It's true that negotiating a salary can feel awkward and may trigger anxiety and fear. After all, it's a big thing to ask for what you believe you deserve. In fact, did you know that 59% of Americans don't negotiate their salaries at all?
Talking about money isn't the most comfortable thing in the world. Yet, without learning how to control your salary range through negotiation, you may find yourself stuck in a bracket that doesn't make ends meet.
Yet, not negotiating can cause major issues in your career and general life, including future raises, benefits, and even retirement savings. But there is some good news. You can learn how to outline your salary expectations and master the art of negotiation. We're going to outline the key steps to tick this box, along with useful insights from top books on negotiation, such as 'Never Split the Difference: Negotiating As If Your Life Depended On It' by Chris Voss.
By the end, you'll be discussing your desired salary with no worries at all.
What does it mean to negotiate a higher salary?
First, let's make sure we're all on the same page. What exactly does it mean to sit across from a recruiter or your current manager and negotiate your salary?
Negotiation isn't a hard yes or no. You shouldn't expect to present what you want and presume it will be given to you immediately. The art of negotiation means discussing, giving weight to your argument, and then often meeting somewhere in the middle. Maybe you'll be given your original offer, or maybe you'll be given a little less; the point is, you're asking for what you believe you're worth, but be prepared to back up your claims.
Ultimately, effective salary negotiation requires preparation, including researching industry salary standards, reflecting on your accomplishments, and being ready to prove how your contributions enhance the organization's success. It's about presenting an undeniable case that shows mutual benefit, ensuring your manager recognizes how investing in your potential brings greater returns.
When should you negotiate your salary?
There are several key moments that are more suitable for attempting salary negotiation. The best moment is when you've been offered a new job, but before you actually sign your contract. At this point, you have some leverage, as the recruiter has already decided that you're the person for the job.
Additionally, the days following a positive performance review or after accomplishing significant milestones are strategic opportunities for discussing salary increases.
In his bestselling book 'Pre-Suasion,' Robert Cialdini mentions the psychological aspects of negotiating a raise. He believes that what happens before you have the conversation is more important than the actual chat itself. This means setting the stage and choosing the right moment.
"There's a critical insight in all this for those of us who want to learn to be more influential. The best persuaders become the best through pre-suasion - the process of arranging for recipients to be receptive to a message before they encounter it. To persuade optimally, then, it's necessary to pre-suade optimally."
Either way, always approach these conversations with professionalism and diplomacy and be prepared to work with a counteroffer.
Negotiating a salary: A step-by-step guide
Whether you've received a salary offer or you want to increase your current paycheck, let's take a look at some salary negotiation tips that can help you achieve your aims.
Step 1: Research and preparation
Before you make a solid plan to face a potential employer or your current boss to ask for a raise, gather the most important information. Head online and do some market research: what is the market average for your position? You can use sites like PayScale, Salary.com, LinkedIn Salary, and Glassdoor, for example. After all, your employer won't agree to a salary that is wildly above the market rate, but they may agree to one that is too low.
It's also useful to understand how well your company is doing financially and its general pay structure. Do they have a percentage amount they're willing to grant in the event of a salary increase request?
Knowing this information will give you confidence to put together a reasonable yet compelling case.
Step 2: Timing is everything
We touched upon this a little earlier, but timing is crucial. However, it's not only about when the best point in your career is to ask for more money, but also the time of day or week when you ask. If your manager is under pressure due to a big deadline, it won't be the best moment to sit down and have a conversation.
In 'Pre-Suasion,' Robert Cialdini suggests 'priming' your manager in the days before you plan to ask for a raise. He believes that subtle reminders of your achievements through casual mentions in a meeting or a well-timed email could help in the actual conversation itself.
"In part, the answer involves an essential but poorly appreciated tenet of all communication: what we present first changes the way people experience what we present to them next."
However, in general, it's a good opportunity to ask for a salary increase when you have recently demonstrated your value to the company. If you've won a big contract or hit a major deadline, this could be an opportunity to strike while the iron is hot. Additionally, think about the fiscal cycle of the company. Generally, just before budget planning is a more fruitful time to ask for a salary increase.
Step 3: Build your case
While it's not unrealistic to walk into a meeting with your manager or a new employer and ask for what you want and expect to get it, it's rare. It's far more likely that you will need to highlight the reasons why you deserve a raise and present a compelling case. This is even more likely if you have a new role and want to set your initial salary in line with your expectations and value.
So, write down your certifications and achievements and highlight how they align with the company's goals and its overall success. What have you done to help them hit their targets, or what can you do? It's helpful if you can show quantifiable results, such as efficiency improvements or cost savings.
In their best-selling book, 'Crucial Conversations: Tools for Talking When Stakes Are High,' Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzer have plenty of advice for stating your case. In fact, they believe that creating mutual purpose is the best way forward. You can do this by finding common ground and showing your understanding of the business goals. Then, talk about how your achievements and contributions are aligned with them. Doing this creates a collaborative feel.
"The Pool of Shared Meaning is the birthplace of synergy."
Ultimately, you're creating a solid foundation for your request that's almost impossible to turn away from.
Step 4: Practice makes perfect
A critical negotiation strategy is confidence. If you don't feel it, fake it; you'll need to show that you believe in yourself; otherwise, how will the person sitting opposite you do the same? Believe in your skill set and exude confidence in yourself. It's the only way to win a negotiation!
A useful step is to practice your pitch. Sit down with someone you trust and role-play the negotiation. You can then refine your delivery to be more professional or tweak areas that need a little work. Remember to take the other person's feedback on board and use it to improve your pitch. You can also anticipate any potential counterarguments and have prepared responses in place.
In 'Never Split the Difference: Negotiating As If Your Life Depended On It,' Chris Voss suggests using an "accusation audit." This involves listing all the possible reasons why your manager might refuse your salary request. That way, you can proactively address anything they come up with and turn the tide in your favor.
"The fastest and most efficient means of establishing a quick working relationship is to acknowledge the negative and diffuse it."
Step 5: Be professional and direct
Whether it's your starting salary or you want to increase your current one, it's critical that you are direct yet respectful in your approach. Remember to start the conversation on a positive note, expressing your appreciation for your role and the opportunities the company has provided. Showing negativity at this point will not help your case and may cause your manager or recruiter to be defensive. It's also vital to avoid complaints and comparisons with other people who may earn more than you.
Articulate your case clearly and professionally, linking your request to the value you've added to the company. This is something you can practice in your accusation audit and practice pitch, trying different approaches until you settle on one that allows you to show your personality and professional value in equal measures.
In their best-seller, 'Power Questions,' Andrew Sobel and Jerold Panas explore communication styles that can help in difficult conversations. Rather than simply asking for a raise, engage your manager with insightful questions that turn their mind to your favor. For instance, "What are your top priorities for our team at the moment, and how do you envisage my role in achieving them?" This question will help them understand your value and make it more likely that your salary request will be positively received.
Step 6: Maintain an open mind
It may be that your current or hiring manager doesn't offer you the monetary benefits you're seeking but instead is open to a different compensation package. Don't automatically refuse this offer, as it may actually prove to be very beneficial indeed. Things like extra annual leave or flexible working conditions may improve your home-work-life balance, and professional development opportunities are always welcome.
When negotiating salary expectations, remember that other perks can bring just as much value.
Step 7: Anticipate different outcomes
While you shouldn't go into the room with your mind on a refusal, it's important to be open to other outcomes. And even if you are refused, you can return with a counteroffer. Whatever the result, remain professional and ask for feedback and conditions under which a pay raise could be possible in the future. Doing this shows your commitment to growth and your willingness to work toward a raise.
Step 8: Remember to follow up
After your discussion, send a thank-you note to acknowledge the opportunity to discuss your career and reiterate the key points of your conversation. If you have received a promise for a raise, a respectful follow-up ensures that there is a record of the agreement and helps keep things on track.
Common pitfalls to avoid in the salary negotiation process
Equally important to positive salary negotiation tips is understanding the things you shouldn't do. Let's take a look at some common mistakes that too many employees stumble over on their way to a salary raise refusal.
Accepting the first offer too quickly
Even if the first offer meets your needs, it's prudent to take a moment to pause and reflect. Generally, the first offer isn't the best one that an employer can make, even during the interview process. So, thank them and ask for some time to consider the offer. Waiting to accept can sometimes lead to a better deal, as it shows the employer your thoughtfulness and understanding of your worth.
2 Failing to do market research
For job seekers and those already employed, jumping into salary negotiations without in-depth background information is a big no-no. It's crucial to conduct thorough research on industry salary standards, the company's compensation trends, and cost of living adjustments based on your location. Understanding the average salary allows you to make a case based on data rather than just your personal needs or desires.
3 Forgetting the bigger picture
Focusing solely on your base salary is a mistake and a very common one. Consider other aspects of your compensation package, such as bonuses, health benefits, retirement plans, vacation time, remote work options, professional development opportunities, and other perks. Remember, these benefits can be just as important as your salary.
4 Not being prepared to discuss your value
Negotiations often falter if you cannot clearly articulate why you deserve a higher salary. Prepare to discuss your skills, experiences, and achievements that demonstrate your value to the company. Be ready to link these directly to the ways in which you can help the organization meet its goals. This preparation shows that the salary you're asking for is justified. Basically, do your homework and plenty of it.
"Negotiate in their world. Persuasion is not about how bright or smooth or forceful you are. It’s about the other party convincing themselves that the solution you want is their own idea. So don’t beat them with logic or brute force. Ask them questions that open paths to your goals. It’s not about you." — Chris Voss
5 Showing too much emotion
While it means a lot to you, salary negotiations are best approached as a business decision rather than an emotional response. Feeling undervalued can certainly be upsetting, but showing frustration or desperation can undermine your professionalism. Keep the conversation focused, respectful, and factual. Maintain a calm, composed presence to negotiate effectively.
Remember, practicing beforehand with a friend or mentor is a good way to get your composure just right, and it works very well for a job interview, too.
"I have become more aware of (1) how true emotions can feel during crucial moments, and (2) how false they really are." — Joseph Grenny
6 Lacking flexibility
While it's important to know your worth and have clear limits, being too rigid can be a big roadblock to negotiations. If the initial offer is non-negotiable, consider what other parts of the compensation package might be adjustable and worth discussing, such as a signing bonus or additional benefits. Chris Voss believes that flexibility can lead to a mutually beneficial agreement and show that you're a cooperative team player.
The bottom line is that you can approach salary negotiations with a better chance of success by steering clear of pitfalls.
Boost your negotiation confidence with Headway summaries
Negotiating a salary isn't something that anyone particularly enjoys or relishes. But if you want to get the compensation you deserve, it's something you must do. To negotiate successfully, you must research, prepare, and be professional with a capital P. Don't go into a negotiation demanding your worth, even if you believe what you are asking for is exactly what you should have. It probably is, but this approach won't get you what you want. Instead, you need to leverage your achievements and put these tips to good use.
At Headway, we're on your side, and we want you to master your salary negotiations. We have a range of summaries of the best-selling books on persuasion and negotiation to get you started. In just 15 minutes, you can listen to or read a summary and discover fascinating and actionable insights. Who knows, maybe you'll land on a gem that propels you toward your ideal salary package!
