A Step-by-Step Guide to Salary Negotiation

Before choosing to go for a salary negotiation, consider the overall economic situation and whether you have room to negotiate for a raise. For example, the financial position in 2016 was favorable because there were almost 6 million jobs in the market at the end of 2015, an improvement from 2014 where there had been about 5 million jobs available. These statistics may, of course, be different for each industry. The more unique the set of skills you possess, and the more accommodative the economic situation, the better your chance at negotiation. Additionally, it is easier to negotiate an increment during hiring than it is to get a similar raise from an existing boss. If your department is understaffed, or if contemporaries in your position have exited the company recently, take the opportunity to strike a salary negotiation.

While salary information tends to be difficult to find within the private sector, doing your research to find out how much others in your position in other areas make is a way to start. There is plenty of salary information online on various industries and specific professions. Some online resources that may be helpful include JobStar.org, PayScale.com, and SalaryExpert.com. Additionally, non-profits disclose some workers’ salaries while making submissions using the IRS Form 990. The public sector, on the other hand, has greater transparency. Salaries for workers in federal government, local and state governments are all public records, some even available online. While the internet is a great resource, much more refined salary information can be obtained by talking to colleagues or to those working in a company that is your potential employer. Accessing confidential information from such sources gives you greater bargaining power.

Career counselors agree on this one thing: Avoid letting an employer or potential employer know the amount you desire too early in the salary negotiation. Revealing it too soon may limit the potential of an even better offer, or alternatively, build walls that work against you. When the employer poses this question, employ delay tactics. Use explanations such as wanting to know what expectations the employer has for you before you delve into matters of remuneration. In case the employer is relentless to hear what is on your mind, give a range of your desired salary rather than be specific.

Consider the situation where the potential employer seems inflexible about your request and have a minimum acceptable amount. If they reject your offer, this amount becomes your final proposal. This creates some objectivity in salary negotiation to avoid the disappointment of accepting something you regret a few minutes later. In setting this amount, consider the economic situation, the number of hours you will be expected to work, the benefits offered such as health and retirement benefits, and the time offered for breaks. The situation is slightly more difficult when it comes to a current boss. In this case, if your request is denied, ask your employer what expectations you need to meet to receive an increment. This pushes them to consider an increase not too far from the time of the conversation.

Have an explanation to why you want that particular amount you’re tabling. Have a flow of ideas that prove that you deserve the raise without bringing in emotions that cloud judgment. Speak with the objectivity of a consultant, as if it is not even your job you’re talking about. Break down the contribution and value addition that you have brought to your position that warrants the raise. If you get your employer to see matters the same way you do, you will definitely receive the pay raise.

If your timing is impeccable, the increment shall be yours! Consider your timing with precision, beginning with the general economic situation and progressing further to the state your industry is in. If the industry is thriving, consider your company’s position in the grand scheme of things. If all these are in your favor, think about the right time of the month, week and day to approach your employer. High-stress periods will only get you backlash, while times of prosperity create the perfect window of opportunity for you to swoop with your raise.

The tone you start with and the way you carry yourself may be significant determinants of how receptive your employer will be. Avoid appearing arrogant as this may damage your working relationship with your employer. Knowing the market rates and what your proper salary should be with certainty helps to build confidence in case your employer chooses to bluff. If you display an attitude of humility and have a reasonable argument, you are most likely to get the raise you hope for.

If you receive a counteroffer while negotiating with your current employer, it is not difficult to deal with the counteroffer. All you have to do is accept this, opt to stand firm on your initial proposal, or offer a counterproposal that is more reasonable. However, if the counteroffer from the employer is a result of your expression of feeling more inclined to accept an offer from your employers’ competitor, things may get messy. Accepting it may force you to work in an environment where you are considered disloyal, while rejecting it may force you to move to a new employer. While this may be a tricky scenario, it is a commonly used method that is appropriate in high turnover industries.

In case the salary negotiation does not work out in your favor, always eye other benefits that you can snatch in the process. Still, have things that you’d like to obtain to make your work experience better. For example, while your boss may not be inclined to give you a raise, they may consider increasing the flexibility of your work hours, the annual vacation period, or even parking spots and office furniture. If you can’t get what you want, don’t settle for nothing!