When it comes to negotiating a salary, there are a few key things to keep in mind before you get started. For starters, your company’s goals matter more than you might think. So if your workplace is primarily concerned with cutting costs and maximizing profits, they will have little interest in giving you an increase. Furthermore, the longer you’ve been employed at that company, the better your chances are of securing a big bump up.
We are not showing you 50+ low value tips. Rather, here are the 5 most important, short and sweet tips to negotiate your salary.
Most Valuable tips on negotiating a salary
1) Know the Value of Your Experience
Employers are most interested in the number of years of experience you have, not just how long you have worked for them. If you create an outline of your experience over the years, this will set you apart from other candidates.
2) Know How Much You Deserve
This is important because most employers will attempt to negotiate the salary with you rather than with you and you. Why? Because they’ll know what you expect, and they’ll figure out how much they can get away with paying you without angering you. What do you want? Ask yourself honestly so that you can decide how much is fair.
3) Know the Economy and Your Company’s Goals
Are you headed into a recession? That could seriously limit your company’s ability to pay you. On the other hand, if they are expanding business or looking to attract new customers, that might result in a bump up in pay. Whatever is happening in your career needs to be considered when deciding how much money you think is fair.
4) Know Your Worth
What’s your salary? What skills and experience are you able to bring to the table? How much do you earn for your company? You should be able to justify your compensation package, and show the company why you deserve to be paid more. Have facts and figures ready, like what your direct reports make, what they produce, and how much money they save. And remember to double-check that these facts and figures are accurate BEFORE negotiations start!
5) Know When You’re Not Getting What You Want
If it’s clear that the company isn’t willing to negotiate with you, then go into negotiations knowing that you won’t get everything you want.
The point isn’t to say you shouldn’t try. It’s just to say that when it comes to salary negotiation, you should have an idea of the value you offer to the market.
It also doesn’t help that negotiation does not always work out in your favor, but at least if it does, then this article has helped prepare you for the experience!
When not to refuse?
If the company is especially large and reputable, and their demand (and offer) seems reasonable, you may want to think twice about refusing. Basically, I’d only really recommend negotiating salary with companies that are not top-notch. Which might sound contradictory, but the key here is that you should still think positively about your new job and about your future there.
Negotiating a raise can be stressful, especially if you’re worried they’ll take it away from you. Instead of seeing this as a battle, see this as a conversation based on mutual interests.
The salary negotiation is very often the part of the whole hiring process where your skills and intelligence will be tested. So if they don’t know what the market rate is for your position, it’s time to show them who’s in charge.
It’s therefore critical that you and the company find a compromise that works for both of you. For example, if you’re earning less with a potential new employer, do not expect the position to be compensated by raising your salary. This is often what you see in movies where the character that’s been laid off from one company has to accept a job within another that’s only slightly better for them.
This is something you want to avoid doing. Remember, this is an opportunity for you to get a job offer from a reputable company and in most cases they will be able to pay for your skills in return. So why would you want to waste that opportunity?
In my experience, it is best to negotiate your salary during the job interview and during the first month of working with the company. You may be just as stubborn or just as convincing, but either way, make your case for what you deserve. If you can hold out for those moments, it’ll be worth the effort because those are when companies have been warmed up and they’re most likely willing to receive a new offer from you.
The first thing you have to figure out is what it’ll take to be happy at your new job. Look at how much money you’ll be making on a regular basis.