How To Negotiate Your Way to a Higher Salary After Being Underpaid
Written by
Dawn Allcot
Edited by
Gary Dudak
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It happens to people entering the workforce as well as employees with some salary negotiation experience: Saying “yes” to a lowball offer and, after a few months on the job, realizing you’re underpaid.
The paycheck that sounded great during negotiations may not look as robust in your bank account when you’re trying to pay bills, and you might want to ask for a raise. But what’s the best way to do that, whether you’re a long-term employee or have been on the job for less than a year?
Here are some tips to negotiate a higher salary.
Find a New Workplace
Experts indicate that members of Generation X, born between 1965 and 1980, tend to earn less than they should because of their resistance to job hopping. “The best way to increase income is to move to a new position or a new company,” Maura Madden, CFP, told GOBankingRates.
If you’re angling for a raise, take what you learned during your negotiations at your present job and use it to be more aggressive when seeking a higher salary elsewhere.
Pay Attention to Timing
If you can, study your company’s financials before asking for a raise. If you decide to move forward, use that data to help determine the amount to request and the timing. You don’t want to ask for more money during a financial rough spot.
In their book, “The Essentials, of Job Negotiations: Proven Strategies for Getting What You Want,” authors R. Kurtzberg and Charles E. Naquin suggested searching public records and reading media reports to discern how a company is doing as a whole.
You can also browse sites like Glassdoor.com to see the salaries of people in similar roles, both at your company and at competitors, to help you decide what might be an appropriate amount to ask for.
Share Measurable Results
The more data you can bring to the table during salary negotiations, the better. “[H]ighlight the value that you add to the company through your past accomplishments,” wrote Kurtzberg and Naquin.
Showcase New Skills
If you’ve learned a new skill, received certifications, or otherwise enhanced your capabilities since you were hired, mention that. You might even consider leveraging artificial intelligence in your role — with permission from supervisors, of course — to accomplish more in less time.
“Workers in sales, marketing, or business operations can expect to earn 39% more if they bring AI experience to the company,” said Brian Prince, CEO of TopAITools.com.
Focus on Benefits
If your boss refuses to budge on the final dollar figure, look at the total compensation package, instead.
Harvard Business School professor Deepak Malhotra wrote, “Don’t get fixated on money… Focus on the value of the entire deal: responsibilities, location, travel, flexibility in work hours, opportunities for growth and promotion, perks, support for continued education, and so forth.”
You might be able to negotiate the scope of work or ask for flexible hours, remote work days or expanded benefits.
Don’t sell yourself short at the negotiation table, but be flexible enough to find an agreement that makes both sides happy.
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