Do you want to learn how to negotiate your salary like a pro?
Then you are in the right place.
Salary negotiation is something a lot of people get wrong and no matter what cycle you are in your job, negotiation for the salary you deserve is something you must learn to do.
Even employers expect you to negotiate.
The problem then actually is not "should you negotiate your salary but how to actually negotiate for the salary you want"
That is what this salary negotiation guide is all about.
Either you are applying for a new job or you want to earn more in your current job, you will find all the tips, information and scripts you need to actually help you get a better bargain for yourself.
In this article, the areas we are going to be covering are:
Salary negotiation is a process where an employee negotiates the amount of their pay, income, earnings, commissions, salary, wages, remuneration, annual review or salary review with a representative of their employer (like a manager).
Did you know that 60% of South African workers are severely underpaid, earning less than R5,000 a month, which is meagre compared to what workers in other sectors earn?
Let’s face facts, salary negotiation is a sore topic for most workers to broach with their bosses and even most new hires when asked; “What is your salary expectation?” by the interviewer find it difficult to request for better pay.
Worker underpayment is a real problem, but sadly, only a tiny fraction of underpaid workers negotiate for a higher salary. The other half, resort to earning the same amount throughout the course of their career.
Most employees, even when they know that they are worth more than they are paid, never ask for a raise because they don’t want to come off as greedy or they are waiting for their boss to bring up the topic first.
Salary negotiation is something you should do, especially if you know that a higher paycheck is what is right for you, you need to start demanding to be paid what you are worth.
We know that you don’t want to, and the very thought of negotiating salary makes you feel uncomfortable. But these are the 5 reasons why you should negotiate your salary:
1. Your Current Salary Determines Your Next Salary
One of the questions interviewers asked at a job interview concerns your salary history. Employers want to know what you were earning before so that they can decide if they will pay you less, the same amount, or more.
If you didn’t negotiate your last salary to a higher price, your next employer will still pay you based on that previous low salary. But if you earned more money on your last job, the next employer will pay you more.
2. Negotiating Your Salary Makes You More Money, Both Now And Later
If you negotiate your first salary for a higher price, you stand to earn more money over the course of your career, both at that job and at every other job you will have in the future.
The more you negotiate, the more money you earn.
3. Negotiating Your Salary Helps Close The Pay Gap
It is no secret that workers from different sectors are paid differently and most workers earn more than others, and men earn more than women.
Unequal pay created a pay gap not everyone in the world can fill at once, so every worker has to do their own part to ensure that this gap is bridged, by demanding for a better salary for their work.
If you negotiate your salary for higher pay, automatically, you are helping other workers in your sector earn on the same level as workers from other industries, in turn bridging the pay gap.
4. Negotiating Your Salary Shows That You Know Your Worth
Negotiating your salary shows your employer that you are capable, confident, and comfortable with what you have to offer. Those skills are what your employer recognizes in you, which makes them feel confident with increasing your level of responsibility, trusting you with key clients and promoting you to leadership positions.
5. You Will Never Get What You Want Unless You Ask For It
Most times, your boss knows that you deserve higher pay and all the other benefits that come with the job, but they hold off on doing those things because you haven’t asked or showed them that you want it.
You have to ask first to be able to get what you want, only when you tell your boss what you want, will they give it to you.
Nevertheless, as uncomfortable as it may make you feel, negotiating your salary is important and not having that conversation, can cost you the chance to make more money, and ultimately miss all the other benefits that come with the job, which you are entitled to, because you didn’t ask for them.
Now that you have made up your mind to negotiate your salary, what are you going to say when you get to that meeting with your boss?
Here are 11 words and phrases you can say, that demonstrate the confidence and knowledge required to secure a higher salary:
1.“I am excited by the opportunity to work together”
Often times, we treat salary negotiation like it is a battle or a face of between you and your employer. While in reality, you just want to agree on what benefits both of you.
Don’t negotiate as if it is an ultimatum, instead, make it a collaborative process and an opportunity to come up with a compensation package that benefits both of you. Prioritize the demands you need, and let them know which ones you can trade-off.
2. “Based on my research”
Although you are negotiating to get a higher salary, the amount you are asking for should be realistic.
Using the phrase “based on my research” shows your boss that you have thoroughly done your homework and you know what you are talking about based on negotiation.
Also, they will be more inclined to increase your pay once they find out what people in your position are supposed to earn. Don’t just say any number that comes to mind, do your research to know what people in your line of work are earning.
To get the appropriate amount, you can go to MySalaryScale to calculate your salary based on the industry, job title and years of experience.
As part of your research, make sure you know what the market for your job is. Market refers to what an employee can get if they went out on the job market and found a new similar position. For example, if you earn R50,000 but out on the market, you can get up to R80,000 it suggests that you are underpaid.
Now, because the company doesn’t want to lose you to the competition, they will be moved to increase your salary.
Value is what you bring to your employer. From your employer’s perspective, you should bring value to the company, either by increasing revenue or margin, or both.
If you can show your employer how you are adding value to the company in the form of increased revenue and margin, you can get your boss to consider giving you a raise.
5. “Similarly situated employee”
Although you have been advised against snooping around your colleagues’ salaries, having knowledge of it can come in handy during negotiations.
“Similarly situated employees” are people in the company who do the same things as you. For example, if you are a senior sales manager and every other senior sales manager is making more money than you do, then you are underpaid.
If your colleagues don’t feel comfortable sharing their salary details with you, simply use MySalaryScale to find out what senior sales manager earn and to know if you are underpaid or not.
6. “Is that number flexible at all?”
If the employer offers you an amount that is below what you want, it is necessary to decline the offer, but there is a right way to do that. Saying “is that number flexible at all?” is a better way to give them an opportunity to offer more or even offer you other perks that you can gain aside from a higher salary.
7. “I would be more comfortable if…”
Don’t start with “I need” or “I want” as these phrases can be a turn-off to your employer. Starting with “I will be more comfortable if…" shows the employer or hiring manager specifically, what you are looking for so that they can focus on that aspect of your job offer.
Finish up that phrase with “if we can settle on a base salary of R60,000”.
8. “If you can do that, I am on board”
You should know that most times, a recruiter is just as nervous as you are for negotiation and they want it to end quickly. So if you can clearly spell out what it would take for you to accept the offer, you would be doing them a favour.
Say for example, “I understand that you cannot come up to 70,000. It would be great if you can add a week of paid vacation along with the 65,000 you are offering. If you can do that, I am on board”.
9. “I would prefer not to leave’’
This phrase is a must-have because it is a defensible strategy. A defensible strategy explains what you want, why you want it and how it is beneficial for both you and your boss.
If a low salary is why you would leave the company, get and offer that you would be willing to accept but prefer not to. Tell your boss that you got a better offer, but you don’t want to leave the company and can stay if he will match the offer of the new place. Your boss is likely to give you a raise because it is cheaper to increase your salary than to hire and train a new employee.
However, before using this technique make sure that you really do have another job waiting for you, because it could backfire and ultimately lead to you getting sacked.
10. “Do you mind if I take some time to consider your offer?”
Try to stay calm even if the job offer exceeds your expectations. Ask for a few days to consider their offer.
Taking a few days to consider the offer, buys you some time to be able to come up with a better counteroffer and also move the negotiation to email if you haven’t done that already.
After careful consideration, you can now counter via email whenever you want, because you can be deliberate with what you want to say. Your negotiation will be more successful if you choose your counter off and state why you are worth it.
11. “Thank you”
At the end of every salary discussion, thank the person for taking the time to talk to you. Not only is it the right thing to do, but employers are more likely to consider the wants and needs of people who accord them respect.
You know what to say when negotiating a salary with an employer, but how do you do it? Below, we have given you some tips and answered your question on how to negotiate a salary for different scenarios.
For this part, we are going to be discussing:
Keep reading and use this salary negotiation resource to help you
These are the following tips you should have in mind while negotiating salary:
For Working Class Employees:
1.Jot Down Points For Discussion
Before you go into that negotiation interview, take a piece of paper and write down the points you want to make or discuss. While writing, keep the question “why do I deserve a higher salary?” in mind.
Details you can include in your points are:
2.Practice With A Friend
Practice makes perfect. Rehearse the interview thoroughly with a friend, before the actual interview with your boss comes. That friend can provide you with constructive feedback on how you are doing so far. If there is no one around, a mirror should suffice.
3. Begin By Calculating Your Value
It is vital that you know how much value you can bring to the employer before you start the negotiating process. When asking for compensation, these are the several factors that can influence your request:
4.Research The Market Average
The market refers to the number of people who are doing the same job as you. Before you start making any demands, do research on your job market, to know how much someone in your position, doing the same job as you are earning. To be able to calculate accurately, use MySalaryScale to get the correct amount.
Having this information is an effective tool that comes in handy during a negotiation because the employer is more likely to pay you the amount normally earned by a person in your line of work.
Here is how you base your research:
5. Share The Expenses You Are Incurring
Another reason to ask for a salary increase is because of expenses. If you are moving to a new city because of the job and have to pay moving expenses as well the cost of leasing and selling your current home, if the office is far from your house, you have to spend more on fuel and transportation or even vehicle maintenance. These are factors that should warrant your demand for higher pay.
Know that it is not unusual for employees to ask for an employer to adjust their salary because of these things.
6. Be Confident
Trust that you are worth more than your employer is offering. When you go in to ask for more money, state your value, how you have helped the company in the past, your level of experience, skills and certifications, tell them how much of a valuable asset you are and why you deserve more. If your employer’s offer doesn’t match what you want, ask for more.
7. Keep Negotiating!
After you have presented your counteroffer, the company will come back to you with a response somewhere between their initial job offer and your counteroffer. Their offer will be somewhere between your counter and their first offer, which means that the company accepted your offer.
After this response is presented to you, keep negotiating until you find a suitable package that works for you.
Reminder: Refer to the sample script in the next segment to see how to keep negotiating after your counteroffer has been approved.
8. Request for More Than Your Target Number
One fundamental rule of salary negotiation is to ask the employer a higher number than your goal. The reason is that, if you tell them a high number, they are likely to renegotiate to a lower number than you asked for. Telling them that high number makes it possible for them to end up at a lower salary you are comfortable with.
But if you give them the exact amount, they will bargain to a lower number than you want. Always start with a high number.
9. Give A Specific Amount
When negotiating, be sure to give a specific amount as what you want your salary to be. For example, tell the employer that your acceptable pay range is from 60,000 to 90,000. If you do this, they may pay you 60,000.
Do your research so that you can accustom yourself with the least salary you are willing to accept, and the one you can walk away from.
10. Be Flexible
If the employer can’t compensate you in terms of an increase, you can ask for other benefits like; stock options, extra vacation days, commissions, paid leave, gym membership, company car, health insurance, etc.
11. Don’t Be Afraid To Walk Away
If the employer can’t meet your offers or offer you other additional benefits, or they offer you a higher amount, but not as high as the one you wanted, then you need to decide if that job is worth taking or not for that amount.
Consider if the office is close to your home, the position is stress-free and offers your more flexibility or free time, then you may be open to a lower salary. If not, don’t be afraid to walk away.
12. Thank Them
After the interview, thank them for taking their time to listen to you. If you end up taking the job, tell them how excited you are to work with them and thank them for the opportunity.
If you did decline the offer, do so in a friendly and professional manner.
After Receiving A Job Offer:
How do you make a salary negotiation counter offer after receiving an offer?
As a fresher, know that it is okay for you to bargain for more than you are being offered as a salary.
Sure asking for more money can be a bit awkward and uncomfortable for you and you may even feel like if you ask for more, the employer may withdraw the offer altogether. You shouldn’t feel that way especially if you have an impressive resume and know what value you are adding to the company.
Here are 8 ways you can tactfully ask for a raise, after accepting a job offer:
1. Familiarize Yourself With The Industry Salary Trends
A simple hunch that you are worth more money isn’t enough. You also need something to back up your demand, you need research. Before you go in to negotiate your salary, find out what people in your industry, with your level of experience, around your area are paid.
Know if there is a high demand for someone of your skills in your field of work. If there is, then the employer would be willing to pay you more.
2. Negotiate At The Right Time
Most employers like to discuss salary or make an offer around the first or second interview. This is the time for you to bargain for how much you want to be paid. But, before you negotiate, ask about benefits and other compensation packages first.
If the company doesn’t offer, then ask. The wrong time to ask for a raise would be to have already signed the contract and agreed on a time to start work.
3. Always Counteroffer A Starting Salary
Always have a counteroffer, even if the amount the company is offering to you is a good amount. The reason why is, if you don’t negotiate you’ll never know if there is room for increment. The two things that could happen is that the company will be willing to increase the initial offer, or they could stick to their first offer which still works for you. These are both good options.
Counter for 10%-20% increase above the base salary offer. Do 10% if you need the job desperately and you sense that the company is not eager to hire you. Go fo 20% if the company wants you specifically for the job.
Note that you won’t get a better starting salary offer unless you ask for it. So, don't just accept what you are offered, ask.
4.Deliver Your Counteroffer Via Email
After receiving a salary offer, ask for a few days to consider their offer. Taking this time gives you some space to come up with a good counteroffer. Deliver your counter through email.
Doing so has two amazing benefits:
5. Don’t Reveal Your Current Or Expected Salary
When you are asked by the interviewer “what is your expected salary for this role?” or any other question of the sort, don’t make the mistake of giving a straight answer. Don’t tell them your current salary or what you are expecting for the job.
Your answer should be;
“I don’t feel comfortable, disclosing my current salary. I would prefer to focus on what value I can add to this company rather than what I am paid at my current job. You know better than anyone what value my skill set and experience would add to your company. I want this job to be a big step for me in terms of compensation and responsibility”.
6. Set Yor Minimum Acceptable Salary
Before you even get a job offer or accept one, keep in mind the exact minimum amount that you can be able to accept. It should be a number that if it goes lower than that, you will walk away from the offer.
Having that minimum number in mind makes it easier for you to start negotiations and also know what amount will motivate you to either stay or walk away.
7. It Is Not About You
Negotiation goes both ways, it is not just about you, it is also about the employer. Before you go ahead to ask for money, talk about the benefits you would be bringing to the employer as well. Tell them how excited you are to be working for the company and what values you would be adding to the company.
Employers are just as nervous as you are about negotiation, so, putting their needs in your mind, will help both of you feel comfortable about the whole process.
8. Be Honest
A successful negotiation depends on honesty from both you and your employer. And it is bad to have a hiring manager withdraw a job offer because they found out you lied about getting a better job offer or you inflated the amount you got from your past jobs. Just skip the exaggeration and keeps things honest.
9. Don’t Ignore The Benefits
Compensation isn’t just about making extra rands, there are other benefits your employer can offer to you. For instance, it may be cheaper for them to give you extra vacation days, flexible working hours and work-from-home benefits.
Also, consider the career opportunities, goals, advancement opportunities and growth that comes working with the employer.
10. Don’t Drag It Out
A reasonable employer will not withdraw an offer because you negotiated the salary. But dragging out the negotiation can frustrate the hiring manager and can begin your relationship with them on a sour note. If the company cannot meet some of your demands after a few discussions, respectfully withdraw your application and focus on opportunities that meet your expectations.
11. Get Your Agreement Documented
After your compensation package or salary has been approved, request for them to put it into writing, along with a brief job description and a list of responsibilities you will be performing for us and both of you sign it, so that it serves as evidence.
12. Thank Them
Don’t forget to thank your interviewer whether or not your counteroffer was approved.
If your counteroffer was approved, thank the interviewer and agree on the next step to take regarding your employment.
In the case that it wasn’t or you didn’t find their own offer suitable, respectfully decline, thank them and walk away.
Refer to the negotiation email sample below to know how to draft a salary negotiation email.
After a mail has been sent to you confirming your employment, you don’t have to start negotiating salary right away. Take some time to consider the offer and know if there are any other forms of compensation available in case a salary increase isn’t an option.
When negotiating on email, ensure that you are articulate and specific about what you want so as to not get misinterpreted by the other party.
This is how you draft the email:
I. Thank The Employer For The Opportunity
Show the hiring manager that you are grateful and excited for the opportunity. Your email should contain words that encourage working together. You are excited to work for the company and you are also excited to work together with them to find a salary and benefits package that favours both of you.
Rephrase their terms and then say… “Thank you for the offer, but…” before stating your terms.
II. State Your Counteroffer
The number you requested for is the starting off point for negotiations but that doesn’t mean that it is the amount that must be offered to you. When requesting for a higher salary your tone should be respectful, polite and professional.
The employer is already expecting you to negotiate the salary, so do it well. Here are some effective phrases you can use in your email and ones to avoid.
“Is there any wiggle room?”
“ If it’s not sensitive, do you mind if I ask what the salary range is for this role?”
“Can we discuss other components of the compensation plan?”
“How are you willing to…”
“I will not accept anything less than…”
I need a higher salary to pay my bills”
III. Backup Your Counteroffer With Research
The amount you asked for, doesn’t mean much if you don’t back it up with research and evidence. As a matter of fact, research is one tool you can use to make salary negotiation success.
You can use tools like MySalaryScale to check the correct salary people in your line of work and with your level of experience are paid. People who back up their counteroffer with research have a higher chance of acceptance.
IV. Know That Compensation Goes Beyond Salary
Sometimes due to budget constraints, it might be impossible for you to get the exact amount you asked for. When this happens, try once more to negotiate for a higher price, and if it doesn't work opt for other benefits.
Here is a list of things you can negotiate for:
V. Don’t Make Ludicrous Demands
While negotiating a salary, there is a lot you can ask for. However, don’t ask in a way that makes you look greedy or makes the employer feel like you are taking advantage of them.
Not every aspect of the job is negotiable. If the company doesn’t offer childcare or gym memberships, due to the level of seniority of the job, budget constraints or such privileges are only reserved for select members of the company, then your chances of getting both are slim. Instead, find out what other aspects you can negotiate for.
Salary Negotiation EmailSample
Request For A Salary Requirement Email
“Dear (Mr/Ms _____),
Thank you so much for considering me for the (role) at your esteemed company.
Much of my career has been in this (industry), and the skills I’ve learned from this line of work directly apply to the skills in (target job). I know I can contribute well to your team, and I welcome the chance to prove it to you.
As requested, my expected salary is (R_______) excluding benefits and incentives. That’s based on the job description and the average annual salary for this position. My requirements are negotiable, depending on several factors, such as improved career advancement and training opportunities.
In case you are negotiating in an interview, the script below will help you:
Salary Negotiation Script Sample
For you to effectively negotiate your salary, you first have to practice the interview, so that you become good at it. Follow the script below to see how:
Your counteroffer is R56,000 and the company’s initial offer is R50,000. Your negotiation window is between 50,000-56,000.
This is what you say when the recruiter or hiring manager calls to respond to your counteroffer.
If the company offers R55,000 say; “Sounds good when do I start?” But if they offer R54,000 say “55,000 and I’m on board.”
If they don’t accept your initial response and instead come up with theirs, use current currency as your base and request your next high priority benefit. For example, if they say R53,000, reply with “if you can do R54,000 then I am on board”.
If they stick with R53,000 then say “I understand that 53,000 is the best you can do and you can’t come up to 54,000, but if you do 53,000 and offer an extra week of paid vacation every year, I'm in”.
If they refuse your highest priority benefit, move to your second high priority benefit. “We’re at 53,000 and you’re unable to offer an extra week of paid vacation. But if you can allow me to work remotely from home two days a week, I’ll accept”.
If they don’t accept your second high priority benefit, move on to your third high priority benefit.
By the time you are done negotiating with them, you would have been able to get a price and benefits package that is suitable for you.
This is a question that bugs most employees, not knowing how much or what to ask for in terms of money and benefits when negotiating. We have answered that question below for both aspects.
Here is how to ask for more in terms of negotiation and how to get it.
In Terms Of Money:
1. Do Your Research
Remember to always do your homework before you ask for a raise. Doing so will help you know exactly how much a professional of your job position, experience, location and qualifications should earn. Also, it makes for good evidence to show your boss when asking for that raise.
In addition, it will help you know if you are currently over or underpaid.
You boss is more likely to pay you more, when you prove to him or her, that it is the same, amount you asked for that people in your sector are earning.
2. Ask For 10% To 20% More Of What You Are Currently Making
As a general rule, it is appropriate to ask for 10% or 20 % of what you are currently making.
That means if you are making R50,000 and ask for R55,000 or R60,000, you don’t stand the risk of coming off as greedy or being laughed at.
If your initial salary offer is low, you have more leverage. If you get an offer of 20% above your current salary, you can ask for an additional 5 % even if you don't get that 5%, know that you are already at a good offer.
Requesting for 10% or 20% more is always a good option when asking for a raise. With all that being said, don’t be afraid to go big when asking for a raise, as long as you have done proper research.
3. Put Your Knowledge To Good Use
To win any negotiation, you actually have to sit down to it first. Many employers expect the candidate to come back with a counteroffer, yet most candidates prefer to leave the money without negotiating.
Don’t be like those other candidates. Sit down and get what you want, by using all the knowledge you have acquired on how to negotiate.
In Terms Of Benefits:
As mentioned earlier, money isn’t the only thing worth negotiating for. In the event that the employer doesn’t accept your counteroffer, you can renegotiate to other benefits like…
1. Paid Time Offs
Most companies will offer you a limited amount of paid vacation days. But if you are coming from a company where you had more days, then you can renegotiate for them to match that number.
If their offer was two weeks, but you were given three weeks at your previous place of work, ask your employer for the same.
2. Flexible Working Hours
Flexible working hours are invaluable especially if you have something else taking up your time. Maybe you have children you want to take to school or function better at specific hours of the day. If you want to bargain, tell them that you plan to be in the office full time for the first few months of the job, to learn the business inside and out and familiarize yourself with the office. Then explain to them why you need to adjust your hours to match your other schedules. Reaffirm the employer that your flexible working hours won’t affect the value you are bringing to the company.
3. The Option To Work From Home
Working from home is becoming popular in the job sector and many companies offer this option. However, be sure to negotiate for it appropriately, don’t just waltz into their office and ask if you can work from home every Friday.
make your request in a way that it benefits your company or after you have finished a big project. You can aks by saying; “Every week, I end up with a lot of paperwork, I can’t finish because of office distractions. I believe that I can get it done on time if I work from home every Friday”.
4. Help With Paying Off Student Loan
Many fresh graduates graduate with debts to pay to their schools, and most companies offer student loan repayment programmes for such employees. They give them a particular amount of stipend every month to use to pay off their debts.
If you are interested in this benefit, you should wait until you have received the offer, then assess the benefits package thoroughly understand what it is they are offering you, you can now request for it.
5. Money To Further Your Education
If school fees reimbursement for postgraduate studies or other programs is important to you, ask about it and tell the employer why it is important to you. They could say yes, or no, but you will never know if you don’t try.
If you have researched the company to know their values and the benefits they offer, then this should be easier for you to do.
6. Professional Developments
Another good thing you can ask for is what areas of professional development you can take advantage of. Are there training, membership dues, and industry conferences reimbursement or stipends available?
7. Child Care Costs
Most companies offer health insurance as well as other for both parents and children. If your company is one fo such, and you know that those things will make for a better work-life balance for you, then you can ask for those things too.
8. Maternal/Paternal Leave
Some employees fond it difficult to access these benefits mainly because the policy in place doesn’t suit their preferences. If you expect to have children soon or want to take parental leave, find out what your company is currently offering and try to negotiate a deal that is better for you.
9. Assitance With Transportation Cost
If your office is quite the long commute from your home and transportation costs is eating deep into your pocket, you could get the company to assist you in that regard. They could provide you with a company car that brings you to and from work, or they can give you a transportation allowance.
10. Health And Wellness Benefits
If you care about staying healthy while you work, you can ask for benefits that align with your concerns. For example, you can negotiate for a gym membership, healthy snacks, nap hours or even use a standing desk to enable you to stay more active at work.
11. Assigning Work Phone Or Laptop
Depending on where you work and the nature of your job, you might need a Laptop and or a phone to do your job. So, will the company provide you with either of those things?
12. Relocating Costs
If you need to relocate because of the job, you can ask them if they can assist with the moving process or if they can provide you with accommodation. Some companies already offer these services and have budgets or allowances for them.
13. Leave Days For Volunteer Work
If you work for a charity organization or volunteer at one, you can negotiate for free days so that you can go for your volunteering job.
14. Ask For A Better Job Title
Some non-monetary benefits have more value than a raise. For instance, for another job title of a more senior level is an obvious way to get other benefits that come with the position.
You can opt for bonuses while negotiating. It could be a sign-on bonus (a sign-on bonus is an amount of money given to a new employee as an incentive for joining the company. It can be given if the employee's annual salary is lower than he or she expected).
Another bonus is a relocation package, that is money paid to the employee at the time of their relocation to another place, whether domestic or abroad. It could include house rent, children's school fees, etc.
Other kinds of bonuses you could ask for can be for when you excel at the job, after your annual performance review or for a commission for every deal you bring to the company (depending on the type of organization you work for).
16. Stock Options Or Other Long Term Incentives
Certain companies reserve their stock options (stock option is a benefit given by the company to the employee to buys shares at a discount or stated fixed price) and long-term incentives for employees of a management level. But it can’t hurt to ask.
Now, you know exactly what to ask for from your employer and how to get what you want, get in there and demand the things you want. Good luck!
Keep reading the next part to find out how to answer salary negotiation interview questions.
1. When You Have Gotten The Job:
So, you got the job, congratulations. You aced the interview, impressed the hiring manager with your skills and did a good job overall.
But how are you going to answer when you are asked the salary question? See answer below:
The “What Is Your Salary Expectation?” Question
When you are asked this question it is important for you to have a good range in mind before you answer. So that if the employer negotiates below your offer, you can still get a price you want.
“I have a range of R50,000 to R65,000”.
Another way to approach this question would be to not give any answer at all, but instead, focus on telling them the value you could add to the company to get them to adjust their own offer to something suitable so that they can keep you.
Say; “I want this career move to be a big step forward for me in terms of compensation and responsibility”.
No matter what you do, do not give them a straight answer. So that the ball is now in their court. Remember to keep negotiating until you get what you want.
The “What Is Your Current Salary? Question”
The best way for you to answer this question is to reply with; “I am not really comfortable with sharing that information, I would prefer to focus on the value I can add to this company, not what I’m paid at my current job”.
It is possible that they may have done some research to find out what you might be making at your current job or they wouldn’t have. Regardless, never disclose your current salary at a job interview.
If you tell them that you earn maybe R30,000 at your current job, they may add R10,000 or R1500 extra to that amount and offer it to you because anyway, it is higher than what you were earning before.
Note: To find out the correct amount that someone in your position is paid, use MySalaryScale to find out.
2. When You Are Asking For A Raise From Your Current Employer:
Congratulations, you have finally worked up the courage to ask your employer for a raise and other forms of compensation. But do you know how to answer this burning question from the interviewer regarding your request?
The “Why Do You Think You Deserve A Raise?” Question
Your boss knows that your raise is way overdue, you’ve done some much for the company in terms of increasing revenue, signing on new customers, you have worked for them for a long time and you feel that you are ready. But he or she, wants you to reassure them that you are worth more money or benefits.
Reinform them of your achievements.
Answer; “In the last few months, I planned and executed our largest client conference till date. Attendee feedback greatly surpassed last year’s event satisfaction scores, averaging an 8 out of 10. I exceeded my sales quota reaching 150% of my sales goal”.
When you have listed all your numerous achievements and proved that you are a valuable asset to the company, that raise should be in order.
Just be confident and refer to the points we listed earlier on tips on how to negotiate salary, for more ideas on how to go about asking your boss for a raise. We also have sample email and scripts for you to practice with.
Another point for your consideration. Timing is everything when it comes to negotiating your salary. You want to do it at the perfect time or it could backfire and you walk away with little or nothing.
Best times to negotiate a salary?
1. When Accepting A Job Offer
It is better to negotiate salary, once the company has seen your potential value, decided that you are the right fit for the company and made you the offer. If what they offered isn’t in line with what you expected as salary, you can now come up with a counteroffer.
On the plus side, negotiating a starting salary stets you up for successful negotiations in future.
2. When The Job Scope Exceeds The Initial Role
As you spend more time at the job, you realise that the role grows and develops with the company needs and your skills. Same way, you may begin to take on assignments that are beyond your original job description. This is the perfect time to ask for a raise because you are now doing more and bringing extra value to the company.
Be sure to highlight all the ways you have helped the company grow when asking for the raise.
3. After Executing A Successful Project
When you just finished executing a massive project successfully and is about to undertake another assignment of a similar nature, you can renegotiate your salary. Have facts and figures ready to support your achievements and why your efforts deserve a raise.
4. Three Months Before Your Annual Performance Review
If you want the raise to align with your annual performance review, then put in the request 12 weeks in advance.
That way, your manager can consider your request in line with your performance and get it approved.
Word of advice, these are the worst possible times to negotiate salary:
In a salary negotiation, knowing all there is to know about it is simply not enough. You must also avoid making mistakes which could cost you higher pay and other benefits.
These are the 10 common mistakes people make while negotiating salary:
1. Never asking for a raise or negotiating your salary because “I suck. I always fall apart or ramble’’. If you don’t ask you won’t get anything.
2. Telling them your previous salary and instantly destroying your chances of making a significant leap.
3. Not planning or preparing in advance, even though 80% of the work happens before you enter the room to ask for a raise.
4. Ignoring the Psychology aspect of negotiation. Most people tell us to just ask for a raise, but they don’t understand that we have to first get into our bosses’ heads and figure out how to build our confidence and overcome nervousness.
5. Fumbling through an interview. Instead of knowing exactly what words to say and how to say them.
6. Turning down offers and burning bridges.
7. Never discovering what the interviewer is really asking. Not understanding the question behind the question.
8. Giving up or rambling when the boss says “that’s not in our budget or maybe next year”. Negotiate for other non-monetary compensations.
9. Not knowing what to say, or when to say “no’’.
10. Asking weak questions or none at all, when your boss or interviewer asks “do you have any questions?”
The answer is yes. Negotiation can backfire especially if you use the wrong strategies. These are the negotiation strategies that are sure to backfire (and how to avoid them):
1.Negotiating Too Soon
Most candidates often make the mistake of negotiating their salary before the company has offered them employment. The best time to negotiate salary and other benefits is after receiving but before accepting the job offer.
2. Leveraging One Offer To Get A Counter Offer
While you may have received another job from another company, it is not wise of you to ask the interviewer for extra pay, because you assume that the other company will pay you better. This is a wrong move because you haven’t even counter offered with the other company and you don’t know what they will pay you. And you don’t always have to choose the highest paying job, weigh the pros and cons of each company before accepting either of them.
3. Failure To Do Your Homework
Walking into an office with an amount in mind because a certain website or even google told that that is what you should be earning. Do your research properly to find out the correct amount based on company, location, experience and level. If you have doubts, use MySalaryScale.
4. Negotiating For Money Only
If the interviewer or your boss can't give you more money, then negotiate for other benefits that can help you achieve a positive work-life balance and benefit the company as well.
5. Bait And Switch
One terrible negotiation strategy to use is the bait and switch. The bait and switch strategy is when you accept the offer verbally but renegotiate for more after it has been put in writing. Using this technique as a foot-in-the-door, because you are hoping they will pay you more after seeing how “amazing” you are, will ultimately backfire.
Doing this can also cost you the whole job offer.
6. Missteps As A Current Worker
Sometimes current workers renegotiate their salary by threatening to leave, this is a sure way to get fired. Managers prefer to advocate for employees who are dedicated to them and the company. By failing to follow the company’s guidelines for promotion and raises you may end up jeopardizing your career.
You have followed all the steps to salary negotiation and have made it this far. You are ready to negotiate your way into higher pay. But don’t you think you are forgetting something?
What to do when you don’t get your way when negotiating salary? Keep reading to get the answer.
About 75% of professionals who ask for a raise don’t always get one, so you don’t have to feel bad or think you didn’t do your best to advocate for yourself. Here’s what you can do instead:
1. Don’t Take It Personal
The company may be going through financial hardship or something else that is in no way related to you. So don’t feel like they deliberately refused to give you more money or other benefits. You should be proud that you even had the courage to ask for a raise.
2. Did You Ask For A Raise Before You Earned It?
Be honest when answering this question. Earning a raise is different from feeling like you deserve one. And to earn it, you first have to have a great track record and would have added great value to the company.
Additionally, if your boss offers you feedback on areas you need to improve on, take those parts seriously and work on them before your next negotiation interview.
3. Did You Ask For Too Much Money?
Before negotiating your salary, it is wise that you research your current market value to find out how much you are supposed to be earning based on your job. Knowing this will prevent you from asking for either too much or too little money.
4. Learn The Things You Are Supposed To Say At A Negotiation Interview
Another thing to do before you go for a negotiation interview is to practice the things you are supposed to say and how to answer the questions that come with negotiation. You can use scripts to practice.
5. Rejection Is Hard, But There Is A Lesson To Be Learned
Use this rejection to know what areas you failed at and learn the lessons that are involved so that you can do better at your next salary negotiation interview.
There you have it, that’s what you need to know about salary negotiation. Use this guide the next time you are negotiating and you can get that raise. Don’t forget to share with your friends to.
Good luck and all the best!