How to Negotiate a salary increase

Interview Jun 30, 2020

Negotiation is the most overlooked aspect of the process of job search. Negotiating for a better salary is something everyone should pay more attention and focus.

Why is it important to negotiate a salary?

Will negotiation make a wrong impression on the recruiter?

What if they reject the offer?

These are some common and natural thoughts that will come into your mind when you think about negotiation. Remember, negotiating your salary is a normal part of the employment process and getting the salary you deserve is a part of making progress in your career.

So million-dollar question is: how can you negotiate the salary hike?

Presenting yourself in the interaction

women giving interview and interacting
Interaction between an applicant and a recruiter

Presenting yourself in front of the recruiter is the first step. You have to prove your worth, you have to show them that you can solve the problems and you can add value to the company.

Recruitment is the process and you have to clear all the stages to reach the point where you can negotiate the offer.

In the very first stage, the most common question asked in an interview is "Tell me about yourself."

Unfortunately, many candidates don't know how to answer this important and basic question. Recruiter wants to get an overview of you and want to know more about you, your back ground, your communication skills, your hobbies, your personal life more than what you described in your resume.

It is important to answer this question by giving a quick overview of yourself and not mentioning only about the tasks you performed, awards you achieved. You have to package your skills and present your talent in succinct and short manner.

Research Industry standards

Man doing research about companies
Person searching for specific information

Research is the key role player. So dive deep to know about the industry standards, and collect information about pay for the role. Connect with the people working in the similar industry to gather information, and then network with them knowing your market value and what the employer is willing to pay.

Know Your Worth

upskilling
Man searching tools to assess his worth
"Knowing yourself is the beginning of all the wisdom." - Aristotle

You should know your Net Worth. Once you know about your market worth, it will be easier to understand what can be your minimum expectations. Only then you know how to negotiate the offer.

You can use glassdoor's Know your worth tool or PayScale which will give you personalised estimated market value.

Know your walk-away rate

Man setting his minimum salary goals
Prepared and confident interviewee 

Decide your walk-away rate before the negotiation and not during the negotiation. Be specific on what's a make or break for you—salary, vacation, severance, non-compete agreement, a good office?

What's the minimum you're going to accept? What is the limit you can go lower? What are you going to walk away for? What's the level you're going to be reasonably happy with?

Be mentally prepared to leave if the offer you receive does not meet the expectations of a role or position in the discussion.

Understand and Ask about the budget for the role Offered

understanding budget of company for salary negotition
Ask about the budget for the role

Have you ever asked about the budget for the role in any interview you faced?

89% of job seekers never ask about the budget for the job offered, they took whatever was offered to them on the day.

It's a myth that the company doesn't have the budget. Recruiters are incentivised to keep hiring salaries low and negotiate hard with individuals. This is why the first and foremost rule for good negotiation is that you should be able to walk away if required. Keep these things in mind while negotiating.

Have a salary range: Be sure to offer a range based on what others in the same field are receiving, rather than a single fixed number.

Practice your pitch at least once before the formal negotiations: Find someone to listen to your pay raise plan.

Understand your leverage: Depending on your current job situation your negotiating power can differ.

The Bottom Line

Negotiation is a skill which you will gain over  time. As a job seeker, if you look at the frequency of negotiation skills, you only negotiate when you are switching your job. However, for recruiters, they use negotiation skills regularly, which means you  have to sharpen your skills regularly.

Richard Paul

An optimist and aspiring digital marketer who loves creating content also loves to play strings and keys.

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