Negotiating a Better Salary

Negotiating is scary: “If I ask for a raise, will I be fired?!”

Negotiating is especially scary today. With employers managing labour costs in every way possible—substituting technology for people, outsourcing, downsizing, and converting permanent jobs into project-length positions - how in the world can you negotiate a salary increase?

Here’s some advice that might help to overcome the fear and get that raise.

1. Understand the current salary range for your position. First, you need to know the current salary range for the role. Salary surveys on specialist recruitment websites or those published by industry or professional associations are good sources. Grads can also check with an alumni association.

2. Wait for the right moment. The right time to ask for a raise is right after you’ve achieved something significant, for example, completed a tough project under budget, or when your boss or other key person has complimented you.

But what if you’re a new employee? Your moment of maximum negotiating leverage is when you’re offered the position but haven’t yet accepted it. In many cases, you will be asked what sort of salary you are looking for. If you're asked what you currently earn, the advice is to be honest as your salary could be verified later on revealing you as a liar or, more importantly, the salary range on offer could be so far below what you believe you are worth
that to go further with the screening process would be a waste of your time.

3. Assess your negotiating position. Does the boss like you a lot? Is your job essential to the organisation? Would it be difficult for the employer to find someone at your current salary who could replace you? Would a new employee need significant time and training to get up to speed? The more yeses, the more money you’re probably safe in requesting and the firmer you can be in responding to a “no.” As important, knowing, up front, the strength of your negotiating position will make you more confident in the negotiation.

4. Try to get your position upgraded. It’s easier to justify a higher salary if you can get your job description changed to include higher-level work.

5. Figure out how much to ask for. If possible, give your boss an estimate of how much your efforts add to the company’s bottom line, and certainly, try to obtain comparable salaries. Put those comparables onto a one-pager, and at the bottom, estimate your fair market value in light of those comparables. That will help convince your boss and give your boss something to show to higher-ups to justify giving you the raise. That one-pager will also add to your confidence in the negotiation.

6. Advice I’d give my child . Don’t over negotiate. The extra money you get, after taxes, is rarely worth the ill feelings and risk of getting fired. Even if your tough negotiation prevails, your employer will expect top-dollar performance. My rule of thumb: reject the first offer; accept the second.