Unfortunately, most people approach these negotiations as a victims. They take what is offered to them by their employer. What you might not realize is that most employers are willing to bargain over salary. And if you are a valued employee you have a lot of power.
You Have The Power
You have the power to be more cooperative or less, to do outstanding or merely competent work, to be resourceful and creative or maliciously obedient. You have the power to make your company look good or bad, to help your boss succeed or fail. This is a lot of power.
Tips for Negotiating Your Salary
Here are a few suggestions offered by James C. Thomas, Jr., an expert on negotiation and the author of Negotiate to Win, How to Get The Best Deal Every Time! [Harper Collins, 2006].
Don’t expect your employer to negotiate for you. Trusting your employer to take care of you in the way of your salary could be a costly mistake.
Do your homework. Prior to a discussion, make a comprehensive list of your accomplishments. These are what determine your value as an employee. Don’t assume the boss knows of, or remembers your contributions.
Inform yourself about your boss’ and your company’s situation. Will they be hiring more employees? Have major contracts just been signed? In the current economy, your company could be in very bad shape. In this instance it would be foolhardy to ask for a raise.
Be realistic. Know what comparable jobs pay. Research current, published, impartial evidence and have it on hand before you negotiate. You can find this information on the Internet or in the library, or you can check the employment sections of newspapers and trade publications.
Your needs are irrelevant. Remember, as important as they are to you, your personal needs for money are not a negotiating point. You may come across to management as being incompetent in managing your own finances, or seem that you don’t understand the business. Focus instead on how important you are to the company.
Never threaten. Ultimatums never work and typically blow up in the employee’s face. Threatening to leave looks like disloyalty to your boss.
Change your job description. To get anything more than a cost-of-living raise you’ll need to add responsibilities to your position. Find things that need doing. Offer to take on additional tasks. Be innovative. Make yourself indispensable.
Start high. Use your research about what is paid elsewhere and start negotiating on the high side. Your proposal will probably be rejected, but you’ll have room to back down and let your boss save face. And don’t forget to bargain for benefits like stock options, flextime, child-care reimbursement, more vacation or continuing education.
Look for trade-offs. If you have medical insurance through your spouse’s health plan, consider asking for a higher salary or other incentives instead of health insurance.
Timing can be everything. If you’re a potential new hire, hold off on discussing money and benefits as long as possible. Try to have your employer offer you the job first. Once he decides he wants to hire you, your leverage goes way up. A good time to ask for a raise is immediately after you win the sales award, complete a major project, develop a new product, etc. Leverage fades quickly so don’t wait too long in this case.
Don’t take “no” for an answer. If you get a “no” don’t give up. It’s only “no” for now, not forever. Push for a commitment to an early, specific date for a performance/salary review.
Whether you're a job seeker or an employee looking to increase your salary, with these tips in hand you should be successful in your salary negotiations.
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