Money can be a difficult and awkward matter to discuss, for both employer and employee. So what is the best way to negotiate pay on both sides? Concepta Cadogan offers some helpful tips.
Negotiating a salary for a new role and then, later, a pay rise once in the role is something many of us try to avoid, or don't know how to handle.
Likewise, when this subject is broached in an interview or a review, an employer often doesn't know how to respond.
Here are a few tips to assist you when dealing with these situations from all angles.
Salary negotiation for employees
Prepare to fail; fail to prepare
Pre-salary negotiation, benchmark your salary against others in your industry.
Salary guides are a great way to assess the industry average for any given role. Otherwise, speaking to an expert consultant in your field is another great way to determine how much your peers earn in similar organisations.
Ask about benefits and compensation
Compensation and benefits are an often-overlooked part of an employment offer. However, they can be beneficial when helping you make your decision or attempting to negotiate salary.
Opportunities such as further qualifications and study via your employer are options that could help you in the long run and may make up for a slightly lower salary.
Be honest about your previous salary
The hiring managers are likely to be experts in their field, and they'll have a ballpark figure in mind of what you earned in your previous roles. Therefore, it makes sense to be as truthful as possible when speaking about your past salaries to negotiate an honest and fair offer based on your experience.
Pay raise for employees
Only ask for what you think you deserve
It's essential to be realistic with your expectations when asking for a pay raise. Keep in mind how long you've been in your role at your current pay, and review the work you've been doing and projects you have contributed towards in that time. When making your request, remind your employers of all these points.
Coming to your manager with a realistic expectation will make the negotiation smoother.
Be prepared to take on more responsibility
With more money generally comes more responsibility.
Be prepared to be asked to take on more tasks on top of your existing workload and discuss your future targets and goals with your manager. You must be sure you can match the workload required to deserve the additional compensation you are set to receive.
Pay raise for employers
Do your research
Benchmarking salaries against other companies or organisations in your industry is imperative. This is also important for making offers to potential employees and equally important when an employee comes to you looking to negotiate a salary.
If not possible, offer an alternative
Inflation is on its way up, and many people are looking to be compensated to ease the burden. If this is not feasible within the company's budget, see if there are other perks or benefits which could be offered aside from salary which would make a difference to the employee.
Don't make the decision alone
There can be immense pressure and uncertainty when deciding on remuneration. Reach out to human resources or leadership and ask for advice. The company may already have a policy regarding pay or a pay scale that you can follow to make things easier.
Negotiating pay can be a tricky situation for anyone involved and at every career level, but it can be navigated through with the right mindset and information.
Concepta Cadogan is Director at Lincoln Recruitment.