by Alicia Ventresca, MA in Developmental Psychology
The elephant in the room is out. You receive an initial offer from HR and are debating whether it is “worth” negotiating a higher salary. In this economy anything is better than nothing, right? WRONG. According to economics professor Dr. Linda Babcock at Carnegie Mellon University, “Failing to negotiate can be a mistake that reverberates for years. Because most raises are based on percentage increases, all of your future raises—along with contributions to your retirement account—are likely to be lower than if you had negotiated a raise at the start.” Avoid regret by mastering our Top 8 Business Etiquette Tips for Salary Negotiation. Where to begin? “You could typically ask for at least 10 percent more than they offer you,” says Babcock.
1) Negotiate only after a formal offer has been made. At this point, you can be certain that your potential employer is fully invested in bringing you onboard. The time between when you are given an offer and when you accept the offer is your prime window of opportunity for negotiation.
2) Express thanks and enthusiasm throughout the whole of negotiation. There is ample research supporting the social and cost benefits of gratitude (that is, those who say thank you receive more in return). The cornerstone of proper business etiquette, show your gratitude by saying, “I appreciate the opportunity to discuss my compensation with you, as well as your time and flexibility.” Proceed by reiterating your firm interest in the position and demonstrating a willingness to reach a satisfactory agreement.
3) Gather plenty salary intelligence, not only about your potential position but also about your own “market price.” Ask yourself, “What am I worth?” given your experience, skill set, education and potential value to the company. Also, be sure to research average annual salary range for the role, allowing sites like PayScale.com, Glassdoor.com and Salary.com to give you a benchmark figure. Finally, network with people who are in the company and/or industry, and ask what they think a good salary for this job would be.
4) Distinguish yourself from the pack. Having done your research on anticipated salary range, explain why you deserve to be on the upper end of that pay grade. What makes you a top performer compared to other employees? This is your edge, your leverage over others who may have similar credentials but make less money. For example, you might want to say, “While I cannot speak for the other employees here, I can speak for myself and my capabilities. [Insert specific, real-life examples to evidence your point]. It is my belief that I am uniquely qualified for this position, and that my compensation will reflect this in the fairest way possible.”
5) Overcome objections that take away your bargaining power. For example, “excuses” such as the poor economy or limited budget funding are outside of your
