If you’re just out of college or have never held a “grown-up” job, you may have never had to negotiate your salary or commission package. He just accepted what the hourly rate was, because the company had a schedule for raises and performance bonuses. But, in the “real world,” no salary is set in stone. In fact, you can almost treat your salary negotiation like negotiating the price of a car or a house. Here are some tips for effectively negotiating your salary to help you earn what you’re worth.
Know the right time to start talking about wages and benefits
You never want to sound too eager to talk about salary or benefits. Employers may take it as if you have no genuine interest in the position. The best time to start talking about salary is when you know exactly what the job requires and when both you and your employer know that you are the right candidate for the job. If you discuss salary before learning about the responsibilities of the position, you could underestimate the compensation the position deserves. The bottom line is to wait to discuss salary until you are offered the job.
Base your salary and benefits on job responsibilities
The reason you don’t want to talk about salary until you know all the responsibilities is because you’re going to base your salary negotiation on the amount of responsibility the job requires. This is why managers are generally paid more than lower level workers, because more responsibility falls on their shoulders to get things done and make sure daily business runs smoothly. If you enter into a salary negotiation thinking that you cannot negotiate for a higher salary due to a lack of education, experience, or previous salary, you will end up losing out on a higher salary. Employers want you to believe that is the case, but in reality, they deserve to pay you based on what the position requires, not based on your credentials. Most companies have a certain dollar amount that they are willing to pay someone when they hire you, but will generally try to hire you for a lower salary to try to cut costs. If you accept their first offer, you are directly entering their game.
Factor company perks and benefits into the salary package equation
You may not be able to get an employer to budget much on top of the salary they are willing to pay you, but they are often more willing to offer additional perks and benefits to bolster your compensation package. On the other hand, if they are already offering additional benefits and perks, you should take this into account when negotiating a salary. If you’re allowed to drive a company car, pay your health insurance premium, a business cell phone, or a laptop, then you need to factor that into the equation. You may not get more money from them, but you will have fewer expenses, because you won’t be paying for a car, a cell phone bill, or buying a new computer any time soon.
Once you reach an agreement, put it in writing.
Think like a lawyer and get your verbal agreement in writing. You don’t have to sound militant about it, just ask politely, “Do you mind if we put this in writing so there won’t be any disagreements in the future?” You don’t want the hassle of trying to fight with your boss about what you did and didn’t agree to later on. It will hurt your relationship with your boss and it will only be a headache for you.
So are you ready to go out and make more money? You can even apply these principles to receive a promotion or simply ask for a raise. Remember, you are worth something to your employer. Don’t let your employer dictate how much you’re worth. Be proactive in showing them what you’re worth.
