Know Your Worth and Add Tax: How To Effectively Negotiate Your Salary

Know Your Worth and Add Tax: How To Effectively Negotiate Your Salary

It's crucial to receive a salary that matches your skills. If you believe you are not paid fairly, gather market data and start negotiating with your employer.

It's understandable that most employees are hesitant to ask for a raise directly. From childhood, people are raised to believe that talking about money is taboo. Workers also don't want to jeopardize their livelihood, especially if the salary is decent enough. Many are even more likely to feel this way now that the global community is still recovering from a pandemic-induced recession.

However, keep in mind that even with a wider labor pool, companies must compete with other businesses for qualified workers. As a result, professionals with the most sought-after skills can earn competitive pay or even more if they play their cards right. If you have specific talents and impressive credentials, you may be settling for less than you deserve if you don't negotiate your salary.

So, whether you're at your first or fifth job, it's time to learn how to negotiate strategically and not settle for being underpaid. Here are some great recommendations to help you prepare.

 

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1 | Know Your Value

There are numerous resources available online to help you determine how much you should be paid. Extensive research on average salaries can help you understand trends in your line of business, learn more about your earning potential, and prepare for a negotiation.

However, in order to approach this correctly, you must adhere to two rules: the first is to personalize. Your research should concentrate on what matches your level of expertise, education, and current position. Second, you must employ real-world data. When negotiating, you should be able to provide a source for your figures, and your claim should be supported by facts and the salary grades of real people.

You should also consider the location, since work compensation varies in different states or cities, depending on the cost of living. Salary ranges differ per industry; however, there are certain broad industry norms to guide you.

  • Role: Your compensation is driven mainly by your job title and main responsibilities. If you have more duties than should be required of you, it's worth asking to receive additional payment.
  • Experience: Your experience is vital in determining how much you should be paid. Determine how much relevant time you've spent performing your job or similar roles so that you can filter information when you do your research.
  • Expertise and education: If you work in a high-demand sector or have a highly specialized degree, you can negotiate a higher salary. Look up the pay differences between holders of degrees vs. diplomas and certifications vs. licensures to get started.

     

    2 | Prove Your Worth 

    Don't merely counter with a greater amount once you've set up a meeting. Even if your study backs it up, you'll have a better chance of succeeding if you explain why you believe you deserve more. Highlight your strengths by outlining all of the benefits the firm would get from someone with your experience and skills.

    Before you begin bargaining, make a list of clear examples of how your abilities and experience have helped and will continue benefiting your company. For instance, specific technical skills (e.g., high proficiency in Microsoft Excel) can improve your capacity to accomplish complex tasks well, so don't leave these out. You'll make a strong argument for why you should be paid more than the initial offer by relating your talents to your role.

     

    3 | Do Not Shift From The Truth

    When it comes to salary negotiations, complete honesty is essential. There is nothing worse than for your boss to discover that you just made up a competitive job offer from a rival company, overstated your salary from previous positions, or pretended you are proficient in something when you're not.

    Also, don't frame your arguments in a negative or exaggerated tone. For example, if you take on additional tasks every now and then, do not talk badly about your colleagues, blame your boss, or imply that you are extremely overworked. Always state your case from a positive perspective.

     

    4 | Consider The Benefits And Perks

    Employee perks and benefits are frequently discussed during salary negotiations. Extra vacation days, flexible hours, or—especially relevant today—a work-from-home schedule may be less expensive to the company than a salary increase.

    Consider what is important to you and what might make a deal more appealing to you. Make sure to evaluate health insurance coverage, retirement savings plans, and other perks directly to arrive at an informed decision. Consider advantages such as professional growth opportunities with the company as well, like funded seminars and training programs.

     

    5 | Have Everything Documented

    Request formal documentation once you and your manager have agreed on a figure. Aside from the salary, the new contract should outline any special arrangements included in your agreement, such as bonuses, allowances, benefits, as well as a list of responsibilities for your new position if applicable.

    Ensure that both you and your employer sign the document. Some organizations may include this as part of an employment contract by default, but if not, seek some type of documentation for future reference.

     

    6 | Don't Make It All About You

    If you want to receive a greater wage, you must ask for it. Job seekers are often too quick to say yes to the first offer presented to them. Employers, however, are keen to bring on team members with specialized skills and expertise that can help them the most, whether the economy is strong or uncertain.

    Your success will be determined by your diligence, tact, and self-assurance. Thus, talk about the company and how they would benefit from your skills and experience when you make your case.

     

    7 | Stay Positive And Avoid Being Pushy 

    Remember that most managers dislike bargaining as well. Your boss is not an adversary but an ally. Maintaining a pleasant tone when discussing salary and benefits will help you navigate these negotiations more effectively.

    Negotiation can also be intimidating, so you should make an effort to keep the conversation upbeat. Begin the conversation by saying something like, "I enjoy working here and find my projects to be fun and challenging." Then, you can move on slightly to your objective and mention how the scope of your work has grown significantly in the past years.

    Tread carefully, and when the timing is good, be straightforward and start a discussion on the possibility of reconsidering your pay to match your current set of responsibilities.

     

    Final Thoughts

    A sensible employer will not fire you simply because you attempted to bargain, and employers are always willing to consider your salary if you talk about it. If you feel that you are being overworked and underpaid, remember that resigning or looking for better opportunities elsewhere can be a reasonable and practical move.

    It's critical to receive a salary that you can live with and suits your skills, experience, and education. Remember, with proper research, strategic planning, and a positive mindset, you can negotiate your way to better pay.

     

    Citations:

    https://www.journalofaccountancy.com/issues/2006/aug/sevenstrategiesfornegotiatingsuccess.html

    https://www.pon.harvard.edu/daily/business-negotiations/the-importance-of-negotiation-in-business


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