Effective Strategies On
How To Negotiate a Salary

How to negotiate a salary is the question all of us will have when searching for that perfect job.

Being successful in salary negotiation is based on knowing what factors will affect the outcome:

Points to consider before your salary negotiation:

• The market value for your position and how your salary compares.

If your present salary is much lower than the market value you can ask for a more significant raise than if your salary is over the market value.

• Company Policy when raises are awarded. Are they awarded annually, bi-annually? Make sure that your request coincides with the company policy.

It is often difficult for a manager to award an increase outside of the policy dates.

• Company Policy on starting salaries and raises. Many companies will have pay levels based on job skills/experience.

You need to understand these levels and know what level the company has placed you.

There will likely be a salary range per level. If the company is not transparent about the salary range, you can ask for your % to mid-point in that range.

• Company Policy on the % salary increase based on year-end performance review. Most companies will determine an average salary increase for that year.

Normally companies will give a higher % increase to high performers. However, if your salary is at the top of your salary range, your raise may be limited.

• Company’s average % raise awarded this year (or last year, if raises have not yet been given this year).

The average raise is similar from year-to-year so knowing the average will give you an idea of what you can expect

• Company’s financial health. Can the company afford raises?

• Inflation rate. Does your raise at least cover the cost of living?

• How the company regards you. Are you considered a high performer? Are you appreciated by your boss and colleagues?

• Would it be easy for the company to replace you with someone at a similar or lower salary level?

• If you do not get the raise, would you be able to find a similar position at another company for a higher salary?

Considering all the above points will make you more knowledgeable and utimately more successful in how to negotiate a salary.

Good Luck