Salary Negotiation: How to Negotiate Your Salary and Get a Raise
(Written by Ayodele Obayelu)
When it comes to the issue of salary negotiation, a significant portion of employees refrain from negotiating their salaries.
For instance, a study by CareerBuilder revealed that 55% of employees accepted initial offers without negotiation.
Contrastingly, 73% of employers expect and are prepared to engage in salary negotiations.
Negotiation often leads to favorable outcomes.
According to a Pew Research Center study, approximately 70% of workers who negotiated their starting salaries received higher pay than initially offered.
Many employees avoid negotiating due to fear of appearing ungrateful or jeopardizing job offers. This apprehension contributes to a substantial number of professionals accepting initial offers without discussion. You cannot put the burden of determining your worth and the appropriate compensation solely on your organization. Don't expect them to see your value and reward you appropriately. Employers are more likely to be reluctant and unbothered if you do not speak out for yourself.
My friend Pelumi landed a job at a reputable fintech company, and she was thrilled. The offer was decent, but she knew from her research that similar roles in the industry paid about 20% more. However, she hesitated. What if they withdrew the offer? What if they thought she was being greedy? She had been job hunting for awhile and she was desperate to change jobs. Besides, this offer, although it was below industry standard, was higher than her current salary, so she accepted the first offer without negotiating.
My cousin, Tomiwa, worked at a marketing firm and genuinely loved her job. The work culture was great, and she found fulfillment in her role. However, despite her dedication and five years of experience as a business analyst, her salary hadn’t been reviewed in a long time. Curious about her market value, she did some research and realized she was being underpaid.
She wanted to approach management for a raise but hesitated. "What if they refuse? What if it creates tension and even costs me my job?" she confided in me, torn between advocating for herself and fearing the consequences.
Negotiating your salary whether you’re starting a new job or asking for a raise can be intimidating. However, with the right approach, you can confidently secure the compensation you deserve.
If you are like Pelumi and Tomiwa and you find yourself in a cross road of salary negotiation, or salary increment debacle, I have some tips that can be beneficial to you.
Here are 7 salary negotiation tips and strategies.
1. Know Your Worth: When it comes to negotiating your salary for a new job or when you are faced with the issue of asking for a salary increment, it’s important to understand the value you bring to the table. You have to consider things like your education (ND, HND, BSC, MSC, PHD), training/certifications, years of hands-on experience and responsibilities. Take time to highlight what you have accomplished before or what you are currently doing, and what you are also capable of doing, moving forward.
2. Research: Before stepping into a negotiation, research salary benchmarks for your
- Role: the salary of an accountant might be different from that of a lawyer or a software engineer, so find out what is obtainable for that role.
- Location: geographical location is pivotal. what you will be offered for a role in the US might be different from the UK, Nigeria or Ghana for a similar role. Find out what is obtainable for the role in your location.
- Experience: A person with 2 years experience on a job cannot expect to collect the same salary as a person with 10 years experience.
- Industry: The salary for the healthcare industry is most likely different from oil and gas or even Finance industry.
Take your time to research the role, industry, experience and location. The importance of this is so that you do not undervalue yourself or come to a gunfight with a needle. Compare your skills and responsibilities with industry standards to ensure you’re asking for a realistic and competitive salary.
3. Time It Right
Timing plays a crucial role in salary negotiations.
These days, companies include their salary range in the job advert so you know what they are willing to pay. Some jobs do not include this so you have the opportunity of asking for this information during the job interview. There are times the organization purposely offer a lower amount as their first offer, if you do not have a counter offer or you are too scared to negotiate, then it would be your loss
I consider the following as ideal moments to negotiate:
- During a Job Offer: Once an employer has selected you, they are more willing to negotiate.
- After a Successful Project: Make hay while the sun shines. If you’ve delivered outstanding results, use that momentum to request a raise. This is an opportunity to highlight how valuable you’ve been to the company.
- During Performance Reviews: Usually, Many companies have scheduled review periods, making them ideal for salary discussions. Do not waste an opportunity to highlight how valuable you are to the company and why you deserve a raise.
4. Prove Your Case
If you’re asking for a raise, don’t just demand more money, prove that you deserve it. It's not enough to walk up to management and demand an increment for the hell of it, you should highlight
Your achievements and contributions to the company. Since you joined the company, what value have you added to the company, through your role. How has your work positively impacted the company?
Tell them about the increased responsibilities you’ve taken on since you joined the company. Let them know about how you have gone above and beyond your JD (job description).
The best way to go about this is by Using quantifiable results:
"I increased sales by 15% in the last quarter."
"I streamlined processes, saving the company $10,000 annually."
Also, at this stage, It will be helpful to also highlight and showcase any certifications, training, or skills you’ve acquired in the course of your time with them.
5. Be Confident and Professional
When it comes to negotiation of any kind, it’s important to be confident. This cannot be overemphasized. The best way to sell yourself is to be confident in yourself and the value you have to offer. When negotiating, maintain a calm and professional demeanor. Avoid sounding apologetic; remember, salary negotiation is a standard part of professional growth.
It’s important to understand why you want a raise or why you think you deserve the salary. It gives you a sense of self-worth which can boost your confidence.
Be in command of the words you use, mastering your words can enhance your confidence and presence.
Using certain words can help you convey your thoughts better which tells the other party that you know what you are doing.
For example, Instead of saying,
"I want a raise," why not try: "Based on my contributions and market research, I believe a salary adjustment to xyz is fair."
or "Given my achievements, I’d like to discuss aligning my compensation with industry standards."
6. Be Ready for Counteroffers
When it comes to negotiation, be ready for a counteroffer, nobody is putting their best foot forward at the first glance and your employer is no exception. Even in a traditional market, when a seller states a price, you rarely accept it outright, no matter how cheap it seems. Instead, you offer a lower price to test the seller’s willingness to negotiate.
In salary negotiation, It is acceptable for you to call an amount that is a little higher than your expected outcome. If you want an increment of #1,000,000, you can start with a #1,500,000. Your employer may not immediately agree to your request. They might:
- Offer a lower amount than you requested.
- Provide non-monetary benefits (bonuses, stock options, flexible work arrangements).
In negotiations, you must know your desired outcome and your walk-away point. Know your minimum acceptable offer and be prepared to negotiate other benefits if necessary.
Always, strive for a win-win situation. Try as much as possible to be flexible, but do not sell yourself short. If #1,000,000 is your desired outcome in this instance, stick with it.
Do not let the fear of losing a job cripple you to the point that you cheat yourself. The least they can tell you is no, so do not give in to the fear.
Once you understand the value you bring to the table and the industry standard, you are better equipped to negotiate, but as with all negotiation be willing to walk away (if necessary).
If the employer isn’t willing to meet your salary expectations and you feel undervalued, be prepared to explore other opportunities where your skills and contributions are properly compensated.
7. Follow Up in Writing
Once you’ve reached an agreement, request a written confirmation of your new salary and terms to avoid misunderstandings.
Negotiating your salary is not about demanding more money but about demonstrating your value and ensuring fair compensation. With preparation, confidence, and the right strategy, you can successfully negotiate a better salary or raise.
