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How to Negotiate Salary: 8 Key Tips You Need to Know Before Negotiating

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7th Nov, 2023
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How to Negotiate Salary: 8 Key Tips You Need to Know Before Negotiating

Negotiating salary is an inevitable part of professional life, occurring at least once for everyone. After securing the desired job offer, it’s time to discuss numbers, a phase that often makes people uneasy. Many candidates shy away from negotiating, finding it more daunting than the interview process itself.

Some hastily accept offers to avoid discomfort. However, did you know that a well-crafted salary negotiation email and savvy negotiation tactics can impress your employer? Negotiating effectively ensures you receive fair compensation, boosting your motivation for the job.

Whether landing a new job or staying put, salary and perks are pivotal factors. In today’s job market, labor shortages give employers the upper hand. Candidates may feel disheartened by less-than-ideal offers. Understanding how to negotiate salaries empowers professionals to secure fair compensation and seize attractive career opportunities.

How To Negotiate Salary With HR?

While the tables might seem turned in the employer’s favor, the employees can do much more than rant and grunt. Salary negotiation is just one of these steps an employee can take. Read up on how to negotiate for salary and follow the given salary negotiation tips.

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What do the stats say concerning salary negotiation? A recent survey of 1,000 employees between 18 and 34 revealed that 57.2% of them have never tried to negotiate their salaries. Furthermore, 8% refused that they would settle because they were content with their current compensation. Of the respondents, 6% refused because they did not know how to negotiate. 10.4% of the respondents said that they would avoid negotiating their salaries for fear of losing their job offers.

But why negotiate your salary in the first place? Not negotiating your salary can cost you dearly. This is because it is easier to get what you ask for when starting a job than while working in an organization. Further, settling for anything lower than your worth affects your future income and your self-esteem. It is also common knowledge that you get what you want only when you ask for it!

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Now that we have established how significant salary negotiation is to your overall growth, it is time to roll up your sleeves and talk. A useful salary negotiation tip is that these negotiations can likely work in your favor when conducted via email. This is because emails give you the time to put forth your thoughts politely. In a telephonic conversation, you may likely end up saying what you did not intend to. There may also be a chance that you miss out on giving some vital information to justify your ask. 

Thus, a salary negotiation email is a far safer way to present your counter offer. This communication medium allows the recruiter to consider your request at their comfort vs. having to answer immediately on call.

Is It Easy To Know How To Negotiate Salary?

Of course, this never means that salary negotiations are easy or guaranteed to lead to results.  Take it that you are in the last round of interviews and you are asked if you can take a cut in the salary if you receive a better position at work. This is where salary negotiation tips come to help.

Similarly, you might just have received a final offer for a job, but you are offered a slightly lower than expected or deserved salary. Then again, you might be well settled into a job, but a raise is long due. All of these scenarios have one solution to boot—that is, your skill for salary negotiation.

Read: Data Scientist Salary In India  

Here’s Few Salary Negotiation Tips

Here are some salary negotiation tips that you can incorporate in your salary negotiation email to sweeten the deal:

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1. Have Patience

Ensure that you do not jump into a conversation about compensation before the company does so. This is because you may end up asking less than what the company may plan to offer you. Second, when an organization makes you an offer, do not hurry to accept it.

Even if you are under the pressure of accepting the offer within a stipulated time, you can always ask for more time. Take a day or two, or even a week. Sleepover it, assess it, and gauge whether it meets your expectations. You will also need to exercise patience for hearing back from the potential employer after sending out your salary negotiation email.

2. Read Between the Lines

It is essential to read the fine print in the offer before you conclude. Sometimes, companies offer a lot more by way of perks. This may be in the form of allowances or health insurance. The bottom line is essential, but there are many hidden benefits you are likely to avail of. It is wise to consider the importance of these benefits before you negotiate your pay.

3. Research Extensively

Before you write your salary negotiation email, take your time to understand the industry’s current pay standards. Understand the prevailing salary trends corresponding to your job profile, qualifications, and years of experience. You may choose to ask people in your network and visit dedicated websites that showcase these trends.

Several websites, such as Glassdoor and Indeed, put up average pay scales for various job profiles and locations. This information is beneficial when justifying your ask.

Must Read: Highest Paying Jobs in India

4. Be specific

One of the essential salary negotiation tips you must know is to be precise. While giving a counteroffer to the hiring manager in your salary negotiation email, mention a particular number or range. This practice not only makes the hiring manager aware of your expectations, but it also assures them that you have done your research and realize your exact worth.

Also, make sure that your email is crisp and concise, like any other business communication. A wordy salary negotiation email is often seen as the candidate trying to oversell himself/herself.

5. Explain why you Deserve More

The crux of a good salary negotiation email is a well-written explanation of why you are asking for more. Explain how you arrived at the figure you quoted. This is also an excellent chance to showcase your skills, experience, and potential for contributing positively to the firm. However, when you do so, remember to project yourselves humbly. 

Bringing up personal challenges such as student loans and the cost of living in your salary negotiation email is a strict no-no. Remember, the recruiter is hiring you for what you can bring to the table and not because they want to solve your problems. This way, you ensure that it is not just about you. It also shows the firm that it would do itself right by hiring you at your real value.

6. Take it as a Chance to Grow

As with all negotiations, there is always a chance of a fallout in the discussion. The hiring manager may not agree with you on your justification for asking for more. They may even flatly deny what you have requested. However, this is not really a loss if you take it as a learning experience in being assertive. At the same time, standing by your belief can help reinforce your self-confidence. This is one of the essential salary negotiation tips that need to be kept in mind.

7. Don’t be afraid to say no

The only thing standing between you and your job is your acceptance. Sometimes, accepting job offers that don’t pay you what you deserve can do more harm than good to your career. This is especially true when you begin seeking your next job. Most companies consider your previous organization’s salary to structure your new salary. Hence, accepting anything lower than your worth will dent future growth. It can also set your career back by a few years. 

8. Remember to be Courteous

Out of all the salary negotiation tips, this one takes the lead in presenting your recruiter’s personality. A handy salary negotiation tip is to be polite at all stages. After you first get the offer, express your appreciation to the concerned person for extending it. Make sure that you read the offer carefully. Understanding that the company has offered you much less than what you think you deserve can be exasperating, but you must keep calm.

Before you start to understand how to negotiate for salary, you have to understand that you need to have a personal level of commitment. To begin with, you must actually dedicate yourself to joining in the face of an offer. You have to convince your hiring manager that in the face of a salary negotiation that you initiate, you will offer a sure-shot commitment to joining. This is because unless a company trusts your skills and banks on your availability, a salary negotiation based on salary negotiation tips will never find fruition.

Whenever you want to negotiate a better package, you must express your seriousness about working for the employer. However, always be sure that you do not overvalue your skill sets. Sure, you could bring much more to the board than someone else, but you cannot oversell yourself. If you are serious about your commitment to an employer, then surely the negotiations will work in your favor. Answers on how to negotiate salary work best when there is a clear direction in the discussions. 

Gather your thoughts, do your research, and respond courteously. After all, you are not being forced to accept the offer at gunpoint! You will have your chance to make a counteroffer. Thanking the hiring manager first will set the right tone for your salary negotiation email.

Also Read: Highest Paying Jobs for Freshers

9. Practice Effective Communication

Effective communication is key during negotiations. Be clear, concise, and confident in expressing your expectations. Practice your talking points beforehand, focusing on a polite and respectful tone. Listening is equally important; understand the employer’s perspective and address their concerns thoughtfully. A well-articulated argument enhances your credibility and shows your professionalism.

10. Be Confident, Not Arrogant:

Confidence is crucial, but it should never slide into arrogance. Approach the negotiation with a positive attitude and a belief in your worth, but remain respectful and open-minded. Avoid sounding entitled or overly aggressive, as it can create a negative impression. Confidence, when balanced with humility and professionalism, makes a strong impact on the negotiation process.

11. Practice Active Listening

Active listening is a valuable skill that helps you understand the employer’s concerns and interests. Pay attention to their words, tone, and body language. Acknowledge their points and respond thoughtfully, addressing their specific concerns. Demonstrating that you value their perspective builds rapport and increases the likelihood of a mutually beneficial agreement.

12. Be Prepared to Justify Your Request

Simply stating a desired salary is not enough; be prepared to justify it. Explain how your skills, experience, and qualifications align with the job requirements and company goals. Provide concrete examples of your achievements and how they can contribute to the organization’s success. A well-supported argument strengthens your position and shows that your request is based on merit, not whim.

13. Know Your Value

Assess your skills, experience, and qualifications. Understand what sets you apart from other candidates and how your unique abilities contribute to the organization. Clearly articulate your value during the negotiation, emphasizing the specific skills and achievements that make you an asset. This self-awareness boosts your confidence and demonstrates to the employer why you deserve a higher salary.

14. Timing Matters

Choose the right moment for salary discussions. Ideally, bring up the topic after you’ve received a formal job offer but before you sign the contract. This timing ensures that the employer is seriously considering you for the position, making them more receptive to negotiations. Avoid discussing salary prematurely, as it might create an impression that you’re more interested in money than the job itself.

15. Practice Active Listening

Active listening is a valuable skill that helps you understand the employer’s concerns and interests. Pay attention to their words, tone, and body language. Acknowledge their points and respond thoughtfully, addressing their specific concerns. Demonstrating that you value their perspective builds rapport and increases the likelihood of a mutually beneficial agreement.

How to negotiate a raise

Negotiating a raise is a crucial skill in advancing your career. When considering how to negotiate a salary offer, it’s essential to approach the conversation confidently and professionally. Start by researching industry standards and assessing your own contributions to the company. Clearly articulate your accomplishments and the value you bring to the organization. During the negotiation, remain respectful but assertive, emphasizing your worth and the reasons behind your request. Practice active listening and be open to compromise. Remember, negotiating a salary offer is a normal part of career progression, and with preparation and confidence, you can successfully secure the compensation you deserve.

What to do after a salary negotiation

After a salary negotiation, it’s crucial to reflect on the outcome and consider your next steps. Firstly, express gratitude for the opportunity to discuss compensation. Regardless of the result, maintain professionalism and continue performing at your best. If successful, celebrate your achievement and ensure clarity on the terms agreed upon. If the negotiation didn’t meet your expectations, don’t be discouraged. Instead, evaluate areas for improvement and consider alternative strategies for future negotiations. Remember, each negotiation is a learning experience that contributes to your growth and development. Keep honing your negotiation skills and remain proactive in pursuing your career goals.

Conclusion

Negotiating salary may not be the most enjoyable task, but it’s a crucial skill for career success. Utilizing salary negotiation tips can empower you to craft an impressive negotiation email that could significantly impact your future. 

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If negotiating directly feels daunting, seeking expert guidance can be beneficial. Many universities and e-learning platforms offer valuable salary negotiation tips as part of their placement support services. At upGrad, we assist candidates in identifying suitable career opportunities and provide guidance as career coaches. Learning how to negotiate salary effectively can greatly enhance your professional journey.

It is best to upskill yourself with the latest technologies. Checkout upGrad’s top courses in Data ScienceMachine LearningDigital Marketing, MBA from LBSFull Stack Development.

You can also check out our limited-time free courses to utilize this lockdown to upgrade yourself.

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Kamal Jacob

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Kamal is an experienced Online marketing consultant with a high degree of expertise in SEO, Web Analytics, Content/Technical planning and marketing.
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Frequently Asked Questions (FAQs)

1What should be considered apart from financial benefits while negotiating with employers?

Apart from financial benefits, employees should consider increased job satisfaction, creative fulfillment, and job security before negotiating a higher salary. Large corporations offer increased job satisfaction in their current position. Working for a large corporation reduces their stress levels and improves their work-life balance. Other than these benefits, it is necessary to have a professional culture while working in an office and flexible working hours can be a bonus point. The role being offered should align with the personal aims of the individuals. Financial benefits are irreplaceable but non-monetary benefits are an important part of negotiation, too.

2On what basis can employees ask for a higher pay?

They can ask for a raise by doing good work. This is true even if those employees have never been greedy or wanted a raise in the past, or if they have been denied raises in the past. A good basis is that they have been performing well, and the performance has been improving over time. Employees should show enthusiasm, be open to new ideas, be a positive influence on their coworkers, show a certain commitment to learning and another is that they've been improving their quantitative skills.

3Is it important to maintain a positive body language while negotiating with the employer?

Often, the most difficult part of negotiation is getting your body language set, especially when you are talking about money. One of the most important aspects of nonverbal communication is body language, which is how we communicate our emotions and intentions nonverbally through our posture, eye contact, and facial expression. When you smile, you convey friendliness, confidence, and warmth and when you tilt your head, it conveys interest and alertness. It is important to have a great body language when we are dealing with difficult topics and ask for salary, as well as when we are asking for a raise from the employer.

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