If you’re feeling nervous about negotiating a new salary or your yearly increment it might comfort you to know that you’re not alone. A recent survey indicated that 60% of Australian workers feel ill-equipped to deal with salary negotiations.
But it’s not all bad news. You’ll be pleased to know that with a little preparation you can dramatically improve your salary negotiation skills, and more importantly the level of your total salary package.
Tactic No 1
Be very aware of the fact that salary negotiations begin with the interview. The better you interview the more inclined will be the employer to give you extra money. So make sure you’re thoroughly prepared for the interview.
Tactic No 2
If you’re going for a job as an external candidate never be the first to talk about money – you’ll probably signal that your primary interest lies with money and not the job.
Tactic No 3
Delay talking about money as much as possible. The more you delay the better off you’ll be because you’ll have more time to establish your value to the organization. Once you’ve convinced them of how good you are then you’re in a much better position to negotiate more money.
Tactic No 4
Work out what the current market rates are for someone with your experience. If you don’t know what the market is paying you may be underselling or over pricing yourself. A great way to find out what you’re worth is through Monster’s Salary Calculator.
Tactic No 5
Know your bottom line. In any negotiation it’s important to know what line you’re not prepared to cross. By knowing your bottom line as well as the current market rates you’ll be in a good position to know where you can commence your negotiating.
Tactic No 6
If the employer insists that you make the first move a good rule of thumb is to make your opening bid between 10% and 30% above your bottom line. What percentage you pick will depend on several factors including how much they want you (assuming you know) and the state of the labour market. Generally speaking if there’s a big demand for your job and not much of a supply you may be in a good position to make your opening bid higher.
Tactic No 7
Always think win win. Try to negotiate an outcome that works for you as well as your employer. Exploiting a vulnerable employer may have short-term monetary benefits but will not hold you in good stead in the long term.