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How to negotiate salary

9/29/2019

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How to negotiate salary advice provided by www.market-connections.net
How to negotiate salary - Posted by www.market-connections.net
Career Counseling September 29, 2019
How to negotiate salary

How to negotiate your salary

Negotiating your salary is a stage that comes either after a job offer has been extended or after you ask for a raise. Now it’s time to negotiate and you must learn HOW TO NEGOTIATE YOUR SALARY.
 
To begin, confidence is important in negotiations. You’ve probably heard the phrase, “Negotiate from a position of strength.” Strength comes from confidence. Confidence is built when you:  

  1. Are prepared (you’ve done your homework,
  2. Understand the employers’ decision-making parameters,
  3. Have learned how to ask,
  4. Have chosen the right timing, and
  5. Know what you want out of the negotiation.
 
The most important thing to remember about salary negotiations is that most salaries are negotiable. That doesn’t mean you name a figure and the company either matches it or not. It means you’re ready to listen to what the company has to offer and give it consideration. Just remember to have realistic expectations and realize that you may not get everything you want.
 

The most important thing to remember about salary negotiations is that most salaries are negotiable. That doesn’t mean you name a figure and the company either matches it or not. It means you’re ready to listen to what the company has to offer and give it consideration. Just remember to have realistic expectations and realize that you may not get everything you want.
 
1. Do Your Homework
When you’re buying any major item (house, car, big screen television), it’s important to do your homework and find out the value of the item. It’s also important to do your homework when negotiating a salary or a raise.
 
Research your market value — what you’re worth — for your position, level of experience, and industry. In addition to online salary sites, you can get information from your professional or trade association.
 
Research the prospective employer and its salary structure. If possible, talk to current or former employees. Alumni of your college or university who hold similar positions or who are employed by the same company may provide you with useful information. (LinkedIn can be a good source of contacts for this.)
 
One of the easiest ways to find out salary information is online. There are websites that offer solid salary information, including:
 
Bureau of Labor and Statistics (wage data by area and occupation)
http://www.bls.gov/bls/blswage.htm
 
Occupational Outlook Handbook (earnings)
http://www.bls.gov/oco/
 
CareerOneStop Salary and Benefits Information
http://www.careeronestop.org/toolkit/Wages/wages.aspx
 
U.S. Office of Personnel Management Salaries & Wages (federal salary information)
http://www.opm.gov/policy-data-oversight/pay-leave/
 
Salary.com (offers free data and personalized salary reports for a fee)
http://salary.com/
 
Payscale.com (requires you to contribute data in order to receive information)
http://www.payscale.com/
 
Glassdoor.com (requires you to contribute data in order to receive information)
http://www.glassdoor.com/Salaries/index.htm
 
SalaryExpert.com (neat feature: allows you to search jobs by pay range)
http://www.salaryexpert.com/
 
JobSmart Salary Surveys (site can be hard to navigate, but offers links to industry-specific salary surveys)
http://jobstar.org/tools/salary/index.php
 
Robert Half International Salary Guides (accounting, finance, financial services, technology, legal, creative positions, administrative jobs)
http://www.rhi.com/salaryguides
 
You can also do a Google search for “average salary for (job title).” This can sometimes lead you to more specific salary data for a profession.
 
When using sites like Payscale.com and Salary.com, compare job responsibilities, not job titles. A job title can mean different things at different companies.
 
If you are relocating, part of your research should include cost-of-living adjustments. You can use the CNN Money Calculator (http://money.cnn.com/calculator/pf/cost-of-living/) to assess differences between cities.
 
2. Understand the employers’ decision-making parameters
It can also help to understand what a prospective employer considers when deciding about a salary. The employer may evaluate:
·         the level of the job within the organization
·         the scarcity of the skills and experience needed for the job in the job market
·         the career progression and experience of the individual selected
·         the fair market value of the job you are filling
·         the salary range for the job within your organization
·         the salary range for the job within your geographic area
·         the existing economic conditions within your job market
·         the existing economic conditions within your industry
·     company-specific factors that might affect the given salary, such as comparative jobs, company culture, pay philosophy, and promotion practices.
 
3. Know how to ask
When negotiating your pay, don’t name a figure that is absurdly optimistic, and be careful not to risk naming a figure that is lower than what the company is ready to offer. Instead of naming a price, say something like, “Based on my experience and skills, and the demands of the position, I’d expect to earn an appropriate figure".
 
You may also ask for additional responsibility — for example, a chance to lead projects or a task force. This gives you the opportunity to position yourself for a raise in the future, as higher-level responsibilities merit higher pay.
 
Prepare Supporting Documentation
When asking for a raise, provide written materials to back up your salary request. This can include salary data from websites, previous performance evaluations, letters of recommendation, and job postings for similar positions. If you haven’t been keeping a “brag file,” now is the time to start. Keep a journal of your work accomplishments, letters of commendation from your boss, testimonial letters from customers, and awards. Identify what makes you different (and/or “irreplaceable”) from other candidates or employees.
 
When asking for a raise, prepare a 1- to 5-page document outlining what you’ve accomplished (including testimonials, either from other employees or excerpted from performance reports or project status updates) and your salary research.
 
Make a list of your work achievements and quantify the value to the company (in terms of numbers, percentages, and dollar figures). This provides concrete data for why you’re valuable to the company. Be prepared (with examples) of projects you’ve completed that generated revenue, or saved the company money, or solved a specific problem. Focus on what you’ve done to create positive changes in the company, manage unruly employees or customers, build relationships (internally and externally), and avert disaster. You need to justify your raise.
 
Also, highlight what you’re working on right now (especially the impact these efforts will have on the company in the near future). Outline your goals for the next year — what are your priorities and what will they contribute to the company?
 
When you negotiate with a busy person, make it easy for them. If you come in with a fully fleshed-out document supporting your raise, you make it easy for them to say yes. Approach your preparation with this thought in mind: If I were receiving this information, what would make me want to say yes to the request?
 
Consider using a free service like Get Raised (http://www.getraised.com) to help you develop your case for your raise. It will help you articulate your value to the company and creates a letter that you can submit as a raise request.
 
And be sure to “dress for success” in your request-for-a-raise meeting.
 
 
4. Have the right timing
Find out how raises are typically handled in your company. Are they given out at a specific time each year? Are they merit- or performance-based, or fixed cost-of-living raises?
 
A good time to approach your boss for a raise is when you’ve had a major accomplishment (such as bringing in new business or finishing a key project), when you’ve taken on significant additional responsibilities, or when you’ve earned recognition for your work.
 
5. Know what you want
Here are some things to think about:
  • How much do you need to make? How much do you want to make? What is the lowest salary you’d be willing to accept? What is your salary goal?
  • Besides money, does this job fulfill any of your other needs — such as schedule flexibility, the opportunity to learn new skills, or the chance to do interesting work?
  • What kind of opportunities does the position offer for training, further education, and/or professional advancement?
  • Do you have other job prospects lined up? How do they compare to this position?
  • What makes you worth a higher salary? How do you compare to the other job candidates? Do you have special skills that are hard to come by?
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