How -To Negotiate Your Salary & Get Paid What You Are Worth
Author: Michelle Dumas
Understanding the process of salary negotiations and following these five simple steps can pay you back many times over with higher compensation in your next position.
Salary Negotiations Tip #1: Know your value and be able to clearly articulate the returns that an employer can expect from hiring you. Never forget that as an employee you are investment. When a company hires you, they are making a financial investment through the compensation and benefits that they provide you (as well as many other expenses involved in hiring), and they are doing so with the expectation that their returns on that investment (ROI) will be greater than the cost. It is up to you to know what your worth is, to make sure the potential employer is clear on what that is, and to make sure that they pay you the best possible price for your contributions.
Action Step: Document 6-12 of your most impressive career achievements. Jot notes about the challenges and problems that you were facing, the actions you took to meet those challenges, and the results of those actions. Now quantify those results. Dollar figures or percentages of increase or decrease that represent dollar figures are often the most powerful way to present results. But, even if you don't have dollar figures, there are often other quantifiable measures that you can use to express the value of your contributions and achievements in the workplace. Now, review all your success stories and practice until you have committed the details of each to memory and are comfortable discussing all aspects of them. These are the stories that you will use during your interviews with companies, to establish and illustrate your financial worth and your proven ability to deliver a strong ROI to your employers.
Salary Negotiations Tip #2: Wait until the right time to talk about salary with a potential employer. Wait until a job offer has already been made. When a potential employer brings up salary prior to a job offer, it is almost always for the purpose of screening you. Before the job offer, if you answer a salary-related question with an actual dollar amount and you give a figure lower than their range, believe it or not, you are likely to be screened out. Why? Because the employer may think that your low amount indicates that you are not