Are you looking to negotiate your salary but feeling confused and unsure of how to approach the conversation? Negotiating your salary can be a daunting task, but it doesn’t have to be.
Are you one of the 61% of people who fails to negotiate a higher salary after receiving a job offer? You might think that you have no bargaining power, but that’s not true. Negotiating your salary can have a significant impact on your long-term financial situation.
How to negotiate salary: Negotiating salary is a compromise, and both parties want to be happy. Focus on the value you bring, and avoid ultimatums.
In this article, we will provide you with tips and strategies for negotiating your salary, so you can get paid what you’re worth and feel appreciated. We’ll also explore three practical consequences of not negotiating and five tips for salary negotiation that you can put into practice right away.
Consequences of Not Negotiating
Compounding: The first consequence of not negotiating is compounding. A 10% difference in starting salary, $50,000 a year versus $55,000 a year, can result in a difference of $424,000 after 30 years, assuming a 6% salary increase every year. This doesn’t even take into account future career moves, where the pay gap could be much larger.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein
Lost Benefits: By choosing not to negotiate, you also lose out on factors that the employer could have easily agreed to. For example, more vacation days, education reimbursement, or a later start date – all of which could help reduce stress throughout your career and have you feeling better about your job, plus being more productive.
Missed Opportunity: Lastly, you miss out on an opportunity to make a strong first impression on your employer. Negotiation is a valuable life skill that benefits you both personally and professionally. By attempting to negotiate, you might make yourself more attractive in your employer’s eyes. Sticking up for yourself and knowing your worth are attractive traits.
When to Discuss Salary
It’s essential to know when to discuss salary throughout the interviewing process. Avoid talking about compensation in the early stages, as you want to talk about it when your stock is at its highest. The more information the employer has about you, the more they should like you, and the more willing they are to pay. The beginning of the process is not the right time to bring up salary, as you also don’t know them, and they don’t know you. You want to create leverage in your favor.
Avoid giving an answer if asked about your compensation upfront. Suppose the employer asks you about money upfront, provide them with what you’re currently earning or what you most recently earned. Then say, “I’m more concerned with the right fit and am sure that if we are right for each other, we will be able to come to something amenable toward the end of the process.”
Tips for Salary Negotiation
Change Your Mindset: Imagine you’re negotiating for a close friend or loved one. Be an advocate for yourself just like you would for them. This mindset shift can help you become more confident and assertive in salary negotiations.
Give a Specific Figure: Instead of a nice round number, give a specific salary figure. This shows that you’ve done your research and makes you more likely to get a final number closer to what you were expecting. make sure it’s not a random specific figure, but one that you’ve researched and can back up how you arrived at that figure.
Set a Walkaway Point: Have a worst-case scenario, a walkaway point. Research and come up with an ideal number, but also set a minimum number that you won’t go below. Set your boundaries and don’t be swayed by the excitement of the moment.
Be Confident and Assertive: Be clear about what you want and ask for it confidently. Don’t apologize for asking, and don’t be afraid to negotiate. You are worth it! Repeat: I am worth it! I am worth it!
Be Prepared: Research the company, the industry, and the role. Understand the market value for the position and the salary range for similar jobs. Practice your negotiation skills with a friend or family member. Role playing will help you feel more comfortable when the words come out of your mouth.
Mentality of Negotiation
When negotiating your salary, keep in mind that it’s a compromise. You and the employer both want to be happy. A compromise means bringing you both together so that you’re both happy. Avoid sacrificing too much, because you might not be happy once you’ve realized how much you’ve lost..
Think of the entire package, not just the financial component. Consider aspects like location, travel, working with fantastic people, and learning new skills. The financial component is one of the malleable pieces of the package, so don’t give them an answer if you’re unsure. Be prepared in case you do get an offer on the spot. It’s ok to ask for extra time to mull things over.
Philosophies for a Good Negotiation
The first philosophy is when to discuss salary. Wait until the employer has made an offer before negotiating salary. As pointed out earlier, don’t bring it up in the early stages of the process. Wait until you’re both sure you’re right for each other.
The second philosophy is to focus on the value you can bring to the employer. Let them know the unique skills and experience you have that make you the best candidate for the job.
The third philosophy is to avoid ultimatums. Avoid saying things like, “If you don’t give me this, I’m walking away.” It’s not helpful and can be perceived as aggressive.
Conclusion
Negotiating a higher salary after receiving a job offer can have a significant impact on your long-term financial situation. By understanding the practical consequences of not negotiating and following the five tips for salary negotiation, you can increase your chances of getting the salary you deserve. Remember, negotiation is a valuable life skill that benefits you both personally and professionally.
Negotiating your salary can be scary, but with these tips, you’ll feel confident going into the conversation. Remember that it’s a compromise, and both parties want to be happy. Focus on the value you bring to the employer, and avoid ultimatums. By keeping these philosophies in mind, you’ll be sure to have a successful negotiation.