Back in the day, working at a gas station could support a family and buy a home. These days, even modest salary brackets can struggle to afford a two-bedroom apartment. In Canada and around the world, the average salary has remained stagnant for several decades
There's not much the average person can do to change the law or economics. However, they do have one powerful tool at their disposal: salary negotiations. Knowing how to negotiate a salary offer could help you stay ahead of inflation and wage stagnation.
Read on as we discuss how you can up your compensation package at almost any job.
If you don't know what the going rate is in your industry, you risk the interviewer laughing you out of the room. Knowing what professionals in your career path get paid extends beyond informing yourself. It can keep you from unwittingly accepting a lowball offer.
So for starters, keep up with industry and career trends. Ask friends and research salaries on Glassdoor and other services. Compare the average pay from one workplace to the next.
In every industry, there is always some wiggle room. Employers don't normally expect you to fight for it, but they may cede a better salary if you play your cards right.
Remember, there will be chances for a salary increase later on, too. You don't have to fight for the maximum salary possible once you get the job offer. Being too demanding could easily start things off on a sour note.
Perhaps just as important as the negotiation is knowing when it should happen.
For starters, don't demand a higher salary before you have a job offer. This is a big mistake that many job seekers make, and it can quickly cut you from the running. Until there is an offer on the table, only ask questions about the salary range.
It's important to determine what the company plans to offer you sooner rather than later. This allows you to come prepared with a counteroffer that is not too low, or too high.
Also, determine whether a prospective company allows for salary negotiations. Some employers, such as the government, cannot offer more than their salary bands dictate.
Most companies have a threshold for how much of a salary bump they are willing to offer. Asking for a salary significantly higher than the threshold can lead to an uncomfortable interview.
Generally speaking, it's good practice to only ask for a 5-10% increase on an offer. Most big companies out there have their own special internal guidelines for handling salary negotiations. In the vast majority of cases, they will turn down a big--larger than 10%--increase.
Be prepared to walk away from an unreasonably low offer if necessary. Although unlikely, the employer may call you back and offer something better. In either case, don't work for less than you are worth.
Negotiating a salary isn't like buying vegetables at the wet market. You aren't trying to pressure them into accepting a lower number. Even hagglers know you have to convince someone why they should accept your number.
Counter any undesirable offers with evidence in your favour. The evidence may include the following:
Remember, you are trying to convince them that not only are you a better option, but you deserve more pay. Your case needs to be compelling. If you aren't more impressive than other interviewees, you might not succeed with your counteroffer
It's tempting to embellish your résumé or cover letter. There's no harm in using a bit of advertising speak to aggrandize yourself and exaggerate your skills. That said, don't make the mistake of lying or misrepresenting the truth.
For starters, don't fabricate anything concrete that you can't back up with evidence. It's one thing to say that you are one of the best when it comes to handling clients. It's another to say that you were employee of the month at a previous employer for it.
Lying on your résumé is a big no-no. Especially after you convince your employer to pay you more on that basis.
Oftentimes, an employer won't immediately investigate your claims. They will, sometimes accidentally, stumble upon evidence of your falsehoods.
The result could be much worse than firing. They can pursue legal action against you. Many an individual has lost it all for playing fast and loose with facts and reality.
Even if you only get a slap on the wrist, this harms your career. It deals a blow to your reputation, moral character, and trustworthiness. Long story short, it's not worth it to lie.
It's important to remember that the salary is only one component when accepting a job. Equally as important are the benefits that come with it. Sometimes, you might be willing to accept a lower salary in exchange for benefits that make up for it.
So when you are on your job search, take note of these aspects while comparing offers. Don't get discouraged when an employer doesn't accept your salary counteroffer. Take a look at the benefits they are willing to give you instead.
These benefits may be a way to secure a better compensation package. Having more paid vacation days, for example, may make a lower salary more palatable.
At the end of the day, you can always negotiate for benefits when the salary negotiation is unsuccessful. A retirement savings plan or better health insurance coverage may be worth their weight in gold--more than a meagre pay bump.
When people picture salary negotiations, they imagine somebody working up their confidence in a bathroom mirror before the meeting. This old stereotype does have some truth to it.
Don't discount the effectiveness of practice and role-playing when it comes to these sorts of things. It's very likely that you will clam up when the moment arrives. Despite your best efforts, you may not be able to decline an unsatisfactory offer.
So, grab a friend or a coworker and have them play a stern interviewer. Prepare them with the sorts of objections you might experience. Then, whittle them down with your argument until you have it down pat.
Sure, role-playing is a far cry from the real thing. But make no mistake, it helps you work on phrasing and delivery. You may not perfect it, but you will be much better equipped when the time comes.
You were expecting this one at some point! Needless to say, confidence is everything when negotiating a salary.
Confidence is something you can feel when you are around another person. Lack of confidence is likewise quite noticeable, almost like a bad smell. Whether you strut or slump into the interview room, the interviewer will notice.
Confidence begins with you. If you do not feel deep inside that you deserve a salary bump, you may not get it. So start by convincing yourself that you deserve it--and make sure you really believe it!
You can find a plethora of strategies to boost your confidence at the interview table. Unfortunately, there is no catchall option that works for every person.
Some people benefit from assuming a power position. Others benefit from regulating their breathing. Others still succeed when they imagine that the interviewer is only wearing underwear.
Use whichever strategy works best for you. Role-playing is an excellent opportunity to put your preferred strategy into practice.
Inevitably, you will run into salary negotiations that don't go as you would've liked. Employers either lowball you or shut down further negotiations.
It's important to keep your options open. If salary negotiations with other companies don't go well, it's beneficial to have other options.
In light of all this, maintaining a friendly, gracious, and thankful demeanour is essential. At the end of the day, this is what professionalism entails. Learning to curb your emotions will be a useful skill in the future, too.
Now you know how to negotiate a salary offer. Remember to sell yourself according to the facts, but don't oversell to the point of false admissions. Have confidence, and be conscious of when it's best to move on to greener pastures.
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