A = Assemble your data to help present a solid case for why you should be eligible for a higher salary.
B = Be Prepared for a Yes, No or a Not Now.
C = Consider the economic climate and job market because company practices mirror the market trends. If the industry is not performing well then the company is less likely to pay a premium.
The truth about negotiating salary is that managers must remain within a certain salary range in order to ensure consistency within their departments as well as remain within their budgets. You can have the best negotiating skills in the world but that does not always mean a manager will be able to get your number approved.
The toughest part of negotiating your salary is that most of the time you have no idea what the salary range is for the position. Recruiters and managers are trained not to answer definite questions about the available range. Sometimes even candidates will try to avoid giving out information about their salary history so they don’t undercut themselves. This is all a part of the dance that both sides do to make sure not to give up more than is necessary.
Most companies have created salary structures for their positions based on the current competitive market. However sometimes they fall behind in collecting new salary trends and revising their structures. Oftentimes it is not until a pattern has been established, by candidates asking for salaries well above the company’s salary range, that managers and the human resources department finally begin to consider paying a higher salary.
As a candidate you must wade through this uncertainty by gathering as much information as you can. You can conduct a salary survey using online tools such as Salary.com. Consider the size and location of the company. Differences in the cost of living in certain areas may warrant higher or lower salaries. The most challenging aspect of negotiating salary is trying to determine how you compare to the other candidates or the talent pool as a whole. If you have a unique skill then, obviously, you may have more leverage. Present information that proves that you are worth a higher salary, such as your salary history and a list of the things that make you stand out amongst the rest.
Prepare to have your request for additional money accepted, declined or postponed. Is it worth walking away from the job opportunity? Did the manager indicate that there may be future opportunity for you to reach your salary goals? These are questions that you must keep in mind.
If you already work for the company you may have more access to the salary range for your current or desired position but this is not always the case. However you do have knowledge of the level of success of the company. If the company has recently lost a lot of large contracts this may not be the appropriate time for you to ask for a raise.
Know your worth to the company. Many people think very highly of themselves and, yes, we all believe we should be making well over one million dollars per year. Make sure your expectations are realistic. Knowing your worth can also help you throughout your career by giving you ideas on how to establish yourself as a top performer or high potential. If the answer is no ask your manager what you need to accomplish in order to make the answer “yes” the next time.
Sometimes companies offer sign on bonuses as a way of showing that they are willing to add a little more incentive for you to join their team. Sign on bonuses may provide organizations a more feasible option because they are paid one time opposed to adding money to the salary.
Whether you decide to test the waters by negotiating a better salary the key is to remain flexible and prepare yourself for every possibility.
Follow me on Twitter @CoachKenya
Coach Kenya 