How to Negotiate a Salary?

Negotiating a salary is the process of discussing and arriving at a salary acceptable to you and the employer. The salary you ultimately negotiate will be based on a number of factors which include your experience, location, and your employer’s budget. To negotiate effectively, you will need to know your ideal salary before going into negotiations.

How to Negotiate a Salary

Part 1. Preparing to Negotiate

1
Research salaries. Before you can negotiate, you need to know how much people in comparable positions make. You can find this information in a variety of ways.
Talk with colleagues. Co-workers may be hesitant to talk about their salaries. Nevertheless, you can still ask. If you are negotiating a pay raise at your company, then your coworkers remain your best resource for finding out your company’s pay scale.
Research at Glassdoor or PayScale. Both of these website provide salary information for particular companies. You can find out what the average salary is for the position at your target company.
Research companies of comparable size. If no information exists about the company you are interviewing at, then you will want to find salary ranges for companies of comparable size in the same city or geographic area. You can also find this information on Glassdoor or PayScale. You may also want to do a general web search.
Look online if you are working for a government agency. Many states will post this information online. For example, you can view California’s state worker salary database by clicking here.

2
Decide on your salary range. Effective negotiation requires that you know two numbers: how much you would ideally get, and the least amount you would settle for. You negotiate with the first number in mind, and you walk away from the job (or stop negotiating) if the employer cannot meet the second number.
Don’t set the range too low. Research shows that women in particular tend to undervalue their worth. Instead, look at the salary ranges already offered in the field and location and consider what unique skills or experiences you can bring to the company that will increase your worth.
Also think through any trade-offs that you might settle for.For example, you might be willing to accept a slightly lower salary for increased vacation time or personal days.

3
List reasons why you deserve the salary you want. Effective negotiation involves more than simply spouting out a number to someone across the table. You also want to give a few short reasons why you think that you are worth the amount that you are asking for. You should come up with your reasons ahead of time.

4
Prepare for different types of negotiators. There are a couple different kinds of negotiators. One is hard-style and likely to say, “No.” The other type is a “soft-style” negotiator who comes across as agreeable. You need to prepare for both, because both present different challenges as you negotiate.
To negotiate effectively with the hard-style negotiator, you have to be in the right frame of mind. Do not get rattled by an assertive “No.” Instead, be prepared to justify the amount that you are asking for. You must also maintain a positive attitude, even in the face of resistance.
To negotiate effectively with a “soft-style” negotiator, you must focus on not trying to get the negotiator to like you. Instead, you must approach the negotiation as a bargaining opportunity. Soft-style negotiators can be problematic especially when you already know the negotiator—for example, she may already be your boss and you are negotiating a raise. You need to stop worrying that you might harm the relationship and instead focus on getting a salary you deserve.
In some cases, you may be asked by email to send an indication of your desired salary amount. This removes the face-to-face negotiation but can be just as difficult to know how to respond appropriately, so check out How to Answer Expected Salary in an Email for some guidance.

5
Practice. If you don’t like to negotiate, then you should practice various scenarios before speaking to the employer. One way to practice is to look in a mirror and state out loud what your ideal salary is and why you think you are worth it. Imagine the employer saying “No” and practice your counter-offer.
You can also enlist the help of a friend. He or she can pretend to be the boss. Work out different scenarios. For example, have the friend be a firm negotiator, saying “No” repeatedly, so that you can become accustomed to hearing that kind of resistance. Then alternate, and have the friend be open to negotiation.
Focus on keeping your enthusiasm up during the process, which is critical for your success in negotiations.

Part 2. Negotiating Your Salary

How to Negotiate a Salary
1
Delay discussion of salary. If you are interviewing for a job, then postpone for as long as you can any discussion of salary. The key is to make sure that prospective employers fall in love with you before you begin to discuss money. If the employer asks you what your salary requirements are, try to re-direct the conversation. Say, “Before getting into that, I’d like to hear a little more about…”
You should certainly wait until you have a job offer before discussing salary. However, the employer may require that applicants put their required salary in a cover letter. If required to do so, then follow the directions. But be sure to list your preferred salary as a range, e.g., $40,000-50,000.
If you subsequently discover that the salary you listed on your cover letter is too low, then you can adjust it during the negotiations by stating that you didn’t realize the full job responsibilities when you wrote your cover letter.By saying this, you can give yourself a reason for increasing the amount you want.

2
Let the employer offer the first number. By following this strategy, you can avoid naming a number that is too low. If the employer asks you to give a number, you can counter in several ways:
ask what the typical range is for employees in this position at the company
ask how much has been budgeted for the position
say you’ll consider any reasonable offer
say that they have better information as to what would be a reasonable offer

3
Make a counter-offer. Once an initial offer is made, you should not accept it. Employers expect negotiation, so their initial offer typically includes some room for them to move up.
Instead of accepting the first offer, counter-offer by asking for your ideal amount. If your ideal is $48,000 but the initial offer is for $35,000, then ask for $48,000. The employer is not going to move up to $48,000 on his or her own. You need to be prepared to ask for it.

4
Justify your counter-offer. You can benefit by offering a few quick reasons why you think you are justified in asking for the salary. For example, you may have led your prior company to record growth in the previous year. You can say, “I appreciate the offer and am really excited to work for you. But given my drive and history of performance, I was expecting something in the $50,000 range.”
Also be direct. If you want more money, then say that. Do not try to convey that you want more money by talking about your expenses. For example, don’t state, “Well I just bought a new car, so my expenses are really high.” Instead, say, “I need more than that” or “I need a higher salary.”

5
Don’t make demands. You should negotiate with confidence, sure of your worth. If the employer cannot meet at least your minimum, then you should be willing to walk away. However, you do not need to boast of that fact or issue ultimatums.
Don’t say, “Forty thousand is my final offer!” Instead, say, “I need at least $40,000 to make switching jobs worthwhile.”
Always negotiate with professionalism and respect. Often, salary negotiations are initiated after an informal offer has been made but before a formal offer has been extended. You don’t want anything you do in the salary negotiations to cast doubt on the employer hiring you for the job.

6
Negotiate more than just salary. Remember that base pay is only one topic of negotiation. After you have taken care of it, move on to the following:
minimum severance pay
performance expectations
perquisites and benefits
the schedule for future salary increases

7
Do not take negotiations personally. To effectively negotiate, you need to mentally separate yourself from the process. Remember that you don’t know everything about the business’s financial health, so perhaps the company is constrained in what it can offer you. Also, companies are under pressure to reduce overhead, and salaries are a big part of expenses. A salary offer that is lowering than what you would hope for is not a judgment on you personally.
Always remember that negotiating a salary is a business transaction.You would not be terribly offended if someone offered you less than you wanted for vegetables that you grew in your garden or a craft that you made in your spare time. Similarly, don’t be offended if the employer is resistant to offering you the salary that you want.

8
Ask for time to consider a final offer. Once you receive a final offer, you should ask for a couple of days to review. You want the time to clear your mind and look at the offer objectively. Most employers should give you a few days to a week to consider the offer.
Even if your first instinct is to decline because the salary is too low, you should take the time to review the offer. Maybe an increase in benefits will help offset the low salary. Only by giving yourself time to review the whole offer can you make a sound decision as to whether to accept or reject the offer.

9
Get the offer in writing. Once you have agreed to a salary and a benefits package, ask for everything in writing. Your employer should have no problem memorializing the offer in writing.

YOUTUBE:

FAQ:

1.How would I determine the monthly increase when the increase was 5%?
Ans: Monthly increase is one-twelfth of the annual increase.
2.How can I figure my hourly rate if I know my yearly salary?
Ans:You can find an approximation of your hourly rate. You would have to know exactly how many hours you worked during the year and whether you earned any money at special rates such as overtime, night differential, holiday pay, etc.
3.Can a raise be taken away do to change position?
Ans:Probably. It depends on the employer and job.

Table of contents

WHAT IS NEGOTIATION?
Salary negotiation is the method of deciding associate degreed agreeing on the quantity associate degreed/or varieties of compensation that an leader can pay an worker in exchange for a few style of labor.
WHAT NEGOTIATION IS NOT
Salary negotiation is not merely a series of talks designed to increase your pay. Rather, it is a chance for the leader and prospective worker to agree upon a whole compensation package that meets each parties’ desires. It is associate degree necessary half of the interview method, and may invariably be conducted in honestness.
THE POWER OF wage NEGOTIATION
For most individuals, discussing wage is a disagreeable expertise. However, once managed properly, it also can contribute to a positive and a lot of fulfilling skilled relationship between you and your future leader. the subsequent tips and tips can assist you with success manage the wage negotiation method.
NEGOTIATING PRINCIPLES
The manner that you simply approach wage negotiation contains a tremendous impact on its outcome. the subsequent 5 principles should guide your negotiations:

  1. wage is best mentioned once the leader has created you a proposal
  2. wage ought to be viewed within the context of different employment problems
  3. recognize what you’re value and what the present market can bear
  4. Most offers square measure negotiable
  5. it’s okay to invite what you wish
    SALARY IS BEST mentioned once THE leader HAS created YOU associate degree OFFER
    When associate degree leader causes you to a proposal, it means you’ve with success incontestible your full value as a prospective worker. this can be the simplest time to barter, as associate degree leader United Nations agency is aware of that you simply square measure the simplest person for the task is a lot of probably to be versatile on problems with compensation. What’s a lot of, if the interview method reveals that you simply have a lot of to supply than originally expected, you may find yourself being thought-about for a special job with a better wage vary. as a result of wage negotiation shifts the employer’s focus from your attributes to your needs, a premature wage discussion might forestall the leader from ever learning that you simply warrant thought for a better paying chance.
    SALARY ought to BE VIEWED within the CONTEXT OF different EMPLOYMENT ISSUES
    Salary is solely one piece of a complete compensation package, that will additionally embrace insurance, time off, versatile hours, loan forgiveness, and bonuses. different factors, sort of a affiliation to the organization’s mission, skilled advancement, and opportunities to interrupt into a replacement field, also can be thought-about as sorts of compensation. It is best to recognize regarding and contemplate all of these factors before discussing wage. You might realize that the speed of pay being offered is a lot of or less acceptable once you’ve thought-about the opposite advantages. For example, some candidates decide that versatile hours and upward quality square measure a lot of necessary negotiation points than wage. Similarly, employers might be a lot of willing to accommodate your wage requests if you are doing not need different advantages like insurance.
    MANAGING EMPLOYERS’ REQUESTS FOR wage INFORMATIONDURING the applying PROCESS
    Some job announcements can raise you to indicate your wage history and/or needs in your resume and canopy letter. {this is|this is often|this will be} a screening tool! If you list variety that’s on top of what the organization can afford, you’ll be eliminated from the candidate pool. If your range is just too low, the leader might provide you with a lower wage than what was originally meant.As a general rule, once wage info is requested in associate degree application, you can:
    :black_small_square:Ignore the request altogether; or
    :black_small_square:Explain that you’d be happy to debate wage once you’ve got a lot of info regarding what the task entails; or
    :black_small_square:Give a wage vary (not an explicit number) and indicate that your needs square measure negotiable and versatile. solely try this if you’re so willing to barter.Note: Some contemplate it risky to ignore letter of invitation for wage info, as a result of the leader might read your application as incomplete and eliminate you from the choice pool. whereas this is a legitimate concern, recognize that it’s equally risky to debate wage before you’ve got been created a proposal. moreover, if associate degree leader is affected together with your resume and canopy letter, she/he can presumably decision you sure associate degree interview and lift the wage issue at that point. Ultimately, reckoning on your own level of comfort, you’ll need to verify on a case by case basis that methodology carries the smallest amount risk and also the most potential for reward.
    DURING THE INTERVIEWE
    mployers might invite your wage history and/or needs throughout the interview. If doable, avoid this discussion till you’ve been created associate degree provide, or at least till the finish stages of the interview method. The interview ought to center on the worth you would bring to the employer—what’s in it for them. wage and different benefits—what’s in it for you—are best mentioned once you’ve well-tried your full value to the leader.
    IF you wish to understand THE wage vary BEFORE THE leader MAKES associate degree OFFER
    Your background analysis on the organization, the position sort, and also the field of observe ought to facilitate you estimate the wage vary with some accuracy. Also, keep in mind that wage is solely one wage Negotiationpiece of a compensation package. As you move forward with the interview method, you might realize that the position has a lot of to supply than you originally thought. A wage that you simply would have ab initio dominated out could also be a lot of engaging once the leader offers you the whole advantages package.

NEGOTIATING THE OFFER
Congratulations! Your exertions has paid off and also the leader has created you a proposal. However, your work is not done nevertheless. ne’er settle for a job provide right on the spot. Take time to contemplate the main points rigorously, get info on the complete compensations package, and build positive that there aren’t any unreciprocated queries.
RESPONDING TO THE OFFER
Whether associate degree leader causes you to a proposal via phonephone, email, or in the flesh, make sure to:
:black_small_square:Express your appreciation for the provide.
:black_small_square:Indicate that you simply have many follow-up questions on the task (i.e. vacation time, start date, position title, etc).
:black_small_square:Thank the leader for the knowledge, and invite time to contemplate the provide (anywhere be-tween many days and one week is standard).
:black_small_square:Ask if it’s okay to decision back if you’ve got further queries before creating a judgement.See the subsequent sample response to {an provide|a suggestion|a proposal} (in person or via telephone):“Thank you pretty much for extending the offer. Again, this can be a superb chance. are you able to tell American state a lot of regarding the advantages package (vacation time, health care advantages, the performance analysis method, etc)? nice, thanks for informative those details. I’d wish to take your time to consider the provide. am i able to contact you with my call by…[insert a date or time frame]? If I even have any queries before that point, does one mind if I provide you with a call? Thanks once more, and that i foresee to speaking with you.”Before you settle for or decline a proposal, contemplate each side of the task. the subsequent queries will assist you verify if this can be the proper position for you:
:black_small_square:Is your interest within the organization still strong?
:black_small_square:Will you gain new skills or bolster recent skills during this job?
:black_small_square:Is the position in keeping with your short term and long run goals?
:black_small_square:How will this job compare to your ideal job?
:black_small_square:How can this position impact your personal life and relationships?
:black_small_square:Is the wage acceptable?
:black_small_square:How square measure the opposite parts of the advantages package?
DECIDING to barter THE OFFER
If you’re glad with the entire compensation package and you are doing not wish to barter any side of the position, you’ll settle for the position as offered. If you’re not glad with the entire compensation package and you wish to barter one or a lot of aspects of the position, keep the subsequent principles in mind:
:black_small_square:Always discuss in honestness. you must solely undergo with negotiating a proposal if you’re seriously considering taking the task.
:black_small_square:Always discuss in the flesh or over the phonephone. Tone plays an enormous role in negotiation and it’s harder to convey in written type.
:black_small_square:If you’re considering different organizations, contact those employers, inform them of your provide, and inquire regarding the standing of your application. If they’re curious about you and have some flexibility, they’ll speed up their decision-making method. However, you’ll need to build a call before you’ve got complete info on all doable offers.
:black_small_square:You ought to solely settle for a proposal if you plan to stay with it.
INITIATING NEGOTIATIONS
If you choose to barter a proposal, you want to be clear regarding the aspects of the position that you simply would love to possess improved. keep in mind to contemplate each side of the task. don’t feel compelled to focus solely on wage.
CONCLUDING NEGOTIATIONS
Once the negotiations square measure finished, it’s acceptable for the leader to place the provide in writing. If you choose to show down the provide, contact the leader via phone and inform her/him that you simply have set to not settle for the position. make sure to impart the leader once more for the provide. The leader might inquire regarding your call to say no the provide. confirm that your response is polite, clear, and summary. contemplate spoken language “As i discussed before, this position is a superb op-portunity. However, I’ve set to pursue another chance at another organization. thanks once more for your thought and that i would like you all the simplest as you progress forward with the made candidate for this position.” Send a proper declination email to follow-up on your language. This skilled courtesy ought to leave the leader with an honest impression of you within the event that your methods cross once more. The letter ought to include:
:black_small_square:A statement of your appreciation for the provide (name the position)
:black_small_square:A statement of your respectful decline of the provide
:black_small_square:A statement that leaves the door open for future contact.