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How to negotiate a good salary

Negotiating a salary can seem daunting, especially if you’ve never done it before. Doing a lot of research beforehand can help you achieve the result you’re looking for. In this section, we’ll look at the five important tips for successfully negotiating your salary, whether it’s for a promotion or a new job.

1 – Study useful vocabulary

As you look through job offers you may encounter many different terms that you’re not familiar with.

base salary
The standard minimum salary received by a person, excluding any additional compensation such as bonuses or commission. You may want to check if the advertised salary is the base amount or if it includes all potential bonuses.


hourly wage
A fixed regular payment earned for every hour of work. If you are getting paid by the hour, make sure your employer is paying a fair wage.


gross/net salary
A gross salary is without deduction of tax or other contributions. A net salary is the remaining amount after the deduction of tax or other contributions. Remember that the advertised salary may be different from what you take home. Check the taxes and contributions (health, social security, pension) in your area to get a clearer picture.


overtime pay
The money you receive for working more than the contracted number of hours. Some employers may not offer overtime pay and expect you to work for free. You need to decide if you are okay with that arrangement. You may also want to ask how often they expect employees to work overtime. This is important to consider before you accept a job offer.


bonuses and commissions
In addition to your base and overtime pay, you may also be able to earn bonuses or commissions. Companies should be clear about their bonus structure and the conditions to receiving it. Consider carefully whether it’s possible for you to earn the bonuses. Don’t rely on the income from a potential bonus for your essential expenses unless you’re confident.


benefits and perks
Some companies offer access to services and facilities as employee benefits. This could include a company car, childcare, gym memberships, training or discounts. There are many different kinds of benefits and your employer may or may not offer any. You have to decide whether the benefits an employer offers are worth taking a lower salary.


pension
In some countries, your employer may contribute to your pension fund. This means that they would add extra money into the total available for you when you retire.


holiday entitlement or annual leave
An allotted number of days that one may use to be absent from work over the course of a year without losing pay. You may take more time off but you might not always get paid for it. In the UK, most employees are entitled to at least 28 days of paid leave each year by law.


sick, parental leave, hazard, weekend pay
There may be other types of pay that your employer may offer. For example, many employers offer pay while you’re ill or on parental leave. You may also get paid extra if you work in hazardous conditions or during the weekends and public holidays. Make sure to check what kind of pay you’re entitled to so that you don’t miss out or agree to a bad deal.


job progression
It is important to know if there is a possibility to get a promotion or train to fill another position. Make sure you have the opportunity to change jobs within the company in case you’d like to.


raise
Similarly to job progression, you may want to check the company’s views on giving employees raises, whether it’s after an annual work review or to recognise extraordinary tasks and projects.

2 – Do your research

Make sure you don’t go into a salary negotiation unprepared. Consider everything that may affect your current and future salary. Ask yourself the following questions.

– What is my current salary?
– Am I applying for the same or a different position?
– How many years of experience do I have?
– Is my salary negatively affected by anything? (breaks in career, gender pay gap, lack of skills or education, company situation, location, etc.)
– What are the typical salaries at the company where I want to go?
– How much are others in this position paid?

To find out more detail about the last question, you can use a salary comparison tool such as the Check-a-salary website. There are other things that could affect the salary you ask for and get. Don’t forget that you may not get as high a salary at a small company compared to a multinational corporation. On the other hand, a small company may offer other benefits that tip the scales in favour of it.

3 – Decide why you’re valuable

Tip three comes from a pricing specialist Casey Brown. In her excellent TED talk “Know your worth and then ask for it” she describes her own struggles with asking for a higher price. Placing doubt onto herself. She introduces five important questions to not only discover what your time is worth for your employer. It should also reveal how much you value your time. It is now time to answer these five questions for yourself. Once you’re done, I would recommend you listen to the rest of the TED talk.

– What are my clients’ needs and how do I meet them?
– What is my unique skill set that makes me better qualified to serve my clients?
– What do I do that no one else does?
– What problems do I solve for clients?
– What value do I add?

Casey Brown – Know your worth and then ask for it

4 – Think about how to show your value to others

Sometimes, even if you know your own value, it can be difficult to explain and show your reasoning to others. Casey Brown talks about her fear of losing customers once she raised her prices. It didn’t happen, but she made sure that new clients understood why her pricing was the way it was. She also shares a story of another client, who would belittle and devalue her own business to potential clients.

When you

“Give up this notion that it’s tooting your own horn. Make it about the other party. Focus on serving and adding value, and it won’t feel like bragging. What do you love about what you do? What excites you about the work that you do? If you connect with that, communicating your value will come naturally.” (Casey Brown, 2015)

5 – Get what you want

Even if you know exactly what you want and negotiate perfectly, you may not get what you want. It’s important you consider this before you negotiate. Decide what you’ll do in that situation. As Casey Brown says, “No one will ever pay you what you’re worth. They’ll only ever pay you what they think you’re worth, and you control their thinking.” Communicate with the company to reach an agreement both parties are satisfied with. Remember, you don’t need to give your answer immediately if you’d like to think about it.

Further Study

All Intrepid English memberships include access to all of our online self-study courses. If you’d like to work more on your negotiation skills you can study the Business English Skill Set course on Negotiations.

Not an Intrepid English Member yet?

Book a trial lesson with a teacher to find out if online English lessons are for you. Practise your skills and receive feedback. As an Intrepid English Member, you will also be able to access the Intrepid English Academy and study any of our other courses.

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