Editor’s Note: This story was originally published on August 15, 2018.
Talking about money is difficult for many people. Asking for more money is even harder.
When you finally muster up the courage to ask your boss for a raise or give salary requirements to a potential employer, then you need to come up with a number that makes sense. You don’t want to lower yourself, but you also don’t want to aim too high and seem out of touch.
Executive Brief
“I’m a big fan of shooting for a number that pleases you, not a number that satisfies you,” said Selena Rezvani, author of “Pushback: How Smart Women Ask -— and Stand Up — for What They Want.”
But your number must be reasonable.
The key to negotiating a salary is knowing your worth. This way, you can feel confident about your number.
First, you need to create an array of what other professionals are doing in your role and industry. Consult a variety of sources, including sites like Glassdoor and Indeed and professional associations, talk to recruiters, and don’t hesitate to ask people in the industry if they’re comfortable sharing their salary.
How much to ask for: 10% above your current salary
If you feel underpaid in your current gig, don’t be afraid to speak up and ask for a raise.
But do your homework first.
Track your achievements: successful projects you’ve worked on, ways you’ve increased revenue or saved the company money, innovations and effective partnerships.
“Be aware of your unique skill set,” said Joel Garfinkle, executive coach and author of Get Paid What You’re Worth.
“Determine your value and demonstrate your overall impact on the organization.”
Bring positive notes and glowing reviews from team members and clients to highlight your accomplishments, and be sure to mention future results you’ll bring to the company.
“Create quantifiable, fact-based data about your accomplishments,” Garfinkle said. “This can be a very persuasive way to show the extent of the impact you’ve had on the company.”
How much should I ask for?: 15-20% above your current salary or reasonable market rate for the position.
This is your chance to get the biggest pay rise. It’s also an opportunity to reset if you felt underpaid in your last job.
But if possible, try to postpone the salary discussion until later in the interview process.
“Before discussing salary, tell the hiring manager that you need to understand the position, responsibilities, title and all that would entail so you have a better sense of your position and value,” Garfinkle advised.
Research a fair salary for the position and emphasize your qualifications and skills. Once you lock down an employer, you have more bargaining power.
“Yes, the company takes some risk, but you’re the one betting on them and leaving profitable work,” Rezvani said. “They expect you to want and need a good deal.”
How much to ask for: probably nothing
Changing careers or entering a new industry means you likely have less leverage to negotiate for a higher salary.
“You’re not in the strongest position of power because it’s hard to show value in a new career or industry,” Garfinkle said.
In fact, you may have to prepare for a pay cut depending on the industry you move into. For example, if you go from the private sector to the public sector, don’t be surprised to see your pay go down.
The key to negotiating salaries when changing careers is to show how your skills and experience match the needs of your new employer.
For example, Rezvani was working with a client who was a textile buyer and was breaking into an unrelated sector, but highlighted how her experience in price negotiation could be beneficial to her new employer.
“If you have a really clear relationship between what you’ve done and how it can be used in the new job, I think you can be aggressive with 5-8% above where you are today,” he said.
How much to ask for: other benefits
Sometimes, no matter how good a case you make for a raise, it’s just not in a company’s budget or a manager’s power to grant.
But there are other compensation options.
Ask for other benefits, such as an extra week of paid vacation, a more flexible work schedule, job training, or stock options.
And don’t leave the room without a follow-up plan. “Ask to review the situation in three months,” Garfinkle said. “You somehow get a commitment from them.”
