a bigger paycheck every month.
Show that your demands are valid.
You will need to showcase that you deserve the type of salary you are demanding. Showing past performance, initiatives taken and highlighting the overall benefit that the company enjoyed or will enjoy by having you will set the stage for your negotiations.
Naturally, business owners tend to favor candidates that have brought the most value for their business. If you have access to top management, show your presence periodically through your hard work and performance.
Highlight a better offer.
If you have another offer in hand with a higher salary, then you might want to mention this during the meeting. If your current employer values your service and worth to the organization, they will likely give you their best offer, match what offer you’ve been given, or go above it.
It’s best to understand your work environment first and whether you should even bring this up during a salary negotiation discussion.
What are 5 tips for Negotiating Salary?
Being informed is one of the best ways to increase your chances of success in an interview. Dig up everything you can about the company, the role, the team, etc. Once you have some relevant information, you can better present the reason why your salary needs to be increased.
Understand your value to the organization.
Negotiations work best when both parties are getting what they need. If your worth is clear to the organization, you are definitely getting a raise. If not, then you might want to highlight your professional achievements and steer the conversation that way.
Be prepared for the meeting.
Being calm and well versed with the meeting format will reduce stress and help spur better thought processes. Having a friend do a mock interview will help reduce some of the nervousness that comes with going to an interview. Dressing professionally will also help you be more confident and boost your self esteem.
Think about the benefits.
During the discussion, the potential benefits should be very clear. You should have a target salary in mind that you deserve before you go into the meeting. Make your arguments clear and have a plan to convince your managers to give you a raise.
Be aware of the possible backlash.
If the organization is in the midst of downsizing or you have a strained relationship with your managers, you might do more harm to your paycheck than good. Avoiding conflict is important, but so is moving your interests. Just make sure that the interview is respectful and focuses on the topic at hand.