Employee Compensation 101: How to Negotiate Salary

Employee Compensation 101: How to Negotiate Salary

In a tough job market, salary is one of the essential factors that job hunters consider. Whether you're in the middle of a job offer or hoping to discuss getting a raise in your current role, it's vital to know your worth and negotiate the salary you deserve. Asking for higher pay is normal, as long as you don't ask rudely or disrespectfully.

This guide will share some ways how to negotiate salary without being improper.

How to Negotiate Salary

  • Know Your Value

    Research the rate of your position in your industry. Walking into a salary negotiation without knowing how much your work is paid brings you to the mercy of a hiring manager who can steer the direction of your conversation.

    Salary review websites like Payscale can give you an idea of your position's standard rate. Asking others in your field can also help.

  • Organize your thoughts before negotiating

    Imagine different negotiation results and plan how you'll respond to each. Have your desired salary figure ready and support this with facts. Point out the competitors offering this amount to a position like yours and the years you've worked in previous companies. Plan how you'll respond if they deny you the salary you're looking for.

    Explain why you deserve more by highlighting your strengths and listing concrete examples of how these will benefit the company. Tying your strengths to the role you're taking on makes a solid case for why your employee compensation should be higher.

  • Have a clear picture of the salary you want to have

    When researching salary figures, decide on a specific number you aim to get and stick to it. If there's an available salary range posted on websites, always pick the highest number as your asking salary. Most employers will try and negotiate it down, but at least you'll likely get the average salary figure of the position.

  • Consider the benefits and ask about them

    Make it a point to inquire about the benefits and ask about them in detail. The salary might not meet your standards, but the benefits offered might be more important than the extra cash. Medical, dental, childcare, and paid leaves can add to the advantage and help you live healthily and save more for your future.

  • Know when to walk away

    A reasonable employer won't remove an offer because you brought up the negotiation. But talking about your salary for a long time can be frustrating, which can leave things on a sour note. Feel free to turn down the job and focus on others that will better match your expectations.

  • Plan the right timing

    Timing is everything when asking for a salary raise. Most employees would ask for salary adjustments only when the performance review is up. But by that time, your boss has probably decided on the raise everyone will get, and it won't be easy to negotiate.

    Instead of waiting until the performance review, start talking to your boss about the raise three to four months ahead. It will give them an idea of the numbers you want and allow them to think about it more.

  • Be realistic

    Company conditions like budget freezes can hinder you from getting a raise. Try negotiating for more benefits or a position that will set you up for a higher-paying job sooner or later. Always advocate for yourself and the value you bring to the organization. Know your worth and believe in the compensation you deserve

You Deserve the Best

Negotiating isn't a bad thing. Knowing your worth will help you in salary negotiations with your employer. If a company is suitable for you, they'll never take it against you if you ask for better pay. They would want to hear you out and be on your side. Find good employers on Career.com and apply for a position that interests you.

Written by Career Specialist Apr 07, 2023
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