Negotiating pay is well within your rights as a prospective or current employee, although most individuals fail to take advantage of their ability to secure a desired salary because they are uninformed or uneasy about the prospect of pay negotiation. While it may seem like an uncomfortable conversation, acquiring the appropriate compensation is necessary and easier than you may think.

The first step in your salary negotiation strategy should be understanding what you are worth and the minimal salary necessary for you to maintain your standard of living. Next, make sure you are ready with rationales for all pay requests and remain flexible with your employer during the process to ensure both parties are satisfied. Lastly, do not be impulsive in your decision-making. If you are valued by your employer, there is time for both parties to think over salary options to maximize benefits for everyone. Consider the following factors to prepare yourself for salary negotiation procedures:

1. The business climate, including the state of the economy and the industry.

2. The employer's needs, including urgency to fill or retain the position, pay negotiation flexibility and staffing budget.

3. Your own circumstances and needs, including your level of comfort with risk.

Action Steps
The best contacts and resources to help you get it done

Figure out how much compensation you need to remain comfortable before negotiating pay

Whether you are moving or staying put, understanding your cost-of-living expenses is a key factor in determining the salary you require. Honestly evaluating your personal skills and knowledge base is also critical, as these factors carry considerable weight in the negotiating process. Your abilities, especially if they are specialized, should not come free of charge to your employer.

I recommend: Look at the cost of living calculators online at the Economic Research Institute to ensure you are negotiating for adequate salary compensation. Salary Expert offers free compensation tools and salary planning tools to ensure you will earn or continue to earn the appropriate amount for your abilities and cost of living.

Review salary negotiation tips before discussing compensation with an employer

Read through pay negotiation tips online to make sure you are prepared when negotiating compensation. An employer or hiring manager will have the upper hand if you do not adequately understand your strengths and abilities as a prospective or current employee. You'll find an abundance of salary negotiation information online.

I recommend: The Harvard Business School provides an informative archived article discussing salary negotiation skills to ensure individuals earn what they are worth. You may also be interested in the salary negotiation techniques provided by Resume-Resource, which helps individuals feel confident in their ability to seal the deal when negotiating salary.

Write a solid salary negotiation letter to demonstrate you are an informed business professional

Providing a letter will not only show your employer that you mean business but will also equip you with written evidence that pay negotiations are taking place. Use this document to ensure there are no misunderstandings and allow your employer to have your conditions in writing when considering your compensation request. Being an informed prospective or current employee will also demonstrate your competence for future endeavors.

I recommend: Quintessential Careers is an informative site that offers free expert career advise, including how to write a counter-proposal letter for individuals negotiating for salary. Vault is also a great resource for business professionals, with links to common compensation negotiation questions and answers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Negotiating pay should not be a deal breaker. Make sure you plan and communicate, give it time, consider alternatives and negotiate for a win-win situation to ensure both parties are happy with the outcome. Ill-informed and hasty salary negotiations can cause an uncomfortable work atmosphere, so be sure to do your homework before starting discussions.

Negotiating pay is a touchy situation. In many negotiations, you make your deal and never see the person again. In salary negotiations, you continue to work with the person on a daily basis.

Because negotiating salary involves people with whom you have an ongoing relationship, it is important to balance your desire for compensation with the need to maintain a pleasant work environment.

Consider the following when it comes to salary negotiation skills:

1. Throughout the salary negotiation process, remember you're both on the same team.

2. Use salary negotiation techniques, but remember that there is only a certain amount of money available.

3. A successful salary negotiation depends on more than your job description and length of employment.

Action Steps
The best contacts and resources to help you get it done

Improve your presentation and communication skills before negotiating salary

Salary negotiation skills must be developed, and include the ability to calmly explain your accomplishments, mention any projects you have worked on that were particularly successful, and one of the most important salary negotiation tips, point out what you have done for the company to increase its revenue.

I recommend: New Conversations offers open source materials for improving your communication skills. Visit MindTools to polish your presentation skills.

Treat salary negotiation as any other job skill

Effective salary negotiation is an important part of any job. Effectively negotiating for salary can increase your lifetime earnings tremendously. Salary negotiation techniques are important not only when starting a new job, but during annual reviews and when applying for new positions within a company.

I recommend: Karrass offers courses that teach salary negotiation skills. Another company, Career Protection, offers consultations from human resource experts, who help to guide your salary negotiation process.

Expect salary negotiation procedures as part of the work environment

Many of us are uncomfortable talking about pay, but it is unavoidable during salary negotiations. When you are negotiating pay it is helpful to remember that your supervisor expects a back-and-forth dialog. You may be tempted to procrastinate when it comes to your salary negotiation, but the danger of waiting too long is that you may become stagnant in a position, which reduces your negotiating power. Wait until you receive a job offer to discuss salary, and let your employer make you an initial offer. Know what the average salary is for your position, as well as your value to the company. Finally, complete salary negotiations before negotiating benefits or other types of compensation.

I recommend: The US Department of Labor provides research on salary based on occupation and location. Take time to review the Noel Smith-Winkle Negotiation Method, a proven method of successful negotiation. Think you are ready? Take the S.A.B. negotiating test to determine where your salary negotiation skills may fall short.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some salary negotiation tips, such as threatening to resign, can easily backfire. It is better to provide a strong argument for increased compensation, and, if you are not satisfied with the result, quietly consider looking for a different job.
• •  Compensation negotiation is a learned skill. To effectively argue your case, outline the strengths you add to the company; do not compare your job or duties to other employees.
• •  If you are not happy with the compensation package you receive, follow up with a letter to your supervisor, asking for specific changes that you can implement to receive a more lucrative compensation package in the future.
• •  Ask for your salary offer in writing. A salary negotiation letter provides written documentation of the agreement reached between you and your employer.
• •  Don't be afraid to ask for more than you expect to receive. It is a common salary negotiation strategy, and you cheat yourself by setting your sights too low.

With the help of salary negotiation education and training, you can obtain the best possible wage for a new job or effectively ask for a raise in your current position. Negotiating pay doesn't have to be complicated or intimidating. In fact, many employers are open to discussion if you come prepared, by thoroughly researching average salaries in your field, by demonstrating how your previous job performance merits higher pay, and knowing how to effectively negotiate with a current or potential boss.

Salary negotiation education and training could include:

1. Learning the average salaries for your job, type of company and geographic region.
2. Learning basic salary negotiation strategy.
3. Taking a class or hiring a consultant to teach you salary negotiation skills.
   

Action Steps
The best contacts and resources to help you get it done

Before negotiating salary, learn basic negotiating skills

The same strategy you use for negotiating a deal on a new home or car, or for ironing out a contract with a new client, may also apply to salary negotiation. As a bonus, you can use the skills you learn here not only to negotiate salary, but for anything else that arises, both on and off the job.

I recommend: Learn basic negotiating skills through Camp Negotiation Systems, or at a two-day seminar from Karrass.

Learn the appropriate salary negotiation procedures

Your salary negotiation strategy will differ depending on if it's part of an initial job interview, or if the topic comes up during a performance review. With the former, your salary negotiation skills could help determine whether you get the job, or could help you decide between multiple job offers. In the latter case, you'll need to learn how to showcase your performance with the company and make a case for a pay increase. A coach who specializes in job search or career development can help you with both.

I recommend: Seek help from a coach or firm such as Resumes R Us or Gatehouse Business Services.

Seek salary negotiation tips from professionals

It may be worth the time and money to take a class focusing on salary negotiation techniques, or to hire a consultant or coach to assist you with compensation negotiation. The next time you face salary negotiations, you'll already know what to do, rather than trying to research salary negotiation information right before a big interview.

I recommend: Consider seeking training from a consultant such as Gibson Consultants or DxDt Staffing and Professional Services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Keep a written record of your pay discussions with a salary negotiation letter. Even if you and your supervisor agree on a salary verbally, you still need it in writing to protect yourself if questions arise later.
• •  Your best source of salary negotiation tips may be friends and colleagues who have already gone through the process. Ask them what worked and didn't work for them.

Not too many employees would turn down salary negotiation tips that proved successful. In fact, most of us cringe at the idea of bargaining for a higher salary at the job interview or even at the annual performance review when salary increases are being considered. Testimonials abound over the benefits of seeking professional assistance during salary negotiations. Employees learn how to assess the monetary worth of their job and perform cost of living comparisons to ensure themselves they are receiving sufficient compensation. Learn the following salary negotiation key terms so you can cash in:

Action Steps
The best contacts and resources to help you get it done

Cost of living comparison

A cost of living comparison is used during salary negotiations so that applicants can be assured the compensation they want is sufficient to support their lifestyle.

I recommend: Find out more about the cost of living comparison at the Economic Research Institute. You'll learn how to use the cost of living calculator and some of the factors that account for discrepancies in the data for individuals living in different geographic areas.

Counter proposal letter

Write a counter proposal letter when you are interested in a specific position but find the salary offered does not suit your needs.

I recommend: Go to Quint Careers to learn what a standard counter proposal letter should taste. Find out why it's important to show interest in the position and the company while at the same time explaining the reasons behind your original salary request.

Noel Smith-Wenkle Salary Negotiation Method

The Noel Smith-Wenkle Salary Negotiation Method was developed by a successful headhunter so that his clients could learn how to estimate their worth in the marketplace.

I recommend: Infohost details the techniques the Noel Smith-Wenkle Salary Negotiation Method focuses on. Find out why it's important to show interest in the position and the company while at the same time explaining the reasons behind your original salary request.

Raises

Some employees never consider that they can use salary negotiation techniques to bargain for higher raises.

I recommend: At Employment Spot, you'll learn why it's acceptable to bargain for salary raises. Find out how to understand your company's salary policies, assess how much your job is really worth and maintain records that will give you the raw data to fall back on when negotiations take place.

Style

Sometimes it's not so much what you say as how you say it. This rule applies when you consider the style of your negotiation technique.

I recommend: Mind Tools explains how emotion plays a part of any salary negotiation. Find out what kind of attitude you should approach the negotiation with and whether you should tap into your emotions.

BATNA

BATNA stands for best alternative to a negotiated agreement.

I recommend: At Negotiations, you'll learn why it's important to consider the fallout should the agreement you're focusing on not materialize. Find out how taking the BATNA approach prepares you for just such a situation and whether you should pursue the original agreement or move on to something else.