Salary negotiation with HR: Tips and Tricks on an easy win
Last Edited on: 23 March 2023
Imagine. You’re doing a regular 9-5 job. You come in, work, and leave, just like the other employees. However, you realize that there is something that you’ve been doing differently.
Hmmmmmmm, what could that be?
Oh, right. You’ve been beating yourself up with loads of projects and working longer hours since the last who knows how many months, for the same pay as your subordinates.
You then realize you have no idea how salary negotiation with HR is done.
Oops!
Imagine scenario number 2. You receive an offer for a job you really will enjoy, and you give your interview. You’ve got tons of experience and an amazing skill set. You’ve even got excellent references. However, your potential boss offers you a salary, which is lower than your expectations. You think that you would be an asset to the company and that you deserve a lot more.
Hold that thought; we'll get back to it.
Let’s move to scenario number 3. You've been working happily for three years at your current company, but a recruiter keeps calling and saying that you could make much more money elsewhere (this sure can be tempting). You want to ask for a raise because you don't want to quit, but you also want to be paid fairly. Budgets are unfortunately tight, and when employees attempt to take advantage of outside offers, your boss doesn't take it well.
Getting back to it
How do you react in these scenarios? What do you say? Do you go straight up to your HR and give them an ultimatum? Or do you continue to work for the same pay in silence because you don’t wish to stir up any trouble?
Salary negotiations with HR can be realllyyyy tricky, but not impossible. All you need is that presence of mind when talking to the HR. One wrong sentence, and that’s it. You can kiss your promotion goodbye, possibly for a long long time.
Did you know?
22.6% of millennials do not know how to do salary negotiation with HR.
Doesn’t really have to be like that though. We’ve got a few tips and tricks that can make salary negotiation with HR seem like the easiest job to ever be done. All you’ve got to do is remember these few pointers, and you’re all set. Your HR is going to be so impressed, you two might even become besties.
1. Gather information about your salary
Preparation is essential when evaluating a job offer or trying to negotiate with your current employer for a raise. To get a sense of what a fair salary should be, do some salary research. You can use a number of websites for the same to determine what local professionals in your field who have comparable experience and education earn. For example, salary.com, payscale, etc.
Make a document validating the reasons you give to prove your worthiness for the sum you’ve requested. When possible, use accurate figures and data that can be quantified.
Lack of knowledge kept 25% of survey respondents from asking for more money.
2. Never underestimate the importance of favorability
It may seem obvious, but it's important to remember that only those who like you will fight for you (that applies to every aspect of our lives. We've all been there, haven’t we?) It is less likely that the other side will work to improve your offer if you engage in any negotiation tactics that make you appear unlikable.
This is more than just being polite; it's about managing the inevitable confrontations that arise during negotiations, like asking for what you deserve without coming across as needy, criticising the offer's limitations without coming across as small minded, and being persistent without being an inconvenience.
3. Acknowledge the individual sitting across from you
Companies don't bargain; people do (especially moms, they sure do know how to bargain for something.) Dealing with an HR representative is very different from dealing with a potential boss. You might be able to get away with asking the other about the specifics of the offer, but you don't want to irritate someone who might become your manager with what seem like insignificant demands.
On the other hand, the HR might be in charge of hiring 10 people and be hesitant to deviate from the standard pay, whereas the boss, who will gain more directly from your employment with the company, might argue for you by making a special request.
4. Understand the limitations they face
They might like you. They might even believe that you are deserving of the amount you’re asking for. Still, they might decide not to give it to you. (Seems annoying, doesn’t it?).
WHY?
At times, companies might have strict constraints, like salary caps. It's your job to determine where they are flexible and where they are not. If, for example, you’re talking to a large company that’s hiring 20 similar people at the same time, it probably can’t give you a higher salary than everyone else. On the other hand, if you're negotiating with a smaller company that has never hired a person in your position, you may be able to negotiate the initial salary offer or job title but not other factors.
5. Be ready for challenging questions.
Many job candidates have been faced with tricky questions they had hoped to avoid: Do you have any other offers? If we made an offer tomorrow, would you accept it? Are we your preferred option? If you're unprepared, you risk saying something awkwardly defensive or, worse yet, untrue.
The risk is that if you make an effort to please someone too much when they ask a challenging question, you might lose leverage. Your goal is to answer honestly without looking like an unattractive candidate—and without giving up too much bargaining power. You probably won't compromise one of those goals if you have previously thought about how to respond to tricky questions.
Almost 1 in 4 people haven’t asked for a salary increase because they didn’t know how!
6. Consider the bigger picture
Unfortunately, negotiating a job offer and negotiating a salary are often considered synonymous. However, you can negotiate other aspects of the job that may even be easier than salary, which will be a major component of your job satisfaction (Don’t go on to ask for a staycation at a fancy hotel once a year.)
Don't become focused on money. Ensure that you consider the value of the entire package, including the responsibilities, opening, travel, flexibility of working hours, chances for growth and progress, perks, and assistance with continuing education.
Consider not only how, but also when, you're willing to be credited. You might choose to go down a route that pays less generously now but will position you better in the future.
Well, that’s all for now. You’re now all set to negotiate your salary like a BOSS.
We’ll soon come up with a part 2 of tips and tricks to easily negotiate with the HR.
Keep up with us. Catch you on the other side!