Sometimes in life, you might have to have tough but rewarding conversations, like negotiating your salary with HR. If you're changing jobs or asking for a raise, you'll likely want more money than what's offered. Here are some salary negotiation tips to help you get a good package.
You might feel like your contributions to the company or project are not valued enough if you're paid a salary that doesn't seem to compensate you for your hard work.
Keep in mind that these are just suggestions. Your tone of voice, the tactics you use, and the work you do can have a big impact on how willing your HR or manager is to listen to your requests.
Negotiating your salary is an important part of advancing your career. Your salary shows how much your company values you, your work, and your skills. It also shows how supportive your company is and whether they care about your work-life balance.
To negotiate your salary, consider your current job situation. If you are currently unemployed and looking for work, be realistic about what you may earn. Your new salary may be similar to your old one, or even lower. However, if you have worked for a while and have developed many skills, you may be able to ask for a higher salary.
In summary: Take stock of your situation, do the ground work
Receiving a "No" doesn't mean it's over. It can be the beginning of a new opportunity. In a recent article by Raj Tawney in the Harvard Business Review, she explains that while rejection is unavoidable, it can help us develop resilience. I found it interesting that the author emphasises the importance of acknowledging and processing the emotions that come with rejection. This means that sometimes, dealing with rejection involves taking care of yourself first and allowing time to heal before moving forward. You can read the full article here.
If you have concerns about an offer you received, it's better to suggest all your changes at once. If you go through each problem one by one, it might take too long to negotiate and that's not good for you. In another brilliant article on negotiating job offers, Deepak Malhotra writes in Harvard Business Review that negotiating a job offer and negotiating a salary are two different things. Read the whole article here.
Generally, apart from stuff like living costs, a good reason to punch above your weight while asking for a raise is to convince them that your skill on the job has improved and that they need to pay you for your experience.
Bear in mind that the real reason you’re actually asking for a hike is your skill growth over the past year that you’ve been employed in the company. Understandably, you’ve done more outside of your job description and grown from the experience. This growth is precisely what you’re negotiating for.
Think about who you're negotiating with, whether it's someone from HR or a potential boss. HR might be careful because they're hiring a lot of people, while a boss might be more willing to listen. Try to understand what your employer can and can't do, and suggest some flexible options that they might agree to.
Rather than specifying an exact salary, consider providing a range that suits your needs. Conduct research to discover what others in your industry are earning. This knowledge will be useful during negotiations. By being adaptable, you will increase the likelihood of reaching a mutually acceptable agreement.
During salary negotiations, you may be asked uncomfortable questions that make you feel defensive. Be sincere in your answers, remain calm and composed, and don't reveal everything you aren’t comfortable sharing. Personal questions typically shouldn’t be related to any kind of salary negotiation, so use your judgment when answering them. For instance, whether you live alone or with a partner, or parent, shouldn’t be anyone’s concern as long as you’re doing the job you’ve been hired to do. Right?
Let me explain it differently. You don't need to become close friends with your HR department or take them out to lunch or anything like that. But having a good relationship with them can help you.
Especially when you're starting a new job and working with a new HR team, it's important to start things off well. Here are a few things to keep in mind when you're about to ask for a raise:
Remember, you don't have to be best friends, but having a good relationship with HR can help you when you're asking for a raise.
Negotiating for perks in addition to salary is important. You could consider negotiating for perks such as childcare, flexibility, health and fitness benefits, and professional development resources. These compensation suggestions could also be considered for fair salary negotiation.
Before diving into the negotiations, give your employer a heads-up so they know what you'd like to cover. This will help both you and them prepare and make it a fruitful conversation.
We also have a whole article on this subject - see how you can write an impactful salary letter.
Discussing a salary negotiation in 2023 can be an uphill climb. There are fears of another global recession triggered by rising oil prices in the West. So, no matter how well you negotiate, your employer may not be in a position to give you too much of a hike. But that doesn't mean the end of the road.
Your salary account can also do some of the heavylifting in terms of rewarding you every month. The Fi Money app allows you to open a fully digital salary account with Federal Bank, and this salary account (through Fi Money) is among the most rewarding you can find in the market. Here are the features of the Fi Money salary program at a glance.
When it comes to negotiating your salary, there are a few key things to keep in mind. Do your research and know where you stand in terms of your current employment situation. Embrace rejection as a chance to grow and bounce back stronger. To make the process smoother, address multiple issues at once rather than dragging it out. Show why you deserve a higher salary by highlighting your improved skills and performance. Understand your employer's viewpoint and be open to flexible solutions. Building a positive relationship with HR can work in your favor. And don't forget to consider perks like childcare, flexibility, and professional development when discussing your compensation. Remember, salary negotiation is about more than just money—it's about creating a package that truly meets your needs and aspirations.
Looking to work with us at Fi Money? Check out our open roles here.
Here are five fast tips for negotiating a great salary -
During a salary negotiation, clearly communicate your value, highlight accomplishments, demonstrate market research, and express your expectations while remaining professional and open to meeting the other person halfway.
Here’s what you can do to prepare:
a. Be well researched - Know your market value, have an exact number in mind instead of a range, and be sure to know what your wish number and want numbers are.
b. Be respectful - It's important to thank and appreciate the offer you have already before jumping into the negotiation.
c. Timing matters - Schedule your negotiation call on a relatively stress free day and time. This gives you enough time to explain and discuss the negotiation, rather than rushing through it.
a. Knowing your value - The skills you bring are best known by you. If you think you need to be paid more, make a case for your skills and quality of work.
b. Know what’s on offer - In the interview process, you might get offers from other firms. It's important to consider all of them cumulatively and not be tied down by one parameter alone. For example, you don’t always have to take the offer that’s higher, instead consider the benefits, learning opportunities etc.
c. Be ready to negotiate - A good negotiation is one where both parties feel accomplished. It's important to find a middle ground and keep a figure in mind that you can agree in a worst-case scenario.
d. Express enthusiasm - If you're keen on joining the company you have an offer from, express this to them. You can also look to negotiate for an early appraisal, more stock options, or a higher performance-based bonus instead of higher base pay.