If you’re facing a dilemma about how to negotiate a higher salary, worry not: Dan Lok—founder and CEO of Closers.com and Copywriters.com—has got you covered. He says, rather succinctly, “Present your case like a lawyer,” implying you have to adopt a factual approach while negotiating for better pay. Whether you are moving on to a new job or need a raise in your current job, this blog will help you decide how to negotiate a higher salary.
Tips to Negotiate for a Higher Salary
1. Do Your Research on the Company You are Negotiating with
Before you get into salary negotiations with a prospective employer, research the company as much as possible. It helps in giving you a clear idea of a company’s business activities or operations and how you can bring value to it. You can also determine how much a company offers for that particular role by checking online reviews or connecting with the company’s alumni.
2. Know Your Market Value
According to Kara Goldin, founder of Hint Inc., a beverage company, confidence is the best tool for negotiation. Assess the job requirements, your skills, experience, and what you bring to the table, and decide your market value accordingly. You should also search for an average salary range for similar positions on Indeed, PayScale, or salary.com to ensure that you are not underpaid. On these websites, you can check average salaries for various roles based on experience, skills, location, certifications, and other factors. This will give you a better understanding of salary trends in the market and ensure that you put the best figure forward during negotiations.
3. Make Your Case Strong
As Lok advises, you must present your case like a lawyer during the salary negotiation rounds. Get down to business immediately. If you are negotiating with your existing employer, present them with concrete facts and figures. For instance, tell your employer that you created 10x revenue for the company, helped achieve the sales pipeline of $11 million for the customer acquisition team, etc. Essentially, present hard facts to make your case.
4. Ask for At Least 10% More Than You Really Want
Another trick to negotiating a higher salary is quoting a slightly higher figure than you expect. Asking at least 10% more than what you want will ensure that you get a salary somewhere close to your expected figure if the employer gives a counteroffer. You can also quote a higher CTC figure to get the salary you want after all gross deductions.
5. Give an Exact Number and Not a Range
If you are thinking about how to negotiate a higher salary successfully, you must remember that you do not want to get into a “counteroffer battle” with the company. It takes a lot of time and might even decrease your chances of getting the desired raise. The best way to avoid this is to quote a precise figure rather than suggesting a salary range. A Columbia University research states that precise offers are potent anchors. They get more weightage and are more likely to be discussed in final negotiation rounds rather than round figures.
At the same time, extremely precise offers may also signify inflexibility. Another research suggests that too much precision by experts tends to backfire. For amateurs, however, stating a precise figure can have a positive effect. Therefore, you should quote a precise salary figure based on the industry benchmarks, the role you have applied for, or your experience and skills. Even though all these factors play a significant role, you should emphasize more on your experience and skills to decide your worth.
6. Read the Salary Structure Thoroughly Before You Negotiate
Before negotiating, make sure you go through the company’s salary structure. It will help you understand the bonus and salary hike cycle. You can quote a slightly higher figure if the company conducts regular appraisals and offers a salary hike in six months or a year. However, if the company does not offer raises frequently, you should put forward your expectations accordingly.
7. Does Your Last-Drawn Salary Count?
While many people think it is unethical or unfair to ask employees about their last-drawn salary, more often than not, current salary discussions come up in salary negotiations. Many employers treat the figure as a benchmark and offer a nominal hike on your last-drawn salary. This is due to the anchoring effect, which states that people focus more on the first figure mentioned. Hence, you should avoid mentioning your last-drawn salary initially. Rather, you can politely ask the interviewer for the budget set for the role you have applied for or tell them your expectations.
Even if you are required to reveal the last-drawn salary, you can talk about your skills, the value you bring to the table, and your accomplishments in your previous role to negotiate higher pay.
How to Become a Master Negotiator
Negotiating is a tough skill. Some people even call it an art that takes a lot of time, practice, and patience to master. However, it is one of the most critical skills you must have, especially in the corporate world. Here are a few tips you can follow to become a master negotiator and learn how to negotiate a higher salary:
- You have to be reasonable in your approach and avoid a confrontational tone at all times
- Making the employer feel it’s a win-win for both parties is essential. Therefore, you should clearly specify what value you have added and will be adding to the business
- Prepare well before the negotiation round to appear confident and focus on providing solutions to pain points
If you want to learn more about how to negotiate a higher salary, here’s another thing that will help. Opt for Emeritus’ online courses; they will help you acquire in-demand technical skills to boost your career and give you an upper hand while negotiating for higher pay.
By Sneha Chugh
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