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Did you know the following?
- Some employers only make public ranges between 25% and 75% of what they actually shell out as salary for a given position.
- Pay increases are expected to be higher in 2023 compared to previous years, with 56% of organizations planning to give base pay increases of more than 3% compared to 2022, when 53% of organizations gave more than 3%.
- 58% of millennials didn’t negotiate their salary, and 1 in 4 did it because they didn’t know how to do salary negotiations.
Salary negotiation with your prospective employer is a treacherous domain. Go too high and you may be dropped from the prospective list of candidates. Go too low and you will have yourself to curse after you are hired, which will make you extremely unhappy and unable to fully concentrate on the tasks at hand.
If you are wondering “Why negotiate salary?” know that it’s your right to be paid fair compensation for the skills and experience you bring to the table. And there’s nothing wrong is asking what you feel is fair compensation during a salary discussion with your potential employer.
Starting on the right foot (and at the right salary) is also vital because subsequent performance appraisals and annual raises would mean you will be happier with them and stay motivated at your present position.
Whether you are a newbie looking for your first job or an experienced professional looking for a change, knowing how to negotiate salary in interviews or with HR is vital to avoid lowballing yourself.
Not sure how to do it? We bring you 7 actionable steps that can help.
How to Negotiate Salary in 7 Steps
1. Don’t Skimp on Research
Do some research on the salary usually paid for the post you are applying or interviewing for. You could check job openings on LinkedIn, Glassdoor, etc., as they can help you get a salary estimate for the role you are eyeing.
You may even use PayScale to see what salary you can get, which will help you to tell your potential employer about your salary expectation should they ask you the question.
2. Find Your Floor
After you have got some idea of the typical salary for the position you are eyeing, think of a pay range for yourself. Decide on your floor or the lowest amount acceptable carefully, which is your “walk-away” number, and anything less than this would make you unwilling to accept the job offer.
Additionally, you should think about the highest amount that you would ideally like to make, which should be reasonable for your qualifications, experience, and the role.
3. Negotiate Before and During the Job Offer
The ideal time for salary negotiation is before and during the offer stage. Know the salary range you want to have and act confidently. If the job offer made to you doesn’t suit you, you can make a counteroffer and see how your prospective employer or the hiring manager responds.
If you are working with a headhunter or recruiter, make sure you have clearly mentioned your salary expectations. This will avoid any misunderstanding or disappointment during the salary negotiation process.
4. Mention Your True Salary Expectations
Armed with the pointers gained from your salary research and after you have decided upon the salary range that justifies your worth and the role, don’t mince any words when talking about your actual salary expectations.
Considering other vital factors like the cost of living, commuting, and monthly budget could also help you to ask for a liveable salary that aligns well with your expectations.
5. Ensure to Negotiate Other Things besides the Salary
Effective salary negotiations aren’t just about the pay on offer. You should also negotiate for the perks and packages like transportation reimbursement, gym membership, company-provided cell phone, wellness allowance, etc., which can make your salary package come closer to your expectations.
Flexible work arrangements (fully remote, hybrid work, or flexible start and end times), time off (for sick days, vacations, personal errands), and company-funded career development and growth plans (which will eventually help you to get paid more even if the present salary is lower than your expectation) are other crucial things to ask for and negotiate.
6. Stay Away From Making a Verbal Commitment Until You Get the Right Offer
If the salary offered to you isn’t acceptable, don’t make a verbal commitment. Since accepting a job offer verbally is a standard step before the formal offer letter is drafted, make sure that what you are agreeing to verbally is the amount you will be ready to commit to in writing as well.
7. Act Promptly If You Have Lowballed Yourself
Despite your best attempt at effective salary negotiations, you may end up lowballing yourself. If this happens, you must call back or send an email to the hiring manager as soon as you realize it. Waiting for your next scheduled conversation could be too late as your prospective employers are likely to seek budget approval, which means the sooner you communicate, the better it is for you.
Wrapping Up
Now that you know how to negotiate salary in interviews or even how to negotiate a higher salary with the hiring manager or HR, make sure you act on these tips to discuss your pay well while steering clear of lowballing yourself.
If you need an experienced headhunter for salary negotiations on your behalf when you seek an executive position, you can rely on our experts at InHunt World!
This article was written by InHunt World