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Overworked and underpaid? 9 tips for negotiating salary

Overworked and underpaid? 9 tips for negotiating salary

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A 2014 survey on Glassdoor showed that two out of every five employees think they're paid less than they deserve in their current job. Everyone wants to be sufficiently compensated for a job well done, but it’s difficult to ask for a raise, even if you’re lucky enough to get along well with your boss. And companies aren’t always likely to bring this up — if an employee doesn’t raise the issue, everything must be fine, right?

Those who don't ask for more can miss out on money, but there are better and worse ways to go about it. Whether you’re asking for a raise at your current job or settling a salary at a new job, read the nine tips below to negotiate effectively and diplomatically.

1: Do your homework.

Scour the internet for information on the job, the industry, the trends in your area, etc.. Find out what other people in your field are making. See what the industry averages are as well as the market demand. Sites like Glassdoor.com or indeed.com provide employee reviews, salary and benefit ranges.

You can see if earning the high end of the range is a result of experience in the field or education or some other standard. Keep these questions in mind beforehand and be prepared to ask them in an interview. If asked what salary you’d like, aim toward the higher range and be ready to explain why you’re worth that much. If they provide the first number, expect it to be lower than desirable since many hiring managers expect folks to negotiate upward.

2: Stress your strengths and distinctions.

Come prepared with personal attributes, accolades, experience, education, or extracurriculars that make you particularly suited to the job. Saying, “I think I should make this much,” isn’t good enough. Make your case. Tell them, “I am this valuable, and here is why.”

Find the things that set you apart from your peers, the types of things that look good on a résumé. Show them that it will actually benefit the organization to pay you more. As a bonus, the manager will see that you’re good at negotiating, a helpful skill that you can use once you’re hired.

3: Choose a walk-away point.

Before you even propose a desired salary or wage, be sure to know the absolute minimum figure you’re willing to work for, whether it is defined by salary, hourly wage, or some other compensation. Consider the factors discussed in No. 1 above as well as how badly you want or need the job and what other prospects you have, then be prepared to walk away from a lower offer.

There’s a chance they are bluffing to see whether you’ll accept the figure, and they could be amenable to something higher. But if they can’t or won’t budge and the offer isn’t what you’ve decided is acceptable, the job may not be the right fit. Of course, this walk-away point is a luxury for people who have other resources and options, but it’s better to think through it ahead of time than make a decision on the fly.

4: Have a respectful tone and sympathetic ear.

Be confident, be respectful and listen as much as you talk. If you show you are listening to them and hearing them out, they’ll start to trust you and open up to you. It could help to repeat the integral parts of their questions back to them so they know you understand where they’re coming from. “You mentioned that [X] is a priority for the company. Here’s how I think I could justify a raise in that regard…” and so on. Make it a two-way conversation rather than two competing monologs.

Shutterstock
Shutterstock

5: Have a few non-salary packages in mind.

A raise can take different forms than just a salary increase. Consider whether you’d be willing to work more hours for a higher salary, or take a lower salary for fewer or flexible hours. Or, depending on the company, you could ask for increased benefits, more vacation time, profit sharing, immediately vested stock options, bonuses, promotion possibilities, company cars, expense allowances, etc. Come up with a few options — hopefully that all sound equally appealing — in case your employer isn’t able or willing to accept your first offer. Maybe they can’t afford to increase your salary, but they could increase your paid time off.

Find the right fit for the job and company, and show them you are willing to work with them. If they say no to a higher salary, quickly move on to negotiate other items. Remember, your compensation is meant to satisfy a range of needs beyond simply salary.

6: Set goals to prove you’re committed to the company.

This can’t be stressed enough: Educate yourself on the company. Does the company have monthly, quarterly, or yearly goals? Understand where they are coming from and where they’d like to go, and insert yourself into that formula. What is it that they want or value as a company? Find it out and show that you provide what they want.

Create goals or ideas that will address the things that are valuable to the company. If you can show that you can create sustainable value for the company, your request for a raise will feel more like an investment. Let them know that your long-term goal is to move up in the company ranks. It lets them know where your loyalty lies, and that commitment could be the key to unlocking an equitable compensation package for you.

7: Don’t share personal reasons you need a raise.

Your raise isn’t personal — or it shouldn’t be, anyway. These conversations can create anxiety, which causes some people to get chatty, to over-share. Avoid spilling personal financial problems. Don’t talk about your mortgage, car problems, or a child on the way as reasons you’re asking for a raise. Sure, those things may cause you to need more money, but they don’t make you deserve it. Stay focused on what you're worth as an employee. Compensation is based on performance, not circumstances or desperation. Be assertive and professional, supporting your arguments with objective reasoning.

Shutterstock
Shutterstock

8: Don’t interrupt or be disagreeable.

Just like you, your manager has needs and concerns. Hear them out and do not interrupt, particularly when you disagree or are unsatisfied with their offer. If you hear them out, they should hear you out and the conversation will be productive.

Before moving on, you can ask yourself, “Did the manager answer my question?” If they beat around the bush with eloquent rhetorical flourishes instead of real answers, double-down on the question without cutting them off or showing annoyance. Be assertive without being pushy, and don’t be afraid to be candid. It’s common to be guarded in negotiations, but being open can prove helpful. These conversations can be comfortable, and it may even help your chances.

9: Take the initiative.

Ask the manager what the company policies are with regard to pay and compensation. See how they review employee performance as well as the process for pay raises and promotions. It may feel pushy, but managers generally understand and even appreciate employees who are concerned with advancement and promotions.

Do not expect this to come up organically at a performance review. While the review can give you an idea of where you stand, don’t wait till then to explain what you've achieved or what you’re worth. Besides, bringing up a raise during your review might be too late because those decisions may have already been made before the evaluations. Take it into your own hands.

Have you received any positive direct feedback on projects or your performance? Request a meeting with the manager yourself and talk about it. Once you know where you stand within your organization, you can then use that info to determine if you’re in a good position to ask for a raise or what you need to work on to get yourself to that point.

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