5 principles to apply in a salary negotiation
5 principles to apply in a salary negotiation
We’ve covered the topic of salary negotiation from various angles in the past: from tips on making a compelling pitch for a salary increase to the must-dos to nail the art of salary negotiation.
As we approach the end of another year, it’s time to take stock of one’s career growth and progress. Are you on the right track in regards to your professional growth? Are you being paid a salary that reflects your value and contributions to the company? If the answer to the latter is no, perhaps it’s time to negotiate for a salary increase.
Fast Company reports that a staggering 49% of job candidates never try negotiating an initial job offer. The most common reason they don’t: fear. The article also quoted researchers Michelle Marks and Crystal Harold’s findings that, “employees who negotiated their salary boosted their annual pay on average of $5000.”
Women Don’t Ask– a famous study by Linda Babcock – documents the reasons for women’s general reticence in asking for higher pay. The study revealed that only 7% of women negotiated their first salary, in contrast to a staggering 57% of men who did.
If you’re one of the many who find the prospect of salary negotiation daunting, fret not, we’re here to share the 5 key principles you should apply in a salary negotiation, which will give you added confidence and a stronger negotiating position.
1. If you don’t ask, you won’t get
In an ideal world, our diligent efforts and contributions at work would be noticed and acknowledged by the bosses in the form of generous bonuses and salary increments without us having to ask for it. Unfortunately, that’s not the way it works.
The universal truth is: if you don’t ask, you won’t get. It’s that simple. It’s an uncomfortable subject to broach, and one faces the risk of looking ridiculous if the boss says no. But on the other hand, being told no isn’t the end of the world, and it could lead to a well-deserved salary increase. Taking the proactive approach also demonstrates confidence and a go-getter attitude, which will get your boss’s attention, if nothing else.
2. It doesn’t matter what your current pay is
How much of a salary increase you ask for shouldn’t be affected by your current pay. Rather, it should reflect your current market value in relation to current economic conditions and the average salary of your peers. For the latest information on the average salary for your profession, take a look at the JobStreet.com Salary report page.
3. Know what you’re worth to the company
In addition to the above, it’s also imperative that you justify your worth in terms of past contributions as well as how your skills and experience will help the company achieve its goals in the foreseeable future, not to mention in the long run. How you justify your worth is equally important, so you better practise the subtle art of self-promotion, where you promote your accomplishments without coming across as obnoxious.
You also need to know how far you can push your luck while still exuding confidence. Do your research. Search online for salary trends and reports, or check out online forums. You could also ask peers in your field to get a sense of where you stand on the general payscale for your job and responsibilities. Unless you have a figure in mind, the outcome of your negotiation will likely be dictated by your manager.
4. Have a counter offer to fall back on
As they say, don’t put all your eggs in one basket. Always have a Plan B. In this case, have a counter offer to fall back on if your boss says no to your ideal figure. You could negotiate for a better benefits package which factors in telecommuting options, flexible hours, holiday allowances, increased training budget, etc. It’s important to look at the big picture rather than developing tunnel vision on the topic.
5. Stay objective and neutral throughout the process
One of the primary rules of negotiation is to have a good poker face on at all times to mask your reactions from the opposite party. Staying objective and neutral also helps us remain calm and focused throughout the negotiation. It’s easier said than done, but remaining detached during a salary negotiation allows you to stay in control.
Above all, you should approach the salary negotiation with genuine conviction that you deserve the salary increase you’re asking for. Confidence can have a captivating effect on those around you. That said, it’s important to strike the right balance between confidence and humility. You want to impress, not intimidate.
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