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How to negotiate your salary

By Louise Chan · November 14 2019
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Earn

How to negotiate your salary

By Louise Chan
November 14 2019
Reading:
egg
egg
egg
how to negotiate your salary

How to negotiate your salary

author image
By Louise Chan · November 14 2019
Reading:
egg
egg
egg
how to negotiate your salary

Salary negotiations are an important part of the hiring and appraisal process that many seem to be too intimidated to go through, whether they’re asking for a raise or negotiating a starting salary.

If you’re among the people who are too intimidated with negotiations, consider these tips to help you secure a fair salary.

How to prepare for a salary review

If you’re applying for a new job, the first thing you need to know is the company’s salary range offer for the role you’re interviewing for. Make sure to take note of this in the job ad or directly ask the interviewer about the salary range they’re offering before you name your price.

If you want to learn how to negotiate for a pay rise, the first thing you need to know is your employer’s average pay raise and the conditions for awarding a raise. You may look for these information in your contract or the company policy.

Research the current market price
Find industry standard for your salary by learning how to benchmark your salary.

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It’s important to ask for a fair price during negotiations because asking for too much may cost you the job opportunity. You need to know how much other people in a similar role actually make instead of making assumptions.

To reach a fair price, consider asking the salaries of people with the same role. Likewise, you may ask recruiters for information about the salary range that companies are willing to give for your role.

If you’re not comfortable with asking people directly, you may consider looking up the salary range of your role within your location in websites like Glassdoor and PayScale or professional forums.

Find an acceptable range
Once you know your role’s market value, come up with an acceptable range for you – then ask for a specific amount closer to the top of the range.

Your employer would most likely begin negotiations with a value closer to the bottom of the range. So, if you ask for the median amount, you may receive a lesser amount than you wanted.

Asking for a higher amount would give you enough room to negotiate and still settle with an amount you may be happy with.

How to showcase your wins 

Merit increases may be given with or without performance reviews, but it’s very valuable if you’re aiming to ask for a higher rate of increase than the company standard. For this, you need to prepare a case to prove your value.

How to bench your role
You need to believe that you’re worth the amount you’re asking for, but you also need to back up your belief with evidence.

Go through all the work you’ve done for the company and create a list of your accomplishments that helped the business. 

There’s no need to compare yourself to your colleagues. You simply need to focus on the results of projects and tasks you handled.

Collect evidence of your work 
Show your manager or boss that you contributed to the company’s success. It’s best if you can show concrete evidence of your good performance to highlight your value.

For instance, you can show that you consistently hit your monthly quota or you’re the top performer in your team. Similarly, you may bring up how you solved a problem that led to increased efficiency in your team.

How to negotiate your salary
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About the author

Louise is a content producer for Momentum Media’s nestegg who likes keeping up-to-date with all the ways people can work towards financial stability in 2019. She also enjoys turning complex information into easy-to-digest, practical tips to help those who want to achieve financial independence.

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About the author

Louise is a content producer for Momentum Media’s nestegg who likes keeping up-to-date with all the ways people can work towards financial stability in 2019. She also enjoys turning complex information into easy-to-digest, practical tips to help those who want to achieve financial independence.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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