Source of Image: the Internet – the Art of Salary Negotiation

Employers always seem to hold the upper hand in salary negotiations. They understand that you need the job more than they need you. Negotiating a salary is a delicate issue. If you’re accustomed to haggling when shopping, this can be a favourable starting point for you. However, negotiating a salary is not as easy as shopping. You should thoroughly research and analyse all aspects of the issue before “confronting” employers.

Here are five assumptions and negotiation techniques you need to master to secure the best salary when negotiating with employers.

First, your salary does not reflect your ability and work experience.

Company managers will pay salaries based on market demand to attract the most suitable candidates. Therefore, in a competitive labor market, the starting salary for new employees may be nearly equal to or possibly even higher than your salary, despite your higher educational qualifications and work experience.

Some companies have pioneered studies on the fairness of salaries on some basic platforms and have addressed the issue. If they find that the gap between your salary and newly recruited employees is not significant, they may increase your salary significantly more than the fixed increase stipulated. However, many companies are not proactive with this, and they will not do anything unless you directly address it.

Recommended solution: Always keep abreast and keep pace with the salaries of people with the same experience and educational background as yours. If you notice a difference, tell your boss: “I see something unfair about our company’s salary system, unless there is a change, I think I have to find a job elsewhere.”

Second, actual increases may be higher than what is proposed.

When deciding on a salary increase based on job performance or work experience, your boss is always very cautious about how much to increase so as not to exceed a predetermined average increase. For example, the preset figure is 3.5%, the boss can reward the best employee with a 5% increase while those below average are only 2%.

In reality, the money allocated for salary increases may be larger than the figure your boss decides. The reason is that many smart companies always have a reserve fund to use when they need to retain excellent employees who are at risk of leaving. Therefore, never accept the first offer. Most companies have different salary levels and sometimes a few unique levels they can pay. A small but less noticeable action is to give the boss an opportunity to pay you a higher salary. This shows that you are skilled. If the boss really wants you, this is an opportunity for you to ask for the highest possible salary.

Affirm that you are competent to meet the company’s needs and request an 8% increase when the company normally sets the figure at 4.5%. Smart managers will ask themselves: Am I ready to lose this employee only because of $500 per month? In reality, if they need you, this amount of increase is very small compared to the costs they have to pay to find your replacement.

Recommended solution: The day of reviewing and deciding on salary increases should not be the right time to negotiate a higher rate because the manager has already approved this increase and recorded it in the financial accounts. Therefore, your campaign should start a month earlier. Furthermore, you need to show your best self for about a year before the increase. Don’t be afraid to tell your boss, “I did that.”

However, know when to stop, because if you continue to propose then your boss may end the conversation and make a final offer, essentially: “We only accept to pay at level X and not higher” – this X level might be lower than the figure you agreed on previously. Worse, you may create a bad impression with your boss. So be cautious and careful in this delicate matter.

Source of Image: the Internet – the Art of Salary Negotiation

Third, when your boss tells you that the company cannot pay you more at this time, finances may not be the issue.

If you propose a salary increase and your boss says that the company’s finances are currently very tight, ask him what the company will lose if you are given the requested salary increase.

If you do not receive a clear answer or words of encouragement, it means that your boss thinks that you deserve that salary in your current position; your boss does not have the authority to decide; you are being paid the highest salary within the salary range for your current position.

Recommended solution: You should consider whether you still want to work in your current position at the company. If the answer is yes, then you need to take a longer-term view of the salary issue. Be prepared for possible compromises.

When the company does not agree to the salary you requested, pay attention to other benefits from the company that you are not satisfied with. For example, if you have to travel far for work, ask the company for travel support; you might be allowed to work late or receive some kind of allowance. Finally, ask if your salary will be reviewed in the coming six months and request your boss to sign an agreement for a salary increase if you perform exceptionally well and the company achieves a certain revenue growth.

Fourth, you cannot negotiate your salary when your contract expires.

Unless you have a clear contract, companies are entitled not to pay you a bonus when your contract expires. However, they usually still pay you something. The question is whether it is fair for your future contributions (of course, if the company still needs you for something).

If you do not think that it is sufficient, you can discuss obtaining more, if you have certain advantages. The key factor lies in the “Privilege Value”. For example, are you the only person in the company who knows important details of the current project or who knows how to operate the most important functions? In other words, do they still need something from you?

Recommended solution: When making requests, you should remember that you are negotiating with “individual bosses” rather than with the “company”. And those individuals, if the negotiation with you is not successful, always have a lot to lose, including bonuses or even their jobs. The best way to make a request: respectfully and in writing, send your request to someone with decision-making authority. You can start with your boss, or your boss’s boss, or send direct letters to the board of directors if they are the decision-makers.

Fifth, bosses will pay a higher salary if they like you.

There will be some employees who are more favored by bosses than others, and sometimes by a lot. That doesn’t mean you need to flatter and indulge the boss, but rather to help your boss efficiently in work and to create conditions for them to become good managers.

Source of Image: the Internet – the Art of Salary Negotiation

Last but not least, in the art of salary negotiation, you should understand that demanding a top salary is not always right, but instead it’s a salary that you feel satisfied with. Start with calculating the average salary that an employee in your position would receive and set the ideal salary for that position as well as the benefits you would like to have. If you focus on your goal rather than just winning salary negotiations, then you will know easily when to accept the agreement you have reached.

Most importantly, after the negotiation is over, remember that all decisions and agreements should be clearly documented on paper before you accept the job or any new demands that your boss has given to you.

By NB Asia Executive Search LLC – Brand Identity Team, proofread by VINH PHAN, Practice Leader of Executive Search & Board Services, referred to Business World, CNN Money

NB Asia is a highly experienced and strategic human resources consulting firm that specialises in providing an extensive range of executive placement, board services, organisational structure, and people solutions to business partners throughout Asia. We are privileged to have the opportunity to work with many great companies in various industries across Asia. Don’t forget to follow NB Asia’s social media pages across multiple platforms (Facebook, Instagram, and LinkedIn) to update on good knowledge and beautiful life information, and let’s work together to bring a better life to everyone!

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