If you feel you should be earning more money for your work, you might consider trying to negotiate your salary.
Salary negotiation is the process of an employee and employer discussing and agreeing on compensation and benefits. While this usually occurs when an job offer is given to the employee, it can also happen during formal review cycles.
Before initiating this discussion, it’s important to know the most effective ways to approach it.
Read the rest of this article to learn more about salary negotiations, its key terms, and when you should consult with a lawyer for guidance.
What are Key Terms in Salary Negotiation?
Some core components involved in salary negotiation include the following:
- Base salary. This is the fixed amount of money paid to employees, without the inclusion of bonuses or benefits.
- Total compensation. This is the total amount of money you’ll earn, which includes your base salary, bonuses, and benefits.
- Benefits. Perks you can gain from employment include health insurance, paid time off, and retirement contributions.
- Sign-on bonus. This is offered to an employee after the job offer, to motivate them to accept it.
- Performance bonus. This specific type of bonus is additional compensation for a specific task, such as meeting targets.
- Equity or stock options. Common in startups, this involves ownership shares in the company.
How Should You Negotiate a Salary with Your Employer?
You should always prepare ahead of negotiating your salary with your employer. This will ensure you do your research, know what you want, and increase your chances of having a successful outcome. Here are some important tips to bear in mind.
Research and Compare Your Salary
Discover what people in similar job roles as yours are earning, such as by visiting sites like Salary.com. This will help you to gauge if what you’re earning matches your qualifications.
Calculate Your Desired Range
A strong negotiation method is to use a range for your desired salary, with the highest number being within 20 percent of the lowest one. This will help you feel satisfied with whatever the employer offers within this range.
Negotiate in Person
While you can email your employer, it’s better to have the discussion in person so that you can go back and forth without any interruptions. It’s also easier to talk instead of writing an email as you’ll be able to gauge body language clues.
Explain Why You Deserve a Higher Salary
Be confident and explain to your employer why you think you should be earning more in your job role. Talk about your qualifications, credentials, and experience. Show how you provide value to the company.
Start with a Higher Amount
Based on your predetermined salary range, you should start negotiations by requesting a salary that’s on the higher end of it. Your employer will likely try to negotiate you down, so you’ll find it easier to compromise and get a sufficient salary.
Make a Statement, not a Request
During negotiations it can be helpful to make a statement instead of requesting a higher salary outright. For example, you could say, “Am I correct in saying that people in this job role usually earn X amount?” Here is where your research can come in.
Known as a ‘non-offer’ offer, this approach helps you maintain professionalism while avoiding making a demand that could come across as rude.
Consider Benefits and Perks
If your employer won’t change their salary offer, you could consider alternatives, such as what additional benefits or perks you could negotiate. This could include time off, education opportunities, and more.
Follow-Up if Your Request is Denied
If you negotiate with your employer but they don’t satisfy your request, you shouldn’t merely accept it. Follow-up with a question such as, ‘What milestones or achievements would be required for me to achieve a higher salary?’
This will help you gauge how you can grow in the company, and it’s worth asking before you accept an offer of employment so you can see if the offer is aligned with your career goals.
Write the Agreement Down
When you and your employer agree on the salary, make sure you put the agreement in writing. This will prevent misunderstandings or your employer going back on their offer at a later stage.
You should also have a lawyer look over the document to ensure that it’s all clear and valid.
How Can a Lawyer Help You with a Salary Negotiation?
Working with a lawyer for help with your salary negotiation, and it’s especially useful during specific times. These include when:
- You’re negotiating high-stakes job roles with lots of earning potential.
- Stocks, bonuses, and/or equity are involved in the employment offer.
- You’re signing a long-term employment contract and want to ensure there are no hidden risks.
- You worry that your employer is behaving unfairly or discrimination is involved in their salary offer.
- Your employer states that the offer is non-negotiable.
A lawyer will be able to assist you in the following ways:
- Your lawyer will help you identify any hidden risks, such as in your employment contract termination and non-compete clauses. This will ensure that the salary is in line with your contracts.
- They’ll strengthen your leverage during salary negotiations, because lawyers have experience in assisting clients.
- They’ll help you gauge your situation and see what you can and can’t negotiate.
- They’ll minimize your risks and prioritize your interests.
Where Can You Find a Lawyer for Salary Negotiations?
It can be challenging to find a professional lawyer who can help you with a salary negotiation, but ContractsCounsel makes it an easier process. ContractsCounsel is an online legal marketplace that connects clients with vetted lawyers skilled in negotiations.
They’ll minimize your risks and help you avoid making mistakes, while negotiating for a salary that matches your skills and experience.
