I’m sure you’re reading the headline and thinking, there’s no way that happened! But in fact, I actually received a 70% increase. In this article I will provide you with:
- A little background on how I managed to get the salary increase I had been hoping for
- Tips on how to negotiate a higher salary
- Some common mistakes to avoid when negotiating.
A little bit about how I got to where I am
I was working at a job that I really enjoyed, lets call this Job A. Now I know that many of you may hate your job and want a career change, so this may not be as applicable for you, but a career change may also increase your salary.
So, back to the story. The people I worked with were great (I still keep in touch with many today), the company had fun monthly events and I was learning a lot.
I just felt like I wanted more; more responsibility, more of a challenge and if I’m being honest, more money.
You see, the mistake I made with Job A was telling them what I was making at my previous job. I wasn’t making what I should at the job before. Which is a HUGE reason why I left and went to work with Job A. The only problem is, by telling Job A what I was making previously I lost all negotiating privileges. Just because a company asks you about your salary history, you do not have to disclose that to them. In fact in some states and cities it is actually illegal to even ask.
The reason employers ask about your salary history is so they can pay you a little more than what you earned at your last job, if they decide to extend an offer. This is in the employers best interest and not yours as the employer may have been willing to pay you more. By disclosing what you made previously you put the decision in the employers hands rather than yours.
What ever you do, DO NOT, I repeat, DO NOT share your previous salary details! If you do, you will not be able to break the cycle of being underpaid and you will continue to be underpaid.
When I had the opportunity to learn about a new job, I was a little hesitant. The reason being, I really enjoyed working for Job A, even though I was not getting paid what I knew I was worth. But I knew that I owed it to myself to learn more about the company and specific position. Lets call this new opportunity Job B.
Job B peaked my interest right away, as it was more responsibility and the next step in my career. I made sure to do a lot of background research. I not only looked into the company, but the company’s clients, as well as the industry. This prepared me to speak about my past experiences as well as the job skills I had in order to excel at the job. Also, I prepared a list of questions specific to the company and position. When the time came to speak about salary requirements, I aimed high and asked for more than what I expected to get. In fact, my low number of the range was $10,000 higher than my walk away number.
The interview went great. So well in fact, that I was introduced to more people on the team and got a tour of the office. The anticipation of waiting for an offer was killing me. When I finally got the phone call I was blown away that I was offered a salary in the middle of my range. Remember how the low part of my range was $10,000 higher than my walk away number?! I couldn’t believe it, I had just secured a 70% increase in my salary! Although I was not done negotiating there. I ended up with a couple more PTO days to fall more in line with what I was hoping for. So all in all I received more money and a couple more PTO days.
Many candidates do a poor job negotiating because they do not have the knowledge needed in order to do it properly. Some people do not realize that job recruiters expect salary negotiations. This means if you don’t try, you could be leaving money on the table. It is such an important part of the employment process and one that has a huge impact on your career advancement. Your salary allows employers to show you that they value you and your work. Next time you are in a situation where you have the opportunity to negotiate your salary, whether it is a new job interview or an annual review, try these tips outlined below:
- Do your research
- Wait for the right time
- Be confident
- Counter offer
Do your research
In order to get the best pay, you will have to know your worth. This means you should do plenty of research on what the industry standard is. Don’t just look at your position, but also take into account the area you are planning to work. Salaries differ greatly depending on your location, industry and experience. Making sure you do the proper research will help you ask for realistic compensation. Being able to provide actual data to support your ask objectively will show that you are serious because you came prepared.
Tools
There are many websites that will help you determine the correct salary. Just be sure that the website takes into account the items listed below:
- Position
- Company Location
- Company Size
- Industry
- Experience/Skills
Aside from websites, I would highly recommend talking to recruiters. It is their job to know a typical salary for someone with your experience and expertise. They can normally give you pointers on companies that are willing to pay higher than industry standard, as well as help you find a job that will pay you what you are looking for. The great thing about utilizing a recruiter is it is completely free for you. It is in the recruiters best interest to negotiate the best salary for you because that increases their commission.
Know your value
While you are doing your research, don’t forget to take into consideration the value you will bring to the company. A mistake that happens all too regularly is selling yourself short. The years of experience, skills you have acquired, as well as any certifications or awards you received should all be taken into consideration when coming up with the salary range you are looking for.
Ignore what you previously made
Many job recruits base their salary requests on what they made previously and ask for a small percentage more. Doing this can hinder the amount of money you could potentially make, so just don’t do it. Throw what you made in the past, out the door and make sure you do your research. Remember what I said earlier?! DO NOT disclose what you previously made during an interview and come prepared with data to support your ask.
Wait for the right time
Remember all of the research you conducted and have a number in mind. When you are armed with the appropriate number, you will be ready to start negotiating. Make sure you are not the first to disclose the salary you are hoping for. Let the employer bring the topic up and use that to your advantage.
Be prepared with a range
When being asked what your salary requirements are say you would like to know more about the responsibilities of the job before discussing salary. If you are able to, try to get the employer to disclose the pay range for the job. You want the employer to do this before you tell them your requirements. This can be difficult for some people. So if you decide to share, be sure to provide a broad range toward the top of your range. I say this because you should always know your worth and expect the best pay, but also your employer will most likely try to negotiate a lower salary. Do not forget to mention all of the research you did. I typically say something along the lines of,
Based on my research of the current industry and my skill set, I will be seeking $XXX,XXX – $XXX,XXX. This is all dependent on job responsibilities and benefits packages offered.
This allows you to start the conversation while you learn more about the company and job responsibilities. As you learn more, you will be able to narrow that number down to something more specific if needed. If you are seeking more money than the employer is hoping to pay, or more than the industry standard for the position, make sure you justify why you are worth the extra money. Coming to the table with specific examples of why you are worth the money will show that you not only did your research, but that you have given thought to the position and job responsibilities.
Know your bottom line
Once common mistake people make is not preparing themselves to walk away if the offer is not right. Make sure you sit down and really understand the number you will not go below. This number should take into consideration your cost of living, goals and responsibilities of the position. Even if this is your dream job, it is important to know when to say, “No.” and be willing to walk away. Whether you base your bottom line on industry standard or simply your financial need make sure you stick to it. Although it can be difficult to walk away from an offer, it is in your best interest. Knowing your worth will help you be alright with turning down an offer that is not right for you.
This can also be used to your advantage. If you reject an offer due to it being below your bottom line, the employer could follow up with a higher offer that you are more comfortable with. I would not assume that this will happen, because you run the risk of the employer moving onto another candidate. Just be sure to prepare yourself to walk away.
Be confident
Confidence is an important part of the negotiating process. If you start wavering your responses, this can hinder your overall outcome. Doing your research and fully understanding the job responsibilities will prepare you to speak up. Remember to relax because the worst that can happen is you get a “No”.
Confidence is not only shown through the responses you give during the interview, but through your body language as well. Be sure to keep eye contact with the interviewers, sit up straight. Using an authoritative tone and taking your time to thoughtfully answer the questions will go. a long way.
Counter Offer
So you’ve got the offer in your hand which is great. But do not be afraid to counter even if you would accept the initial offer. About half of all candidates accept the first offer that is put in front of them, but employers tend to leave themselves wiggle room expecting a counter offer. A general rule of thumb is to ask for about 20% more. You are not going to lose the job offer by countering at a higher salary. Do yourself a favor and ask for more, as you do not want to leave any money on the table. Try saying something along these lines:
I appreciate the offer and just want to reiterate my enthusiasm for the position and working with you, but I think my experience and skills are worth $XXX,XXX.
Again, if you counter with a higher salary the worst that can happen is you get a “No”. But regardless of if you get the higher amount or not, that does not mean the negotiations are over.
Don’t just think of your base salary
Don’t get me wrong, your base salary is an important piece of your offer. But it is not the only thing that you can negotiate. You need to review all of the benefits offered by the company. This includes paid time off, flexible working arrangements, title, healthcare packages, commissions, bonuses and other investments. Prepare yourself to negotiate all of the above.
You should also ask what the company’s career advancement policy is. The more specific you can get regarding salary raises and promotions will prepare you for future outcomes. If you can get specifics surrounding how the company evaluates the success of it’s employees it will help you next time you’re back to negotiate. Be sure to think about what is most important to you and your family aside from just the money aspect of the offer. Then don’t forget to negotiate to get the best offer for you.
Keep negotiating
The negotiation process can be complicated. The great news is there are many books, articles and tactics you can use to prepare yourself. The more you negotiate, the easer it becomes and the better you get at it. The best part about negotiating is it will help you bring more money home.
With all negotiations, there is no guarantee that you will be able to secure the higher salary. If you do not even try you could be cutting yourself short.
Common mistakes
Like I have mentioned before, negotiating takes time and practice, but it is a skill that everyone should master. Before you go out and start negotiating, be sure to stay away from these common mistakes:
Accepting the first offer
Remember what I said before? About half of all candidates accept the first offer that is put in front of them. This is a huge mistake because most employers anticipate a counter offer so they normally leave themselves room for negotiations. Regardless of if the employer has any wiggle room on the salary, you should feel confident in asking for more. Even if the offer is more than what you were hoping for, take a day or two to really evaluate it. Make sure everything that you had discussed is in the offer.
Not doing the proper research
Many people expect that the company will offer fair compensation for the position, but you should always be prepared with data surrounding what fair compensation is. Being able to speak about the research you have done will support your request for your desired pay. Be sure to bring up your skills and experience, as this will help solidify your request.
Not getting it in writing
You’ve gotten the phone call and have been offered the job! This is very exciting news. Many people forget that you should always ask for the job offer in writing before moving any further. Do not run to your current employer and put in your notice until you have the written offer signed by you and your new employer. It may seem like you are being demanding, but in fact it is one of the most important parts of the negotiation process.
You have most likely discussed many different things during the interview process, so make sure it is all there. Review the offer making certain that everything you have discussed is in writing is very important. If you discussed specifics surrounding future reviews and raises, make sure that it is all written in the offer. Make sure it has the specific timeline and value you discussed. For example, if you agreed on a review of your salary for a potential 5% increase after six months, it should be in writing. Once you get the offer in writing, make sure everything is there and that you do not want to negotiate any further before signing. Taking a day or so to think about the offer. Be sure to talk it over with the important people in your life. This is completely acceptable, and most employers will understand.
Only negotiating the base pay
There are so many items to consider when negotiating your offer besides just the base pay. Remember to discuss paid time off, flexible working arrangements, title, healthcare packages, commissions, bonuses and other investments.
Make sure to take the full offer into consideration and don’t get so wrapped up in the base pay number. There are many things that can impact your well being, so be sure you are looking at the full picture. Does the company offer the health benefits you need? Does it have a better work/life balance than your current job? Is it closer to home which will cut back on your commute? All of these things should factor into your consideration.
Negotiating every aspect of the offer
Do not make the mistake of trying to negotiate everything. If the company would be a good fit and you are interested in the job try to narrow down what is most important. Make sure you focus on one or two main pieces of the offer and then you can make a counter offer. You should not try to change every aspect of the offer, so make sure you review your research before submitting your counter offer. At the end of the day if the offer is not where you would like it to be, you should be ok with walking away.
Not disclosing multiple offers
If you are lucky enough to be in a position where you have one or multiple offers, on the table, be sure you are open and honest with the employer. Make sure you let the employer know that you are excited about the role, but you need time to make the right decision. Understanding your leverage while negotiating is key. If you are leaning more towards one position over the other, you can always use that offer in negotiations. Sometimes employers will match another offer, or at least try to come close. I would highly discourage you to allude to the fact that you have another offer unless you actually have one as you do not want to create a false sense of urgency. Doing this may impact the future of an offer with that company.
Negotiating is such an important skill for everyone to have. I hope this article has given you the tools you need to go out there and get paid what you deserve. Whether you are asking for the raise you have been waiting for, or interviewing for a new job, be sure to follow the tips outlined above. Avoid the common mistakes of negotiating so you can get the offer you have been waiting for.