Salary Negotiations: You Need to Know These 3 Magic Numbers

Many people are too modest in salary negotiations. Young people in particular often have a low sense of their own worth.

An applicant, for example, may be highly qualified and then mention almost half of the salary set for the position.

Hence the advice: correctly assess your own market value and act with confidence.

How to determine your market value

There are three pieces of advice: first, search the Internet on different platforms. There you can also calculate regional differences, as well as look for salaries in specific companies.

Secondly, companies bound by collective agreements have the opportunity to study the current collective agreements and check to what category they belong.

The third piece of advice, especially important for young professionals, is to look for salary models.

In other words, people who know the industry and are already one step ahead. You should actively ask them: what salary do you think I should be getting with my qualifications? What would be possible in this or that company? Then from these three sources, you form a market value for your activity.

What specific number can you give? Should there be a minimum limit set in advance?

Based on what you have researched, you should first think about the Juhu number, i.e. the real salary that would be optimal. Then you need to calculate the minimum number below which you simply do not want to engage in this activity.

In this case, the intermediate range is acceptable and you can negotiate other things such as further education, more vacation days, and other benefits.

Salary negotiations will only be successful if you can back up your demands with data and facts.

It is very important to really know the minimum acceptable number in advance. Unfortunately, there are companies that pay extremely low salaries, especially to young professionals, with which it is almost impossible to make ends meet.

Often you see really good candidates who have set a number that is too low from the start. You want to shake people and ask, "How did you get such a low number? Take the time to prepare properly!"

How does the company react to this? Does it quietly laugh because the candidate wants so little? Or will the desired salary be adjusted upwards later?

From experience, companies react differently. Sometimes the future employer gives a signal: "This is absolutely not included in the salary structure." Then, of course, you can say that the applicant is lucky. Unfortunately, this does not happen in all companies.

You can hurt yourself if you ask for too low a salary, because companies usually have some leeway when it comes to salary for a particular position.

If a candidate starts with a very low salary, it will be much more difficult to negotiate a higher one later.

But it is possible to overdo it. That is why thorough research conducted in advance is extremely important. For example, if a junior engineer comes to an interview with a salary expectation of $5,000, HR managers will not take him seriously, will postpone the review of applications and will not invite him for an interview.

If you find that you are not getting your dream salary, you should first try to get a Juhu number. Maybe then the HR managers will say, "This is too much."

That's when the conversation really starts. Then you look at, for example, what other benefits there might be: more vacation days, for example, or the ability to work remotely.

Further training is also an interesting topic, especially when starting a career, because it can be important for both your own future and for your work in the company. But you must be aware of your critical minimum, when you should be tough and say: "If this is not possible, then, unfortunately, I will have to move to another employer."

We live in rather uncertain times. Many young professionals may now think that they will be lucky if they get a job at all and then choose to cut their expenses.

However, before the interview, it is important to check how the company you are applying to is doing.

There are companies that are struggling because of the pandemic. But there are also companies for which the crisis has become an opportunity. For example, in digitalization or the pharmaceutical industry.

You should always keep in mind that the company that is looking for a new employee also has a corresponding budget. For the applicant, this means that working there can also be adequately rewarded. Otherwise, the company would not be looking.

Nowadays, interviews often take place digitally. In this case, you should ensure that you have a calm environment for the conversation and eliminate possible distractions.

A video interview can even be beneficial because it gives you the opportunity to visually document your recent accomplishments with a short presentation, something that would be more difficult in an in-person interview.

It is very important that you do not put off discussing salary until you can meet in person in the office.

What arguments are especially useful when you want a raise?

First of all, you should talk about salary adjustments, not salary increases. This way, you are hinting that the salary should be adjusted in accordance with your current performance, and not just because you want more money.

Then you should ask yourself the following questions: How can I create added value for the company? Have I increased sales? Have I reduced costs or optimized processes in my work? But there may also be aspects such as: Did I motivate the team well? Did I eliminate conflicts? Your task is to explain how you added value to the company.

What arguments are inappropriate

You can't recommend specific reasons. Something like, "I'm building a house now and I need more money." You shouldn't threaten to leave the company if there is no more money. In the end, it looks more like a threat than a constructive conversation.

What to do if there is an offer from another company

This can be a good argument for a salary adjustment if you put it smartly and you really want to stay with the company.

In this case, you should approach your employer and say: "I really like it here, I really like the job, but now I have received an offer from another employer. They are offering me a higher salary.

Can you help me stay here with a salary adjustment instead of moving? I would prefer to do that." Then the employer has the opportunity to keep up and offer, for example, a salary adjustment.

Earlier, the expert explained why it is worth buying dollars on Fridays.

• Related news:
• negotiation
• salary
• increase
• board
• 24 June 2024

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