8 Tips for Negotiating the Salary You Want and Deserve
It’s a new year. It’s a great time to re-evaluate where you should be financially. You can use the tips below to get a raise at your current job or to negotiate your salary for a new job. I’ve seen a lot of great articles about this important topic but they tend to miss the importance of preparation, so I’ve put together my own list of eight tips to help you win your next salary negotiation.
1. Know your market value. Just like your used car, you have a fair market value. This is the price a willing buyer (your employer) will pay the seller (in this case you). There are a number of ways to assess that. You can review salary ranges on similar jobs, test the job market by interviewing elsewhere, ask peers, or use online resources like glassdoor.com. There is also an emerging trend of salary surveys in specific industries but I would encourage you to take them with a grain of salt. Surveys usually aren’t specific enough for your position and I have often found have the salary ranges listed to be higher than they actually are in reality. Another factor to include is your replacement value. Take a hard look at how much it would cost your company to replace you. Would it be more or less than you are making right now? If your company could replace you for less, you may want to ring up a few more successes before you go to the table.
2. Know the value you create for your current employer or that you bring to the next employer. You are 10 steps ahead if you can monetize the value you create for your current employer. This can be relatively easy in some fields, for example sales or fundraising, and more challenging in other roles like Human Resources and creative roles. Regardless, you have more bargaining power if you can find a way to quantify your value. Did you come up with an idea that saved the company money? Did you switch vendors, eliminate duplication, create efficiencies that saved money? Keep track of every dollar that your initiatives and efforts have saved the company because this can be as valuable as bringing in new business.
3. Know the value of your intangibles. Are you a charismatic leader? Do your customers love you? Are there other intangibles that make you a valuable asset? This is particularly useful once you are established at a company and they already know and love you. If you can identify and explain what makes you special, it can help make clear why they should keep you and would find you difficult to replace. In fact this je ne sais quoi might be what gets you the raise more than anything in your stats.
4. Go in with a specific number in mind. Although offering up a range might be beneficial in some cases, make the number you want the low end of the range. Hopefully they will go for the higher end of the range but make sure you would be satisfied if they go with the low number.
5. See it from your boss’s perspective and help them sell it. Even if your boss wants to give you a raise she or he likely has to make the case to their boss, or at least justify it to them. When you make the case, make sure that your case will help them help you. Give them the stats, facts and details they will need to justify your raise to their boss, who is likely less familiar with you and your work. Also, keep in mind that while you are negotiating for you, your boss has responsibilities that extend beyond you – including the budget, the salaries of your co-workers, profitability, etc.
6. Are there things more important than money? If there are things that are more important than money you can negotiate for those. In many cases it is much easier for your employer to give you professional development reimbursement, telecommuting, schedule flexibility, a new title, the ability to freelance, extra time off, etc. than it is for them to give you a pay increase. However, a word of caution – only negotiate for one thing at a time. If you are going to negotiate for a pay increase, be sure to get an answer on that first, If the answer is no, one of these other options, many of which come at little to no cost to your employer, can be easier for them to make happen. Additionally, they can often cut costs (decreased commuting, increased flexibility) for you while not increasing your taxable income.
7. Don’t negotiate against yourself. When you make the ask, make the ask and shut up. This is classic advice from sales and fundraising but, once you have made your case and made your final ask, you have to let your boss/or interviewer make the next move. Continuing to talk will only result in you negotiating against yourself and potentially getting less money or perhaps not a raise at all.
8. Lastly, be confident. Talking, and especially asking for money, is hard for many people. However, if you have followed the steps above and believe in the case you have made then go get it!
Hopefully these tips will help you negotiate your new salary with success. Let me know if you use these tips and if they work for you.
Chaz Cirame is the Founder of Cc: External Affairs, Inc. and a member of AF’s Board.
Cc: External Affairs, Inc. – helps corporations, trade associations, public affairs firms and non-profits develop long-term partnerships to reach and exceed their goals – be they shaping public opinion, achieving legislative outcomes, or building lasting strategic alliances.
The original LinkedIn post can be found here.