Asking for a pay rise from your employer or negotiating a salary when starting a new job is tough. There are no hard-and-fast rules that are guaranteed to get you a result. Ultimately it depends on variables such as the individuals you’re negotiating with, your company’s culture and your own personal situation. However we can point you in the right direction with these tips.
1. Know Your Value
Ideally, your employer should be paying you a wage that reflects how valuable you are to them, but it’s all too easy to undervalue your worth. Think about your responsibilities and tasks and the unique value you bring to your company that no one else could. The more you appreciate your full value, the more confident you’ll be in asking for what you deserve.
2. Find Out the Going Rate
Find out the market rate for people in your profession. Knowing what other people who do your job are earning can give you an idea of what you should be earning. Look at job ads for your type of role to see what employers are willing to pay for the kind of work you do.
3. Understand Your Boss’ Viewpoint
Try to see things from the perspective of your boss or whoever it is that makes the decisions about your pay. Understanding what makes them tick and what they’re looking for from an employee in exchange for a fair compensation package can help you negotiate in a way they’ll be receptive to.
4. Think
In today’s world it is easy to be impatient and to react very quickly instead of responding in time. In a negotiation, taking your time to think, to process information and to respond accordingly can be crucial. If you are prone to reacting straight away, try and stop yourself from doing this.
5. Take Your Time
If your employer makes you an offer and asks for an answer there and then, say that you would like time to think about it and you’ll get back to them. Being put on the spot and placed under pressure to make a rushed decision can result in you losing out on a future offer that’s better, so respond when you are ready rather than caving under pressure.
6. Prepare for Different Scenarios
Be prepared for various scenarios that may occur. What will do you do if they offer you X? Or Y? If it’s a pay rise you’re after, what will you do if they don’t offer you one? In your head, play out all the potential outcomes you can think of and think about how you’d respond to each different situation.
7. Know Your Boundaries
Think about what your boundaries are. What would be the best option for you? What’s the minimum offer you’d consider? By having clear boundaries in your head, you have something to work with and will also find decision-making easier, due to knowing what you will accept and what you won’t.
8. Be Creative
Salary can be about more than just money. Think creatively about other ways you’re willing to be remunerated and rewarded for your efforts. For example your employer may have the option of putting additional benefits such as subsidised healthcare or equity in the company on the table. Don’t be afraid to ask what options there are apart from a straight salary increase.
9. Don’t Forget Expenses
Whatever salary you’re offered, you can make it go further if you ask the employer to help out with your work expenses. If you need to travel, buy specific equipment or wine and dine clients for your job, ask your organisation what can be done to help cover the cost.
10. Avoid 5s and 0s
A lot of salary negotiation books advise not revealing what salary you want. However if it gets to the point where you have to show your hand, there are other ways in which you can be a smart negotiator. Although it’s natural for people to pick a rounded number that ends in a 5 or 0, this makes it very easy for the employer to shave off at least £5k to get you to down to the next neat number on the scale. Instead, settle on a non-rounded, non-neat number.
As alluded to at the start, these suggestions may not work for you. They are just some ideas that you might like to try out or to incorporate into your own strategy.