Scouting for the job that pays out the salary you’ve always wanted? Then what you really need are professional skills and tactics on how to negotiate a good salary. Read on to learn more.
You have already triumphed over the most challenging aspect of your job search: locating the ideal position, submitting an application, and being extended a job offer.
You still have one vital errand to run before you can crack open that bottle of champagne or go out and treat your loved ones, and that is: Negotiating your salary.
You may feel tempted to take the first offer, sign the dotted line, and launch into the subsequent phase of your professional life. In most cases, this is not the wisest course of action.
How to negotiate a salary that works for you?
Roughly 84% of employers anticipate that the candidates they hire will attempt to negotiate the terms of their offer. That is to say, if you take the first offer that comes your way, you might be passing on a better job with a higher salary.
What steps can you take to ensure you successfully negotiate your wage and obtain the amount you rightfully deserve?
When you get an offer for a new job, negotiating your compensation can be a nerve-wracking experience. Nevertheless, some strategies by experts seem to have worked in the past and have facilitated successful negotiations.
Below are some of the few strategies that, when implemented, can significantly contribute to helping you achieve the offer of your dreams!
Strategies to negotiate for a better salary
Here are a few strategies to use so you can negotiate a better salary:
Know your worth
When negotiating your salary, you can't suggest a random number because the interviewer knows the market value of the profession you're applying for. You need to do your due research and understand precisely how much you're worth and what are the average salaries for your job in your region.
Your salary can vary based on several factors, including:
- Exact skill-set you possess
- Experience levels
- Employer policies
For example, a developer based out of Mumbai earns 2-3X that a developer makes in Lucknow or even Bhopal. Understand these factors first before you head into any form of negotiations. Keep these factors into consideration before you ask for your desired amount.
To get the right amount, it's also essential that you do your research on factors such as:
- The salary rates of your location
- Salary averages that are based on your experience
- The salary average for your specific skill-set (like, for example, B2B salesmen make more than telemarketers)
- Salary average for any specific employer you're applying for
You could also use online tools to understand what works best for you and find the right pay range.
Keep the focus on your skills
Negotiations happen between both parties, and you must find a way to divert the focus away from yourself and what you can bring to the company and make that the main discussion point in your negotiation.
You also need to explain to the recruiter how you will meet and exceed the expectations for your role. Suppose there are any past achievements that you have for any similar role. In that case, it's best to use it as a limelight during the negotiation conversation so that your recruiter knows what you're willing to bring to the table.
Factor in the benefits and perks
Your job offer isn't just about the salary. Sometimes, that is just the base amount you are paid monthly, and it can seem low. The need then is to focus on perks and benefits that come with your offer that you can capitalize on.
If you factor them the right way and manage to set your expectations properly, you can earn more than your salary.
Most companies and startups have started to value these perks and ensure that their employees swoon with various benefits, making company retention stronger. Some of these inclusions are -
- Improved insurance plans
- Flexibility for days off
- Option for WFH (Work From Home)
- A budget for personal development
- Enhanced retirement savings plan and more
When you're comparing the various job offers you have in hand, make sure that these benefits or perks are also a part of the negotiation so you can choose a job that makes working more pleasurable and stress-free for you.
Some companies might not be ready to negotiate the pay range you're asking for, but they might be open to giving you more benefits.
If that's the case with your company, try to negotiate more benefits from the offer.
Pick a range (and choose the higher number)
When deciding on a sum for your salary, always pick a range that you're okay with beforehand. You also must ensure that the company will likely pay for your skill-set.
When you're negotiating for your salary, you can also pick a number on the higher end of that range. Here's why:
If you follow popular advice and provide a pay range, the manager will most likely give you a number on the lower end of that range. That number will end up being the anchor in that particular negotiation.
This means that even though you can ask for more, you won't be able to go far beyond the number suggested by the hiring manager.
Instead, you can pick a number that's in the higher range. This way, you end up dictating your terms and are more likely to get a favorable outcome.
It is imperative that you do not embellish either your credentials or your history of expertise. It is crucial to remember that gaining the employer's trust is essential to the art of pay negotiation.
If the employer learns that you have been lying to them, as is likely to happen if you are, you will not be able to negotiate the compensation package you desire.
Always be truthful, and make it a point to strike a healthy balance between promoting yourself and maintaining a reasonable outlook on what you desire and how much you deserve.
Refuse the first offer you receive
The initial offer made by an employer is almost seldom the last one they make.
You should not take the first offer that the employer makes to you.
Thank them for their time, and let them understand you'll get back to them within the next 24 to 48 hours.
Use this time to consider the offer carefully; do you believe it to be worthwhile, or do you think it falls short of what you deserve?
Make your interest in the job clear
Try to convey your enthusiasm for the company and the position while negotiating a wage.
You can even drop hints that you've received better offers elsewhere (with higher salaries), but you'd still like to work for this company if they can match or beat them financially.
To avoid looking like you're only interested in money, it's best to approach pay negotiations tactfully.
Get the deal on paper or email
After you have settled on a pay, have the employer put the terms in writing.
Not only does this account for the increased income, but it also includes any additional benefits you've finalized with the recruiter after the negotiation round.
Having the agreement put in writing guarantees that there has been no misunderstanding about the new arrangement and that all parties are on the same page.
Once you follow these techniques, you'll begin learning how good negotiation can lead to better offers. Keep in mind that you can accept the offer on the condition that it be revised to include the things that are important to you but are not included in the current offer. This will lead to a reasonable and orderly discussion until everyone is satisfied.
However, the employer is less likely to take kindly to an all-or-nothing approach, and it could lose the job if you provide it. Maintain a respectful demeanor, express appreciation for the offer, and then politely request to revisit some parameters until everyone is satisfied.
All the best!