It is the dream of every young, formally educated person to not only be employed but also to be adequately paid in commensurate to the effort and time utilized. But while we would be discussing the importance of salary negotiation, let us first familiarize ourselves with the concept, "What makes a salary?".
You see, I have been employed for a little over a decade now, and it's been quite a journey. From experience, I have come to the realization that when we talk about salary, money is not the most important factor. We know that salary is a form of payment from an employer to an employee for the work or services rendered. We are also aware that it's a regular payment where an amount, despite being fixed, is subjective to the terms of salary increment in terms of promotion and deductions in terms of financial struggles.
While we would want to define salary as an annual figure in an employment contract, which can also be accompanied by additional benefits, such as health insurance, retirement plans, paid time off, or other forms of incentive, let's not fail to take cognizance of the bigger picture, which includes the working conditions and the value chain system attached.
Answers to questions like, "Do I have a position or future in the organization?" and "What values can be obtained in the course of employment?" should first be established before considering financial rewards.
I have seen people lose out on a good job because they felt that the pay was poor. I have also seen people remain in a toxic environment because they feel that the financial reward is too fat or juicy to part with.
But in my opinion, when negotiating a salary, it is important to look out for one's growth process; is it a job that one can build a career in? Is it a job that comes with work experience that its value can withstand the growing trend? Or is it a job that limits your potentials, or simply brings out the worst in you because the actions of your employer or colleagues are constant triggers?
While establishing the answers above, let's also consider the economic situation. Fine, we are aware that factors that influence salary include education level, work experience, industry, location, and job performance. For example, workers with higher levels of education or experience tend to earn higher salaries. Additionally, salaries can vary significantly depending on the industry, with certain fields, such as finance or healthcare, tend to offer higher salaries than others.
While it's so ideally, one has to start from somewhere in building a career, and this somewhere is usually small-scale industries. Most times, especially in developing countries, these are the available organizations offering employment to the lowly placed in terms of political influence. If that is the case, one cannot expect to be paid an equal salary as paid by the big corporations.
When I started working, it wasn't about the salary, but the experience to be better and make my certificate valuable. For a good number of years, I worked below minimum wage and worked above the approved standard work time. There was no rest round the clock, investing all of my time with little or no pay to myself.
While some people might view my actions as stupid, it is what brought me this far. The experience gathered from these lowly paid jobs is what gives me the confidence today to sit at the job seeker's side of the interview and tender my own terms of being employed after they've stated theirs.
From my experience, I came to the realization that it's not how far nor how much basically, all that matters is how well.
While the above write-up stems from my perspective, here are generally acceptable key factors to consider during salary negotiation:
- Market rate: Research the average salary for your position in your location using online resources like Glassdoor, Payscale, or LinkedIn.
- Industry standards: Familiarize yourself with the standard salary ranges in your industry.
- Company budget: Try to determine the company's budget for your position.
Self-Evaluation
- Your skills and experience: Make a list of your relevant skills, qualifications, and experiences.
- Achievements and accomplishments: Prepare examples of your accomplishments and how they've positively impacted your previous employers.
- Education and certifications: Highlight any relevant education, training, or certifications.
Company's Needs
- Job requirements: Study the job description and requirements to understand the company's needs.
- Company goals and challenges: Research the company's goals, challenges, and culture to demonstrate your value.
- Team dynamics: Consider the team's dynamics and how you can contribute to its success.
Negotiation Strategy
- Set a target salary range: Based on your research, set a realistic target salary range.
- Be flexible: Be open to negotiation and alternative compensation options (e.g., benefits, bonuses).
- Confidence and assertiveness: Negotiate with confidence and assertiveness, but also be respectful and professional.
Additional Factors
Additional Factors
- Cost of living: Consider the cost of living in the area and how it may impact your salary requirements.
- Benefits and perks: Factor in additional benefits, such as health insurance, retirement plans, or paid time off.
- Growth opportunities: Consider the potential for growth and professional development within the company.
- Work-life balance: Think about the company's expectations regarding work hours, flexibility, and work-life balance.
- Company culture: Assess the company culture and whether it aligns with your values and goals.