Salary negotiation tactics that work

Win with Salary Negotiation Tactics

Salary Negotiation Tactics

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.

How to avoid nasty surprises at salary review time

Salary Negotiation Tips

Salary Negotiation Tips

A recent survey conducted by TMP indicated that about 50% of Australian workers believe they’re not getting a fair deal at their salary review time; and 75% of workers feel that their salary does not accurately reflect the work they do.

Understandably, we lay the responsibility of our salary short-falls squarely on the shoulders of the employers, however, there are definitely times when we can influence how much we earn. By being pro-active and showing some organisational nous you can increase your say in terms of your earning capacity and avoid those negative salary review surprises.

Here’s what to do:

1. Do not make the mistake of relying entirely on your manager to closely monitor your achievements/progress. Some managers might have the time to do this, but most are too busy doing other things. Regardless of whether your organization has a formal individual performance management plan in place make sure you closely monitor your own progress. Track your achievements by writing them down in your work diary. Do not just include your major achievements either. Smaller achievements when added up over a year or six months look very impressive.

By doing this you will at salary review time be able to produce a detailed and accurate record of all your achievements for the year. Such information is difficult to refute, especially by managers who haven’t been managing you properly.

2. Be sure you stay abreast of all the important changes and priorities of the organization. By knowing what’s important for the organization or section your work in you will be able to make better quality decisions; i.e., decisions which are more relevant and useful to your employer. Few things impress a manager more than an employee coming up with timely solutions that address an organisational priority.

3. Make sure you record your invisible but important contributions. Invisible contributions are those little things, which we generally do everyday and make a huge contribution to the running of the organization. They’re called invisible because no one knows you’ve done them and they’re important because without them the organization cannot function properly. All too often we’re not given any recognition for our invisible contributions. So it’s up to you to begin recording them along with your other achievements mentioned in section 1 above.

An example is: successfully handling an irate customer over the phone and thereby not losing them as a customer, not to mention preventing potential bad mouthing of your organisation (what could be more important to your employer?). Another example is providing consistently excellent customer service by doing the little things such as returning calls on time, taking the time to listen properly and explaining things clearly. If you think about it the list is virtually endless.

The key to recording invisible contributions is mentioning the outcome/s of your actions. Saying you diffused a difficult situation does not have the same impact as saying: “As a result of calming the customer down I was able to retain him on our books.”

4. Be sure that your manager is aware of your achievements and contributions on an on-going basis. Do not wait until salary review time before you surprise them with all your great work. A good manager should be having regular meetings with you to discuss your work, but unfortunately this does not always happen. So it’s up to you to make sure they’re kept informed of what you’re doing. Keeping them informed does not have to take place in formal situations. It can be as simple as mentioning it over the water cooler or sending them a quick email.