Talking about money is difficult for many people even in boom times. But discussing salary in the midst of a bad economy is even harder. Many people wonder if they should be happy with anything that they are offered when they are looking for new employment. And those who are employed wonder if this is a good time to ask for a raise or if they should be content with the fact that they have a job at all.
Let’s start by talking about salary negotiation for a new job.
What mistakes do people make when trying to negotiate salary in this type of economic environment?
The biggest mistake that people make is that they do not attempt to negotiate because they are scared to do so in this job market. Since the competition is so stiff, many job seekers unfortunately assume that they have no bargaining power. However, most organizations have a range in mind for the salary that they intend to pay new employees, so there is room for negotiation.
Another major mistake job seekers make is not researching salary information prior to engaging in the negotiation process. If you don’t know what the market will bear, you are shooting in the dark when it comes to salary.
Yet another mistake is only focusing on the dollar amount for the salary and not negotiating benefits, which are worth money as well.
How should you prepare for a salary negotiation meeting?
You absolutely must be armed with salary information based on the geographic location that you are in. And you must know your floor for the negotiation process. In other words, what is the lowest that you are willing to go in terms of the total compensation package? You have to know when to walk away. Also, you need to practice before going into the actual negotiation process so that you are prepared to negotiate.
Who initiates the salary negotiation process?
The protocol is that the job seeker should wait until the hiring manager makes an offer before discussing salary in any detail. Any in-depth conversation about salary prior to an offer is simply premature. Once an offer is on the table, the job seeker then has bargaining power. The job seeker knows the company wants him or her at that point.
Then there’s the issue of asking for a raise.
How do you know if it’s appropriate to ask for a raise?
My suggestion to employees is to take a long, hard look at the company’s economic health before asking for a raise. If you ask for a raise when the company is clearly struggling, not only will you not get the raise, but you will also raise doubts in the employer’s mind about your professional savvy.
On the other hand, if the company is doing well, and you can show how your efforts have contributed to the bottom line, then this is an excellent time to ask for the raise even though the country is in an economic downturn. Before talking to the boss about a raise, I suggest that employees do their homework. If the employee is in sales, it is very easy to show how the employee contributed to the bottom line since sales is very numbers-driven. But even employees who are not in sales can point out the contributions they have made to the company. Quantifying time saving and/or cost saving measures can help to make a persuasive case for a raise. Improving customer service can lead to client retention as well as acquisition, which in turn translates into a measurable contribution to the bottom line.
When employees are able to show that they brought in hundreds of thousands of dollars in new business or retained business that could have gone to a competitor, then a salary increase of a few thousand dollars is justifiable and reasonable.
What should you do before asking for a raise?
• Assess the health of the company. If you ask for a raise when the company is clearly struggling, not only will you not get the raise, but you will also raise doubts in the employer’s mind about your professional savvy.
• Before talking to the boss about a raise, I suggest that employees do their homework. If you are in sales, it is very easy to show how the employee contributed to the bottom line since sales is very numbers-driven. But even employees who are not in sales can point out the contributions they have made to the company. Quantifying time saving and/or cost saving measures can help to make a persuasive case for a raise. Improving customer service can lead to client retention as well as acquisition, which in turn translates into a measurable contribution to the bottom line.
• Request a meeting with the boss and type up your talking points ahead of time. You should not try to have a meeting with the boss about something as important as this on a whim. Get on his or her calendar for this discussion.
Need help with salary negotiation or talking with your boss about a raise? Get help from a certified career coach at admin@calltocareer.com
