Before going into salary negotiating, it is critical to know exactly what your value is. If you do not know exactly what your value is, then it is a shot in the dark when you ask for a raise or try to get the most in your next job.
You may end up letting the employer decide what your pay increase should be, and it may be disappointing to you. Millions of people negotiate for a higher salary, but not so many get the maximum increase in compensation that they could.
Doing extensive research before you approach your boss for a pay increase or before you discuss salary negotiation at job offer time, is an imperative. It is like a game of chess. You cannot reveal to your opponent what your next move will be. Likewise, you do not want to reveal your salary history if you can avoid it, and don't discuss salary too early.
Before going into a salary negotiation, know what you are worth in compensation terms!
If you are asking for a raise, or even looking for a new job, do your full salary research on the Internet first. There are great sites like Salary.com or Salary.Monster.com
who will disclose salary information in some detail for free, or greater detail for a small fee.
It is important for you to know the the accuracy of the source of the salary market information. If a website is reporting pay scales as reported by their list of members, it may not be as current as if the salaries are reported by the HR departments of the companies in that job market.
If you are not worried about being forward with others, you may just outright ask. I recommend using some tact in this approach, but it is less offensive than it once was. You might just discover inside intelligence about the salary range for that job.
Better yet, if you can ask a valued human resources friend, you may find out not only about the company you work for, but you may also find out about other companies in your market. Whatever information you can find out, will be useful, as long as the source is someone you can believe.
There are many firms that do research into the human resources data for a particular job market. These firms publish very expensive reports that are only disclosed to inside subscribers. If you are able to gain access to one of these reports in a lawful way, then you may just find you have a wealth of information, that is even more valuble than asking a friend.
Many salary sites report salaries in the form of a large range. If the range is $45,000-$69,000, the site will often report that data in 25% intervals. The bell curve is sometimes found within the 0-100% range, and it is important for you to clearly assess where you fit in the range, and make sure you are not below the bottom or too far above the top.
In order to determine where you lie in the salary range, you need to figure out your percentile. This is the measure to which you believe in yourself and your abilities, combined with your tenure, experience and proven status on the job. If you feel you are honestly a high performance employee, give yourself a higher rating. If you know you have less experience or you are new to a job, then rate a little lower. Be honest in your self assessment.
You will find valuable feedback from a colleage you like or even better, ask someone in a similar company what that salary range demands in terms of skills and experience.
Numbers speak loudest when dealing with employers and bosses. If you want to earn a larger salary, you need to make them understand you are worth it because you either cut costs, improved business efficiency, or drove profits. You know the work you do, and if there are quantifiable facts, use them to your advantage. If you don't relate directly to the bottom line, think of other quantifiable facts (e.g. a teacher with a high rate of students on the honour roll). This is the best way to communicate your value.
Wishing you success in learning how to negotiate a salary like a pro!
About the Author:
Trevor Davide Grant is a project manager in the IT field and has extensive experience in salary negotiation
. Trevor has worked for global telecom, power utililties, software consulting, and a prominent web 2.0 site. He has learned salary negotiating in the most effective way. Learn great tacticson the topic of negotiating salary at www.HowToNegotiateASalary.com
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