Jobseekers negotiating their pay is not uncommon, and both employees and employers should be able to handle negotiations in a win-win way.
Salary negotiation has some perks for employers; it allows an open and transparent path of communication that builds rapport and can reveal what working with employees will be like.
It’s best to be prepared for negotiations. Read on to find out the steps to have a successful salary negotiation.
A survey by Salary.com showed that only 37% of individuals negotiate their salaries—while a shocking 18% never do. Even worse, 44% of the respondents claimed to have never brought up the subject of a raise during their yearly reviews.
The reason for not asking for more? Fear of rejection.
Salary negotiation can be terrifying. But what’s even more frightening is not doing it and missing out on more money.
Here’s an example: A well-known study done by Linda Babcock for her book “Women Don’t Ask” showed that only about 7% of women attempted to negotiate their first salary, while 57% of men did. Of those who negotiated, they could boost their salary by 7%.
That may not sound like much cash, but as Stanford negotiation professor Margaret A. Neale says; If you bring home a $100,000 salary and your co-worker negotiates up to $107,000, assuming you’re paid the same from then on, with equal raises and promotions, you’d have to work eight more years to be as well-off as them at retirement.
So, whether you’re male or female, it’s time to learn how to negotiate in your first job or your fifth. Our firm is here to help with a roundup of expert tips and further reading to get you prepped.
It would help if you started the negotiation conversation by asking questions to understand more about the other party’s needs, desires, fears, preferences, and priorities. Know what the average salary and compensation data in your industry are. This will indicate what they expect, and the data will provide reasoning if you respond with a counteroffer.
When considering your numbers, you should also develop a “walk-away point”—a final offer that’s so low that you have to say no. This could be grounded on financial need, market value, or simply what you need to feel good about the salary you’re making.
Walking away from an offer will never be simple, but it’s critical to understand when to do it—and it’s powerful to be able to say “no.”
Explain your talking points with facts and data. Explaining critical points allows you to get to know the company and assess if you will be a good fit. Prepare a “brag sheet” or a one-page summary that shows exactly how deserving you are as a worker. Compile any accomplishments, awards, and customer or co-worker testimonials you’ve received. You want to show your value to your boss.
Employers are more likely to consider the employee’s offer if it is delivered with the right balance of confidence. Trust your decision-making intuition and salary negotiation skills.
Transparency and honesty are huge in salary negotiations. Being open and honest about salary packages should be the topmost priority. During salary negotiations, employers should be firm and stay open to options and keep the lines of communication open. Have you been working at the job for more than a year? Have you taken on additional responsibilities since you’ve been hired? Have you been going above and beyond expectations (rather than just meeting them)? If the answer to all of these is “yes,” it is probably time to renegotiate your salary.
Negotiation is a complex process with volumes of books on techniques, tactics, and outlines. The best news? The more you practice, the simpler it is.
If you have any questions about your rights as an employee, reach out to our Bay Area employment lawyers at Minnis & Smallets today.
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