7 Savvy Salary Negotiation Tactics for Career Growth
It takes courage and planning to successfully negotiate your salary or a salary increase. Surprisingly, it might be even more nerve-wracking to ask for a raise than it is to negotiate a new job offer. Leveraging savvy salary negotiation tactics before you accept a job offer is critical. It is far easier to obtain more paid time off (PTO), better benefits, and more money upfront. Asking for more PTO after you’ve started your job is far more challenging.
You may also ask yourself whether you should risk negotiating during disruptive socio-economic situations. Interestingly, thirty-six percent of managers recently surveyed by Robert Half said they are more likely to negotiate starting salaries with new hires than they were a year ago; another 50% said they are just as likely to. Don’t let your concerns about the economic situation stop you from using savvy salary negotiation tactics!
Negotiation is not only critically important, it is underutilized. In fact, Linda Babcock did a study for her book Women Don’t Ask where she found that about 7% of women attempted to negotiate, while 57% of men did. It’s obvious that, while women struggle more acutely, not many people feel comfortable in the negotiation process.
In essence, everyone can use a little help when it comes to savvy salary negotiation tactics. Because negotiation can be very stressful, I’ve compiled a few easy tips to ensure that your salary negotiation experience is a positive one.
1. Understand & Articulate Your Value
Articulate your value to be persuasive in interviews or negotiation situations. In order to this effectively, I recommend that every professional develop an Impact Inventory. By providing specific examples of how you have made a difference in the companies you have worked for – you can provide solid evidence that you deserve the best and why.
I have developed an Impact Inventory Guide (the same one I share with my clients) to help you through the sometimes challenging process of talking about yourself. You can get access at the link below. The Guide is a useful brainstorming tool to help you discover, define and articulate your career contributions based on your ideal target roles.
While hard work and dedication are important, it’s challenging to ask for a certain salary “because I deserve it” or “because I work hard”. Have solid evidence of your career contributions demonstrate why you deserve the best and better influence decision-makers.
2. Research and Evaluate Your Salary Range
I’m sure that you are already aware, but understanding the expected salary range for your role in your geographical location is important for negotiation. You can do research on Salary.com, Glassdoor, or Payscale for example. Another way to research is to talk to other professionals in your industry or look up other positions just like yours at simplyhired.com which often lists the estimated salary range.
Consider your years of expertise and abilities. Review your Impact Inventory as a reminder of your professional value and intellectual capital. Assume you deserve the top pay for your experience range – then back that up with the ‘why’ with evidence from your demonstrated career contributions.
One of the top questions I get asked is: “What do I say when the recruiter asks for my salary range?” I encourage all of my clients to ask for more details about the job opportunity before providing a salary range. I recommend a range because it allows you some room to negotiate when you receive the job offer. Going in with a hard number makes this more difficult. You might want to consider a range of +/- $10-$5k or more based on the average salary.
Top Tip: With remote work on the rise, geographical location may or may not be a factor. At the moment, however, it still drives salary expectations. In other words, if you are negotiating a new role with a company in California and you live in Kansas – chances are you can still negotiate a salary at or close to California expectations. This may fade over time AND it’s a great tip to keep in mind!
3. Know Your Exact Number
Conversely, when it comes to the actual negotiation process, ask for an un-common and specific salary figure. There is some phycology in the art of negotiation. Most professionals ask for a ’round’ figure. If you don’t wish to haggle – be specific with your salary number. For example: instead of $165,000 … ask for $165,475.
When you ask for an uncommon exact figure, you are more likely to receive it. Your employer (or future employer) will assume that you have done the research and will be less likely to use hard negotiation tactics. If you use a range at this stage of negotiation – make sure that the lowest figure on the range is acceptable to you. Don’t be afraid to go a little high at first.
If you go a little high, you can (guess what?) negotiate with decision-makers for a mutually agreeable number. When you come in a bit higher than you actually want, it allows you room to come down and encourage mutual positive feelings during the process.
4. Pick Your Time Wisely
If you are negotiating a raise, don’t plan to meet with the decision-makers right before they leave on vacation or wait until your performance review. Start discussions well in advance of performance review time. “Start talking to your boss about getting a raise three to four months in advance,” writer and former human resources professional Suzanne Lucas of EvilHRLady.org told LearnVest. “That’s when they decide the budget.”
Crazy Data Fact: Studies have proven that Thursdays are the best days to ask for a raise! Salary negotiation meetings set on Thursdays and Fridays are more likely to have positive results. This is because people are looking forward to their brief weekend break and the impending weekend gives a ‘mental’ deadline to encourage a close on the negotiation process. Definitely, do NOT ask on a Monday!
In addition, the time of day may impact how your request for a raise is received. Some psychologists recommend that early morning (after coffee) is best. “One study, says Dr. Shannon Kolakowski showed what is called the morning morality effect; people tend to have higher levels of moral awareness in the morning and make less ethical decisions as the day wears on.”
Pay attention to your boss’s mood and what time of day (and what days) they appear more positive. It is important to use your emotional intelligence when asking for a raise and be aware of your decision-maker’s body language and tone of voice. Even if you have a scheduled meeting to discuss it – if you discern that their mood is off, it’s best to reschedule the conversation for a later date.
5. Centered, Calm & Confident
Amy Cuddy stole the TED stage when she talked about Power Poses and how they can actually affect our self-confidence. Your body language is a huge factor in negotiation! Everything from your presence (in person or virtually), to your eye-contact, handshake (if appropriate), and facial expressions will largely determine your outcomes. Practice in front of a mirror or record yourself to gain confidence with virtual meetings.
While we may not shake hands again for quite some time (if ever), some cultural norms are taken quite seriously. For example, it took an effort of will for me to hire a bright capable young man that had a limp ‘dead fish’ handshake. Much of our response to body language is hardwired into our psyche.
For virtual meetings, your entire presence will be scrutinized during the negotiation process. Pay attention to your background, lighting, and how you ‘show up’ online. Stay positive in your tone of voice, don’t forget to smile with appropriate, and practice a neutral pleasant expression. Do your best to stay positive and appear pleasant during the process. For more tips on how to show up 100% your best online, you can learn more from article #6 in the Career Growth Series.
6. Take the Emotion (and Stress) Out
Prior to your meeting, take steps to reduce your stress level. It is natural that your body will immediately start pumping out more cortisol (stress hormone) and you may go into a fight or flight mode. This instinctual fear response is extremely detrimental to your negotiation strategy! Being in fight or flight reduces your brain’s cognitive function and restricts your decision-making process.
You must clear your mind and calm your body. Light exercise, meditation, breathing exercises, or focusing on a hobby before your meeting will help tremendously. Do not try to memorize, study information, or obsess about the upcoming negotiation in the hours prior to your meeting. Do your research early and allow your body to relax the day of the event.
If your first attempts at salary negotiation are rebuffed, don’t give up. If you aren’t getting the response you’d like, explain why you deserve better pay without being defensive or angry. Be diligent and keep trying at periodic intervals. Remain calm during the conversation, stick to the facts, and don’t be afraid to discuss your contributions to the company or how your role stacks up to other roles at other organizations (that have higher pay).
For more information and strategies about how to align your communication style with other, potentially diverse styles, get your copy of my Work Style Alignment Guide at the link below.
7. Don’t Ignore the Perks
There are some things worth more than money and could give you the same monetary net result. Bonuses, additional benefits, better retirement matching, and more paid time off (PTO) have value! You can negotiate a raise but, once you are hired, it’s almost impossible to negotiate more vacation time.
Some people don’t think to ask for more PTO when offered the standard American ‘ two-week’ vacation allowance. If you are an experienced professional and already have over 2 weeks of vacation time, make it an expectation to meet or exceed those terms. Be very cautious and review all the details in writing (with signatures) before agreeing. Some organizations will gloss over the ancillary benefits once you’ve agreed upon a salary.
Pay attention to all of the details and ask for information in advance so you can review the company’s compensation package that includes benefits, bonuses, and PTO. Look closely at how they structure their PTO. Some organizations will lump all standard holidays as a part of your PTO and require you to use your time on those days.
Savvy Salary Negotiation Tactics
A survey by Salary.com revealed that only 37% of people negotiate their salaries. Of those people who negotiated, they were able to increase their salary by over 7%. Don’t let fear stand in between you and the salary you deserve!
Be wary of empty promises like: “you will get a salary increase when the market picks up”. If it’s not in writing, don’t waste any energy on it. I have personal received empty promises in the past and could never get my managers to deliver on their promised increase in pay.
Once you have arrived at mutually agreeable terms, be sure to get your compensation package details in writing. In addition to the salary amount, the contract should include any special arrangements or ancillary items such as a signing bonus or allowance for moving expenses, a job description, your benefits, PTO, and a list of responsibilities for your new role. Make certain that the document is signed by both you and the employer.
One of my clients negotiated an excellent compensation package with my expert guidance. Six months into the role, he noticed that the PTO that was calculated on his file by HR was incorrect. At my encouragement, he found his signed agreement and got the mistake corrected. Be sure to save your signed documents in multiple locations (hard drive, thumb drive, in personal cloud storage) so you can retrieve them when you have to!
Most importantly, take heart and remember that you have valuable expertise. Savvy salary negotiation tactics not only ensure a better employment experience, it boosts your quality of life.
About me – My name is Erin Urban (LSSBB, CPDC), I’m a member of the Forbes Coaches Council, a keynote speaker, bestselling author, certified career growth and executive leadership development coach with almost a decade of mentoring and coaching successful professional transformations.
Remove career roadblocks and increase your influence & impact!
Want to elevate your career and not sure where to start? Let’s chat! Schedule a consultation call HERE.
