Nora received a job offer for the position of her dreams. She was ecstatic. She wasn’t even focused on the salary. Fortunately, she shared the news with one of her mentors, who had also been her very first boss. “Don’t accept without negotiating the salary,” her mentor advised her. He shared these statistics about salary from a recent Glassdoor survey:
- Three of five employees do not negotiate their salary.
- Women are less likely than men to negotiate—68% of women vs. 52% of men abstain from negotiating. This is a shame, because salary is almost always
- When men negotiate their salary, they’re over three times more likely than women to succeed. This may stem in part from confidence—men tend to have an easier time asking for what they want—though that’s not to dismiss the impact of sexism. However, it’s getting better: The gender gap is much lower for younger workers than for older ones.
- Older workers as a whole are also less likely to negotiate salary. As younger employees set the pace for negotiations, the older generations would be well advised to keep up—with their experience, they’re likely settling for less than they could have.
Here are 4 steps to succeeding in your next salary negotiation so you can Get Paid What You’re Worth.
1 – Build Up Your Confidence
Having confidence is crucial to salary negotiation. Knowing the interviewer expects you to negotiate should give you a confidence boost. Remember that the raises you get down the road will depend on your starting salary. Mentally prepare your spiel about your track record of success. Get ready to cite the specific results of projects you handled in your current or previous role. If you’re asking for a raise from your current boss, prepare to discuss your successes as thoroughly as you would for an interview. Rehearse with a friend to make your answers as eloquent as possible.
2 – Do Your Research
Whether accepting a new position or asking your current boss for a raise, find out the typical salary range for your position in your geographical area. Remember, this could have changed in recent years. When you’re knowledgeable about salary ranges, you’ll feel much more confident making an offer. Consider the current state of the industry, too. Was it struggling when you accepted your position, but now flourishing? That gives you plenty of room to negotiate salary.
3 – Hold Off On a Number
Try not to be the first to put forth a number, says Michael Zwell in Six Figure Salary Negotiation. If asked about your expectations, try to give a less specific answer, such as “My expectations are in line with my experience and abilities,” he adds.If forced to give an answer, factor all the benefits you would like into the number, says Roger Dawson in Secrets of Power Salary Negotiation. Such benefits may include potential work bonuses, health insurance, retirement plan, vacations, and tuition reimbursement.If you’re switching careers, request the chance to renegotiate after six months, says Zwell. This gives you a window of time to prove yourself in the new role, and then to request more than you could have initially.
4 – Use Leverage
If you’re applying for a new position, indicate that you’re considering another offer, says Dawson. At the same time, signal some degree of flexibility about salary. Highball your target salary, but say something like, “I might be able to take a little less,” he suggests. Know the company is almost certainly lowballing you if they make an offer—they expect you to make a higher counteroffer.
As Zwell says, if you’re negotiating with a current employer, you won’t be terminated for aiming much too high, whereas with a prospective employer, it’s possible you could lose the opportunity. However, aiming much too high with your current employer could signal that you’re unhappy with your position, he asserts.
If you’re offered a promotion within your company, remember that salary is negotiable here as well. Bring up the salary question with your potential new boss, not your current one, says Zwell. If made an offer, don’t be afraid to make a counteroffer. Consider what they’d have to pay a new hire, as well as the value added from your familiarity with the company.
Most importantly, have patience. The salary negotiation process can take a little time, and not settling on an offer too soon can benefit you over your entire career.
Negotiate in person if at all possible, says Dawson. It shows you’re serious and gives you a chance to respond to questions as they arise. Ask the company to put your agreement in writing, he adds. This eliminates any misunderstanding, especially when factoring in the benefit and compensation packages. Remember, the company is typically as eager as you to reach a mutually agreeable salary and move on!
3 Keys to Mentally Preparing Yourself for Salary Negotiation
Mark Asks: I’ve been asked to take on more responsibility, but no mention has been made of any pay increase. I think this is a good time to ask for a raise, but I feel mentally unprepared to do so. What can I do to gain the courage I need to bring this up while the time is right?
Coach Joel Answers: Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” This quote is true for many aspects of our lives, but especially true when it comes to salary negotiation. Whether you’re negotiating your salary for a new position or asking for a raise at your current employer, if you want to succeed, you must prepare. To mentally prepare yourself, focus on these three facets:
- Confidence,
- Patience
- Knowledge
Salary Negotiation Tip #1: Have Confidence in Yourself
Having confidence in yourself is critical to a successful salary negotiation.
Although the outcome of your salary negotiation may significantly impact your livelihood, it’s important to not take the process too seriously. Instead of stressing over the process, relax and enjoy the negotiation and believe in yourself. Believe that with the right strategy you will win the negotiation.
Don’t be so invested in the outcome that you’re unwilling to take risks.
If you’re unwilling to take risks, you’ll likely not be willing to ask for what you really want. Be fearless and courageous when negotiating, as I emphasize in Get Paid What You’re Worth. Of course, this courage must come from having confidence in yourself and your value to the company.
Believing in yourself will help you manage your stress during the salary negotiation process.
It’s natural to feel awkward, uncomfortable and stressed going into a negotiation. However, instead of trying to avoid the uncomfortable confrontation, that comes with the process, know in your heart that you are worth every penny you are asking for and the more confident in your worth, the more money you can make.
To help build your confidence, understand the fact that your salary is negotiable.
The reality is 90% of all human resource professionals expect you to negotiate your offer. With this in mind, they often purposely present a lower offer than they are willing to pay, expecting you to negotiate. Use this knowledge to give yourself an even greater boost of confidence in the salary negotiation process.
The most common reason why new hires don’t negotiate a salary or employees don’t ask for a raise is they don’t think they deserve more money. As a result, when you undervalue yourself, you underearn – shortchanging yourself and your family! Be confident and believe in yourself! Combine this confidence in your worth with patience, and you’re two-thirds of the way to success.
Salary Negotiation Tip #2: Have Patience in Yourself
Patience is a virtue, especially during the salary negotiation process.
Most salary concessions happen at (and sometimes after) the deadline. Although you may be tempted to give in early and accept an offer, be patient. Don’t try to rush the process, if you want to increase the chances of getting what you want.
When you consider an offer for less than you want, it’s critical that you fully understand how much you’re losing by settling for less.
When accepting a new position, remember future raises are often a percentage of your salary. By starting with a lower initial salary, you’ll continue to earn less than you would with each of these raises. For years, you’ll feel the repercussions of initially accepting a lower salary. A little patience now can pay off exponentially in the future!
Salary Negotiation Tip #3: Have Patience in Yourself
The third component of mentally preparing yourself for negotiating your salary is the acquisition of key pieces of knowledge.
This begins with knowledge about the employer with which you’re negotiating. Be sensitive to their economic state. The challenging economy, over recent years, has been difficult for many businesses. For this reason, a hiring manager or your boss may be under pressure to work with increasingly tight budgets. Do your research and be mentally prepared to make concessions to the salary figure in exchange for other benefits or perks that may be easier for the hiring manager or boss to say yes to.
You must also do your research about the salary range for the position you’re interested in, factoring in your specific experience and education as well as your geographic area and cost of living.
If you’re asking for a raise, track the results of your hard work, to quantify the value you’ve brought to the company. This knowledge not only ensures you’re requested salary is appropriate and realistic, but also helps solidify your confidence in your value.
Lastly, learn about the company’s needs and how you can fulfill those needs.
Reiterate to the hiring manager why you are the best fit for the position and, therefore, worth the salary you’re asking for. When you’re asking for a raise, again demonstrate to your boss why you’re a valuable member of the team. Use quantifiable examples, when possible, to show how you’re activities are best fulfilling the mission of the company, taking advantage of opportunities, and best overcoming the
challenges they face. Again, this knowledge not only helps you convince the hiring manager or your boss of your value, but it should also give you an increased level of confidence, which will help ensure your salary negotiation is a success.
