by Guest Author, Rellie Derfler-Rozin
Are you looking through the details of a new job offer or planning to ask for a raise with your current employer? The labor shortage and need for good employees means you still have some leverage.
And with inflation the highest it’s been in decades, you shouldn’t pass up the opportunity to get the salary you deserve. Now’s your chance to negotiate.
As a professor at the University of Maryland’s Robert H. Smith School of Business, I’ve been teaching and studying negotiations for more than 10 years. When looking to close the deal on a new job offer, many people – especially financially vulnerable people, as I’ve shown in past research – don’t take full advantage of the opportunity to negotiate.
Too often, people suppress their own economic advancement because they view negotiaitons as a zero-sum, win/lose scenario. But you can learn to see yourself as a valuable contributor and ask for the terms that would keep you happily putting in the work.
Here’s how to ask for the job you want:
Don’t be shy
Yes, negotiating can be uncomfortable. But if you don’t ask for what you want now, you’re unlikely to get it. That can eventually leave you resentful and looking for a new job sooner than you otherwise would have. After you have an offer in-hand, be ready to negotiate.
Use your leverage while you have it
Hiring is slowing. But companies still need good people to fill the gaps left by the COVID-induced workforce exodus. And with inflation, asking for more money is justified.
Do your homework
Before you make your ask, the key is preparation. Look at glassdoor.com or payscale.com for an idea of what people in your industry and region earn in similar roles. Go beyond what you find online and ask other people for input. Use your network to reach out to people who have worked at the organization in the past or work at similar companies now. Have an informal conversation to feel out a typical salary range and a typical package, and get their advice.
Don’t make it all about what you need
Sure, you might need to make more money to justify spending more on gas for your commute or to afford your higher grocery bill, but don’t make inflation the central argument for why you need a higher salary. Instead, focus on your unique skills and the value you bring to the position. Start with something like this: “I hope we can discuss compensation that appropriately reflects the value I am bringing to the company based on my past performance, skills, and education. Also, I’d like to take into account factors such as the cost of living and rising inflation.”
Think beyond the paycheck
If a higher paycheck is out of the question, try negotiating for other factors. Ask for things that also can add to your bottom line, such as more telework to save on commuting costs, better retirement plan options, more generous health insurance policies or tuition reimbursement. And if the employer can’t budge on these things, other perks such as vacation time and flexible schedules could be on the table.
Be ready to suggest several options
That shows you’re flexible, but you’re still likely to get at least some of the things you want so you and your new employer are both satisfied.
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About the author: Rellie Derfler-Rozin is an associate professor of management and organization at the University of Maryland’s Robert H. Smith School of Business. She studies how the social context impacts employees’ decision-making, focusing on hiring decisions, negotiations, and business ethics.