Can You Negotiate Your Salary?

A million dollar question: Do you know your own worth? Think about it. Don’t let your employer dictate your worth. Here’s how you can put yourself in the driver’s seat to earn what you deserve. As the economy continues to rally, many employers are looking to hire back employees or even add new ones. While that might be a great news for those of us on the hunt for a new position, it can also be nerve-wracking — especially if you’re a fresh professional without a ton of experience in interviewing for a new position.

The most stressful part of applying for a new job might just be when the time comes to talk money. Specifically, how much money you’ll earn in your new position. The last thing anyone wants to do is open a new chapter in their career thinking they’re getting paid less than they’re worth. This also holds true for anyone who already has a job and is seeking a raise. The question becomes: How do you go about negotiating your next salary with confidence?

Here are five tips to consider the next time you need to negotiate your salary.

1. Market Analysis

Before asking for the big money, you need to know what the market pays. If you ask for too little, you demonstrate lack of preparation and a lack of awareness of your own worth. If you ask for too much, you risk coming off as arrogant and out-of-touch with an inflated idea of your own capabilities. You can always meet with people in similar roles at your company’s competitors. While they may not be comfortable sharing their salary, they could probably give you a range. Make sure you ask several people in order to get a more accurate, unbiased picture.

But pay tied to geography is also changing as more companies move toward remote-first and remote-friendly cultures. “Some companies are determining pay based on where the company’s headquarters is located,” says Elliott, “while others are implementing geographic pay differentials.” You can also dig deeper to get even more specific. Elliott says that “conversations around salary are becoming much less taboo — which opens the door to talking to other employees at the company. Don’t be afraid to reach out to people at your target company on LinkedIn to learn more about their organization’s salary structure,” adding that it also pays to ask about how the organization approaches future raises and cost-of-living adjustments.

2. Talking Points Matter

As you’re developing negotiation notes, it might be helpful to answer the following question as a framework for your conversation: Why do you feel you deserve a higher salary than the one the employer is offering? Put together a few talking points before you contact the employer and be as specific as possible. Those details might include following information:

• Results you’ve achieved in previous roles such as goals you’ve met, revenue you’ve helped drive or awards you earned. Use actual numbers.
• Years of industry experience, particularly if you have more experience than the employer stated as a minimum requirement.
• Skills or on the job certifications, especially if they are in high demand within your industry.
• Average salaries being offered by other similar employers for similar roles.

3. Prepare for tough questions

If you are switching to a new company, recruiters and hiring managers often negotiate too deep. So, they will likely be prepared to ask important, sometimes intimidating questions to figure out your motivations. It’s important not to get rattled by these questions and to remain honest. Some questions you can expect include:

• Are we your top choice?
• If we come up in salary, will you accept the position immediately?
• Do you have any other offers?

4. Beyond Paycheque

One fundamental rule of salary negotiation is to give the employer a slightly higher number than your goal. This way, if they negotiate down, you’ll still end up with a salary offer you feel comfortable accepting. If you provide a salary range, the employer will likely err on the lower end, so be sure the lowest number you provide is still an amount you feel is fair.

Money matters and it does help determine our lifestyle and the quality but that’s not all. The higher you move, the more you are paid and it also depends on the sector and industry one works for. Always remember that salary goes beyond your gross salary. If the company is not willing to meet your desired base salary, ask questions what else do they provide i.e., annual bonus, Life Insurance, Medical, Leave Fare Assistance (LFA) relocation allowance etc.

Related reading: Passion or Perks — What to Choose?

5. Don’t Go Against Yourself

One mistake that employees make too often out of excitement is to disclose your salary history. Your past salary is rarely relevant during salary negotiation cycle. Remember, you are at a new place or at the same organisation with higher responsibilities. Such discussions spoil the negotiations. So, be careful what you discuss. Also, one needs to tone down yet stay firm. Afterall, we are not bargaining any household commodity at the cheap roadside store.

Another mistake is attempting to negotiate an initial salary request you may have submitted earlier in your interview process. Finally, don’t negotiate your start date, work remote options or other working conditions at the same time as your salary. Secure your position and working conditions before attempting to negotiate your salary. This is unnecessary. You don’t want peripheral factors such as your start date to cloud your salary request.

Wrap Up

It may ease your nerves to know that when it comes to salary negotiation, employers expect candidates to negotiate. One survey found that 70% of managers expect candidates to negotiate their salary and benefits. So while the idea of the conversation may feel stressful, know that negotiations happen often and when done right, can set your lifetime earning potential on the right trajectory.

Negotiating your salary in a new job is very important. Yet, this process can be cumbersome. These questions can cause anxiety, especially if you shy away from confrontation. However, avoiding negotiation can hurt you. Your employer can take advantage of you. You could spend years being paid less than you are worth, if your company calculates annual increment as a percentage of your current pay. To take control of your compensation, you need to negotiate. You need to advocate for yourself with confidence.

About the Author

Muhammad Sajwani is the Founder and Managing Director of Evolve HR which aims at transforming, enriching and evolving Human Capital of Pakistan, Evolve HR thrives in challenging assumptions that hinder organisational aspirations, by creating innovative solutions that yield maximum impact, scalability & benefit to a wider base of stakeholders. As a Business Coach and Organisational Consultant, Sajwani knows how to combine business insights with people insights to transform organisations and put them on the path to growth.