Financial

4 Step Salary Negotiation

When I first heard the term negotiate, I immediately thought of a rich old white guy sitting in a boardroom wagging his finger and working on a large business deal. I didn’t know it was an option for a person like me.

Negotiation is a nuanced term. To negotiate means to obtain or bring about by discussion.

The art of negotiation isn’t taught and it is not innate. It is a process of calculation, evaluation, confidence, and effective communication.

Here are some statistics to be aware of, based on reporting by Forbes:

  • Forty-six percent of men negotiated their salary compared to 34 percent of women

  • Workers ages 18-34 (45 percent) were more likely to negotiate salary than those ages 35-54 (40 percent) and 55 or older (30 percent)

  • African-American job candidates are more likely to receive lower salaries in hiring negotiations when racially biased evaluators believe they have negotiated too much, according to research published by the American Psychological Association.

All this being said, It is more important than ever that you learn and hone the art of negotiating so you can advocate for yourself, own your power, understand your value, and compete in the market alongside those with power and privilege.

Step #1 – Get into “The Negotiation Mindset”

If you don’t understand the value you bring to the table, you will never be able to successfully negotiate anything. Your value can be something as complex as your contribution to your company at work, or as simple as you being a loyal, trustworthy customer of a business for years.

Begin by grabbing pen and paper. Write whatever you are trying to negotiate at the top. Below jot down ALL the ways you bring value to the situation. Don’t stop until you have at least 5.

If you haven’t been doing your best at work and you struggle to see where you add value…now is a great time to start! You must believe in your ability to effectively negotiate. The same confidence you would bring to a big meeting or an important life event needs to apply here. Show up with the attitude that the worst thing that could happen is that they’ll say no – but if you never ask, you’ll never know!

Step #2 – Research, Research, Research!

Things to Research:

1) Job Title Average Salary 

2) Market Average (Location)

3) Company Specific Average

4) Current Performance Metrics (If Applicable)

You can use these resources to complete this research:

Step #3 – The Conversation

This can feel like the scariest part, but if you have completed step 1 and 2, step 3 should be a breeze!

 Tips to note:

  • Avoid setting an anchor on your current/previous salary.

  • Pick your number, then ask for $10,000 more.

  • You should have either a walk away number, or be prepared to negotiate quarterly salary adjustment meetings.

Use this template if you are struggling to find the works to say to a potential employer:

{Insert Hiring Manager Name},

Thank you so much for your offer of employment. Based on my market research, both internally and externally, I would like to negotiate a salary increase to {$10,000 more} I have given the number much consideration based on my previous performance and commitment to add {INSERT VALUE MARKERS HERE} to {INSERT COMPANY} . I am open to a negotiation.

I look forward to our discussion,

{INSERT NAME}

  • Be sure to ask for the path and potential to the number you want – find out if this is based on performance or time. This will determine if the opportunity is even something you want to consider!

  • Does this job provide other benefits or can you ask for them?

  • Before you sign your contract, negotiate quarterly or semi-annual salary negotiation meetings so your employer knows that this is something important to you and your continued growth and happiness at the company!

  • It takes a lot of time and money to recruit you as an employee – if you are receiving an offer then the company has already decided that you are a fantastic candidate!

  • You have the upper hand – trust that by self advocating, you will have more enthusiasm and excitement to work there.

Use this template if you are struggling to find the words with your current employer:

Insert Manager Name},

I wanted to discuss my current performance. I have been extremely productive this quarter, and am proud of the work I have done. Based on my market research, both internally and externally, I would like to negotiate a salary increase to {$10,000 or more} I have given the number much consideration based on my previous performance and commitment to add {INSERT VALUE MARKERS HERE} to {INSERT COMPANY} . I am open to negotiation, and continued conversations, but I feel like this number would be a reflection of the continued value I bring to this position and company.

{INSERT NAME}

Step #4 – Set Reasonable Expectations

What if they say no? There are plenty of other things you can negotiate for! Again, it takes a LOT of time and money to recruit you as an employee – if you are receiving an offer then the company has already decided that you are a fantastic candidate! You have the upper hand – trust that by self advocating, you will have more enthusiasm and excitement to work there.

  • Ask about a bonus or other benefit items.

  • Ask about a bonus based on performance – what would it take? find something measurable.

  • Ask for a follow up meeting to discuss a path to higher pay.

  • Be sure to ask for the path and potential to the number you want – find out if this is based on performance or time. This will determine if the opportunity is even something you want to consider!

  • Does this job provide other benefits or can you ask for them?

  • Before you sign your contract, negotiate quarterly or semi-annual salary negotiation meetings so your employer knows that this is something important to you and your continued growth and happiness at the company!



Source
4 Step Salary Negotiation is written by Sara Belhouari, A Certified Financial Trainer for financialgym.com

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