Early this week, we coached one of our clients on #SalaryNegotiations and he managed to get a whopping 23.2% increase over his current pay.
He didn’t even believe it was possible when we strategised his initial approach to his potential employer, but when he saw the offer letter, his first response was “What Sorcery is This!!?!? How did we manage to convince them?”
Well, it isn’t about smoke and mirrors, or even black-magic – it’s the culmination of over 4 decades of helping Executives negotiate salaries that my co-founder, Sze-Yen Chee and I have garnered as headhunters and career coaches that made it all possible.
Let me share 5 #InsiderSecrets on how this can be achieved.
1. Don’t Ask, Won’t Get
Alexandra The Great once declared “Fortune Favours The Bold” and by age 30, had conquered almost all of the known world.
Likewise, be bold when asking for the salary you want. You’d be surprised to see how many people worry (rationally or irrationally) about being rejected or laughed that they don’t even stray anything further than a 5% salary increment at the job interview.
We even see some individuals (usually above 50 yrs young) who fear being ‘too expensive’ for the role that they immediately “give a discount on themselves” and lowball a number just to land a job.
If you feel that your expected salary is not unreasonable, or if you feel that a certain benefit should be added to the deal, you should be bold enough to ask for it.
After all, what’s the worse that could happen? A simple rejection, some smiles, and then you’re back to the negotiating tables again.
When discussing salary packages, always remember – “Don’t Ask, Won’t Get”. Just go for it!
2. Think of your VALUE, not your COST
We had a PR Manager who was paid $8K/month. She was going to join a Mid-sized company and was asked what salary she was expecting, so she approached us for advice.
“I’m thinking of asking for 10% – I heard that’s reasonable.”
I paused and asked a few more questions and established that
(a) The company loved her
(b) The company was currently using a PR Firm at a cost of $15K/mth and she would be replacing that firm when she joined.
So I advised her to ask for $13K/mth.
She baulked and said, “That’s insane! What’s the rationale?”
“Well, as long as you’re replacing the PR Firm, any cost below $15K/mth is a savings for them isn’t it? So why settle for less? You need to know the monetary value you add/save/create, then take a good cut of it!”
She went along and asked for $13K/mth and after a hard-scrabbled discussion, they bargained her down to a $12.7K/mth salary – an almost 60% uplift from her previous remuneration.
Know the #Value you bring to the table and don’t be shy to ask for a portion of it back in terms of salary!
3. Be Clear With Your Current Salary
Always have your accurate salary details on hand.
The HR Manager or Headhunter will need your details to make a fair and accurate offer.
We once had a client who mistakenly gave the wrong information (He forgot to include his cash benefits in his total package) to the recruiter and was offered a figure that was not up to his expectations. It was embarassing for both parties.
We do understand that Salary Calculations can be complex, that’s why we created a FREE Salary Calculator App on our website where you can input your numbers and get an automatically generated response.
This information can be ‘cut and pasted’ onto the email you need to send to the hiring manager or HR. It’s free for now, so go ahead and use it!
4. Do Your Homework
Knowing what your market rate is like will also be helpful in your salary negotiation.
Online Salary Surveys, while fun to play with, are rarely accurate as there are simply too many variables at work.
One of the best ways to gauge your ‘market rate’, is to ask your headhunter, or go for a few interviews to see whether you are within range or otherwise.
With more datapoints, you can be sure that you won’t be shortchanged!
5. Be prepared to walk away
In #2, we spoke about the need to #KnowYourValue. Here, we want you to #KnowYourWorth.
The knowledge you have, the experience you bring, the capability and expertise you bring adds value to the organisation and if the salary on offer does not recognise that, then it’s time to politely decline and walk away.