Salary negotiation is always an important part of your career, whether it's a new job opportunity or a pay rise. Negotiation skills are one of the most important factors for success, but it doesn't hurt to be well-prepared.
Salary negotiation can be an awkward conversation for most people, so it's no surprise that 59% of respondents to a previous Glassdoor survey said they didn't negotiate and accepted the salary they were offered. For women, the acceptance rate of the first offer may be even higher, which does not help to narrow the gender pay gap.
Of course, everyone wants a fair salary. However, some workers tend to shy away from negotiating pay because they do not want to appear arrogant or greedy, or risk disrupting the established workplace dynamics.
In setting annual pay rises, however, employers tend to make a restrained offer, which tends to be budget-conscious and is calculated based on inflation or market averages. If you find this to be low, it is essential to negotiate the expected salary. In this article, we have put together 5 useful tips to help you negotiate your salary successfully.
tips on how to negotiate a higher salary.
The most important advice for salary negotiations is to always stay within reason. Whether you want to negotiate for a basic salary or a full benefits package, strive to be cooperative and keep your negotiating style professional. Threatening to resign or trying to present a counteroffer clearly gives a negative impression of you as a person and can suggest that you are motivated only by money.
Before negotiating a pay rise, it is worth making a list of arguments to support your salary demands. This can make a good impression in terms of wanting to initiate a two-way conversation on the subject, whereas an impersonal email stating our salary expectations or requests is more likely to come across as a demand and therefore more likely to end in a rejection.
So to ensure a successful pay negotiation, it is worth preparing in advance by following the steps below:
1) assess your options.
First, identify the salary ranges currently available in the sector for similar jobs. This is important so that you know where your own salary stands compared to the average, and so you can avoid being underpaid or setting too high a salary for an expected increase.
Knowing the approximate salary ranges will be an excellent basis for setting a realistic salary requirement for yourself.
This will be useful not only when you are looking for a pay rise, but also when you are looking for a job, as you can specify your salary requirements when you apply, and if the salary range in the offer does not match your expectations, you can continue the salary negotiation on that basis.
To help you determine your realistic salary needs, you can use Randstad's salary calculator to compare your current salary with other people working in similar jobs. The calculator will show you whether your current salary is average, below average, or above average for the sector, so you have a benchmark to determine your salary needs.
2./ determine what you want to achieve.
Once you know the current rate of your knowledge and experience in the labour market, be prepared with answers to questions from the other party about your salary requirements. It is almost certain that your supervisor will ask you about your exact expectations, so it is a good idea to set an exact amount in advance, rather than a salary range.
It is a good idea to start the negotiation with an amount close to the higher end of the salary range, so that if the employer offers a lower amount during the negotiation (which is often the case), you still have room for manoeuvre in the negotiation to keep the amount acceptable to you.
In addition, being prepared with an exact amount will let the employer know that you know your options and that you have come to the salary negotiation well-prepared.
3./ prove that your work is worth it.
To have a successful salary negotiation, it is essential to be able to back up your salary demands with good arguments. Demonstrate how you have contributed to the successes and achievements of the past period that have moved the team or the organisation forward. This is what makes your work really valuable to your employer. The best way to do this is to back up the results with numbers.
Also, be prepared to discuss ideas and plans for the future that will contribute to achieving the organisation's goals. This will demonstrate that you are planning for the long term in the company and that you want to create value.
4./ be prepared.
Be prepared to justify your request for a salary increase thoroughly. Your supervisor will certainly ask why you think you deserve the amount and how you calculated it. It is particularly important to be able to answer with confidence and concentration.
If you are clear about your skills and the value of your knowledge, you should have no difficulty in supporting your claim. Think about what you have done in the past to achieve results, move things forward or improve a process. If you have been given a new task that you have done well, or if your responsibilities have increased, you can also mention this as a reason.
In the negotiation, avoid awkward explanations or apologies for bringing up the salary increase. This can only give the impression that you are not fully confident or convinced that your work is worth it. Always make a strong case.
If you are interviewed in person, pay attention to your appearance. Dress casually but with a business style, and when it comes to colours, dark blue or dark grey are recommended as they symbolise credibility and strength.
5./ set a minimum.
As a final step, determine the minimum amount you would accept as a raise. Here you can again make use of the information you have gathered on average salary ranges in the past. You should not refer to this amount in the discussion, but rather use it as a reference point to keep the wage negotiation within the range that is still acceptable to you.
when should you ask for a pay rise?
You should only ask for a pay rise when there is a real basis for it: if you have a measurably lower salary than the average, if you have been given more responsibility in your job, if your workload has increased, if your responsibilities have been extended or if you have done something outstandingly well.
Before you ask for a pay rise, you should also consider how long you have worked for the company. At least after a year, it is worth raising the issue if you feel it is really justified. However, don't go overboard by asking too often either, as this will give the impression that you are only motivated by money.
However, it is worth focusing on the overall benefits package in all cases. They may only be able to provide a lower increase in basic salary than the amount you ask for, but other fringe benefits such as cafeteria, health insurance or travel allowances will all add to this amount.
what should you do if the pay negotiations do not go as expected?
It may be the case that the department's annual budget or the company's financial situation does not allow a pay rise, or only to a lesser extent than expected. If you are not satisfied with the offer, you may want to consider changing jobs.
More and more job advertisements now show a salary range, which can make the job hunting process easier, so you can apply for vacancies where the salary is in line with your expectations and you won't be surprised when you are interviewed or offered the job.
It can be useful to seek the help of an HR consultant when looking for a job, as they have up-to-date information on salaries in specific market segments. If there is contact information in the job advertisement that you find interesting, you can ask questions directly. If you create a detailed profile, there is a good chance that you will be contacted with offers that match your needs.