Negotiating a higher salary or better benefits is an important conversation in your career and requires preparation, timing, and strategy. To give yourself the best chance at successfully navigating this conversation, follow these steps:
1. Do Your Homework
Before initiating any negotiation, research is paramount. Understand the industry standards for the position you’re in or aiming for. Use resources like Glassdoor, PayScale, or the Bureau of Labor Statistics to gather information about competitive salary ranges for your role and experience level.
Many places in the world are mandating companies post salary ranges on job postings so you can also try finding similar roles posted online to see what their salary bands are. Take in all the data to learn where you pay lies versus comparable roles. If you are on the low end, then your case is to get to at least the median. If you are on the high end, you’ll need to prove why you deserve to be even higher.
2. Assess Your Value
Reflect on your achievements, skills, and contributions. Have you exceeded targets consistently? Led successful projects? Brought in new business? Quantify your accomplishments to show how you’ve benefited your company whether through cost savings, increased revenue, improved efficiencies, or enhanced reputation. Put yourself in your boss’s shoes for a minute to think how would they feel if you left. The more important your contributions, the more they want you to stay because you are a high performer and it looks good on them.
3. Consider the Whole Package
Salary is just one part of your compensation. Benefits like health insurance, retirement contributions, paid time off, flexible working arrangements, and professional development opportunities can be equally significant. Decide what’s most important to you and be prepared to negotiate these points if there’s little room to move on salary. If you can find benefits to you that don’t cost the company actual cash, then those are likely easy wins to improve your situation.
4. Timing is Key
Choose the right moment to negotiate. The end of a successful project, during a performance review, or after a notable achievement can be opportune times. This is because people have recency bias so they will remember your most recent wins more than your historical ones. If you’re negotiating a new job offer, do it after the offer is made but before you accept.
5. Practice Your Pitch
Rehearse your negotiation points. Anticipate counterarguments and prepare your responses. Your pitch should be concise, compelling, and backed by data. Practicing with a mentor or friend can boost your confidence and refine your delivery.
6. Be Professional
Initiate the conversation with a positive tone. Express your enthusiasm for your role and the company. Be respectful and professional throughout the discussion, even if the negotiation becomes challenging.
7. Aim High, but Be Realistic
Start with a higher request than what you’re aiming for, but stay within reasonable limits. This gives you negotiation room and increases the chances of reaching an agreement that satisfies both parties. You don’t want to offend your boss, but you need to show them clearly why it’s in the company’s best interests to pay you more.
8. Listen and Adapt
Remember that negotiation is a two-way conversation. Listen to the employer’s perspective and be prepared to adapt your requests. Don’t be too rigid because there may be constraints you’re unaware of such as budget or headcount limits. Be open to creative solutions that meet your needs in different ways.
9. Be Prepared to Walk Away
For new job offers, if a company is unwilling to get to your needs then they are probably not a good place for you. You also wouldn’t want to start a new job with a boss that you just went through a terrible negotiation with.
If you are negotiating for a raise at your current firm, be prepared that if the company is unwilling to accommodate your request that you may need to quietly start looking for something new. Remember to be somewhat flexible and appreciate any concessions on their part, but if you are truly unhappy or your basic needs are unfulfilled, then it may be time to consider something new.
10. Follow Up in Writing
Once you’ve reached an agreement, ask for the new salary or benefits to be put in writing. This ensures there’s no misunderstanding and provides a record of the agreement.
In essence, negotiating salary and benefits is about demonstrating your value and finding a compromise that reflects your contribution to the company. It requires clarity, confidence, and a willingness to advocate for yourself while maintaining a collaborative mindset. With the right approach, you can make a strong case for a salary and benefits package that better recognizes your worth.
