What your strategy shouldn’t be: go in with a mindset that goes something like “I wonder what they’ll offer me” or “they should be paying me more than I make now!”, “I’ll negotiate up from whatever they offer me.” That’s a recipe for losing this important part in taking on a new role.
Be straightforward about your current compensation, and ready to talk about your top 3 reasons why you should be paid more in your new role.
Here are some pointers to help you figure out what they are:
1. Research how your current salary stacks up against your peers (i.e. Glassdoor) in the industry. Is it less? Then probably you are being underpaid while still having awesome results – that’s a sound reason to switch. Is it more? Then that might be a sign that your company values your skills more than other companies do! Use that to your advantage.
2. Research the typical salaries for the new role, considering company size, location, seniority etc. If they are lower than your current one, then you need to ask yourself whether this is a kind of position you want to take. However, listen to what they have to say/offer. If it’s higher, then it becomes a valuable piece of info in your discussion for the new position.
3. What’s the difference in responsibilities between the current and the new role? If the new position requires more then there’s a strong reason for you to ask for more salary. If it’s about the same or less, then think about different factors.
4. Is this new role going to challenge you and require more time than the current one? That’s great and you’re ready to go the extra mile, but your potential new employer should too, so consider that as well.
5. The standard of living – if you are moving to a new city, region or country for the new role, then you need to factor the cost of living in, but don’t forget about expandable income. If at the end of the month you’re left with less than what you previously had, and it’s important to you, then think twice.
6. What are the other components of your compensation package? Do they stack up against your current one? If the hiring organization doesn’t have comparable components, you should quantify their value and include that in the salary discussion.
7. Be creative about asking for a higher salary – if the hiring organization has good reasons to not give you a higher salary right off the bat, then fall back to asking for an incremental increase that’s time and legally bound (shows up on your employment agreement). I.e. after 6 months in the role 5% increase, and after 12 months in the role another 5% increase.
Keep in mind, your approach should always reflect (and come from) a genuine desire for both your and the hiring organization’s win.
Photo credit: Photo by Jessica Sysengrath on Unsplash