Many employees are intimidated by salary negotiations, especially if they have no prior experience with it. However, managers are more open to discussion than you think. In fact, 75% of managers expect negotiations when offering a job; However, employees often do not take their chances.
To help professionals who have never done this before, 10 Young Entrepreneur Council members share insights into salary negotiations from an employer perspective. They successfully offered tips for asking for a higher salary and shared how these strategies worked in the real world.
1. Be quiet after saying what you want
Say what you want and then keep quiet. I think this may be one of the most underrated tips in the book. Salary discussions can be nerve-wracking and it’s easy to try to cover up discomfort with more words to justify what you want. If you know your value and know what you bring to the table, you don’t need to explain yourself too much. You should be prepared to back up your queries, but one simple sentence is enough to share your market value and the skills you bring to the table. Try saying something like, “I’m looking for a salary in the X range based on my current market value and my XYZ skills that give me an edge in this role.” And then shut up. It is this calm confidence that usually elicits a positive response from the other side. – Andrew Powell, Learn to Win
2. Be reasonable
Make sure there is an idea of comps in similar companies and ask reasonable. The biggest turnover of the discussion is when candidates ask for irrational things and make it clear that they have not done their research on what the market is. When candidates come up with a well-researched argument as to why they want a specific package, I am more open to meeting their queries. – Josh Weiss, Reggie
3. Go according to your price, not the market
The current recruitment environment is insane. It’s easy to find some statistics somewhere that say that somewhere in your job title now reduces X dollars a year. There is nothing more annoying to a CEO than throwing away what the “market” says you should pay. Instead, make a compelling and detailed case for the extraordinary value that you bring to the organization. If you can’t make that story, chances are you won’t get a pay rise. – Beck Bamberger, BAM Communications
Those who are discussing salary should understand that it is really a discussion. Employers will always offer the cheapest offer first. It is your job to discover what that is and to bring it about. Many of those who are new to this style do not understand it because in the past the wage offer was disposed of before the application. When discussing wages you actually think your work is worth the company. Take stock of your work worth ahead of time. Determine the final number you would like to set before the discussion meeting. Then go seven percent higher on your first counter offer. In the process, you may have to remind the employer of the value of your work so that they can increase their offer. – Baruk Labunsky, Rank Secure
5. Be prepared
The best advice is prepared for salary negotiations. Know your worth as an employee of the company and as a person performing work functions. Identify these two different elements. The first is to understand where the company is now and what you can bring to the company to help it reach its goals. The second is to know what your value is in the open market. What are employees doing with similar responsibilities? Both are important because if the company is at a turning point, you can be more valuable to them than any other company performing the same function. On the contrary, you want to make sure that you are at least being paid for what others are doing in similar roles. – Jared Weitz, United Capital Source Inc.
6. Sell yourself and appreciate your accomplishments
Humility should be on your mind when discussing salary increases. This is the time when you need to sell yourself and appreciate your accomplishments more than your initial job interview. This does not mean that you have to be rude or imply that the company will be bad without you; Just be sure to mention every positive trait and achievement you can think of. Having such a long list will make your case much more credible and it will also strengthen your confidence. – Bryce Welker, CPA test guy
7. Speaks in terms of experience
As an employer, I know when an employee knows their value, which goes hand-in-hand with better work and more commitment. It goes hand in hand with life experience. That’s a good thing! There are several aspects to the discussion. One is to speak in terms of experience and value that you bring to the role. Research what is consistent with the experience. Remember, this is a conversation that will make both parties a little uncomfortable, but the discomfort is okay. Try to be clear about which skills or experiences will be most valuable. That way, even if you don’t get a high salary, you know how to approach conversations about raising. – Tyler Bray, TK Trailer Parts
8. Be your own cheerleader
Be your own loud cheerleader and get ready. It’s easy to be driven by passion when it comes to pay and compensation, but what we (or a company) think we value is often combined quite strictly with what we can prove. It is best that employees have a strong understanding of their personal finances and thoroughly research their fair market value before they sit down to discuss. Canvas your professional network, use any number of free online tools and outline a detailed budget to unveil your minimum figure key and a suitable pay band consistent with your role, experience, qualifications and sector. Most importantly, advocate for yourself – no one else will. If an employer refuses to meet with you at a fair level, think carefully about whether your contributions are really valuable. – Rang Zhang, tenant
9. Keep track of your output
Some employees avoid pay raises for fear of conflict or rejection. Others ask for a pay rise in a way that doesn’t sell the real value they bring to the company. The truth is that once you do a balanced job you come out of the door with a fundamental mindset that you are constantly selling the value you bring to the company. This brings me to the first step in discussing salary increases: Track your output on a daily and weekly basis. Write it down in a journal and reflect on your progress each week. Those meetings, projects, extra courses, extra hours, and applied insights will come in handy when you file your case with your boss later that year. – Samuel Themothy, OneIMS – Integrated Marketing Solutions
10. Highlight your values
You always want to highlight the value that you have added to the company in the last one year. Describe in detail your goals for the company for the coming year. An employer knows you’re doing a good job, but they probably don’t know all the details of your contribution or your future plans with the company. If you can disclose your future goals to the company, they are more likely to invest in seeing your goals play out in the coming year. – Mary Harcourt, Cosmoglo