In most salary negotiations, you’re probably going to be asking for something that someone else would rather not give you. Whether you are negotiating the details of a job offer or asking for a pay rise in your current job, it’s likely that someone will be arguing against your demands. That doesn’t mean you can’t get what you’re asking for.
The key to any negotiation is preparation. But the trick in salary negotiations is to assume that you are the best possible person for your position — and that you have therefore earned the best possible pay package. Understanding what “best” means in practice will help you get paid handsomely for your work.
Every situation is unique, but some negotiation tactics are standard and work well in a variety of situations. Here, we present seven tips to help you negotiate your way to more pay and better working conditions.
Ask around
What are your salary expectations? Are they realistic? Finding the right answers to these questions is not exactly easy. Depending on where you work, there might be laws that require companies to disclose any gender pay gaps. However, this kind of information may not provide the detail you need. Would you feel comfortable asking around? Discussing salaries is generally still a taboo. But it’s a taboo that helps companies more than it does employees, so maybe it’s one you might consider breaking. Just be diplomatic about it. Ask only the people you trust. Remember: if you go down this route, you will have to share your details, too.
Understand the market
Focus on your (future) organization’s remuneration policies. Make sure you understand the different pay grades and how jobs are classified, evaluated and paid. Also, look outside your organization. Could you identify people in your network who would be able to talk about current market rates?
Prepare well
What benchmarks are you using to negotiate a pay rise? Are you focusing on the things that matter to your company? Your arguments need to be about your achievements — and not, for instance, the fact that someone else is earning more than you. Provide details of how you go above and beyond what’s expected of you and include any positive feedback about your work and working style from important stakeholders. Be clear about your strengths and how you bring value to the bottom line.
Go first — or second?
In most negotiations, the person who puts the first offer on the table has an advantage. This offer is known as the “anchor”, as it becomes the reference point for the negotiation. So, should you go first? Not necessarily. Salary negotiations are tricky. Recruiters often ask you to provide salary expectations first, just to see how low they can go. To go first, you need to know the going rate. If you’re not certain what this might be, let the other person go first.
Ask questions
Don’t automatically assume that there is no room for negotiation, even if the offer does sound reasonable. And make sure you know the details and conditions of any future pay rise or bonus before you accept an offer.
Look at other benefits
How would you feel about flexible working arrangements or a performance-related bonus instead of a pay rise? Consider keeping one or two benefits as bargaining chips (unlimited holidays in return for the same basic salary, for instance). However, it’s not a good idea to keep throwing counter-offers on the table. At some point, you need to show that you are willing to accept a good offer.
Look to the future
If the negotiation doesn’t go well, stay calm and focus on the future. Indicate that you are serious about your career at the company. Then explain that you would hope for recognition for your work in the form of a higher salary or bonus at a later date. If the future doesn’t look bright where you are, then perhaps you should be looking elsewhere. But think carefully about whether you really want to leave your job.