Mastering Salary Negotiation

Mastering Salary Negotiation

It is always possible for companies to acknowledge the efforts of its employees through promotions and bonuses for outstanding performers. Of course, these signs of appreciation are acknowledged, however, most employees are of the opinion that nothing is as valuable as a salary increase.

It is important to increase your professional income for career mobility, regardless of whether you continue working for the same company or changing jobs.

In the next discussion, we will look at how employees and job seekers can evaluate their worth and value to an organization in an effort to negotiate their remuneration based on the salary and compensation structures that they are entitled to during job offers or during their annual appraisals.

Learn How To Become A Negotiator

First of all, it is important to understand that not every person is blessed with great negotiating skills. Like price bargaining, effective negotiation is a skill that has to be learned and which entails a different way of thinking. Many candidates require something more than just asking for a raise or requesting for a better pay.

The first thing that one should always remember in a salary discussion is the fact that one should never accept the first offer given.

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Strategies To Negotiate A Higher Salary

1. Do your research 

Even though you can live off the salary you are being offered it may not be enough to match the market standards. Hence, market research on the salary market range of your job are essential before going for an interview or bargaining for a better pay.

One of them is to utilize the Salary Comparison Tool. With this tool, one can obtain an overview of major sectors in different markets, including basic roles and functions of these positions, as well as estimated salaries. It enables you to get an average salary range depending on the sector, area of the country, and experience level. The tool is revised every year in order to bring it in compliance with the industry standards and the current salaries offered in the market.

Also, you can broaden your knowledge by reading articles on the Internet, such as FastLane or talking to some professionals and a recruitment specialist to know the updates. With this information, there is an increased likelihood of winning a better salary deal during the negotiations.

2. Know your value

However, let’s assume that you are applying for the same position in the same industry but you have extra value proposition of being an entrepreneur and having knowledge in Search Engine Optimization (SEO) and social media marketing. In that case, you are a versatile candidate with much to offer and you increase the value of the organization.

Furthermore, if the particular company you are applying to does not currently employ SEO content marketing, your knowledge of the technique is even more beneficial.

In most cases, the title of the jobs may be the same, but the nature of the duties required in the two positions may vary significantly. These extra skills that have accumulated over the years enable you to base your negotiation on the industry standard salary but ask for a better amount.

It is also advised to get to know more about the industry and determine what skills are currently most sought after, and then apply them during the negotiation process.

3. Forget your previous salary

Another mistake that most job seekers make is to base their salary negotiations on a benchmark of the previous salary they were earning. Although the scenario where you earn way more than your previous job is always desirable, the method of comparing your previous salary is not a preferred method at all.

If you do not think that your skills and experience have not evolved at all since you left your last position, then don’t mention your previous salary. Instead, focus on how much you are willing to offer to the company relative to the industry standard. 

It is also typical to submit previous salaries when applying for a particular position at some of the companies. That information is more appropriate to reserve for the interview since it will have a better impact once the interview is conducted. It is not recommended to reveal the amount before an interview as it can place the candidate in a disadvantageous position.

Is it right to disclose your last drawn salary when seeking a new job? 

When you are interviewing for a new job and the interviewer asks you what is your last drawn salary then you can say “Well, I would like to know more about the position itself, duties and responsibilities, the team, and company culture before discussing salary. If you don’t mind, could you please tell me what range you are looking to offer for this position?” 

If they say a salary that is slightly lower than what you had in mind, inform them that you are willing to know more about the position. After that, explain how your skills could be beneficial to the company before attempting to negotiate about the salary during the job offer. 

However, if the salary range is way lower than what you expected, you can tell the hiring manager if the amount can be flexible for the right candidate. If the company’s budget cannot exceed a certain amount then it would be advised to decline the invitation to the interview. At some point, you would have to reveal your last drawn salary. 

For the Hong Kong job market, when dealing with an MNC or a local company, many employers require the last drawn salary before they can approve the new hire. This is in support of the suggested proposal and is typically a common element within the administration process, based on Gabriel Nam, Partner (Asia) – ESG, Strategy & Transformation at Page Executive, Hong Kong and Singapore. 

 4. Provide an exact number 

In their research done at Columbia University, USA and published in the Journal of Experimental Social Psychology, it was established that, precise offers are powerful anchors in negotiations. It is better to make a request for a definite number rather than a rounded one. For instance, instead of demanding $7,400, being more precise and requesting $7,346 can be more persuasive.

It is recommended that offering an exact figure gives an impression that you’ve researched your worth and know the market value. Therefore, you have a better chance of getting an offer that is near the amount you wished for. However, this kind of approach becomes even more appealing if you can back your request with facts or any other kind of evidence.

5. Consider the total compensation package

Depending on the situation, you can also ask the company to tell you the KPIs you need to meet in the next six months and whether it is possible for you to revisit the issue of salary at that time. However, labeling it as ‘salary negotiation’ is quite misleading, although technically correct, because you are negotiating much more than the base pay. Besides the salary, you are already thinking about the basic entitlement that you will receive as part of your employment package.

Remuneration package and benefits

The salary offer might be less than what you have in mind to earn but the other benefits that are encompassed in the remuneration package might be more attractive and even encompass more than the balance. The following are other benefits that you should consider when asking for a raise as a job applicant.

If the salary offer is not sufficient, you can ask for better benefits like health care packages, flexible working hours, paid leaves, training, and more which may be provided in the offer letter. There are many ways that you can ask for better benefits.

There are more benefits than the basic ones, such as tuition assistance, signing bonuses, and many more. Keep in mind that this is a business deal, and everything is negotiable. 

6. You can hope for the best but prepare for the worst 

When it comes to negotiating for a salary, start off with a higher amount and then try to negotiate it down. If the higher offer is accepted, it is good news. If it is rejected, modify it and you can try again.

Rejection simply implies that you have to go back to the start to negotiate and if the company cannot see the value you will be adding to it then at least you know where to take your talent.

Keep in mind that you will probably not receive a salary rise if you don’t ask for one, but there is a chance you could if you do.

Salary negotiations never come with 100% promises

Salary negotiations have no clear promises at the end of the day. There are some aspects from the employer and the human resource management point of view and factors such as limited funds and even more, competition beyond your values. 

However, if you do not even try to negotiate the salary that you are going to be paid, then you are really missing out on something big. So, do your homework, engage in a negotiation and the conversation can follow through from there.

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Are you ready to take your career to the next level and secure the salary you deserve? At FastLane Recruitment Service, we specialize in matching top talent with exceptional opportunities. Let our expert recruiters guide you through the negotiation process and help you achieve your career goals. Contact us today and start your journey toward a more rewarding career!