Are you happy with your salary? If not, then it might be time to negotiate for a better deal. Learning how to negotiate is a skill that everyone should have in their arsenal – it could mean the difference between earning a little bit more money or staying stuck in the same salary bracket for years.
However, the key to successful salary negotiation is to do your homework and know your worth. By being prepared and informed, you'll be in a much better position to get the salary and benefits you deserve.
Tips for Salary Negotiation:
In this blog post, we'll discuss tips for negotiating your salary. So read on and start planning for that next raise!
Do your market research and know your worth
There are several ways to research salaries, but a salary guide is one of the most helpful tools. Salary guides provide an overview of salaries for different positions in different industries, giving you a clear idea of what you can expect.
Next, take into account other factors that are also relevant, such as your level of experience or skill set.
Generally speaking, the more experience you have in a particular field or job, the more money you'll make. That's because employers are willing to pay more for workers with a proven track record of success and productivity.
If you have rare or in-demand skills, you can command a higher salary than someone who doesn't. For example, if you're a Data Scientist with experience in a particular language (say Python, SQL, Julia, Machine learning, R, etc.) that's high in demand, you could expect to earn more than someone who just knows basic Javascript.
Finally, be prepared to justify your request with examples of the accomplishments or value that you bring to the role. Taking a thoughtful and strategic approach can maximise your chances of getting the salary you deserve.
1. Resources to calculate the suitable salary range
Glassdoor and payscale are great places to start, which allow you to search for salaries by job title or company.
The Parity Salary Guide and Insights is a resource for determining current market salaries across Product, Marketing, Comms & Digital, as well as Data Science and Actuarial roles. The figures provided are based on extensive research and data analysis, providing a great starting point for negotiating your salary.
Using these resources gives you a better idea of what a reasonable salary is for your personal situation.
2. Performance of the company
Whether you are thinking of renegotiating with a current employer or when applying for a new role, you must always check how the company is performing in the market to get some valuable insights.
Look at its financials. You can find this information by searching for the company's annual report. These documents will give you an overview of the company's revenue, expenses, and profits. This can help you understand how much wiggle room you can negotiate your salary.
You can also look at employee satisfaction surveys to get an idea of how morale is at your company. If you have connections at other companies, you can also ask around to see what they're paying for similar positions.
3. Determine personal salary needs
Before negotiating your salary, you must first determine your personal salary needs. It can be a difficult task, as it requires taking into account a variety of factors such as
The cost of living in your area: First, look closely at your current budget and expenses. This will give you a good idea of what you need to live on each month.
Your current lifestyle: Next, research the cost of living in your area and compare it to your current expenses. This will help you to see if you need to make any adjustments to your budget.
Your long-term financial goals: Finally, think about your financial goals and factor in things like retirement savings and kids’ college tuition.
Once you have thought about all of these factors, you can arrive at a realistic figure for your salary needs. With this information, you will be ready to start negotiating salaries like a pro!
4. Consider the whole package, not just the base salary
Today's job market is not just about the base salary. When considering a job offer, it's essential to consider the whole package - including things like discounted health or personal insurance, discounts on home loans, wellbeing programs, and extra leave arrangements. For many workers, these ancillary benefits are just as significant as the base salary.
For example, let's say you're considering two job offers. Both jobs have identical base salaries, but Job A offers better health insurance discounts, and Job B offers benefits like a company car and childcare discounts. If you're someone who values their health and wellbeing, then Job A might be the better option for you. On the other hand, if you already have insurance but need a discount on childcare and a company vehicle, then Job B might be a better choice.
Ultimately, it's up to you to decide what's most important to you in a job. But when negotiating salaries, don't forget to consider the whole package - not just the base salary.
Be clear about your salary expectations
Now, all you have to do is to be clear about your expectations. If you go into a negotiation without a specific number in mind, you're much more likely to settle for less than you're worth. Instead, take the time to revise the research you have done in mind and with a salary range, you're comfortable with. Then, when it comes time to negotiate, be prepared to explain why you deserve to be paid at the high end of that range. If you can prove that you're worth what you're asking for, you'll be much more likely to get the salary you deserve.
Don't be afraid to ask specific questions about salary and benefits during the interview process. By being upfront about your needs, you'll be more likely to find a role where both parties are aligned and satisfied.
Closing note:
If you’re looking for a new job, don’t let your current salary dictate what you should be paid in your next role. At Parity Consulting, we believe that everyone deserves to be fairly compensated for the work they do, regardless of their previous pay rate. We can help you find a new job that pays you what you are worth. Contact us today to learn more about our services!
Email us at:info@parityconsulting.com.au
Call us at: +61 3 9923 8081, +61 2 8068 2016
Written by Trish Aspell
Trish Aspell is a Senior Consultant at Parity Consulting, mum, partner, sports enthusiast, and budding traveler (leaving Ireland in 2006 to travel the world with lifelong friends!). She specialises in the recruitment of Product, Pricing, and Actuarial professionals across the Insurance industry (Life, Health, and General) in a permanent and contract capacity.
You can reach out to Trish attaspell@parityconsulting.com.au