When it comes to salary negotiations, many job candidates don’t know what to ask for and end up leaving money on the table. You don’t have to be one of them. In this article, you will understand how to approach salary negotiations when switching jobs to ensure a better salary.Sometimes it is tempting to accept the first job offer that comes your way. But you must know that even a smaller salary can impact your lifetime earnings. It is like a ripple effect. Salary raises and bonuses are given as a percentage of salary, so what you consider as a small difference in the amount compounds to become a substantial difference in lifetime earnings. It’s just like investing – where you start impacts your total return.

According to Linda Babcock of Carnegie Mellon University, if you don’t negotiate your job offer at the beginning of your career, you lose anywhere between USD 1 million to USD 1.5 million over your lifetime. Another recent study estimated that a difference of $5000 (1903750 NGN) early in your career could end up costing you as much as $600,000 (228450000 NGN) over 40 years of employment.
Assume an average annual pay increase of 5%, an employee whose starting annual salary was N8m rather than N6m would earn an additional N173m+ over a 40-year career. This is really a huge loss. By not negotiating salary, you are limiting your lifetime income potential.

Do your research on what the company can offer?
Information is power. Do as much research as possible about the company, its employees, and their salaries. This will help you get a benchmark of salaries paid by the company.
Search the Internet
Use your personal network
Connect with other employees of the company through LinkedIn, Facebook or Twitter
This will help you come prepared for the salary negotiation.
Some good websites can provide salary information of the people working in the companies.
- Glassdoor.com
- Payscale.com
- Salary.com
You can check individual companies and see the salaries that people in specific positions have earned and the reviews by past and current employees of the companies. Of course, you won’t get exact details, but it would help you set a benchmark to determine what the company should pay you. Usually, all companies have a salary range for each job grade. Also, don’t feel shy to ask the recruiter about the typical salary range for a position you are being offered.

Include non-monetary compensation by thinking of your recurrent expenses
Even though we say cash is king, we know there is more to the story: the cash alone. Sometimes, the base pay might not be very high, but if you feature in health insurance and a generous retirement plan, it becomes a meaty amount. Non-monetary compensation can equal almost 30-40% of the value of the cash compensation. So, evaluate the non-monetary compensation by thinking of your recurrent expenses. Non-monetary compensation includes different things like free lunch, free coffee, free transportation, flex-time schedules, onsite childcare, discounted parking, retirement plan, gym membership or onsite gym, in-office Zumba, annual health checkup, and medicare. These can significantly reduce your household expenses.

Negotiation is a two-way street
Negotiation is a two-way street, a give and take exercise. When negotiating, you discuss and not argue. Make sure both the parties are speaking as well as listening in equal amounts. Keep your composure, and don’t let emotions take over. Pay attention to the face expressions and gestures to assess what the other person is feeling and adjust your language and tone to proceed. Let the recruiter/hiring manager know that you understand their point of view and how your solution can benefit them. Avoid negative statements like “You are wrong….” “That’s not right….” This may put them on the defensive and may break the negotiation.

Discuss compensation only when you have an offer and not before
A common mistake of candidates for a job is trying to negotiate before they are assured a job offer. Never try to negotiate salary before you have received the written job offer from the employer. The key here is to make sure that a written offer is sent to you by email before you begin any salary discussion. The written job offer serves as evidence that the employer definitely wants you. If the approval is only verbal, a salary negotiation should be put on hold.

Avoid providing any reference to your current or last compensation structure during the and after the interview process
The recruiter might ask you about your current or last compensation structure. What should you do? You may think that you may appear as a “good” person by giving this information but STOP. It doesn’t benefit you in any way and, it isn’t mandatory to share this information. For one, your salary is a confidential employment agreement you signed with your current employer. Secondly, this cannot be a benchmark for the new job role you are being interviewed.

The new job role might be with greater responsibilities than your last job, or you are making a transition to a larger company. In this sense, if you share your current or past salary details, you might set a very low benchmark for them. This will weaken your bargaining power when the time comes to negotiate salary.

So, what should you do?
When asked about salary history, the best thing is to share information regarding the relevant job position’s market value rather than your salary history. This will tell what you are worth. If the company pushes you for a more detailed response, give a similar response in different ways. Tell the company, with all due respect, that you don’t think your salary history should affect your prospective salary future at a different company – especially if it’s in a different industry. You could try deflecting the question to focus on what the new job requires and why the old pay would not be a good match.

Why shouldn’t you be negotiating via email?
Congratulations! You got the job offer via email. Pat yourself on the back, and celebrate.
Salary negotiations are emotionally draining. Most people want to avoid doing it on the phone or in-person, so they chose “email” as the best bet. It is a bad idea. If you are going to request a salary increase, flex time, or additional vacation days, it should be done as an open dialog between you and the employer. Writing a list of demands on an email seems like “extortion”.

It’s not a one-day interaction, but (hopefully) an ongoing relationship. Neither you nor the employer wants it to start with any sour feelings.

All that you should do is write a short and sweet email that conveys three things
- Acknowledge of the job offer
- Enthusiasm for the job
- Request for an appropriate time to discuss a few details
Generally speaking, “it’s better to do in person or over the phone. Negotiating in person gives you the opportunity to adjust the script based on the feedback you’re receiving from the hiring manager – not to mention his or her body language, which can be a big tip-off.

Conclusion
Negotiation is a skill. Most people switch jobs to earn a better income. But, if you can’t skillfully negotiate your salary, the switch is nothing but a ‘façade’. Whether you are a man or a woman, you must be adept in the art of salary negotiation to get what you deserve. By not negotiating properly, you are doing a great disservice to your skills and values. So, learn, practice, and develop the skills of salary negotiations when switching jobs.

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