If you’re struggling with the feeling that your hard work isn’t being compensated fairly, perhaps it’s time for a salary negotiation. You’re not alone in this sentiment, as a study conducted by recruitment firm Indeed found that out of 1024 workers surveyed, 81% expressed dissatisfaction with their current pay.
Data compiled by the U.S. Bureau of Labor also reveals that American wages are yet to improve despite inflation rising, as seen in the chart below.
The good news is you can always take control of your earning potential by negotiating a higher salary. This way, you can achieve your professional and financial goals (like that passive income portfolio you’ve been considering). As the book Fearless Salary Negotiation: A Step-by-step Guide to Getting Paid What You’re Worth says;
Salary negotiation is a business deal, and you are the business.
Josh Doody
Negotiating a higher salary with your employers also demonstrates to them that you know your worth. Of course, this makes it less likely that they will undervalue you in the future.
This article will discuss strategies for researching salary data, building a case for a higher pay, and navigating the salary negotiation process.
STEPS TO NEGOTIATING A HIGHER SALARY
Before you begin salary negotiation, there are steps to ease the process. Some of them are;
1. RESEARCH AND PREPARATION
Before proceeding with salary negotiation, it is crucial to research a couple of things that would aid your chances of success. One is researching the average pay for someone with your job and skill set. Understanding the market average might provide an excellent starting point for your payment request.
Further, it can also serve to justify your request when objections arise. Here are some top-rated and low-cost tools that can aid with your research and preparation:
- Glassdoor: Glassdoor is a website and app that provides salary data and company reviews. It’s free to use and can offer insightful information about your business and sector.
- Payscale: With Payscale, you can access tools for salary comparison and compensation information. This website has a free basic and premium plan with more features.
- Indeed Salary: Indeed Salary offers free features like a salary calculator and customized pay range.
Your aim while utilizing these tools should be to answer questions like “ What is the typical annual salary for this position in my city? What do comparable businesses in my area pay their employees in this position?”
In addition to this, it is crucial to know your company’s salary policies and pay structures. When you learn more about how much they can provide, you can adjust your bargaining tactic in light of the information.
Part of the research process is also evaluating your skill set.
Popular career coach Anna Runyon once said
Your salary should reflect the value you bring to the table, not just the hours you work.
Anna Runyon
Make a sincere evaluation of your abilities and experience concerning your job. By compiling your value and contributions to your work, you can use this to your advantage when requesting the raise.
2. TIMING AND APPROACH
An essential part of negotiating a higher salary is approaching the conversation strategically.
One key factor to consider is timing. The timing of the increased request can significantly influence the negotiation’s success. It’s ideal to hold off on asking for a raise until you’ve worked there for at least a year or until you’ve acquired new responsibilities that make it appropriate.
Your approach is another crucial factor to take into account. You must maintain a respectful and mature demeanour during the process. It would help to refrain from being agitated and issuing demands and ultimatums. Instead, emphasize your accomplishments and value as reasons you stand by your decision.
Another approach to negotiating a higher salary is focusing on the future and not only the past. Highlight how you can continue to benefit the firm in the future. If you have any new talents, additional duties, or initiatives you’re leading, mention them.
3. WHILE NEGOTIATING
It is necessary to be confident during your salary negotiation. Ensure you speak clearly and maintain good eye contact. You may practice with a trusted colleague before contacting your bosses. You should know involving a colleague won’t be a bad idea. It will make you well informed on how much more or less than others you may be getting.
Regarding your pay, always start slightly higher than your goal and then negotiate down. This is because your employer may offer a lesser amount. If that happens, it helps you stay in line with your wishes.
Further, prepare for critical questions while negotiating. Your employers are no strangers to these negotiations, and so they would probe you with them to know your motives.
Maintaining your composure and being sincere regarding these inquiries is crucial. You might anticipate queries like; Are there any other offers you are considering? Would you resign if we rejected your proposal?
4. HOW TO HANDLE OBJECTIONS
Salary negotiations can be a sensitive topic, and it’s not uncommon to experience objections. While staying professional still, carefully ask for reasons to understand the fuss. Is it due to budget constraints, or do they think your request is unreasonable? Understanding their perspective can help you tailor your response.
You may consider negotiating other compensation or benefits when an objection also arises and seems like a dead end. Examples may include additional vacation days, a bonus, or a flexible work arrangement. Asking for a promotion or professional development opportunities may increase your earning potential in the long term.
BOTTOM LINE
Negotiating for a higher salary can impact your financial well-being and work ethic. Do not hesitate to advocate for yourself and your worth in the workplace.
