10 Tips To Master A Salary Negotiation
Aug 13, 2023Hello Stoic Investors,
Today I want to talk about salary.
Asking for more money sucks.
But, so does being stuck with earning the same wage every month.
Let’s be honest. Most people have jobs they hate.
But how many of those people hate the salary and not the job?
If this describes you, then it’s time for a change.
You need to negotiate
If you’re fortunate enough, your employment contract has some sort of an inflation clause.
But most don’t.
Let’s say you earned $100,000 in 2020.
You are happy with that amount as it allows you to live comfortably (and invest in your future).
But now, you have realized that things got a bit pricier.
So, your $100,000 doesn’t quite buy the same number of things it did three years ago.
Why is that?
In one word. Inflation.
You see, with the 10% inflation we were seeing, your $100,000 salary is now actually $90,000 in real terms.
So, by skipping negotiations, you’re essentially accepting a pay cut.
If you refuse to accept that, here are a few tricks to get back on the horse.
10 tips to master a salary negotiation
Do Your Homework
Research is key! Find out the average salary range for your position and location. Websites like Glassdoor and Payscale can provide valuable insights. Armed with this information, you'll have a solid foundation for negotiation.
Highlight Your Value
During the negotiation, emphasize your unique skills, achievements, and the value you bring to the company. Be confident and showcase how you can contribute to their success. Provide specific examples that demonstrate your impact.
Don't Be the First to Mention a Number
Avoid stating your desired salary first. Let the employer make the first move. This way, you can negotiate based on their initial offer and potentially aim higher.
Timing is Everything
Choose the right moment to initiate the negotiation. When your boss is in a bad move is likely not the right moment.
Consider the Total Package
Salary is important, but don't forget to consider the entire compensation package. Think about benefits, bonuses, vacation time, and professional development opportunities. A well-rounded package can enhance your overall satisfaction.
Leverage Your Skills
Think outside the box by highlighting any additional skills or experiences that could benefit the company. Maybe you're fluent in a second language or have a certification relevant to the role. Showcasing these extras can strengthen your negotiation position.
Practice Makes Perfect
Role-play the negotiation with a friend or mentor. Prepare responses to potential counteroffers and practice your delivery. The more confident you are, the better your chances of success.
Show Enthusiasm, but Be Willing to Walk Away
Express your genuine interest in the position, but maintain a mindset of self-worth. If the offer doesn't align with your expectations, be prepared to graciously decline. This mindset can give you more leverage in the negotiation.
Be Open to Non-Financial Perks
Think beyond the paycheck. Consider negotiating for additional perks, such as flexible working hours, remote work options, or opportunities for growth and advancement. These can enhance your overall job satisfaction.
Stay Positive and Professional
Throughout the negotiation, maintain a positive and professional demeanor. Remember, it's a conversation, not a confrontation. Be respectful, listen actively, and seek common ground for a mutually beneficial outcome.
Before you go, I want you to realize something.
Salary negotiation is not about asking for more money.
It’s about asking for what you deserve.
So, note down these points and start negotiating today:
- Hating your job and hating your salary is not the same thing
- Not getting a pay raise is like taking a pay cut when considering inflation
- Salary negotiation is about asking for what you deserve
