Everyone wants higher salary, so do I. But as one employer, the company must consider the cost. First, an employer need to determine the value of each position in the organization. Based on the comparison of the similar job in different companies, managers of the Human Resource determine the value of the specific position in the organization. There are a number of variables for employers to make such decisions. Following are some factors which influence the salary figure for a position:
- geographic position
- company size and profitability
- business standards
Five Things That Can Improve Your Salary Prospects
As determined by Human Resources, your expertise and background are the keys for the value of the position. As a potential employee, you will get higher salary if you have more skills and experience. In order to improve your earning potential, following are some factors you should consider:
- Professional experience years
- Education, training, and professional development
- Past performance reviews
- Memberships in professional associations and organizations
- Flexibility to work overtime
Here is some tip for you when you negotiate with your employer.
Do Not Fear Negotiation
College graduates may negotiation because they feel they lack experience. This should not be a reason for them to accept any package that is proposed to them by employers. Many firms are investing in employee retention and it may be wise while negotiating your package to explain to the employer your long term goals and expectations of the company. Respectfully inform the employer of your long-term career objectives as this may give him a reason to revise his offer if he knows you wish to stay at his company for a long time.
Inform the Employer Early
One salary negotiation tip is to keep the employer informed early on about your expectations. It is good for job seekers to outline their expected pay package and any benefits when applying for a job. This will enable the employer to know your expectations and it will not come as a surprise when you want to negotiate for better packages.
Avoid Making Decisions Based On the First Offer
Students are usually desperate to get employed after graduation. For this reason, many make hasty decisions and agree to be employed in companies that do not offer them what they are truly worth. It is advisable to take a day or two to review the terms and packages offered by the employer before agreeing to start work. If you feel that your skills are not being adequately compensated, you can politely decline the offer and thank the employer for considering you for the position.
Considered Non-Monetary Benefits
When making a decision, it is good to keep in mind the non-monetary benefits that the employer may be offering you. For example, do you get medical, dental, and vision benefits? How many vacation and sick days are you allowed? What about performance bonuses? When these benefits are taken into consideration, you will be able to judge whether the total package is worth your hard work.
This is one of the most important salary negotiation tips. It is always good to uphold respect and dignity when one is negotiating for a higher salary. Employers get upset with “chest-thumping” individuals who ask for increments and issue threats and ultimatums. A wise negotiator will always remain respectful even when it seems that the employer will not accept his requests. Respectfully explain why you feel you deserve a raise by giving reasons related to productivity and motivation in the company. Employers know that increase in compensations is a motivation for increased productivity. If you reason with them along this line, you might find yourself successful in negotiating for higher pay.
Beat Performance Goals
In the current economy, employers are increasingly setting up performance targets for their company’s employees. An employer should ensure he is meeting and even surpassing the set targets. This gives a good ground for negotiations as the employer will see that your input in the company deserves further compensation.
Think Outside the Box
When an employer’s final offer is lower than what you expected, do not make rush decisions to decline the offer. You might want to say you will think about it and get back to them. It is good to find out the promotion policy of the company and other incentives that may come as employees achieve certain goals. For example, you might find that there is usually a raise every six months for employees who achieve some set goals. This could be a good offer if you discern that you might eventually earn the amount you desire.
Keep Communication Open
Employees can get raises from the company even without negotiating directly with the employer. As a new entrant employee, it is good to know the company’s policies regarding raises and benefits. Also know what is required in order to qualify for bonuses and other incentives. You may collect a number of bonuses from the company which in turn makes your total pay package reach a higher level than what you were offered during employment.
Ask for Written Agreements
After successfully negotiating an increase, it is important to have an agreement or contract in writing. This will help the employer to remember your discussions and acts as a safeguard against any confrontations on unfulfilled promises. It is also not uncommon for some employers to simply go back on their word. Get the agreement in writing before you leave. Don’t let them tell you they will send it to you eventually.