It can be a scary prospect to negotiate salary. Whether you have just been offered a new job and now it’s time to negotiate your salary, or (as in most cases) you have been in a job for a while now, and feel like you deserve a pay rise.
Many employees are too nervous to ask, but this is often because they don’t know how to ask.
Here’s everything you need to know about how to negotiate your salary…
how negotiation strategy has changed over the last 10 years
Today both employers and employees have access to an increasing amount of information. The past 10 years has seen the biggest shift and has directly affected how employees and employers negotiate.
Most HR departments now have dedicated salary monitor processes, to keep track of where salaries should be across relevant industries. Larger businesses will also employ remuneration and business analysts to keep track of this, and to make sure they stay ahead of their competitors.
There can also be reasons that some organisations cannot commit to pay rises at certain times. For example, during the 2008 crash many institutions offered employees better benefit packages and bonuses, rather than pay rises to reward them for their hardwork.
There are pros and cons to these developments for employees.
Looking on job boards to find your appropriate salary can be misleading. There are many “similar” sounding roles that are, in fact, very different. If you are going to propose that you deserve a higher salary because of market rises, make sure you conducted your research correctly and used reliable sources.
If you would prefer to take flexible working benefits and other benefits instead of a pay rise, make this clear. If this is not what you are looking for, do not settle.
should you negotiate before or after you get the job?
A favourable salary has always been one of the most important factors when it comes to deciding on whether or not to make the move to a new role.
However, if the job is perfect but the salary is not as favourable as it should be – then make sure you negotiate this before you take the role.
In the same way that you would present your case for a pay rise to your manager, make sure you present your case as business proposal, what you can bring to the role, what the market rate is and the value you can bring to the organisation as a whole.
As long as your request is fair and reasonable, there should be no reason why they employers won't come to an agreement with you beforehand. If they don’t, then they might not be an organisation you want to work for in the long-term. You may find it impossible to get a pay rise if you start on a lower rate than you deserve, and may find yourself always behind the competition in terms of pay rate.
1. present your rise like a business case
When you prepare a business proposal you make sure that you are well-prepared, include strong evidence for your case – such as achievements and successes – and demonstrate that you are the deserve the business.
You need to do the same when you negotiate your salary. Use your business acumen to prove how you are benefit the business with your work, and how you could produce much better outcomes if you were on a higher pay grade.
Bring out the facts and figures when you make your case, and include examples where you can. Be prepared and have all of these stats and examples to hand. Having to prove your worth can be harder than making a business proposal, even, so be organised and ready to answer questions and provide evidence.
2. ask the right person
All organisations are set up differently, but usually the best person to ask is your direct manager. Your immediate manager will be able to pass on your request to the next person up in the ladder, and eventually to the person who can make the decision.
The last thing you want to do is go over your direct manager’s head. This could inconvenience the wrong person and be seen as an untrustworthy move, which will not help make your case.
It’s all about timing.
Remember, no one will pay you more to do the same job you are doing now. So make sure you demonstrate how your responsibilities have increased since you began in the role, and present to your employer how your duties now extend beyond the original remit.
With the right preparation and careful planning – you’ve got this!
This content has been adapted from original content by Zena Clark, Operations Director of recruitment & HR services specialist, Randstad
Posted: Thursday, 18 May 2017 - 9:00 AM