According to a recent study in the Journal of Organizational Behavior, failing to negotiate on an initial job offer could mean missing out on over $600,000 in salary during a typical career.
It is important to know how to negotiate your salary because your earnings will depend on it and you might not see it, but it reflects how you value yourself and what you can do for your employer. As the cost of living increases and with the problem of inflation in the Philippines, it is just due for you to opt for salary negotiation. But how can you do this? Here are 25 salary negotiation tips you can follow:
25 Salary Negotiation Tips
- From the moment you make initial contact with any company or organization you wish to work with, you are in negotiation. You may not be discussing money openly, but you are making a permanent imprint on the minds of the hiring authorities.
- Delay all discussions of salary until there is an offer on the table.
- You are in the strongest negotiating position as soon as the offer is made.
- Know your value. You must know how you can contribute to the organization. Establish this in the mind of the hiring manager.
- Get employers enthusiastic about your candidacy, and they will become more generous.
- There is no substitute for preparation. If you are well prepared, you’ll be confident, self- assured, and poised for success.
- Prior to going into employment negotiations, you must know the average salary paid for similar positions with other organizations in your geographical area. You can use tools such as Salary.com, CareerBliss.com, PayScale.com, and GlassDoor.com to benchmark a salary rate.
- Prior to going into employment negotiations you must know, as best you can, the salary range that the company you’re interviewing with will pay, or what former employees were earning
- Prior to going into employment negotiations, you must know your personal needs and requirements, and how they relate to numbers 7 and 8 above
- Consider the “total” salary package. Remember, fringes and perks, such as vacation time, flex time, health benefits, pension plans, and so on, have value
- Salary negotiations must be win-win negotiations. If they’re not, everybody loses in the end.
- Be flexible; don’t get hung up on trivial issues, and always seek compromise when possible
- Listen carefully and pay close attention. Your goals will most likely be different from the goals of the employer. For instance, the firm’s main focus might be “base salary.” Yours might be “total earning potential.” So a win-win solution might be to negotiate a lower base salary but a higher commission or bonus structure.
- Anticipate objections and prepare effective answers to these objections.
- Try to understand the employer’s point of view. Then plan a strategy to meet both the employer’s concerns and your needs.
- Don’t be afraid to negotiate out of fear of losing the offer. Most employers expect you to negotiate as long as you negotiate in a fair and reasonable manner.
- Always negotiate in a way that reflects your personality, character, and work ethic. Remain within your comfort zone.
- Never lose control. Remain enthusiastic and upbeat even if the negotiations get a little hot. This might be your first test under fire.
- Play hardball only if you’re willing to walk away from, or lose, the deal.
- What you lose in the negotiations will most likely never be recouped. Don’t be careless in preparing for or conducting the negotiation.
- Be sure to get the offer and final agreement in writing.
- You should feel comfortable asking the employer for 24 to 48 hours to think about the deal if you need time to think it over.
- Never link salary to personal needs or problems. Compensation should always be linked to your value.
- Understand your leverage. Know if you are in a position of strength or weakness and negotiate intelligently based on your personal situation.
- End salary negotiations on a friendly and cheerful note.
Overall, preparation is key to success in salary negotiation. You must find your value and leverage on them during interview. Remember, you are what you think you’re worth.