Top 10 Tips for Negotiating Your Salary
3 minute read
Cost of living adjustment: The low-hanging fruit is getting a cost-of-living adjustment. Exactly how much to ask for is easy to quantify as well. You can easily find inflation for the year through a simple Google search. The CPI Index measures inflation and is released monthly. For example, the inflation rate for the 12 months ending November 2021 was 6.8%. To be valued the same as you were last year, you should receive at least a 6.8% cost of living adjustment. Without that, you are effectively taking a pay cut.
Education: Have you taken classes, earned certifications, added a license, or received a graduate degree? Those improved technical chops deserve a higher salary. You are more valuable to your employer than you were last year.
Management or mentorship: Have you taken on a managerial role of either people or a project? Do you train employees? Do you provide recognized mentorship? Management skills are incredibly valuable to employers and culture building within a business. If you have been asked to manage or mentor others, it is a sign you are a highly trusted and valued employee. That should give you confidence in asking for a raise.
A colleague left and was not replaced: If you find that one of your colleagues left or was removed from their position and, instead of replacing them, their duties and responsibilities were divided amongst everyone else, then you deserve to be compensated for the additional responsibility. You could quantify this by taking the salary of the person that left, reducing it by 25%, then dividing it amongst those that took up the additional responsibilities. That is a win-win situation. You are compensated for the extra work, and your employer reduces their expenses.
Career level: Generally, you should expect a higher pay range as you advance in your career. Industry networks or peer groups are good places to start as they usually do surveys of salary segmented by experience, education, career level, etc. If you don’t belong to any industry groups, get after it on Google or reach out to peers.
Experience Have you hit the top range of experience required for your current position? If so, you should be paid at the maximum range. For example, if your job requires 5-7 years of experience, and you have ten years, it warrants a salary that tips the scales for that position. It’s a good habit to look at your job description at least every 1-2 years. Have you taken on additional responsibilities? You should be compensated for them. If you don’t have a job description you can refer to, write one and present it to your employer.
Ask for it: It always surprises me many people just accept what is given to them. Don’t expect an employer to reward you each year financially. If you want big pay raises or even modest ones, you must advocate for yourself. Even if you don’t get what you want, it’s essential to plant the seed of what you expect in the future.
Ask in-person: It’s always harder to say no to someone in person than by phone or email. Yes, you will be nervous, and that is ok. Be proud of yourself for going out of your comfort zone. A little secret for you, your boss will be anxious too! They want to make sure you stay a happy employee and continue doing the incredible work you do.
Ask on a high note: You don’t have to wait until your annual review to ask for more money or a promotion. Good times to ask are when your boss thinks you are the greatest thing since sliced bread. Examples may include wrapping up a successful project, bringing in new business, or when you are recognized publicly for your efforts.
Ask for more than you want: Think about the raise you want, then ask for 10-20% more. Remember, you are negotiating. You likely will meet in the middle, so position that ‘middle’ as your goal. If you get more, great!