Thanks to the scientific method of trial and error, there are proven strategies on how to negotiate a salary at your job.
Before reading this article, you should first check out 7 Signs It’s Time For You To Change Careers. There’s no sense in pursuing your current career if you don’t belong there.
It can be intimidating when you approach your employer about pay, but you shouldn’t let it. You deserve to get paid what you are worth—it’s your right as an employee.
A lot of companies don’t want pay to be in your thought process for considering the job, but that’s mostly in regard to large corporations.
They want to know that your growth in the company is your top priority, not the pay.
What some employers fail to realize, though, is that most of the time, you would gladly take the same position at another company who is willing to pay you more. And the reason your mentality is shaped this way is simple—we work to pay our bills, not to pay our employers’.
Here are a few tips on how to negotiate a salary you deserve:
The Interview and Job Offer
When you are starting a new job or waiting for a promotion at your current one, there are always two questions on your mind:
- What will my pay be (or raise)?
- What will my duties be (or how will they change)?
For most, we hope that we will get the salary on the higher end that the employer is offering. However, a lot of the time, what we are offered is in the low to mid-range.
For instance, you just applied for a new position as a level 1 tech support rep at a pharmaceutical company. Their pay scale is $28k-32k/year.
You go to the interview, answer everything perfectly, and totally expect you will get the $32k/year salary. Shoot, you’re so motivated for the job, you might even get $33k/year.
Then, they send the offer letter.
You’ve been accepted! But the pay is disappointing.
They’re offering you $28.5k/year. You’re insulted.
They’ve put you into a paygrade equal to the lowest paid, possibly least qualified employees in your position.
They didn’t believe you were special. To them, you’re just average.
This can really make you feel misunderstood and unrecognized. However, it’s possible the employer just has very specific answers they needed to hear from you. And you failed to hit those points.
Or perhaps the employer has very strict rules, and the high end of $32k/year was only meant to lure you in—they never actually intended to pay you that.
Small businesses and large companies operate differently in regard to pay.
Large companies—defined as those with over 500 employees or $7+ million in annual revenue, are strict on the rules they set for pay. Although there is generally more cashflow and resources to go around than a small business, it can be harder to negotiate a salary offer with them. You’ve got to really prove your case, or climb the ladder to get the pay you want.
Small businesses are a bit different. Since the chain of command is significantly less than a large company, you can usually squeeze a few more dollars out of them. This is still taking into account the fact that small businesses have less cash to go around.
The reason for this is that it takes great effort to hire and train a new employee. They simply don’t have the manpower to put the energy into training new people if you were to quit.
The small business would rather you justify the pay you want, and give it to you so they don’t have to replace you—considering you are a brilliant, energetic, and model employee.
Every company is different, though, and some simply can’t afford to pay you more.
Reasons a company can’t afford to pay you more:
- Government interference, such as raised minimum wage.
- Increased business expenses.
- Payroll tax increases.
- Expensive group health insurance policies.
- Low payroll budget.
- Declining economy, such as in a recession or pandemic.
These are examples of when a company can’t pay you more, even if they want to and believe you deserve it. In those circumstances, getting tips on how to negotiate a salary won’t really help you.
You should read 15 Reasons Why You Hate Your Job and see if your pay is worth staying.
There are also reasons why an employer won’t negotiate a salary increase, such as you are in a sophisticated and saturated market. This means your competition is so high, that there are a million others willing to take your spot for your current pay, or less.
Average Salary In USA
One of the first things people consider before figuring out how to negotiate for a raise is how much others are making in their sector of work. For most, this usually involves a quick Google search.
According to the U.S. Census Bureau, the average salary in the US is $33k per year. I believe $50k per year is a good goal. It’s enough to live a medium income life, and still save a little.
But why stop at $50k? How about $100k per year? Apparently, it’s not that difficult, as 34.1% of Americans are making over this.
In order to hit that number, though, you’ve got to learn some skills. And to do that, you’ve got to be confident in yourself, research, and focus hard on learning new things.
The work you do for your current or potential employer is your confidence. This is because in most lines of work you are measured not by your personality, but by your ability to do the job well.
Steps on how to negotiate a salary job offer
Tip 1) When you apply for a job it’s important to make sure you have a solid resume and cover letter.
This is the very first—and most important, material/image an employer receives from you. It’s a reflection and foreshadowing of the work quality you will provide the employer.
You may do well in the interview, but if your resume looks like a 3rd grader wrote it—forget about it, you’re not getting the salary increase you want.
Check out this complete guide on how to create a resume that will make you stand out.
Tip 2) Negotiate for a higher salary by letting the quality of your work speak for you.
Knowing how to negotiate a salary is knowing that the work you have provided (or will provide) for a company is top-notch. You need to show the employer that not only do you want paid more, but that THEY should want to pay you more.
Make them understand their business is better because of you.
Here are a few tips on how to do that:
- Write a list of all your major accomplishments that have helped the company.
- Outline new skills you have developed while performing in your role.
- Explain new projects you’ve been brainstorming for the company.
Tip 3) Don’t make negotiating the salary, about the salary.
I know this one is paradoxical, but it’s true. When you negotiate your salary or raise, the nature of the topic will be about pay, but try to not make it directly about this.
Show your employer how you are deeply passionate about the job.
Whatever you do, DON’T give your employer an ultimatum:
“Either pay me more, or I’ll find a new job.”
Otherwise, you will certainly not get the pay you want. You don’t want the company to feel as if you are only there for the pay. They want you to work with them—grow with them, because you believe in them—their cause, not because you are there for a paycheck.
So, instead of threatening them and forcing them to choose between paying you more or your exit, make them side with you. If they find value in you, they will pay you more.
Finalize your Salary Increase Request
Knowing how to negotiate a salary boils down to a balance between being stern with your request, yet passive so you don’t come across as needy. Your stern take on the matter comes from your confidence, quality of work, control of fear, drive, and awareness.
When to ask for a raise?
Ideally, you’ll want to wait until your first 6 month or one year review before you ask for a raise. Then, don’t ask again until each annual review.
No manager wants to feel as if they can never please you, and that you always want more money. Pay shouldn’t be the only thing on your mind. And you’ll never want to casually bring up your pay. Otherwise, you can be sure that you’ll annoy your boss.
Consider these tips when negotiating your salary:
- Be confident in yourself. Show your manager that you are worth the raise.
- Consider reading daily to become a leader in your role. Let there be light when you shine during this salary negotiation meeting.
- Know the monetary value of your position at other companies. Make a list of similar jobs that are paying more, and use this as leverage for your raise.
- Get 7-8 hours of sleep before the ‘big day’.
On your new-hire interview with a company, you want to stay away from bringing up pay at other companies. However, once you’ve been hired and you are negotiating a pay increase, you can mention it. But tread carefully.
Definitely DON’T say:
“Yeah, well, Google pays their engineers $110k per year, so I expect to make at least this.”
Certainly don’t portray yourself as if they OWE you $110k per year. If you act needy or entitled about it, you can expect to not get the raise you want.
Negotiate for a salary offer with respect and kindness.
If you degrade your employer because of a low-ball raise or salary, you’ll be fired before you can return to your desk. During your meeting, you want to be stern, respectful, knowledgeable of your worth, and persuasive.
The best way to negotiate a salary without coming off as too direct, but also not timid, is to say something like:
“I’m making $30k/year right now, and I know the average salary of an engineer at five other local companies is between $35k-$60k/year. I’m not asking for $60k/year, but I really hope you could consider raising my pay.”
Your employer might then say:
“Well, what salary do you have in mind?”
And you could reply:
“I’m hoping for $40k/year.”
The ball is now in your manager’s court.
You either did a good job explaining your worth to the company, your accomplishments and goals, and were organized for the talk, or your persuasiveness didn’t cut it.
It’s a pretty nerve-racking situation and can strike hardcore anxiety in you. But with some practice, and by following the steps in this guide, you should get through it.
Worst case scenario?
You aren’t considered for the job or you don’t get the pay increase, at which point you should reflect on if you want to continue at the company. If your manager doesn’t like you, it could make getting the raise tough.
The key is to know your worth and to have the confidence to support your salary request.
If you really deserve the salary you want, and you can keep a respectable tone with a positive attitude, you shouldn’t have any issue winning your case.
Conclusion
If you’re wondering how to negotiate a salary for a new job, or how to negotiate a raise, you need to know your worth, and your employer needs to recognize that worth. Usually, it’s not a question of whether an employer has enough budget to pay you more, it typically comes down to whether you are worth paying more.
If you are excelling in your role, getting along with everyone, and are bringing value to the company, then the company should be happy giving you what you are asking for; as long as your request is appropriate.
I wish you the best, friends. Good luck!
Here’s a quick recap of How to Negotiate a salary you deserve:
- Have a solid resume and cover letter.
- Research similar salaries in your industry/sector of work.
- Let the quality of your work/expertise speak for you.
- Don’t make negotiating the salary, about the salary.
- Wait until your first 6 month or one year review. Then, every annual review after.
- Write a list of your major accomplishments for the company.
- Outline new skills you’ve developed in your role.
- Explain new projects you have brainstormed.
- Be respectful, kind, confident, and persuasive.
That’s all folks! Thanks for reading.
Feel free to comment below if you liked this article on how to negotiate a salary you deserve. I’d love to take questions or suggestions on other content you’d like to see on eHowdy!
I’m really scared to ask my boss for a raise. I’ve been there for 8 months, and corporate only gave me a $0.25 raise so far. Like what, am I only worth $10 more per week? You can’t even buy a sandwich for that much!! It’s kind of disgusting actually what these companies think they can do. I’m really offended. Anyway, you’ve given me inspiration to at least try and get what I deserve. Thank you!
Hi Katherine, that’s unfortunately something I hear a lot from people. Corporate jobs have tight policies on raises. I hope you can get what you’re looking for. Good luck!