Salary negotiation is an important tool that can help you get the pay you deserve. In fact, those who negotiate their initial salaries are able to get a raise of 7.4%, according to research by Babcock.
If you are worried that salary negotiation might have a negative impact on your career, you will be glad to know that you are wrong. Your savings bank account is not the only thing that would be positively affected either! It was found that 19% of recruiters feel that salary negotiation has a positive impact on their view of a candidate, according to Jobvite's 2018 Recruiter Nation Survey.
Now that it is clear that you should be negotiating your salary, the question that emerges is how do you do it effectively? Here are five tips to help you.
1. Do Your Research
Salary research is a great tool, when it comes to negotiations. You must have credible and realistic data to back up your claims, as your employer would already know the value of your talent and skills in the market. There are services such as Glassdoor and PayScale, which provide free salary reports. These salary reports allow you to know the value of your skills based on parameters such as:
- Experience
- Geographical location
- Job title that you are applying for
These websites also allow you to research the salary companies pay for a specific position. It is as simple as checking your savings account online. This puts you in a good position since you already know what your employer is paying other similar candidates.
2. Think Beyond the Base Salary
A high base salary is what most candidates have in mind when negotiating. But that is a myopic view, considering the number of things that are up for negotiation. If a company is offering a low base salary, you can try to include performance-based bonuses. You could argue that this would improve the business’ bottom line and your salary. Also, think about bonuses and commissions.
You should take into account non-monetary aspects as well. Things such as working hours, promotions, training opportunities and benefits should also be taken up during negotiations.
3. Have Patience
It is an age-old saying that the first person that brings up the money loses. And it is true for salary negotiations as well. Starting a discussion prematurely about your salary can send the message that all you care about is money. In the same manner, if the recruiter starts talking about salary early in the discussion, try to move the discussion so that you can tell them about all your skills and qualifications first.
4. Do Not Use Personal Circumstances for Negotiations
Many people try to use their personal situations, such as an upcoming wedding, to get a better offer. But this can act against you. During negotiations, the only thing recruiters care about is your skills and how they can add value to their company.
Once you get the salary you deserve, it is also important to save and grow it. And for that, it is important that you have a savings account. There are even special savings accounts for salaried individuals. Opening a savings account is also a really simple process and can be done online in a few minutes.