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7 Steps to Remember During Salary Negotiations
1. Make the right arguments
Increasing rents, the high cost of living, and your partner has become unemployed. These may be important reasons for you, however they are irrelevant to your boss. Keep in mind that your company is not a charitable organization. As an entrepreneur your boss is mainly interested in your productive performance.
2. Come well prepared
Be prepared to back up your salary expectations with valid grounds. When you are negotiating for higher wages, it’s really all about just one thing: accomplishments. And you should be able to list them exactly. Has your responsibility or range of duties increased? Have you made more sales or contributed higher profits?
Employed candidates who are interested in better paying positions orient themselves on the following: current wag plus amount X. Find out beforehand what wages are due you in your profession and your region.
3. Have a specific salary expectation
You must know precisely what your salary should be – before you ask for a meeting with your boss. You will have to name an exact amount. If he is willing to negotiate, he will make a counter offer. But you mustn’t wait for him to make the first bid for you.
4. Remain realistic
You must allow for the fact that the sum you name will be undercut. Therefore it is important that you name a sum higher than the amount you actually desire. But be cautious and remain realistic. Otherwise you run the risk of not appearing credible. And that could not only cost you your salary increase, but could put you in a bad light entirely.
This is especially important for those who are applying for a position. You could lose out on a new job because of unrealistic salary expectations. The salary negotiation during a job interview serves in part to see how realistically a candidate judges his own value, and if he can sell himself accordingly.
5. Know what your work is worth
Some job candidates are insecure and sell themselves for less than they are worth. Here too you must pay attention: salary negotiations don’t only have a simple and practical purpose. Based on them, a personnel manager can ascertain how realistically you can assess your own skills. The decision will ultimately be made to hire the most competent applicant, not the lowest bidder. This means therefore: a low salary suggestion is not an advantage. It just needs to be within the scope. Also be aware that they will try to negotiate a lower offer, no matter what amount you have named. Plan for this. It is also important to consider that the agreed upon wage is the basis for future salary negotiations. So make your initial offer accordingly, because it can otherwise be a long road to get closer to your ideal salary.
6. Threats are out of place here
“If I don’t get more money, then I’m going to quit!” You won’t get anywhere with blackmail attempts. At best your angry boss will tell you to look around for a new job. Because who likes to be blackmailed? Surely not your boss. Even less obvious threats can have the same effect. So be aware: it is very clear to your boss that you won’t accept a refusal forever. At some point he will be open to a negotiation if your job performance is worth it. If it is not, he will not discourage you from resigning.
7. Choose the right time
Success or failure is often decided by good timing. Choose the right moment to try a negotiation. If the company or the industry is going through a hard time economically, then the demand for a higher salary is misplaced. A short chat in the office hallway is also not a step towards success. And a completely inappropriate time is during company-internal celebrations, no matter how relaxed the mood is.