Salary: how to negotiate and ask for a raise?
Looking for a new job tends to be a stressful, time-consuming experience. One of the main factors causing that pressure is salary negotiation. This applies to looking for jobs, securing raises, cementing promotions, and much more. So, what’re the best methods to approach this incredibly important moment?
But, before moving on to the ‘’how’’, it is important to emphasize why you should negotiate the salary. The main reason is to not be underpaid, and more importantly not letting “ what if I asked for more?’’ questions haunt you throughout your employment.
Linda Babcock and Sara Laschever in their book, Women Don’t Ask, outlined dozens of studies that demonstrate women’s reluctance to negotiate. For example, a survey of masters’ students entering new jobs indicated that female students were likely to take the first offer of pay, on the other hand, their counterpart male students were eight times more likely to attempt negotiating a higher starting salary, and on a bigger scale in the workforce market, they mentioned a study that showed that only about 7% of women attempted to negotiate their first salary, while 57% of men did. Of those people who negotiated, they were able to increase their salary by over 7%.
Still, nothing is black or white as there are also a large number of men who choose to take the first offer. Psychology professor Jordan B. Peterson offers practical advice on obtaining a raise in salary — especially for people who tend to be more agreeable in his book “12 Rules for Life: An Antidote to Chaos”.
So how do you ask for the appropriate amount and how do you negotiate the salary:
1- Research the market: Before applying or even during your application process, you can start looking in the market for the salary range for that specific position if it is not indicated by the company. You can also ask HR or the hiring manager about their salary range.
Do first online research for example on Payscale or Glassdoor, especially if you are looking for roles in different sectors and/or geography.
One other thing, you can check the competitors of that company and reach out to the person who holds the same position that you are applying for, and ask them kindly on Linkedin if you can have a call or send some questions about the market and salaries and explain that you are moving to somewhere new and you do not want to be underpaid. People are generally helpful and you will stumble upon few who are willing to share.
2- Talk to recruiters: usually recruiters have a pretty good grasp of the market value and they can share with you valuable information. Since they speak with a lot of people they can even offer some insights that are very helpful.
3-Show your worth: make sure to present in the process that you are worth what you are asking for, and why the company needs to put the extra effort/money to hire you. Try to be likable so people can fight for you. It is vital to negotiate your salary but it is also very important the way you do it. If you come across as obnoxious and greedy, none will be willing to fight for you, but also make sure you are not a pushover. Always give tangible, and verifiable examples of your achievement and what you can bring to the table, so your salary task is justifiable.
4- Be willing to walk away: this point might sound counterintuitive, however, anytime the long-term return on an investment is not worth the time and resource allocation, walking away is the best move. When the offer does not match your financial needs, your value, or the market value is better to turn it down.
Now when you are already working in the company, you would like to have a promotion or salary raise. As Jordan Peterson points out in his book “12 Rules for Life: An Antidote to Chaos”: Companies don’t simply give away promotions easily — you have to ask for it and also show why you deserve it. Otherwise whoever speaks up the most and is willing to ask for it gets it. But how will you ask for that salary raise? Obviously, you will not be calling your manager and saying: hi, I want more money! So how can it be done?
1- Start an informal conversation: Start an informal dialogue with your manager about what the next stage for you in the company is. Ask for feedback on your current performance, and get a sense of how you can improve to reach the next level. Make it clear that you’re dedicated to your progress and growth with the company.
2- Prepare an achievement list: make a list of what you have accomplished so far in the company, or Kathleen O’Malley of Babble calls it “a brag sheet’’. She recommends a one-page summary that shows your value as an employee. List accomplishments, awards, and customer or colleague testimonials. It doesn’t have to be fancy, but it should be convincing.
3- Practice and pick the right time: This might sound basic but you have to practice your way of initiating a conversation. If you’re searching for an opening salvo, try this: “I’d like to make an appointment with you to review my salary compensation.” Take note of how your voice sounds as you say this. Are you shaky? Do you sound guilty? Try again. Do it until you sound firm and neutral. There is no right time to ask but there are times better than others. If you received a great annual or quarterly review, or you just concluded a successful project, it might be the time to ask for that raise.
4- Be confident: Keep your head high and smile when you enter. Starting things off with a positive vibe is very important, no matter how small it is. Approaching the topic with confidence is key. At the end of the day you are advocating for yourself and you should show that you believe in yourself, so start by facilitating an open and honest dialogue without being confrontational or demanding. Asking for that raise is a way for employers to recognize your value and efforts at the company, so don’t be afraid to ask for what you deserve.
In conclusion, the setting for negotiating your salary prior to joining a company vs when you are asking for a salary raise/promotion may differ but in essence, it is a very similar process, in a way being uncomfortable and stressful. You may fret that you’ll be “bugging your boss” or come across as greedy and self-serving. “To advance in your career, you’ll need to learn to advocate for yourself,” says Joseph Weintraub, the founder, and faculty director of the Babson Coaching for Leadership and Teamwork Program. To put it in simple terms, if you do not ask you do not get, however, you need to be mindful of the when, how, and what you ask.
