Standing up for yourself financially can be intimidating. But negotiating for a higher salary isn’t necessarily a battle, and there are many ways to do it effectively.
One example Cappelli gives is to start the negotiation by using the upper end of your salary range. This shows employers you have done research and are serious about the number.
1. Know Your Value
The first step in any negotiation is knowing your value. That goes for employees, customers and even homebuyers. You should be able to articulate exactly what makes you unique and deserving of a higher salary. For example, if you’re a skilled engineer who brings significant intellectual capital to a company, highlight that fact during your negotiation. This is important to emphasize in your resume, but it’s also crucial during a conversation with a potential employer.
If you are negotiating for a job, make sure to research the salary ranges for the position and industry you’re pursuing. You can use this information to help you determine what the minimum number is for the position and how much of a buffer you should have at the high end of the range.
Also, never lie about your current salary. It can backfire on you later if the hiring manager learns the truth. Instead, reframe any metrics your negotiation partner uses — like percentage differences in salaries – into market values, explains Pynchon. This will give you the credibility to push for a higher salary.
2. Be Specific
When the hiring manager asks you to name your price, frame it as an offer instead of a demand. This will help you appear more confident and prevent the interviewer from feeling like you are setting unrealistic expectations.
Do your research and find a range that represents your market value in the industry. When negotiating, it is best to begin with the higher end of that range. According to She Negotiates founder Victoria Pynchon, doing so will make the interviewer think that you have done your research and are well informed on your ideal salary.
It is also important to be the first one to propose a number, as this can create an anchor that will guide the conversation in your favor. This is a strategy used by experienced negotiators and can help to give you the upper hand during the negotiation process. It is also an effective way to show that you are serious about the job. By providing examples of your past work experience and personal achievements, you can demonstrate why you are worth the higher wage.
3. Know Your Goals
When you walk into a negotiation, it’s important to know what your goal is. You should have a number in mind that is more than the salary range you found in your research, but not so high it’s out of reach. Choosing a target number will make you appear more prepared and confident during the conversation.
If your employer can’t meet your negotiated salary request, don’t take it personally. Remember that they’re trying to find someone who will be a good fit for the company and its culture, and you may not be the right fit for them. With this article on Easy Finance, you can learn about GST payments that are available in Canada to boost your income levels.
Instead, focus on the non-monetary benefits that are important to you, like moving your start date or extra vacation time. It can be easier for an employer to budge on these items than it is on salary. Using a resource like Glassdoor or PayScale can help you determine what the most effective benefits to negotiate are for your situation. Choose 2 or 3 to prioritize and mention these at the beginning of the conversation.
4. Be Flexible
Whether you’re seeking a new job or already in one, you should always negotiate. Almost all employers expect candidates to negotiate their salary, and if you don’t, you could be missing out on the money you deserve.
In a negotiation, you may need to give up some of your requests in order to get the things you really want. That’s why it’s important to rank your priorities. This will help you decide what’s “must-have” and what is a nice-to-have. It’s also a good idea to have an idea of what the other party wants or needs in order to bridge the gap and come to an agreement.
If you’re going into a negotiation for a flexible work schedule, for example, it might help to gather information about your colleagues’ working arrangements, as well as the average salary for flexible jobs in your area. It’s also worth rehearsing your speech ahead of time – this will not only boost your confidence, but it can help you sound more convincing. To learn more about effective negotiating skills, visit this article.
5. Be Honest
While you should be confident and assertive during a negotiation, it’s important to remain honest. The last thing you want is to be caught in a lie, especially during salary negotiations. For example, if you’re asked why you deserve a higher salary, don’t lie and say that you want more money because of a lack of job security or other financial reasons. This could backfire and cause the company to view you negatively.
Instead, explain how your unique skills and experience will add value to the employer’s business. This will help you make a case for why you’re worth more than the initial offer. You can also highlight any perks you’re expecting that aren’t included in the initial offer, such as health-care benefits or flexible work hours.
If you’re nervous about negotiating, it can be helpful to practice with a friend or mentor who is familiar with the process. Also, keep in mind that negotiating isn’t a battle; it’s a way to solve problems and come up with an outcome that works for both parties.
6. Be Prepared
There is no guarantee that you will get what you ask for in a salary negotiation, but it’s worth trying. Not only does negotiating help you earn more money, but it also lets your employer know that you’re invested in your career and that you don’t want to settle for less than what you deserve.
The key to a successful negotiation is being prepared. This means doing your research and knowing a reasonable demand before you even sit down with the hiring manager. “Being able to explain why you deserve the salary you’re asking for will give you a lot more room to bargain,” says Peter Cappelli, professor and director of the Center for Human Resources at Wharton School of the University of Pennsylvania.
It’s also important to think about perks that might make a lower offer worthwhile, like stock options, bonus programs, more vacation time, or flexible work hours. You can also ask about additional benefits that are relevant to your goals, such as tuition reimbursement or childcare assistance.
7. Be Prepared for a No
Getting the salary you deserve can improve your quality of life, so don’t be afraid to ask. But, as with many things in life, hearing “no” is sometimes inevitable. It’s important to be prepared for a no when you’re negotiating — whether it’s for a higher salary, more vacation time or a plum project or assignment.
When a hiring manager or other person you’re negotiating with says no, it may be because they’re unsure of what you’re asking for or because they’re not sure you’re worth it. This is when it’s most critical to listen carefully, understand the reason behind their no and find ways to address it.
If the person you’re negotiating with simply won’t budge, try to keep the conversation open by suggesting alternatives like flex time or more vacation days instead of a higher salary. This will help you stay calm and show that you’re willing to consider alternatives. You also may be able to negotiate other aspects of the job that you’re happy with, such as your work environment or the amount of travel required for the position.
8. Be Flexible
If you’re able to, try to talk with your employer before accepting a job offer about flexible work hours. That way, they’ll have had a chance to hear your ideas and may be less likely to refuse them in the future.
Ask about the company’s policies and whether any employees have negotiated flexible working hours in the past. Also, find out what their reasons for refusing were. This can help you understand what objections might come up and how you might overcome them.
It’s a good idea to prioritize salary before asking for other benefits, such as flexible work hours, PTO, and education perks. Doing so will ensure that the negotiation remains focused on your goals and objectives rather than being derailed by issues that are outside of your control. It’s also a good idea to prepare alternatives that you can suggest for any areas where your employer has a hard boundary, such as more vacation time or a better benefits package. This will show that you’re a team player and that you’re willing to compromise.