Steps to negotiating your true value
Whether you are negotiating for a new position or looking to move up within the organization, the most difficult conversation for most employees is asking for the right salary. Salary negotiations are always challenging, especially when negotiating for a new job. If you prepare and do your homework, you can negotiate what you are truly worth.
More than half of employers expect their employees to ask for more money
Why are salary negotiations so challenging? Employees are simply fearful of asking for more money. A survey by Salary.com shows that 59 percent of workers have not asked for a raise in the last 12 months and 23 percent have never asked for a raise. At the same time, 57 percent of employers expect their employees to ask for more money.
Salary negotiations are a balancing act. You don’t want to appear too greedy or too desperate. You want to show self-confidence to get the compensation you deserve. Here are five critical salary negotiation strategies you need to know.
Do Your Research
- Assess market conditions and determine the compensation packages for similar roles at other companies.
- Research salaries by geography as well as industry. Factor in years of experience and any special skills.
- Contact a reputable staffing company that understands the hiring market in your industry to verify the information you have gathered.
- Know your key performance indicators (KPIs). Make sure that you have a strong sense of your accomplishments, and make a list of quantifiable contributions that help you truly stand out among your peers.
Understand Your Value
- Identify unique skills that relate to the position in that sector. For example, if you are an engineer looking for a job in the oil & gas sector, knowledge of operations of pipelines and marine terminals might be more valuable to hiring companies than standard procedures for design and construction.
- Identify those skills that hold value to the employer and put a price tag on them.
- Determine your unique value within your industry. Some industries tend to pay more than the same job in other sectors.
- Ask a recruiter or staffing firm about special challenges they may be aware of at the hiring company or specific skills and expertise that suits your background.
Organize Your Thoughts
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Emotionally prepare yourself to accept “no” regarding your request for a raise; you may negotiate a more mutually-beneficial deal or turn it into a “yes” later.
- Organize your thoughts so you can show confidence. Be sure to rehearse your pitch beforehand with a friend or trusted colleague, or with a professional at a staffing company
- Leave your emotions at the door; this is not personal.
Prepare & Set the Stage
- Schedule a meeting with the hiring manager to ensure he or she is not caught off-guard. The advanced notice will make the discussion less stressful for both parties.
- Be positive and confident. Executives appreciate confidence, so don't apologize for asking what you think you are worth.
- Never threaten to quit without a raise; that will only poison the working relationship moving forward.
Make Your Pitch
- Be specific about what you want as a salary figure (i.e.,"$67,250") instead of a range or round number (i.e.,"$65,000").
- Support your case with past accomplishments, but focus primarily on how you will contribute in the future.
- Ask the hiring manager how your performance will be evaluated. This will help provide concrete goals for your next performance evaluation and raise request.
Evaluate the Response
- Don't be afraid to counter the offer. Ask the hiring manager what the budget for this position is based on, and work off of that criteria.
- You may also want to consider non-cash alternatives as part of your compensation, such as perks, profit share, paid time off, or a flexible work schedule.
- Don't accept the offer right away. Like any big decisions, give yourself some time to consider the offer.
- Always make sure the offer is in writing to avoid any misinterpretation of the agreement.
When developing salary negotiation strategies for a new position, don’t sell yourself short. Determine your true market worth and don’t hesitate to ask for what you want.
