Salary Negotiation

9 September 2013 Read by 2297 persons
Salary negotiations are becoming more and more important. Salaries are increasingly calculated based on individual performance criteria and jointly defined goals.
Ten tips for negotiating your salary increase
  1. The starting salary sets the tone - for the overall classification as well as for the later salary development. In the case of a job change, this can imply (depending on the economic situation and the sector)
  2. 10 to 15% more salary.
  3. Analyze the salary or remuneration system of different companies.
  4. Request a salary interview not only for a salary increase, but also when changing the salary system (job classification, share of variable remuneration, etc.).
  5. Discover your own market value, inside and outside your sector. This approach is particularly recommended for activities in the fields of personnel, finance, marketing and IT.
  6. Find out about the company's future prospects: turnover and profit, market position, product development, merger plans, room for maneuver for salary negotiations.
  7. Highlight your achievements and successes (regularly inform your superiors).
  8. Choose the right contact person, set a suitable time and define a clear negotiation framework.
  9. Prepare for the interview: strategy, main arguments and counter-arguments, maximum and minimum limits.
  10. Have alternative solutions ready, be polite and willing to discuss.
  11. Decide on types of training and development that have a positive effect on promotion and salary.

Prepare for these questions
  • Do you think you're worth that amount?
    Yes, given my performance and results, I consider it fair. In project X, specifically, I brought a lot of ideas.
  • You accepted salary Y. Why should I suddenly pay you more?
    Refer your contact person to the increase in your know-how and experience ("I already train new people").
  • Are you so attached to money?
    Acknowledge that money is important. Contrary assurances are useless here; depending on the case, they could be used to reduce your demands.
  • With our salaries, we are in the top third of the sector. You feel your salary is too low. Do you mean to criticize the initial assessment, our salary system, the company's own value assessment?
    Don't get stuck on the "criticism track"! Refer to your improvement, your personal investment, your results. Propose an objective criterion (e.g., targets set and corresponding personal performance).
  • You feel your salary is too low. Do you mean to criticize the initial assessment, our salary system, the company's own value assessment?
    Don't get stuck on the "criticism track"! Refer to your improvement, your personal investment, your results. Propose an objective criterion (e.g., targets set and corresponding personal performance).
  • We cover a large part of pension fund contributions and also pay the non-occupational accident insurance premium.
    Social benefits above average are an asset of your company. But I also offer something in return. In addition, the company can deduct these expenses from its taxes.
  • Staff benefit from discounts on purchases.
    I appreciate these benefits, but I don't see them as a salary replacement. It shouldn't be forgotten that we, the employees, increase the turnover by using our right to discount.
  • We are in a peripheral region. The cost of living is lower.
    That's true. But it's about my market value. And that is independent of the company's location.
  • Consumers are paying the price for higher salaries. We risk becoming uncompetitive.
    Good products are worth their price. In addition, we are innovative, our competitors are always lagging behind.
  • A salary increase disrupts the service.
    Different qualifications and qualities are recognized differently. Most companies do this, rightly so.
  • How am I going to present this to the personnel department?
    Provide your contact person with arguments to help them make the decision. Suggest alternatives: bonus adjustment, extra days off, etc.
Posted on September 9, 2013.

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