I’m here to remove the anxiety around money conversations. Look , I get it most of us are just out here trying to use our 9-5s to fund our current great idea or trying to climb the corporate ladder quickly to pay our rent and travel . The thing is we can’t neglect maximizing our earning potential at any phase of our careers. Whether you’re at your first corporate job or 2 Years into your 3rd. Most hiring managers are willing to increase starting salaries 5-10% from the initial offer .
I decided to write about this topic after years of advising family, friends and colleagues on the importance of always negotiating their salaries and the critical principles to always consider when negotiating anything monetary. Follow these 10 guidelines, I have cultivated throughout my career that will help set you up to win the conversation:
1. Do your research
As a 27 year old Brand Manager who oversees a team of 6 , I have negotiated my fair share of offers, salary adjustments and merit increases on both sides of the table. Negotiation is an art like any other, so it will always be a skill we are honing so spend some time reading up on salary ranges for your role. Also consider the monetary weight of your unique skill set .
In all instances where I have negotiated, I have received a favorable outcome.
2. Know your audience
An accountant friend of mine once said,
““the first person to state their number is always the loser.””
Even after all the research I've done and practical experience I have, this resonated with me because it reminded me that knowing your opponents budget is the key to getting your desired outcome.
Ways to find out that range are to do step 1 in conjunction with thinking about your company’s current financial standing i.e. department budgets, revenue, salary range offered at hire etc .
3. Don't underestimate your power
A mentor of mine told me this at my first startup in silicon valley, “What's the worst that could happen if you ask for an increase? They say no, consider the alternative, if you don't ask, you will for sure get nothing.”
People often have the misconception that if you’re not in the private sector there no room to negotiate, let me blow the breaks off that myth, there is.
My sister recently got a job offer in the gov’t sector. When she expressed how upset she was at the prospect of taking a pay cut with her amount of experience (10+ yrs), I asked, did you counter the offer?. After helping her draft a counter offer asking for the top of the range based on experience, she received an increase. She had been fully prepared to take the low end of the range solely because that's what was being offered.
Simply having the conversation, when well prepared, builds professional confidence.
A friend of mine recently wanted to give a member of her team a salary increase, she currently works for a company that has not done professional salary leveling so there are many underpaid employees as well as staff making more than their experience dictates. To solve this, I advised her to do research on the salary range of the employee she intended to propose a salary adjustment for and succinctly explain her team members contribution to the VP. She was able to get an immediate 28.6% increase for her top performer, who was considering looking for another job.
4. Never mention personal motives
I learned this from doing research for my own salary conversation. Its seems obvious but can get lost when personal financial pressures are a large factor in why you are asking for an increase.
Whether it’s your motivation or not. Always avoid mentioning your personal financial hardships when talking to management about your salary. It is not professional to discuss it in this context and takes the focus off the merit of your work and it’s value to the organization.
5. Just set the meeting
Just send the slack message or calendar invite. Once you press send it will relieve so much pressure.
Be advised however that there are wrong times to have a salary conversation, for example: significant economic downturn, when the company’s sales are down or if your boss is particularly stressed so it’s important to evaluate your professional landscape carefully.
I also implore new hires who are thinking about a salary adjustment conversation within 3-6 months of permanent hire to assess whether or not you failed to do your do diligence during the hiring process or if there was a gross misjudgment of responsibilities in relation to pay. If it is in fact that the latter, then dammit, follow my steps and set the meeting, I've done it twice.
6. Present your position
Now you are all researched confident and ready to tell your boss why you want more money. Great! Practice what you are going to say out loud at least 5 times before the meeting either to yourself or a friend. Breathe, take a couple deep breathes or get some fresh air right before, you want a clear calm head during this meeting.
7. Silence isn't always bad
Take refuge in silence, when you’re done presenting your case, take a breath and give your manager time to think about what you have said and respond.
8. Follow up
If you do not get an immediate answer about your request, remove ambiguity by ending the conversation with “when can I expect to hear a decision about my request?” This will allow you to breathe a little bit easier while you wait.
Do not let the conversation get stale, if you do not hear back within a reasonable amount of time (I’d say 7 to 10 business days) then follow up in writing or request a follow up meeting. I know, you don't want to seem like desperate nuisance but trust me professional persistence pays off. Another quick tip , ALWAYS preempt all business communications in writing , solely verbal conversations can lead to sticky situations, trust me I’ve been in and witnessed them first hand.
I will be writing a follow up blog post on this topic, if you would like to read it subscribe below.
9. Eliminate career complacency
In the event you do not get what you feel was at least you bottom line, then it is time to reevaluate your presence at your company and/or counter offer. Will this outcome severely impact your quality of life financially, do you feel you are not appreciated at your company? If you’re leaning towards yes , I would consider starting the passive job search to see what’s out there, it never makes sense to stay at a job you see no future with. But listen here my Millenial brethren , I am NOT saying quit your job without a plan.
10. Rinse & Repeat
Now you feel lit because you have gotten the increase you wanted. Don’t think this is where the lesson stops, be grateful, always take note of what it took to get it and keep negotiating!
Conclusion
I gained all these insights from being an infinite learner, someone who is always seeking out information from others, to increase productivity and success in my professional and personal life. If everyone that reads this blog post commits to negotiating in their professional life , I will have achieved my goal.
Have some tips on what to do or avoid? If you haven't already, Subscribe and Share some of your negotiation triumphs (or failures) in the comments below.