How do I negotiate a better salary?

By Monster Contributor

How do you make sure you get paid what you are worth?

Negotiating a higher pay offer when starting a new job makes sense - employers often have a range in mind, and it's a natural time to negotiate. You each want something and have something to offer. Yet, negotiating a pay rise when you have an established track record of performance to show also puts you in a strong position. As we show: your strategy for both situations should be similar.

Negotiating a salary for a new job

If you're being offered a new job, don't rush things. If specific salary numbers are discussed directly at an interview, ask for time to consider any offer made to you. If your interviewers ask what you think the role is worth, be ready to turn the question around and ask what range they had in mind. Increasingly salaries should be in adverts so you can get an idea.

If you expect your new employer to beat your existing package, be sure to include all your various benefits in your calculation. That's 'pensions, perks and paid time off.' and then add on a bit extra for bargaining space. If you're unsure about the job, or if they are headhunting, you could consider turning it down to see whether they come back with an improved offer that might tip the balance. This can be a risky strategy if you're desperate for work.

Negotiating a pay rise in your current job

If you are already in a job and trying to secure a pay rise, you need to prepare well. Be ready to argue your case clearly and persuasively, using specific examples to prove your worth.

Make sure you have a good idea of what other people with your experience and responsibilities are earning. Present evidence of your research if appropriate. Whatever your situation, here are some of the key things to consider:

Believe You're Worth It

Knowledge is power - it pays to know the industry range for the role. If you have been in your job for a while, starting salaries may have increased faster than your wage. Your current wage may not reflect what your market worth is. Look at similar roles being advertised that carry salary ranges.

As a first step, take Randstad's online salary survey to benchmark what you should be getting paid.

Win-Win

A good negotiation should leave both sides feeling happy: you are getting a fair pay settlement, and they are getting quality work. Remember, negotiation is not an argument.

Bring your bargaining currencies

Think package, not pounds. Is there anything extra either side can add or remove from an offer that is of value to the other side? Would you be prepared to stay on the same salary if they allowed you to start late on Mondays or have a flexible schedule generally? Package negotiations can include extra holiday, an increased pension contribution, healthcare, flexi-time working or even your own office. These are your 'negotiation currencies' - the different things you and they can trade to come to a deal. These can be more flexible than just money alone, as they have different values for each party. Flexible time might be a huge win for you but cost your employer nothing as long as the work gets done.

Quid Pro Quo

You could also suggest a guaranteed increase in salary after a certain time period once certain KPIs or targets are hit. This makes the employer aware you will put in the effort to achieve goals during that time to get the reward: but remember there's an expectation that will be kept up.

Red Lines

What happens if you can't agree? If you're negotiating for a new job, there may be another candidate who is as good as they could offer the job at a lower rate. That's beyond your control, and it doesn't automatically mean you should lower your own value because someone else lowers theirs. Or, you may be the only suitable interviewee, and they are desperate for you to join the company. You should go into negotiations with red lines in mind ( don't say them out loud!). If you have mentally prepared ahead of time that "If I don't get x, I'll walk away" - it will really help you to keep firm. You can always be flexible if new information comes to light.

If you're asking for a pay rise: if they don't give you what you want, would you leave, meaning they have to go through the cost and effort involved with finding a replacement ? That's not something to threaten as a negotiation tactic. If negotiations break down, go and work on leaving quietly. If you have been working 'above and beyond' and feel it is not recognised, you may consider 'quiet-quitting' - that is, strictly not doing any unpaid overtime or anything outside your job description.

Hidden Figures

Unlike more straightforward transactions, such as buying a car where all the cards are on the table, many of the factors to salary negotiation are hidden. One issue here is pay transparency: if companies don't say what other people doing the same job are paid, it may mean discrimination. Another issue could be: that the manager you are negotiating with doesn't have the authority to grant a salary. Salary reviews may be, by corporate policy, only at set times, or the company may simply not have the cash. Approach the negotiation in the right way, and your employer or potential employer will be impressed. Learning and practising negotiations is a great skill you can bring to their business and apply in many areas of life.

Closing the deal

Make sure you have a record of the agreement down on paper which both parties sign. There's no point in finishing the negotiation if you allow the other side to go back on their responsibilities at a later date. This may be a new contract or an addendum.

When negotiating a salary for a new job, be sure not to overlook anything that needs to be factored in. Will you need to relocate ? Will the company contribute to your costs? If the job is your dream role, you might find you're willing to be more flexible. But if they ask you to accept a lower salary than you currently enjoy, check to see how regularly you can expect a pay review. Remember, salary isn't everything: it's just as important to be in a job with a sense of purpose and that aligns with your values and life balance.