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How To Negotiate Salary Skilfully Without Being Pushy

How To Negotiate Salary Skilfully Without Being Pushy

Warning: If you think you’re average, don’t read this.

This article is specially written for talented people who want to get a higher pay when getting a new job. If you think you’re just average, this article might not be suitable for you.

Most employees would love to have a higher pay when they get a new job. However, not all employees have the courage to negotiate a salary raise, as the discussion of salary is very often deemed as a taboo, a subject that agitates employers.

As a matter of fact, there can be still much room for negotiation about the details before you sign the contract. As long as you dare to voice out your thoughts, there is a high chance you land in getting what you expect.

This article will provide you with skills suggested by experienced HR and managers on how to negotiate a salary raise before and when you receive an offer.

Before the interview

Make sure you understand the job market

It is important for you to have an expected number in mind first. Otherwise, very likely you will be led reluctantly by any experienced HR.

As Ramit Sethi told in “I Will Teach You to Be Rich”: “If you walk into a salary negotiation without a number, you’re at the mercy of an experienced hiring manager who will simply control the conversation.”

And about what number you should have in mind, it is essential for you to gain some knowledge about what is the usual payment of your position in that industry in that geographic area.

Glassdoor is one helpful source for you to better understand the job market. In this website, when you type in the job title, you can have a glimpse at what salary other people usually get in that post in the specific district.

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    Should I reveal my expected salary in the cover letter or not?

    The question that troubles many job hunters is whether one should write the expected salary in the cover letter or not.

    And the answer is: don’t do that!

    It is not reasonable to write your expected salary in the cover letter if it is not required in the job ad.

    Showing the expected salary in the early stage runs a big risk. If you state something lower than what you deserve, you lose; if you write something higher than what you deserve, you lose too, as it may cost your chance of getting an interview!

    In this light, it is better not to state your expected salary in the cover letter if you are not required to do so.

    But what if you are required to state the expected salary in the cover letter?

    It is not unusual for the companies to want to know the candidates’ expectation in advance. To them, it is a matter of time efficiency — they want to pinpoint the potential employers who will accept their offer, and they do not want to waste time on those who are beyond the benchmark they are willing to offer.

    In case you are asked to state the expected salary in the cover letter, you have a few options.

    Dodge the question and show your maturity as well

    You can dodge stating it directly. You may redirect the focus from the salary to your passion. For instance, you can state: “Salary is only one of the factors I consider paramount in weighing a job offer. I am delighted to discuss it once I am as determined a strong candidate for the position.”

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    State a range that the company won’t say no to

    Or you can state the range you and the company are both comfortable with. In order to provide a safe salary range, you can once again refer to Glassdoor to have a look at what your counterparts usually get. Besides Glassdoor, you are also advised to inquire the personnel in that company beforehand to have a better understanding about what the price your targeted company is comfortable to offer.

    State the exact number like $53,750

    Or you can directly state the exact number you hope to settle on. Even though it is riskier to state exactly the number, sometimes stating the exact number may do you good. According to researchers at Columbia Business School[1], employees are more likely to be given an offer closer to their initial request, state a more precise number in their initial negotiation request when they state a more precise number in their initial negotiation request. The reason is, as the researchers explain, the employers assume you have prepared extensive research into your market value when you reach that specific number.

    Also, when you state the exact number, you can also aim higher than the usual range. It is because psychology shows that your bargaining partner has the feeling that he or she is getting a better deal if he or she negotiates down from your original ask. Given that your employer will almost certainly negotiate down your term, you may need some room and still end up at a salary you are pleased with.

    Should I still state it when a standard salary is already stated in job ad?

    There are jobs that are fixed with a price. For example you may see figures like these on a job ad: $22/hr, $50/day. For jobs like these, can you still negotiate a higher salary? The answer is yes.

    The point is, you should let your employer know how far you exceed their expectations.

    In order to persuade your employer, your approach is to emphasize your past achievement and your potential contribution to the company.

    For instance, you can negotiate in this way: “I wonder if the salary is flexible. Based on my achievement in education and my past experience in this industrial field, I’m confident I can help the company get 70% growth in the coming year. I wonder if you might be able to offer $Y instead”.

    However, one golden rule you should bear in mind is that every employer does have a range in mind. That is to say during the interview you may not want to present yourself as if you were ignorant of the salary information stated at the start. Show them you know it very well but at the same time you know you can over-deliver.

    During the interview

    When being asked about your current salary

    During the interview, the employer may inquire information about your current salary.

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    However, revealing your current salary may put you at disadvantage if the job you are applying can offer a salary much higher than your current one.

    To encounter situation like this, you are advised to quickly draw attention to other topics. Instead of focusing on your current salary, you may once again highlight your skills, your responsibility, and your contribution to the company. As employers desire capable candidates, showing your ability can put you at a better position in the interview.

    Besides promoting yourself, you can also express your outlook about the company, and your passion of growth. This can also underscore your ambition, which is also the quality that companies desire to see in candidates. In this way, the flow of the conversation will be around your advantages, instead of your history in the current company.

    How to handle if the employer says “NO”

    The rejection may sound daunting to you. However, according to Pynchon[2], a negotiation does not really start until someone says no.

    She explained: “It’s not really a negotiation if we’re asking for something we know our bargaining partner also wants. Negotiation is a conversation whose goal is to reach an agreement with someone whose interests are not perfectly aligned with yours.”

    Therefore, other than feeling sorry for yourself, you should rather be glad that you get a clearer picture about what your employer wants. At the same time, your employer also understands your requirement better.

    If your current suggestion is higher than what the company is going to pay, you may lower your term in the negotiation which you still comfortable with, and see if the company still rejects.

    Try to reach a common ground with your employer.

    If the employer still refuses to compromise, despite asking for a raise in salary, you may change the battlefield from the salary raise to other benefits, such as traveling compensation or vacation days. These all are matters that you can also bring up to the table and negotiate.

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    Do not accept the offer too soon

    If you are landed with an offer, congratulations!

    Meanwhile you should still remain your cautiousness. You should not accept the offer too soon. A lot of people are shy to hold on the offer, as they are scared their employers may pull back the offer.

    However, most of the time, as affirmed by Chase the career couch, employers don’t do this when they have already spent so much efforts on negotiating with you.

    Accepting the offer too soon may cost your opportunity to negotiate better terms. Despite the offer itself, some details can still be negotiated, such as the salary, the bonus, or other benefits. These all have room to be negotiated.

    After the interview

    Reevaluate your offer

    Following the discussion above, you need not accept the offer immediately. Instead, you can ask for more time for consideration. You can ask the employer: “I’m thrilled you want to hire me. Could you just give me a couple of days to think about it?” If the company values you, it will be happy to allow you time to think about.

    When you are considering the offer, salary should not be the only determiner. Besides salary, there are also other factors that are worth consideration.

    These 7 things, as suggested by PayScale, are things that are also worth your consideration.

    1. Vacation time
    2. The skills you may learn in the company
    3. Exercise
    4. Traveling compensation
    5. Clothing allowance
    6. Means of telecommunication
    7. Access to the company’s product or service

    These important factors also have huge influence on whether you will be happy in that company, thus worth of your serious reevaluation.

    Show your excitement no matter you’re ok with the salary or not

    After receiving the offer, you should first express your appreciation of the company’s decision to hire you. But don’t make it like you really need the job to survive. Instead you should show them how excited you are to contribute for the company and achieve your career goal with them. They will be able to feel your passion and eager to work with you soon.

    Only after this you can reveal your stance whether you’re fine with the salary they offer or not. Now, since the company has acknowledged your appreciation, they will be inclined to accept the terms you suggest.

    Reference

    More by this author

    Chris Cheung

    Editorial Intern, Lifehack

    How to Spot out True Friends in a World Full of Fake People I Nailed Every Job Interview by Understanding the Intention Behind Each Question What Are 4 Core Leadership Theories And How To Apply At Work Why You’re Not Incapable, You’re Just Burning Out How To Negotiate Salary Skilfully Without Being Pushy

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    Published on December 13, 2018

    How to Start a Company from Scratch (A Step-By-Step Guide)

    How to Start a Company from Scratch (A Step-By-Step Guide)

    If you’ve ever thought about starting and running your own business, you’re not alone. Being your own boss, having flexibility with your schedule and keeping more of the financial rewards that come with business ownership are all good reasons to own your own company.

    But as you might expect, it’s not all vacations and fat bank accounts. According to the SBA, 2/3 of businesses survive at least 2 years and approximately 50% survive 5 years.[1] So why is the failure rate so high? At least for the businesses that fail early on, lack of, or poor planning can be a major factor.

    So how to start a company?

    Starting a business from scratch doesn’t have to be hard or complicated, but it does take planning and work. Here are the first and most important 9 steps to take when your are starting a company from scratch.

    1. Do an Honest Evaluation of Yourself

    Do you work better in a structured or unstructured environment? Does a daily routine reduce your anxiety? What kinds of things are you good at? Does public speaking or making presentations make you nervous? Are you good at accounting and numbers? Can you handle the rejections you’re bound to get when selling or cold calling?

    These are all important questions to ask yourself, in fact it’s a good idea to get other peoples opinion about their perception of you in each of these situations.

    Whatever the answers you come up with for your evaluation, remember that’s all it is, an evaluation of where you are now. Think of it as a way to identify both your areas of strength and weaknesses.

    You maybe good at public speaking which can help when raising money, but bad at accounting which just means that you’ll need to find some kind of help with that area of the business.

    2. Evaluate Your Idea

    If your business idea involves a new product or service (or even an enhancement to an existing product or service), it needs to be evaluated. This is technically called market research.

    There are firms that specialize in doing market research for new products, but if you are on a tight budget, you can do this yourself.

    First, if you can build a prototype for people to use, touch and look at that’s the best option. If a prototype is not possible or it’s a service business, then offer a highly descriptive presentation of the business plan complete with it’s unique benefits and how it’s different from the competition.

    Then listen! Remember that this is not about others liking your product, this is not your baby that they are talking about. You want honest market research that gives you the best chance for a successful business. Take notes, when someone tells you that they didn’t like a feature or some aspect of your idea tell them ‘Thank you”.

    After several rounds of market research with different groups of people, you should see patterns emerging about things that they both liked and didn’t like. Use this information to tweak your product or service and do another round of market research.

    Keep in mind that you’ll never come up with a universally loved product, your job is to produce a product or service that appeals to the broadest range of your target market.

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    3. Make a Business Plan

    I know, I know this isn’t the “fun” part of starting your own business, but it is an very important step in creating a successful business!

    Basically, you can think of a business plan as an outline or blueprint of your business. A good business plan should have the following elements:

    • Executive Summary – This should lay out the businesses product or service and the problem that it solves for the consumer.
    • Market Evaluation – This should talk about the market you are serving. Is it an expanding market, and how does your product better fulfill the consumers in that market.
    • Market Strategies – How are you going to penetrate the market and sell your product.
    • Operational Plan – How will the company run from day to day? Who are the key employees and what are their specific rolls. Do your key players have specific goals set for them in advance?

    A final word on making a business plan: while lying is never acceptable especially when you are using the business plan to raise money, it is acceptable to “put your best foot forward”.

    Playing up the positives while minimizing the negatives is almost expected in a business plan.

    Besides, banks as well as professional investors will both do a more in-depth analysis before investing any money into your idea.

    4. Decide on a Business Structure

    You have many options here, and discussing them with your accountant or financial adviser is really the only way to know what’s right for you. But just to give you a quick rundown of the types of business entities and their pros and cons we will briefly go through them:

    Sole Proprietorship

    This is a common way for small businesses to get started.

    The pros being:

    Relatively low costs to set up (usually a business license and sales tax license).Owners normally do not have to set up a special bank account, they are allowed to use their personal one. Any income earned can be offset by other losses (check with your state!). You as the sole proprietor have complete control over all decision making. 

    Finally, sole proprietorship’s are relative easy to dissolve.

    The cons of using a sole proprietorship include:

    You as the sole proprietor can be held personally responsible for the debts and liabilities of the company. Some benefits, such as health insurance premiums, are not directly deductible from business income.

    If you need to raise money, you are not allowed to sell an equity stake in the company. In that same vein, hiring key people maybe more difficult because you cannot offer them an equity stake in the company.

    Partnership

    A partnership is formed when two or more people decide to start a business. Although there is no legal requirement for any documentation to form a partnership, it is my advice that you never enter into a partnership without having a partnership agreement. (Remember, spending $1500 now can save you $150,000 in legal fees later!).

    The pros of a partnership include:

    Being relatively easy and inexpensive to start. Hiring key employees can be easier as you are allowed to give equity ownership to as many partners as you want.

    For tax purposes, partnerships are relative simple as any income is treated as “pass through” meaning that each partner pays tax on their individual portion of the partnerships income (As of this writing, always check with your tax adviser).

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    As far as the cons go:

    It can be difficult for some general partnerships to raise capitol. Because it is a partnership, the actions of one of the partners can obligate the entire organisation. All profits must be shared according to the partnership agreement regardless of the amount of work done by any single partner.

    Some employee benefits may not be able to be deducted on income tax returns.

    Limited Liability Company (LLC)

    This is a very popular business entity for small to medium sized businesses. The reason for this is the cost of set up is not prohibitive and there is a separation between the owners and the company.

    The pros of an LLC include:

    Limited liability for the partners, unlike sole proprietorship’s and partnerships where the owners are held responsible for all of the companies debts and liabilities, an LLC provides some protection against certain debts and liabilities that are solely the companies.

    Simple taxation, just like the sole proprietorship and partnerships, income is considered “pass through” and is only taxed once on an individual level.

    There is no limit on the number of shareholders in an LLC. An LLC requires fewer fillings and administrative requirements than a corporation.

    Corporation

    A corporation is much more complex and expensive to set up. And a corporation is legally considered an independent entity that is separate from its owners.

    The pros of a corporation include:

    Complete separation between the owners and the company. Because the corporation is considered its own legal entity, owners can not be held personally responsible for any debts or liabilities of the company.

    A corporation can raise capital much easier just by selling more shares in the company.

    Cons of corporations include:

    Much higher administrative costs than any other business entity. Corporations generally have a higher tax rate. Dividends are not tax deductible for corporations. Income paid in dividends is taxed twice, once by the corporation and again by the shareholder.

    Again, this is just a short summary of the pros and cons, always check with your tax adviser about what will work best in your situation.

    5. Address Finances

    Again, not one of the “Sexier” parts of starting your business from scratch, but very important nonetheless.

    So, you’ve done your business plan and an estimate of your start up funding should be included. It should include the amount of funding you’ll need to get you through your first full year of operations.

    Now, how do you get that money?

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    Self Funding

    If possible, self funding is the easiest. You won’t have to go to banks and investors with hat in hand, or give up ownership or control of your company. But as we know, this is not a reality for most people. But don’t worry, there are still plenty of options available.

    Friends and Family

    They can be a good source of funding your business if they can see and understand your vision.

    Remember that business plan? Pass them out to everyone you know. Then follow up, be prepared to tell them the total amount of money you expect to raise, the minimum investment you are looking for and what you will give in return for the investment.

    For example, you give a friend your business plan and follow up with him/her a few days later. You can explain that you have secured funding for $80,000 of the $100,000 you need. You are selling a 2% share in the company for every $2,000 investment. How many shares would he like?

    And when he/she tells you no, thank him/her and ask if he/she can think of anyone off the top of his head who might be interested? Tell him/her you really appreciate his/her time and if he/she does come across someone who might be interested to let you know.

    Banks

    These guys are happy to lend you money when you don’t need it, but all of the sudden they get stingy when you actually need a loan! This is where preparation comes in.

    It’s a good idea to go over your business plan with an expert and maybe even have it rewritten by an expert before you approach either a bank or professional investor. Both will want to go over your business plan with a fine tooth comb, verifying all the numbers and data you provide.

    You should also brush up on everything in the plan so that you can answer any questions they have with authority.

    Crowdfunding

    Finally, there is crowdfunding through sites like Kickstarter or GoFundMe. Crowdfunding helps to build interest, community spirit, and a customer base. It’s also an efficient way to raise funds. You can take a look at these tips to find out more:

    6 Crowdfunding Tips To Get Your Project 100 Percent Funded

    6. Register with the Government

    As stated earlier, different types of business entities have different filling and administrative requirements. At the very least, you’ll probably need a business license as well as a state sales tax license.

    Unless you are forming a corporation, there are many good resources on the web that will do everything for you at a minimal cost.

    7. Assemble Your Team

    Remember when we evaluated your strengths and weaknesses? Here is where we fill in the gaps!

    Do you hate sales and cold calling? Great! There are people who love selling and wouldn’t want to do anything else.

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    Bored to death with accounting? There are a ton of small accounting firms out there that will take care of that for you.

    What about marketing? You can hire someone in-house or out-source that too.

    Your job is to keep on top of all the different aspects of the business to make sure they are all running smoothly and getting the results you need. If not, it’s your job to figure out the problem and implement a solution.

    Check out this guide and learn how to delegate effectively:

    How to Delegate Work (the Definitive Guide for Successful Leaders)

    8. Buy Insurance

    No matter what kind of business you start, you need insurance! Yes, I know, no one likes to buy insurance, but it can literally be the difference between having a minor inconvenience and declaring bankruptcy.

    We live in a very litigious time, even a minor slip and fall at your place of business could bankrupt you without insurance. If you need help finding a good agent, check with your local trade organizations or fellow business owners.

    9. Start Branding Yourself

    Has anyone ever ask you for a Kleenex or a QTip? We all know what they are because of branding, Kleenex is just a brand of tissue and QTip is just a brand of cotton swab. It doesn’t have to be as widely known as Kleenex or QTip, but you can make your brand a common name within your niche.

    I once owned a manufacturing company that developed a product that was so popular that my competitors started co-opting my brand name for their products.

    If you aren’t sure how to kickstart branding yourself, check out these ways:

    5 Ways to Build your Personal Brand & Make More Money

    The Bottom Line

    Starting a business from scratch can be one of the most rewarding experiences a person can have.

    But do you know what’s even more rewarding? Having a business that succeeds, is profitable and provides a good source of income for you, your employees and their family’s.

    More Resources About Entrepreneurship

    Featured photo credit: Tyler Franta via unsplash.com

    Reference

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