Why you should negotiate
Why you should negotiate
I figured since Q1 of the fiscal year has passed and we are in the thick of Q2, what better topic is there to discuss than negotiation and raises. Normally, this happens in the beginning of the year. Have you ever wondered how to negotiate and why you should negotiate? Simply put, the universe is not on a budget.
So yes, you absolutely should negotiate. You should always negotiate. This applies to both a new job opportunity and a raise at an existing job. Let’s discuss ways to do so.
Start with why
Some employers will ask for you to justify the reason for a raise, at least if it is not from a promotion. What have you done to warrant receiving a raise of a specific percentage or amount? This is why it is important to document all of your successes so that you can brag about yourself a little and market yourself. You are you own best commodity. You should be able to demonstrate how your work contributed to specific metrics that have benefited the company.
How to negotiate
The best way to negotiate is to simply ask for what you want – communicate. When interviewing for a new position the employer almost always has a targeted budget in mind. This range may not always be listed in the job posting (which is now illegal in some states and countries). They may not tell you what this budget is, which unfortunately is not being transparent. But, your job is to figure that out.
I highly advise not giving a number first. You can end up underselling yourself. Obviously, salary varies based on location, experience, education, soft skills, etc. But this is why asking about a salary range is a better way to phrase it. That way this range will cover all variables that could apply.
This does not have to be a back and forth game about who will give a number first. If you want to say a number, give the employer a slightly higher number than your target. Then if they negotiate down, you’ll still end up with a salary offer you feel comfortable accepting. If a recruiter reaches out to you (not the other way around) then you have even more leverage. You can communicate how transparency is important in a company you are seeking to be hired by. When asked about salary expectations you can phrase it like “I’m aware from a recruiting standpoint that before posting a role there is usually a budgeted salary. I value transparency in a company. What is the salary range for this role?” And guess what…almost always they will simply give you a range. This is how you negotiate.
Negotiable salaries
If an employer tells you that a role is “negotiable” then do your research beforehand about the market rate of the position. You can use websites such as Glassdoor to compare salaries and to give you a general idea of the market rate for the role in your area. It also provides useful information on experience levels and job titles of other roles in the company. Robert Half also has an annual salary calculator to keep you more informed. Information gives you power to be able to negotiate to your advantage.
Rescinded offers
There are times when a company will not be able to accommodate your request and that’s ok. The size of the company may influence this. Usually larger companies have more leverage than smaller companies or startups. At that point that will boil down to what you are willing to accept. Money is not everything and sometimes taking a pay cut for better work-life balance, peace of mind, and work you would enjoy more is totally fine.
If a company rescinds an offer for whatever reason, think of it as a bullet dodged. Maybe they wanted cheaper talent. That is no longer your concern.
Why you should negotiate
The main reason you should negotiate is because you can. Who doesn’t like more money (or anything else you negotiate for)? Once again, the universe is not on a budget. Many companies are willing to pay a good chunk of money for good talent. Your education and experience may get you the job but it is your work ethic that keeps it. If you know what you have to offer then market yourself accordingly.
Also, let’s normalize the fact that not all negotiation has to be monetary. Depending on the employer you may be able to negotiate remote work or working an extra hybrid day. You may be able to negotiate your benefits package. These are just some examples of negotiation that does not necessarily have to involve money.
And also, the worst they can say is no. And if they say no you’re just asking the wrong person.
New opportunities
Even if you are not actively in the job market it is important to always be passively looking. Your life circumstances and goals may change over the years. Inflation is also a thing and unfortunately some people have to switch jobs to get a raise in salary. You will want to simply keep your options open. This way you are not tethered to a company if the culture no longer fits you or if the work no longer aligns with your goals.
Having other offers while employed awards you the ability to not be dependent or desperate for one job offer which may not be the best fit (all things considered) even if the money is better. All money is not good money. Having the ability to walk away if needed gives you power.
Communication is key
Sure, being liked and networking all play a role but overall it is important to ask for what you want. By not being afraid to talk about money and negotiating, you show that you value your own expertise and you want to be properly compensated for it. The truth of the matter is that the employer is looking for a good fit for the job and you are looking for occupation and money. At the end of the day, it’s a fair trade (at least it should be) and you will learn how to win friends and influence people in the process. And last but not least, get everything in writing!