Let’s first set the record straight. Salary negotiation is a completely normal and acceptable part of the employment process. Your salary is more than a figure that gets deposited in the bank account. It shows how much your organization values your skills and knowledge and appreciates your work. And so, it is a reflection of how your company supports your work-life balance, flextime, opportunities for growth and promotion, perks, and so forth. If you love your job and want to keep it, there’s no question that you should negotiate a higher salary keeping these factors in mind.
Before we delve into how to negotiate salary, let’s first take a look at the ideal compensation and benefits package offered at most organizations. This comprises of:
Childcare benefits: Child care costs more than college. It costs the U.S. economy an estimated $4.4 billion due to lost productivity. Childcare is the number one benefit to look for particularly if you don’t want to see your salary disappear on daycare costs.
Training & development: Training and development can play a monumental role in equipping career-driven individuals with the skills and knowledge they need to succeed in their role.
Flextime: According to a 2015 study by the Society of Human Resource Management, 80% of employers saw a spike in employee morale and engagement due to flexible work arrangements. A work-life balance is one of the most coveted benefits.
Healthcare: Plans covering disability benefits, health benefits, death benefits, dental benefits, are generally perceived as perks more attractive to some people than a higher salary.
Among other perks in an ideal compensation and benefits package is tuition reimbursement, paid time-off vacation and sick days. It’s also important to negotiate some of these perks to get the salary and benefits package you deserve.
HOW TO NEGOTIATE YOUR SALARY
Every competent individual deserves a salary which is considered best in the industry. To get their desired salary, some people turn to work hard, others may talk directly to the manager to get a pay hike. In case of acceptance, many people may hit the jackpot, but this is rarely observed. On the other hand, i.e. in case of rejection, many people feel humiliated and even make a job shift to other companies.
So how can you negotiate a higher salary in your existing job or a new job? The answer to this question is simple and easy to understand which can be explained in the following steps.
1. KNOW YOUR WORTH
Do research on the job position. Find out what the other companies are paying or willing to pay for a person who is as talented and experienced as you. This will give you an idea as to what can you achieve by negotiation. It will also help in removing the misconceptions about the pay scale offered to other people of your caliber in the same job position within the industry.
2. BUILD YOUR CASE
Try to find out your value to the company. For this purpose, look for the benefits that the company is gaining through your contributions. Try to evaluate these outcomes and compare them with your salary. If the gap is small then you can review your decision of negotiating for a higher salary. However if, the gap is bigger than you should be confident enough to ask for a higher salary as the returns your contribution is making to the business is much higher.
3. ASK FOR A MEETING WITH THE RIGHT PERSON
Meet the right person for talks about a higher salary. Don't waste time sharing your knowledge or concerns with colleagues or other personnel in the organization who cannot help you. Try to find out the right person who could take care of your concerns for a higher salary.
4. PLAY HARDBALL
Explain your reasoning for getting a higher salary. Reveal the factors and extra inputs that you make in the form of a contribution to the business and the outcomes that are achieved in the form of profits or attracting customers. By sharing this information you are not making the concerned person realize that you have so much for the company, but you are making him aware that I know what I have contributed for the company and now I want to get my share to be increased.
5. PREPARE FOR REJECTION
Shoot high but along with that prepare for the rejection coming your way. You may give a value that may be way much higher than expected by the manager. This value will allow you to identify the higher levels at which your manager could settle you down. Along with that prepare for rejection coming your way. The manager may offer you a little lower than you have proposed. Consider it as an opportunity to earn more and accept it.
6. KEEP CALM AND HOPE FOR THE BEST
Be confident, show respect and follow the code of conduct. This way you can showcase your manager that you deserve to be paid higher and the negotiation process has not affected your respect for the company and your manager. Also following code of conduct will leave a good impression on your manager who may consider your negotiation for a higher salary as fair enough and offers you a better salary earning the opportunity. Stay calm and accept the outcome with a smiling face. This is the key to keep the environment positive around you.