Six Easy Steps to Successfully Negotiate Your Salary
by Jennifer Sedna
NelsonJobs Contributing Writer
Do you know how much you are worth in today’s job market?
Researching what the salary range is for someone with your experience and background is an essential step in preparing for an interview, or even your annual review. Determining a fair salary range today is easier than ever with multiple resources available at the click of a button. Following these Six Easy Steps will make you feel prepared to promote yourself to the appropriate salary which reflects your unique skills and experience.
1. Know your stuff
The first step in your preparation is to establish the going market rate for the position for which you will be interviewing. Fortunately, there are a wide variety of resources at your disposal.
- On the internet, there are an unlimited variety of sites you can refer to when establishing a salary range. There are several websites that offer free salary data, including Salary.com and PayScale.com. Looking at both of these sites will give you a good perspective from both the HR-end and employee-end, as each collects their data differently.
- Another great resource on the internet is looking at job postings for the same position, or, look at positions above and below it. This will also help you determine how accurate your data is compared with what you found on Salary.com.
- Additionally, you should also consult The Bureau of Labor Statistics Occupational Outlook Handbook, which is compiled by the government every two years. It is a great reference that provides up to date information on not only salary, but also training and education needed for a wide variety of jobs.
- Friends or family are a great way to network as they might know someone who works at the company you’re interested in, or in a similar position at another company. Finally, one of the many benefits of working with staffing agencies is the information they have about the job market. Not only can a recruiter assist you with your negotiation skills, they can also provide a personalized assessment of your fair market value.
2. Consider the job market and your unique talents
You should spend some time researching how competitive the position is before you decide how flexible you need to be with you salary range. For example, it is commonly known that there is a national shortage in the health care industry for nurses. You can be a lot pickier and demanding if there are fewer choices for the employer.
In a tighter job market with an abundance of applicants, or a scarcity of open positions, you may have a lot less room for negotiation. This brings home the importance of highlighting your unique skills or experience. It is important to spend some time thinking what is special that you bring to the table that no other candidate can offer. In particular, consider what the company or position requires that you know you can excel at.
A well-presented discussion can allow you the negotiation power to get the pay you desire. For example, providing real data (in the form of graphs or charts if you are able) of how you saved your prior employer money, will make a bigger impact than simply stating that you are efficient and hard-working. Lisa Crossett, Vice President of Recruiting for Nelson Family of Companies suggests that employees “Continually update your resume with your accomplishments, leadership successes and enhanced skills to demonstrate your net worth in the market place”.
3. Determine your target range and priorities
Once you have done your research, you should have a good idea of what a fair salary range is. The emphasis should be on ‘fair’, because this is the best way to establish a trusting rapport with your employer in the beginning. Says Max Messmer, in his article for the Journal of Accountancy, “You must strike the right balance between being appreciative of an offer and making sure it fairly represents your worth in the marketplace….” You want what is fair for the job you will be doing, and you communicating that will help in your negotiation.
You also want to have your salary and benefits prioritized, considering the entire package that you will negotiate. This way, if your employer cannot provide you with the amount you were hoping for, you can ask to be compensated with other benefits. This can come in a wide variety of ways such as more paid time off, schedule flexibility, or a sign-on bonus.
4. Practice, Practice, Practice
If you do not have experience in negotiating salary, or if you had a negative experience, there is only one way to prepare you for the big day: practice! Have your friend or partner roll play with you, where they present possible scenarios that could come up. Better yet, working with a recruiter would be a great resource for you to improve your negotiation skills. They can provide excellent tips for what works and why.
Even the most eloquent women have difficulty when it comes to negotiating for themselves. If this sounds like you authors Jessica and Lee Miller, who wrote A Woman’s Guide to Successful Negotiating, suggest pretending that you are negotiating for your daughter or best friend. After all, you wouldn’t be okay with your child or friend getting paid less than what is their fair market value, so why should it be okay for you to get less!
5. Let the negotiation begin
The big day has arrived and you have done all the research and practice necessary to negotiate like a pro. Before you get your guns ready, it is important to remember interviewing etiquette. Letting the employer bring up salary first is courteous and also prevents you from appearing as too focused on money. This way, you will not give too low or too high of a figure.
If you are asked to give your salary history, or what salary you expect, throw the question back at them by emphasizing that it is not about the pay, but the job. Follow this up with asking what they have budgeted for the job, says author Lee Miller.
Additionally, throughout your negotiation, it is important to focus on what the employer needs, not just what you need, says author Max Messmer. By focusing on the employer’s needs and how you can fulfill them will allow them to see your total worth. It will also demonstrate how you differ from other candidates.
6. Your boots were made for walking
The most effective way to negotiate is to have other offers on the table. Not only will it boost your confidence, you will also have the ability to walk away, say authors Jessica and Lee Miller.
If at the end of it all you do not get the salary you hoped for and you still want the position, you have other options that are negotiable.
- You can propose setting a performance review in 3 or 6 months, instead of waiting a year. Over the next few months, collect both hard and soft data of how you have improved the company, the culture, and/or position.
- For example, print out complementary emails from coworkers and clients, and keep track of any numerical results you achieve so that you can present it when your review comes around.