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How to negotiate your salary

  • 2024-11-29
  • Carolyn Litzbarski
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Woman in job interview © Getty Images/MTStock Studio

Successful salary negotiations require careful preparation, the right mindset and strategic negotiation skills. It is all about knowing your market value, documenting your achievements and choosing the right moment to raise the topic. Flexibility in negotiation and a willingness to discuss additional benefits like remote work or professional development can help you achieve the best possible outcome.

Imagine you land your dream job and are overjoyed when the job offer comes through. But then you see the proposed salary and disappointment sets in. You expected more. Nevertheless, you accept the offer, hoping you can negotiate it later.

Everything seems to be going well after your probation period and you are bringing your projects to a successful conclusion – yet a salary increase is never mentioned. Your dissatisfaction grows. When your boss offers you a new project with more responsibility, you think to yourself, "More work for the same pay? No, thanks."

This example shows why it is crucial to negotiate your salary.

Many people fear that they will come across as greedy or unreasonable during salary negotiations. They feel it is inappropriate or awkward to discuss money and believe their boss will recognise their performance and offer a pay rise unprompted. This, however, is a huge misconception. If you don't ask, you're unlikely to receive anything. Nonetheless, salary negotiations require careful preparation.

How to prepare for salary negotiations

Before initiating a salary negotiation, it is crucial to know your market value. This means finding out what other people in similar positions earn. Websites like Glassdoor, Stepstone, Gehalt.de or Kununu can help you with this by revealing what others in your field and region are earning. Lisa, for example, works as a marketing manager in Munich. On Gehalt.de, she sees that the average salary for her position in Munich is € 60,000 per year, but she only earns € 50,000 – so she knows she can confidently ask for more during her next salary negotiation.

Besides your general market value, consider your specific skills and experiences. If you have unique qualifications or abilities that are particularly valuable to your company, you can ask for more than the average salary. Thomas works in IT and speaks fluent Arabic. Since his company has a branch in Saudi Arabia, this skill is particularly valuable. Thomas knows that this unique qualification allows him to request more than someone without language skills.

Document your achievements

To make a strong case during salary negotiations, you need to back up your request with concrete examples of your successes. You should know exactly how you've contributed to the company’s success. Gather feedback from clients, positive reviews or examples of projects you've completed successfully. These accomplishments not only support your request but also help you approach the negotiations with more confidence. Florian, who works in sales, increased his team’s revenue by 20% last year. He has all the data and statistics to back this up. When he enters the salary negotiation, he can clearly demonstrate the value he has brought to the company.

Think about other benefits

Before starting to negotiate, you should have a clear idea of how much you want to earn. Decide on your ideal salary and think about how much you’re willing to compromise. Also consider what other benefits you could negotiate if the full salary increase isn't possible. What about additional remote working days, more flexible or fewer working hours or professional development opportunities like further education?

Stay calm and be rational

The right mindset is an important part of a successful salary negotiation. Approach the conversation with confidence, understanding that you're not begging but seeking fair compensation for your work. A confident posture signals self-assurance and determination. Before the meeting, review your achievements again and remind yourself of the value you bring to the company. This will boost your confidence and help ensure the conversation takes place on equal terms.

Start the conversation by highlighting your achievements and explaining how your work contributes to the company’s success. Then clearly state your request. Provide specific numbers and be prepared to present your arguments calmly and rationally.

One of the most effective negotiation techniques is to use pauses effectively. After stating your demands, wait for the other person to respond. Don’t break the silence by starting to justify your demands.

How to deal with shut-down arguments

During the negotiation, you may encounter what are known as "shut-down arguments" aimed at ending the conversation quickly. “We've just come out of short-time work, so I’m not sure if the budget allows for rises,” could be one of them. Stay calm and bring the discussion back to your performance. A possible response could be: "I understand the current situation, but I’d like to emphasise that my performance justifies an adjustment. What options are there to find a solution together?"

Handling counteroffers

It is possible that you will be presented during negotiations with a counteroffer that is below your initial request. This is when the negotiation really starts.

Your preparation will pay off here. Present the arguments that justify a salary adjustment. Say that you’ve also considered a range of something like 10% to 15% more pay, or 10% more pay plus other benefits such as professional development.

If you can’t agree on the higher end of the range, you can stay flexible and highlight other benefits that are important to you, such as extra vacation days, remote work options or professional development opportunities. This way, you can find a compromise that works for both parties.

Document the results

Have you agreed on a salary package that meets your expectations? Congratulations! Make sure to document the outcome before you go off and celebrate, however. Sending an email to your line manager summarising the key points avoids any misunderstandings and ensures both parties are on the same page.

Keep in mind: whether you are at the start of your career or mid-way through, accepting a lower salary can lead to long-term dissatisfaction and the feeling of being undervalued. This can decrease motivation and prompt you to look for alternatives. Therefore, it is essential to be proactive about salary negotiations.

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