While most people think that the interview is the most important part of job hunting, asking for an appropriate salary is a crucial element that is often left out. Without the knowledge of how to negotiate your salary, you could be lowballed by potential employers and end up underpaid for years. Learn how to ensure you’re paid what you’re worth when you follow these six expert tips from Cash Factory USA.
1. Know the Industry Standard
You don’t ever want to start a salary or raise negotiation without all the information. Do some research regarding what other people in your field and position are getting paid. You want an employer to offer you a competitive rate — otherwise, why would you continue working with them instead of one of their competitors? Walk into the negotiation with two numbers in mind: what you want your salary to be and the lowest salary you’ll accept.
2. Understanding Your Salary
Most companies offer long term employees at least a 3% increase in salary per year to keep up with inflation. In addition to this basic amount, you should also learn how to negotiate an additional salary increase on top of that in cases of promotions, responsibilities added to your position, and new education, certifications, and licenses you have achieved.
3. Ask About Employer Expectations
Not every tip of how to negotiate your salary has to be about the money. You can ask your employer about their expectations for your job position. Perhaps taking on a little more responsibility will convince them to give you a raise.
You can also approach the negotiation by highlighting your value to the company. Ask for a performance review to remind management about everything you have to offer the company.
4. Other Negotiable Benefits
During a salary or raise negotiation, there are other benefits that could be considered part of your salary. If your employer offers a 401(k) where they match your investments, free health insurance for you and your spouse, or paid vacations above and beyond what’s mandated by the government, these are benefits that are equivalent to additional money in your pocket.
5. Timing is Everything
Timing is important both for you and your employer when you enter into salary negotiations. Part of learning how to negotiate your salary is learning when to negotiate your salary. The best times to negotiate with your employer are right after receiving a hire offer, during performance reviews, after receiving a new license or certification, or when you’ve been recognized for a particular achievement.
6. Practice Negotiation
Before you go in for a negotiation, consider all the objections you may hear after asking for a raise. Come up with appropriate responses for each objection. Practice with a friend to get used to approaching a superior and responding to pushback.
With these six tips, you’re far more likely to enjoy a successful negotiation. Ready for more financial advice? Check out the Cash Factory blog!