These days it seems as if everyone could use a raise in salary with the rising cost of living, but the majority of people do not know how to negotiate higher pay.
YOU ARE NOT ALONE
- 39% of Americans report feeling anxiety about negotiating a raise (According to a survey by LinkedIn)- 26% of women feel comfortable negotiating a raise compared to only 40% of men (According to a Forbes report)
- 57% of men negotiate starting salary, compared to only 7% for women
LETS TALK MONEY
- THE SALARY NEGOTIATION MINDSET- Getting a raise starts with a change of mind
- Perhaps someone with same skill set makes more than you and you've had enough.
- You must work up the courage to actually begin the negotiation phase.
- Companies rarely give out automatic pay increases, its up to YOU to ask.
PLAN YOUR APPROACH
Do not just go in and ask, do your homework first.- Know your job description and your company's compensation policies
- Are there minimums/maximums and performance evaluations?
- Evaluate yourself
- Take a general account of your strengths
- Are you the companies best technical person or all around resource?
- It is important to take stock of yourself because today, people get a new boss on average every 1 or 2 years.
- Consider other people's compensation
- Know what others in your field are making
- Know how they make it and where
KEEP SCORE
- From day 1 maintain a document that tracks- Accomplishments
- Meeting sales goals
- projects worked on
- revenue brought in
- budget savings
- Important to highlight these things during review
- Boss can't always keep up with your accomplishments
GET NOTICED
- Choose projects that get you noticed- Speak up
- Ask questions
- Do not let opportunities pass you by
DON'T WHINE
- Nobody wants to hear about personal finance issues- Focus on your on-job performance
- How you've brought in money or are doing tasks no one else can do
TIME IT RIGHT
- Know your companies review process- At years end? based on hiring date?
- Know when companies budgets are done
PRESENT AND BE MEMORABLE
- Instead of just telling what you've done, SHOW IT- Put together a digital portfolio to highlight your work
- WHY?
- Powerful visual demonstration
- Puts control of meeting in your hands
- Allows you tell a story
CLUES TO GETTING CASH
- "IT'S NOT YOUR FAULT"- No one teaches you this stuff. Think about how you generally learn new skills and you will see negotiation is not a popular topic.
- Your family rarely teaches you about negotiation
- Besides MBA programs, most colleges don't teach negotiation
- Money can be a taboo subject, so it's rarely discussed and shared among friends
- Your boss is not going to give you secrets to earn more
REALITY CHECK
- Retiring with a fat retirement and a gold watch at 55 no longer happens.- 52% percent of people plan to work part time after retirement and 9% full time
- Earliest retirement age is 62
- We live in a "Gig Economy"
- required to continuously learn new skills throughout our careers
- MORE CHANCES TO NEGOTIATE
- 40% of the workforce changes to a different job 1/year
- Millennials might change jobs 7 times in their 20's alone
- Each time you change jobs, its a chance to negotiate
THE HR PERSPECTIVE
- Don't be terrified of going against Human Resources- It's expensive to hire new people
- Training time + loss of institutional knowledge + employee morale can cost a company up to $150,000 dollars to replace worker with 60k salary base
- cheaper to give them a 5-10% raise
TRENDS FOR 2013
- The average American can expect a 3% raise in salary in 2013, as compared to only a 2.7% raise in salary in 2012.- Energy employees (Oil, gas and mining) will get biggest pay bumps: 3.9% pay raises
- Educators and gov. employees will get smallest pay bump: 2.1% pay raises.
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