Research shows that about half of workers have not asked for a pay raise from their employers. Why is it difficult to negotiate salary? It may stem from our uncomfortable cultural attitudes towards discussing money. In a survey conducted by PayScale, 28% of participants who said they did not negotiate their salary reported feeling uncomfortable asking for more. About one-fifth of participants indicated they did not want to be seen as pushy.
However, asking for what you deserve doesn’t have to be aggressive. There is a right way to negotiate salary. Here’s how to ask for more money.
Remember, you are a partner in negotiation
Asking for a raise or negotiating starting pay may feel like a confrontation. But your boss or hiring manager is not your adversary. You both share the same goal: to secure fair compensation for your skills or experience.
Why should they care about your salary (besides ensuring your compensation fits within their budget)?
Research indicates that workers who feel they are paid fairly are more productive and engaged and tend to stay in their jobs longer compared to those who do not feel this way. You will work harder and produce more if you feel you are treated fairly.
Additionally, you are too costly to replace. Research shows that employers can expect to spend about 30% of the salary of an employee who leaves on hiring and onboarding a replacement.
Do your research
Salary ranges can vary significantly from one employer to another, but it’s best to have an idea of a reasonable salary for the job.
Use free salary calculators from sites like Glassdoor, PayScale, and Salary.com to find ranges for your job title. Don’t forget to factor in skills and certifications where applicable, and take note of standard benefits and perks. It may make sense in your case to accept a lower salary for more vacation time or better health insurance. But you won’t be able to make those decisions until you have all the data.
Rely on that data, not your emotions, when negotiating your salary. Money is personal. It can be tempting to express your frustrations or share your personal circumstances during the discussion. Avoid that impulse. Present your case based on facts.
Be prepared for bias
In an ideal world, your skills and qualifications would be the only things that matter during salary negotiations. But we do not live in an ideal world. Everyone has biases, and unfortunately, that includes your employer.
Practically, this may mean you need to negotiate differently depending on who you are. For example, research shows that women pay a higher social cost when negotiating and are often perceived as more demanding and less “likeable” when they ask for more.
This does not mean you should not negotiate if you are subject to the influence of this bias. But it does mean you may need to be aware of this bias and take steps to overcome it. For example, women may choose to tie their request to the team’s mission, especially if negotiation is part of the role.
Example offer script: “We talked about how the ideal person for this role would be aggressive in achieving sales goals. Based on that, is there room in the budget for [X amount of compensation]?”
Understand the culture
Networking has value that goes beyond helping you find job opportunities and getting referrals to open positions. It can also help you gain insight into how things work at a potential employer.
If
You had contacts in the company, so take advantage of their insights. If they are willing to share their salary range, that is much better. But if they are hesitant to talk numbers, you can learn their perspective on the company’s culture regarding salary.
Seize the Right Moment
When it comes to salary negotiation, it’s important to choose the right moment. There are some times that are better than others for getting what you want.
When You Receive a Job Offer
For example, 70% of hiring managers say they expect candidates to negotiate a job offer. Therefore, it is always best to ask for more when a job is offered to you. Even if there isn’t room in the budget, there isn’t much risk in misperceiving the hiring manager.
When You Want a Raise
What about when you’re negotiating a raise in your current job? Timing is important at that time too. Remember that there are a number of factors that need to align for your manager to be able to make a case for you. Choose a time when the company is doing well financially and your work has recently been recognized as a valuable contribution.
Be Prepared to Lay the Groundwork: Although you might assume otherwise, your year-end review isn’t always the best time to ask for a significant raise because budgets are often set at that time. But it’s a good time to let your boss know that you’re eager for new challenges (and the rewards that come with them).
Be Honest
In one survey, 39% of participants admitted they lied about having another job offer to get a higher salary offer. For obvious reasons, this is a bad idea.
Even if your lie isn’t discovered, you’ll be starting a job on a false basis if you present a competing offer. You don’t have to resort to deception to get a better salary. You deserve an employer who pays you fairly based on your merits. By doing your own research and learning how to talk about money comfortably, you can achieve your goals honestly.
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Sources:
– Randstad. “Salary and Compensation Statistics on the Impact of COVID-19.” Accessed June 21, 2021.
– PayScale. “PayScale’s Salary Negotiation Guide: Amazing Facts About Negotiating Your Salary.” Accessed June 21, 2021.
– Indeed. “A Piece of the Pie: Understanding the Importance of Fair Pay.” Accessed June 21, 2021.
– Work Institute. “2020 Retention Report,” page 10. Accessed June 21, 2021.
– Robert Half. “Salary Negotiation.” Accessed June 21, 2021.
– Randstad. “Salary and Compensation Statistics on the Impact of COVID-19.” Accessed June 21, 2021.
Source: https://www.thebalancemoney.com/how-to-ask-for-more-money-the-right-way-5189498
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