Many employers are on the lookout to add new employees or hire back existing ones as the economy continues to strengthen. That's certainly good news for anyone looking for a new job; however, it can be nerve-wracking, especially if you're a young professional who has never conducted an interview for a new job.
When it comes to talking about money, applying for a new job might be the most stressful part. It's all about how much you'll earn after getting hired. It is the last thing anyone wants when they start a new career to find out that they are getting paid less than they should. In the same way, anyone who already has a job and is looking for a raise should do the same.
You have power when it comes to salary negotiations, even if you feel unconfident if you have been unemployed and need a job to support yourself and your family. Businesses cannot succeed without employees. Your contribution to the company provides value and you deserve to be compensated fairly for that value."
The younger generation has shown that they can be bolder in terms of negotiating salaries than older generations, but it never hurts to refine your technique. Here are six tips and tactics you can utilise the next time you negotiate your salary.
1. Research on your own
In order to enter your next salary negotiation with confidence, it's best to research how much your position is usually paid in the market. On sites of some job portals, you can find out how much someone with your experience, knowledge, and skillset will earn. It is also important to consider geography, as an urban job might pay more than one in a rural area, depending on the cost of living. When you're looking for a job in San Francisco, for example, you can leverage crowdsourcing sites like Blind, Built in San Francisco, and Reddit forums as additional resources.
In addition to the changes in pay linked to geographies, more companies are moving toward remote-friendly and remote-first cultures. “Some companies pay their employees based on where their headquarters are located, while other companies make payment differentials based on locations.”
2. Set a budget baseline
Having an idea of what your position should pay will allow you to approach the salary negotiation more like a conversation than a discussion. Any employee can ask questions about the employers’ expectations about pay for their position. A jobseeker can ask about the salary range the company budgeted for the position during an interview. If an employee is conversing with the interviewer, he or she can ask about the company's budget for the particular role.
3. Never negotiate against yourself
Avoid the mistake of disclosing your salary history during your salary negotiation. In most cases, previous salaries are not relevant to salary negotiations. Another mistake would be to try to negotiate an initial salary request you may have submitted earlier in the interview process. Lastly, never negotiate your start date, remote working options, or other working conditions simultaneously with your salary. You should always negotiate your wage once you have secured your role and your working conditions.
Your salary request shouldn't be impacted by peripheral factors like your start date.
4. Look beyond the money
It's important to remember that your pay goes beyond your base salary. To make up for the difference between your desired salary and the offer, ask if a sign-on bonus, relocation bonus or other one-time bonus or relocation and health expenses can be introduced.
5. Relax and enjoy the peace
A technique that might be helpful in your next negotiation is to embrace silence. Most people try to break awkward silences by speaking up, but research in the School of Management has found that when both sides pause for just a few seconds, they can reach mutually beneficial agreements. Based on the findings of 254 students, the researchers concluded that silence helped the students “move from default, zero-sum thinking to a more reflective and deliberative state, which may lead to the discovery that opportunities are available to increase the pie.”
6. Take action with confidence
In negotiating for a higher salary, the worst case scenario is not having the confidence to ask in the first place. People normally don't leave their jobs because they want a higher salary in a career. If you ask for more money, there's nothing to lose. It was actually after he educated a company about what the market was paying for comparable positions that one client received a higher offer.
Moreover, it's important to note that companies often make employment offers knowing that candidates will counter the offer.
To put it another way, you need to know when to walk away. Start salary negotiations with a bottom-line number and be ready to walk away if the company is not willing to meet it.
As a result, if you want to succeed, you have to feel engaged and comfortable in your position. Without feeling paid what you're worth, you won't be able to do that.