Ever wonder what to do when your boss offers you a lower salary than what you are worth? Or maybe, like many people, you would like to negotiate for a higher salary but don’t know how?
If so then our article on how to negotiate for a higher salary may be exactly what you need. In this article, we will discuss not only the benefits of negotiating but also some common negotiation strategies. We will also highlight important phrases that can help make your negotiations more effective.
In order to negotiate for a higher salary, you first have to know what salary you realistically deserve. You can get this information from your friends and colleagues, or by asking your boss directly. The real question is, “How much money are you worth?”
Are you worth more than what your boss pays? This is an important question because it will ultimately determine the kind of compensation package that your employer wants to offer you. A higher salary will usually mean a more favorable benefits package and assuming you are not dealing with a salary cap that is too low for your needs, it is indeed possible to negotiate for a higher salary.
In addition to setting your own financial objectives, you can also learn how to negotiate for a higher salary by taking an objective and analytical approach to the problem.
Take some time to look at your skills and then think about what your employer offers additional perks or benefits in comparison with competitors doing the same job. For example, do you have a great ability to manage people which the employer is willing to pay more for?
A good way to improve your skills is to go on-line and take a couple of courses. Having the skills gives you the confidence to excel. Furthermore, if you enhance your skill set you may be able to ask for a higher salary because you will be more productive. Once you have a better grasp of what skills and abilities your employer values, you can start to see what kinds of salary figures are realistic in that particular industry. When you discover the salary cap, use the above tips to negotiate for a higher salary.
Make sure that you employ a proper negotiating strategy. The most important thing when negotiating for a higher salary is preparing properly. When negotiating for a higher salary, do your homework on the industry and companies that pay the highest salaries. Talk to people you know who work for companies that are paying very well and see if they are happy. If they are, ask them when they are going to get a raise and what kind of salary increase they would like to get. Furthermore, ask them what sort of benefits and perks their company offers so you can have some negotiating power in case your employer asks you about benefits. Make sure you know what it costs your company to hire another employee by researching wages.
Another way to think about a negotiation strategy is to talk about the value you bring to the company. In other words, you need to come up with a reason why your employer should offer you a higher salary. For example, your employer may have an opening for a new employee and would like to start paying that person more money since he or she is such an asset. Or perhaps your employer dislikes replacing good employees with new ones and would rather pay more money to retain the experienced employees. Before you start negotiating for higher salary figures, the potential employer needs to consider that it costs time and money to train a new employee or replace someone who has been there awhile. Therefore, they need to know how much value you bring them before they are willing and able to pay more money.
Here is another strategy. Tell your boss that you are leaving or maybe just looking for a new job. You should prepare to be honest when your employer asks about the reasons. This will make it easier for them to offer you a higher salary. Perhaps they will have a real problem filling the position that you will be vacating or maybe they have to spend a lot of money on training a new employee. However, you have to be careful with this strategy because it can backfire. Depending on how you tell them, it can get you fired.
One more important point is to have a clear idea on what kind of salary increase you want. If you don’t have a clear idea on how much to ask then look at where you are in terms of compensation versus what the typical person makes with your experience and skill set. Then, consider if you are a below average or above average employee to see if you should ask for more or less. If you are above average, ask for more. If you are below average, ask for less.
To get an idea of what salary increase is reasonable to expect, be prepared to explain in detail what it will take for your employer to retain you. For example, if you have been there a few years and know many of the customers or employees – give the numbers as a reason why they should keep you.
Finally, consider the working environment you are already in. If you are under a great deal of stress or have an unhealthy environment – consider all your options before taking a new job. You may be better off pursuing another job if you want to work in a better environment as opposed to staying where you are and seeking another one.
Before making any decisions with regard to salary negotiations, make sure that you understand the numbers and variables involved in the process. In addition, make sure that your employer is ready to pay more money than what they pay now for someone who brings them value by giving them good results on their projects. Your chances of getting a pay raise are better if you do your research and prepare to talk about the value you bring to the company versus your compensation.