Negotiating your salary when starting a new job or when trying to secure a promotion is never easy. It needs to be approached in a strictly professional manner and communicated clearly. Below are my top 8 tips on how to negotiate a salary increase.
Do your research
Especially when starting a new job. Learn about the salary ranges in your sector and within the company. The best way to do this is to talk to people your know in the industry and also look at www.glassdoor.com, this will provide you with an insight into the different salary scales and provide a starting point to benchmark yourself. On a separate note, Glassdoor also gives you an idea of the working environment and employee's experience of the organisation.
Speak to recruitment contacts
Recruiters are usually increasingly reliable in understanding the labour market and salary scales for specific roles in financial services, don’t be afraid to pick up the phone and speak to recruiters about the roles they are hiring for and the salary ranges.
Avoid accepting the first offer you’re given!
This is very tempting especially for new hires, but there is always room for negotiation, especially within the financial services sector. If you receive an offer ask the employer if you can have a maximum of 48 hours to think about the offer. During this time, examine the offer in more detail and make a call if this is an acceptable offer, if not and after making a decision on your desired amount, go in with a counter offer and be ready to negotiate a higher salary.
If you want to discuss a salary increase in your current role, it is important to choose your moment wisely. This is also the case if you have been offered a new role, avoid talking about salaries early on and never be the first one to come up with a figure. Wait for the company to offer you something first.
Remember to negotiate perks.
A salary isn’t the only thing you should negotiate when starting a new job, companies often offer significant perks which add your overall package. Do your research and ask questions about employee share schemes, car allowances and other schemes which count to an overall remuneration package.
Understand the company’s perspective!
Many candidates don’t often stop to consider the company’s perspective when negotiating a salary. Try and understand why a specific offer has been made to you, this should be become clear when you do your research on the financial performance of the company.
Be prepared to walk away!
If you are not happy with the offer, you need to be ok with saying no.
Finally, it is extremely important to be professional at all times in the way you communicate and negotiate. Don’t let your emotions take over.
The above points are not an exhaustive list, but they are very important when negotiating a salary. Initially, discussing your pay may seem like an uncomfortable conversation to have, however it is common practice in the professional world.