Step-by-Step Guide of Negotiating Salaries
Thanks for coming.
Now let’s talk about the ‘Step-by-Step Guide of Negotiating Salaries.’
Please don’t forget to grab some coffee before you find a seat.
As always, this thread is based on what has worked for me as a professional, and as well as from a HR point of view.
Welcome, welcome, come on in.
There are seats in front if you can’t find any at the back.
Come on in.
Like I stated, people who negotiate salaries often earn more than those who do not because employers hardly put their best offers first.
Thing is, employer is looking to cut cost.
You, on the other hand, are looking to make more.
Here’s how to find a balance and to ensure you’ve asked for what you truly deserve.
Negotiating is an ‘Art’, and you must be the ‘Artist’ who holds the paint and brush when doing it.
BEFORE THE INTERVIEW (Preparing Your Art Canvas)
Once you are invited for an interview, one critical thing you want to do is research.
What are you researching?
You are not only researching about the company, its competitors or what it does.
You will be researching:
-Salary range of the industry the org belongs to.
-Org compensation structure.
-Salary range of the company’s competitors.
-Salary range of the role.
-Your present salary as it compares to the salary research you’ve done.
AFTER THE RESEARCH (Canvas is Ready for Painting)
After the research, you need to use the ‘4 Pillars of Compensation in Human Resources’ to ask questions that will help with your salary expectations.
(a.) Job Skills Required: Do I have all the skills required for this job?
(b.) Level of Responsibility: Does the role involve more responsibility?
(c.) Effort Required: What effort is required to perform?
(d.) Working conditions: Does this role require me working Monday – Sunday? Are conditions extreme that a higher pay will make up for it?
In addition, one personal question is to ask yourself if the salary range is worth leaving your present job for (if Salary is your problem & not other org perks).
Oh yes, there’s more coffee in the other room. Please help yourself.
KNOW THE COMPONENTS OF A SALARY (Choosing Your Primary & Sec Colours):
This is where you know what a salary constitutes to guide expectation.
- Base Rate: Always your number one priority.
- Benefits: Time off, Premiums for insurance for you & family, working conditions etc.
- Alternative Compensation: Profit sharing, Commissions if any, Company Bonuses, Stock options, etc.
- Other Company Perks: Training, Education reimbursement, Car, Working From Home etc.
Once you have done all your research & are confident of the knowledge base of what a salary should constitute:
Set a realistic salary expectation.
The employer knows what the job is worth. You, on the other hand know what you are worth based on your experience, skills & eductn.
DURING THE INTERVIEW (Using Your Paint and Brush)
One thing you should never do is to ‘ask’ about money first during an interview.
“Ehen what are you people going to pay for this role?”
Alaiye jor jor jor. Calm down.
- Do you even know if they’d offer you the role?
- Do you know if they already like you as a candidate?
- Don’t fall for non-verbal you aren’t too sure of.
Please come in, we still have a seat over there. You haven’t missed much. You are welcome.
DURING THE NEGOTIATION (Painting Your Artwork)
After all has been said and done, you are quite confident with a figure that you feel is reasonable and reflective of the current industry & hiring market.
And is worth your time during the job search.
Note that a salary negotiation can take place:
- At the interview.
- Via a follow up call after the interview.
- When an offer is actually been put forward.
Whatever the case is, use these rules:
(a.) Don’t beg. An artist never asks that you like his/her painting. You are there in exchange of a service, not free work.
(b.) Let them understand why you deserve what you are requesting.
You can state why you deserve what you are asking for this way:
“Based on my XY experience as an Analyst in XY industry, my CFA certification & my ability to build teams, effectively cut costs & increase profit, I believe the base rate offered is low. I am hoping there is a room for flexibility.”
Quantify Your Value & Performance.
(c.) If they ask what you have in mind.
Remember the pay range research? Use it if no range is given.
You can say:
Based on a research I did, & the info I have gathered; & based on my proven track record, experience & background I should be in the upper level of xy pay range.
(d.) Don’t Commit Easily to What is Offered.
Employers will look at the low end of your range when making offer. It’s not being mean. Business is Business.
Make the low end a high one. Something you are comfortable with.
If low end is $25K, state a range of $32K to $45K.
(e.) Give Options.
This is for roles that allow for extreme negotiation flexibility.
You can either negotiate for a high base pay & settle for a lower bonus % or vice versa.
Do the math. Compare all scenarios and know what you are worth and comfortable with.
Finally, remember these when Negotiating:
- Let the employer lead. Follow the flow as they do.
- Let the employer say what the range is before you state any salary requirements.
- If the employer doesn’t state any range, use numbers from your research.
- Aim high, but please be realistic.
- Remember that increased pay means increased tax. Do you calculation to ensure you know what you want your take home to be.
- Researching and preparing ahead of time makes you more empowered in the process.
- A drug lord never gives the suitcase until the cash is received.
Negotiating is an art & you must be the master with the paint and brush when doing it.
Paint your canvas, sell your art & go home happy.
Thanks for coming. Please return your chairs and leave the door opened.
Cc: Tunde Omotoye
(Step-by-Step Guide of Negotiating Salaries).