Negotiating Your Salary

With a third of UK employees unhappy with their wage, learn the art of negotiating your salary.

Over half of UK employees are too embarrassed to ask for a pay rise, according to latest research. More worryingly, the research indicates that 41% of employees will consider moving jobs until they reach their ideal salary – bad news for workplace stability, and a firm indicator that UK staff lack good salary negotiation skills. But negotiating your salary isn’t difficult – as long as you approach the task professionally and are armed with the right information.

If you feel overworked and underpaid, you’re not alone. 30% of UK employees are unhappy with the amount they currently earn, and 19% feel underpaid for the work they do. But if you’re thinking of moving to a better paid job to avoid negotiating your salary be warned: salary negotiation is now regularly carried out at the interview – before employees have even won the job.

So how can employees and potential employees ensure they get a good deal when negotiating their salary? You should gather as much information as possible before negotiation begins. This includes how well the company is doing, as you want to try and estimate the best figure you can aim for without damaging relations with your employer.

You should also find out how much employees carrying out similar roles are paid, both inside and outside your organisation. The culture of different employers may vary. Some may beat prevailing market rates because the working conditions are tough and the pressure high. This is where pay truly does become ‘compensation’ for a stressful job. On the other hand, some companies, perhaps charities, may pay a bit less but try to make up for lower salaries through greater work satisfaction. The key thing is to line up your evidence, and find good examples of similar jobs both inside and outside the firm. Try and find out what they are getting, and compare it with your own pay cheque.

It’s also a good idea, if possible, to find out as much as you can about your company and its financial situation. If you work for a major company, you can use the TUC’s ‘company tool’ on their Worksmart website (www.worksmart.org.uk) to check their finances and overall wage bill. Discovering that your employer values profits over wages is a valuable piece of knowledge when entering negotiations.

If evidence suggests your salary should be raised, the next stage is to schedule an appointment with your boss. Once the meeting is booked, more preparation is recommended. It’s a good idea to carry out a strengths and weaknesses exercise before the meeting. This should help determine what you have to offer, and what weaknesses you need to minimise. You should also try to walk through the negotiation in your mind before the event. Ask yourself lots of ‘what if’ questions before you go into the negotiating room.

It’s also a good idea to consider an offer of additional perks and benefits, rather than an actual salary rise.  Put yourself in your employers shoes and consider negotiating for things other than money that are very valuable to you, but perhaps quite easy for your employer to give. Once inside the negotiation room, the key thing is to remain calm. Don’t become emotional, make personal comments or be rude; but you can quietly show your displeasure about a low offer.

If your request is refused, look at the long-term game plan and be courteous and professional.

Doing your job well is perhaps the most crucial, yet often overlooked, factor of wage negotiation. Do your job well and you’ll significantly increase your negotiating power.