How To Negotiate a Higher Wage
According to a research study in The Journal of Organizational Behavior, 40% of applicants have never entered into salary negotiations. Researchers found that while salary negotiations are expected by most companies, only about 18% of applicants offered positions request a negotiation, and applicants who don’t negotiate their salary are missing out on $5,000 a year, or close to $500,000 by retirement age. If you are a risk-averse job-seeker, you may think that negotiating your salary could cost you the job, or that negotiating your salary will create an uncomfortable dynamic between you and the company culture. According to experts, this is rarely a problem, and companies expect and appreciate well-reasoned counteroffers. If you are new to the negotiating game, follow these simple tips to make the process smoother and less nerve-wracking.
Do Your Research Ahead of Time
While most would like to think companies within a particular sector are paying market value for their talent, that isn’t always the case. Before you even begin applying for jobs, do some research on the average pay in the area for a particular industry, then figure out how much money you need to survive. Entry-level employees should expect offers at the lower end of the range, while more seasoned professionals should expect salary offers closer to the top. Figure out what you expect from your salary before you head into interviews, so you’ll know how much or how little you’ll need to negotiate.
Don’t Negotiate Without a Well-Reasoned Argument
There is always the risk of losing out on the job when you are negotiating your salary, but it isn’t for the reason you might think. Human resource professionals believe that the negotiation process shows another side of a candidate’s skill set. A request for a salary increase that isn’t well-reasoned shows a lack of analytical and critical thinking skills that are imperative in most professional settings. This can lead to a rescinded offer. If you are going to negotiate your salary, you’ll need a reason why you deserve more than the base offer. For example, if you have a skill that aligns well with a company goal, you can use that as leverage when you are negotiating your salary.
Not all Negotiations are About Money
While most people think of salary negotiations in terms of cold, hard cash, there is more to negotiate than just the paycheck. Companies are all tied to monetary budgets, but they can sweeten a deal with other small perks that can go a long way. Don’t be afraid to ask for a better vacation package, better hours, or compensation in the form of tuition, technology or transportation reimbursement. These perks might be easier for a company to swing, and they still have a positive impact on your bottom line.
Ask for a Specific Number
According to researchers, a candidate who negotiates a salary with a precise number, like $72,560, get higher final offers than candidates who use round numbers. The reason for this is purely psychological. It is assumed that a specific number indicates more significant research and a greater understanding of the market, while a round number seems like a candidate is just spitballing ideas.
Stay within the Range
While you can attempt to negotiate your salary to whatever amount you want, you’ll have far better luck if you keep your requests within the salary range the company has told you. A candidate who attempts to negotiate for double the initial offer is just not going to be successful, and that type of candidate also indicates that they don’t understand the basics of business.
Attempting to negotiate your salary might seem like a scary prospect. If you are risk-adverse or timid, it might seem like an impossibility in your mind, but you, as a job seeker, must know your worth. It is important to enter each negotiation with a clear path and reasonable expectations. If you do that, your negotiations are much more likely to be successful.
Equal Housing Lender