How To Negotiate Money? Frankly, we thought for a long time whether to publish this material, because the topic of money is extremely controversial, and always polarizes the audience. Moreover, this article was not written for IT specialists. But in the end, we decided to post the article, because the techniques outlined there, as it seemed to us, are quite universal, and in the end, it is not suggested to behave in the interview as here:
So you’ve decided to change jobs. And you really want your wages to change with the change of place of work. But how to competently negotiate with the employer on this issue? Some recommendations are below.
The first thing you have to cope with is your inner attitude that asking for money is bad, embarrassing, and indecent. To ask – yes, to negotiate – no. You must be confident in yourself and in your positions. Your employer expects candidates to provide a logical, balanced justification for their wishes. But in any negotiation, there are a lot of tricks to keep in mind.
How To Negotiate Money? Practical advice
1. Until you have received an official job offer – do not talk about a salary, especially if you are not asked about it. For an employer, a question about money from a candidate at the start of a relationship is a demonstration that a person will not be loyal to the company and if someone else proposes for $ 100. more, he will immediately leave this organization.
2. If you are asked to fill out a questionnaire in which there is a column “Specify the desired salary”, feel free to write: “under discussion.” If you do not require to indicate the exact figure, write the interval (add 10% to the last, add 20% to achieve an acceptable result and there was an opportunity for bargaining). HR people have a simple scheme to figure out how much you are worth. Usually, they ask: “What is the minimum amount below which you will not work?” Let’s say you name a figure of 1000 USD, a personnel officer, scribbles something in the questionnaire and asks the question again: “And if the salary is 950 USD. – will you agree? ” You start to think feverishly, but whether such a figure will suit you or not, if you have pledged 20% for trading, then you will easily “give back” – this 50 USD. and agree. But the personnel officer does not calm down: “And if it will be $ 900. ? ” This is how you step by step determine your lower limit of the salary bidding.
Whenever possible, avoid asking about salary until you get a job offer from your future boss. It is in his best interest to keep you motivated and ready to work in this position for as long as possible. No one is satisfied with staff turnover, it is at least economically unprofitable. (We do not take examples of organizations that build their economy on deceiving employees when they promise you a lot, you believe, but only after the probationary period, you become like Pope Carlo, and you are informed after three months that you have not passed the probationary period and you will be fired. to find the next gullible citizen.)
Competent wording for salary answers:
- “I would like to discuss this issue later when you know for sure that I am suitable for this position.”
- “I believe your company that only hires highly qualified specialists, providing them with a decent salary.”
- “I assume that salaries in your company have already been approved for all positions, I am ready to accept them if you announce them, etc.”
Constantly monitor how much specialists of your level are worth in the labor market. Even if everything suits you in your workplace, go for job interviews. At a minimum, you will be aware of what the market demands for your position and what is offered in return.
When you receive an offer with a salary, take a break. Not for long, for one day. Remember, professionals, are expensive because they don’t fuss and know their worth.
Professionals do not bargain, they simply do not need it, since it is not they who stand in line for work, but the organizations persuade them. Show that you are a professional. But do not delay your decision for more than one day, professionals think quickly.
Study carefully the compensation package offered by your employer.
What is important:
- Indexation of wages, their frequency and size
- Leave as provided, time off and sick leave
- Is there any material incentive for the training you have completed
- What kind of training is there in the company – only in-house or the company sends you somewhere
- What about health insurance, its scope, what it includes, what is considered as an insured event, what is not considered
Salary negotiation strategy
Get ready! Believe me, at the meeting itself, you will never be able to clearly defend your interests if you have not prepared a certain line of behavior, arguments, ways of withdrawing.
Be dignified. Remember your strengths, professional, personal. Prepare vivid, beautiful examples from your work experience in advance. Remember, you are being recruited to the organization so that you can benefit it, so tell us how your previous company benefited from your activities, how you helped save it from the crisis, how you brought it to the top, etc. Do not be afraid to slightly exaggerate your merits. Remember, you are in the labor market, it is important to teach yourself correctly. And explain the reason for leaving by your desire to develop, that you have grown from the framework of a position, department, company, you need new horizons.
And now you have received a concrete proposal from your future leader, you took a break, thought about it and agreed … to the second round of negotiations. Now you need to fix your relationship with the company at the level of an oral agreement in order to turn it into a written one in the future. Remember that you continue to be judged, and by how you advocate for your interests, your manager will assume that you will also defend the interests of his department.
So, you have done all the preliminary research work, received a formal job offer, made the necessary pause, weighed all the pros and cons, and again met with the employer in the second round of negotiations. When negotiating wages, pay attention to the following points.
Negotiating is what potential employers expect from you. You should conduct this part of the negotiation as professionally as you would when discussing your functional skills. Always remember that this part of the negotiation is of fundamental importance. For example, if you’re going to be in sales and sales and don’t even try to negotiate wages, this could be the final test of your interview. The employer may have a very logical suspicion: if you cannot negotiate your salary, how are you going to negotiate multimillion-dollar contracts for the company?
Even if you are not applying for positions related to trade, employers may be alarmed by your incompetence when discussing the issue of wages. Therefore, take your time, act thoughtfully and reasonably. After all, this question also demonstrates your knowledge of the market. For example, when buying a used car, don’t you ask yourself: “What’s going on?”, “Is this price normal?” – if the first proposal is accepted immediately, without any discussion? In a hiring situation, don’t allow yourself to be the perfect candidate that the company has doubts about due to his easy compliance.
Make sure that the negotiations are conducted on an equal footing, respecting the interests of both parties. It is important to achieve mutual understanding. When a company offers you a certain amount, it is safer than having half of it. This is not the best time to stand your ground, because you will have to work with these people if you accept the offer. It is better to get down to the ground than to stick to tactics that sound like “I, I, I”. Think about it in terms of team membership and the perception of the firm’s culture loyalty. Analyze for yourself the following typical wage negotiations and possible reactions to them.
An excellent offer was made to you
Possible reaction: “I have carefully read your proposal. I must admit that it is quite competitive. However, your proposed monthly wage is 10% lower than what I am currently earning. Although bonuses will help improve the situation, I would still suggest revising the base salary. Is it possible to change the size of the proposed salary? “
You have been made a good offer
Possible reaction: “Definitely, my expectations are almost met. However, I was hoping for a slightly larger amount ranging from … to … How big are our possibilities for further discussion of the salary? “
You were offered an offer with a low salary
Possible reaction: “I really like you and the job seems right. The success of management and organizational strategy also appears to be significant. The only thing we need to talk about and the only thing holding me back is the initial proposal for a compensation package. Quite frankly, the salary is less than I expected. I am really interested in this position and from my knowledge, $ X is an approximate salary level. Other companies I am negotiating with an offer about that much. Can you do something in this direction? “
Find out if there are alternatives. If your efforts to negotiate a salary have not been successful and the company has not offered you a salary that is acceptable to you, but you still want the job, postpone the conversation until later. Discuss with the employer the possibility of increasing wages in the future.
Discuss 60, 90, or 120 days’ planned deliverables for your work. Discuss the possibility of a minimum percentage increase in wages.
Discuss the size of the bonus you will receive at the end of the year.
Discuss the possibility of signing a one-time bonus agreement.
Well prepared and self-confident, you can easily master the art of negotiating salaries. You will feel comfortable and will be able to negotiate a compensation package that is acceptable to you. Do not hesitate, employers understand your point of view because once they were in your place too. Remember, you need to be aware of industry salaries, be persistent about what is right or wrong for you, and be open to discussing other forms of compensation. If you pay attention to the advice outlined here, do some preliminary research on the wage market in your profession and industry, then rest assured – it will all end not only in getting the position you want but also the salary you deserve.
Instead of a conclusion
We do not urge you to drop everything right now and go to look for a new job. Moreover, we believe that at your current place of work you have several clear advantages + with a high probability there are untapped opportunities, which we recommended to discuss with the management.
But if you are now actively looking for a job, we hope that the recommendations will be useful to you.
In any case, we would be grateful for your comments and feedback.