A Step-By-Step Guide to Negotiating for a Higher Salary

Jobstreet content team – updated on 14 July, 2022

Salary negotiations are reasonably challenging. It can be an awkward conversation to start for many people. So, how do you negotiate for a higher salary without getting nervous? You need a solid plan to help you prepare for the conversation and increase your chances of success.

Why Is It Important to Negotiate Salary?

There’s no better feeling than getting the pay you deserve. It adds to your confidence and does a lot for your professional satisfaction. In a way, your salary reflects the value of your role and the skills required to accomplish the responsibilities. It is also a way your employer shows they appreciate your work and value your skills.

Knowing how to negotiate for a higher salary shows you are capable of the demands of the position and confident of what you can contribute to your employer. It is the same if you ask for a promotion. You advocate for yourself and show your employer that you have done your research and understand your worth.

When Is The Best Time To Start The Negotiation?

Salary negotiations usually happen at the end of job applications or performance reviews. But, if you think you have grown out of your compensation, there is nothing wrong with negotiating for a higher salary. You don’t want to undersell yourself.

Before you negotiate your salary, there are many things you need to consider before zeroing in on an amount. Read on and find out how you can effectively plan your strategy with the given tips and salary negotiation examples.

Planning for the conversation

1. Know your worth

Successful negotiators come prepared with thorough research. Learn what someone of your qualifications typically makes in the position you are eyeing. You can utilise the JobStreet Salary Guide to get you started.

Factor in the following information to help you gauge your salary range:

Geographic location: Variations in labour and cost of living between locations affect your salary. For example, Central Business Districts in Malaysia like George Town in Penang or the Golden Triangle in Kuala Lumpur may have higher salary offerings because most businesses are concentrated there, requiring a higher cost of living.
Educational level: If you have a bachelor’s, master’s, PhD or specialised degree programme relevant to the role or industry, it can impact your compensation.
Skills: Your transferable and technical skills that are in demand can add leverage to your compensation.
Years of experience: Experienced jobseekers usually earn more than beginners. This will depend on your experience working in diverse environments or dealing with different clients.
Licences and certifications: You may earn more if you have professional certification or licensure, especially when employers seek credentials.

2. Think beyond your monetary compensation

Aside from your base salary, look into the basic benefits of your role. Some employers offer a lower salary, but the benefits might be attractive and compensate for the balance. You want to consider these additional benefits when negotiating for a higher salary.

An excellent salary negotiation example is negotiating your compensation packages, such as better health plans, flexible work arrangements, and additional leave or training opportunities. There are plenty of benefits beyond monetary compensation, don’t limit your imagination.

3. Confidence is key

Confidence is essential for successfully negotiating your salary. Negotiating is an important communication skill that employers value. Employers respect jobseekers who have faith in their skills and abilities.

Negotiating for a higher salary takes a different mindset. Before entering a salary negotiation, review your accomplishments and select the most relevant you can use as leverage. Highlight the unique skills that you bring to the team and your clear objectives of wanting a raise.

Starting the conversation

4. Prepare your pitch

Now that you have the data to back you up and the right mindset to negotiate for a higher salary, you need to prepare your pitch. Start by showcasing your achievements, back them up with your research, and then mention your passion for your work to solidify your request. Prepare talking points or a brag sheet to help you become more comfortable with the topic and allow any nerves behind it to fade away.

Get a friend or a colleague you trust to practice with you. They can give you feedback on whether you are presenting yourself in the best possible light. Here are a few salary negotiation examples to help you practise:

If you are a jobseeker negotiating an initial offer:

“Thank you so much for the offer. I am happy to hear that my skills and experience fit what you want to succeed in the role. However, I was hoping we could discuss my compensation. Based on the skills demand and my experience working in the field, I was hoping we could explore a higher compensation. I would be comfortable accepting a salary of (give amount) for this role.”

If you are asking for a salary raise in your current role:

“For the past two years, I have really enjoyed my time working at ABCompany. I believe my role contributed greatly to growing and improving our processes to meet the company’s goals. Therefore, I would like to discuss a salary raise to match my growth and the skills I have acquired since being hired. I hope we can explore raising my current salary to (give amount) given my contribution to the company.”

5. Choose your strategy

Negotiating through email is a great way to keep things in writing, as you should be taking your receipts seriously. However, most negotiations are done in person or over the phone, which makes it more personable to give your pitch. You can use either method to their advantage.

6. Ask the right questions

Finding out what is on the table to be negotiated is important. Aside from your research, you also need to understand how your potential employer or current employer came up with your compensation.Here are a few salary negotiation examples you can ask during salary negotiations:

What’s the outlook for salary raises or promotions?

A critical question to raise is your salary trajectory. It is essential to know what the outlook is for future increases or potential promotions.

How do people in this position typically grow over time?

Find out the evaluation timeline, so you know when to expect or when you can request an increase. Plus, asking this question can reflect well on your eagerness to grow with the company.

Do you have suggestions for my performance?

Asking your employer about your performance will help you prepare to meet expectations and know what to work on to ensure success with your salary negotiation.

Prepare also for tough questions from your potential or current employer. They often negotiate, so they will likely ask intimidating questions to determine your career goals. It’s important not to get rattled by these questions and to remain honest.

After the conversation

7. Have a backup plan

If your employer fails to meet your salary expectations, then be open to other arrangements they are willing to offer. If your initial request is rejected, an alternative prepares you to counter the offer.

You want to be ready to handle typical salary negotiation scenarios:

Scenario 1: There are no available resources for your request

Given the past year’s events, businesses are still recovering and might not have the budget to give you higher pay. What you can negotiate is to propose a timeline where you can look back at your proposal when the resources are available.

“I understand the current situation of the company. I am confident that I can maintain and improve my performance further. I hope we can look into my proposal again in the next six months, in time also for my yearly evaluations. In the meantime, I hope we can work on a deal where we can meet halfway.”

Scenario: 2: The offer is lower than your asking

If the request is lower than your desired number, you can always make a counteroffer based on your initial research. Ask for alternatives you think you can benefit from aside from monetary compensation.

“Thank you for taking my request into consideration. Given the circumstances, can we look at arranging or adding benefits to my initial package? What I can see right now is adding flexible working arrangements would suit as a solution. My skills and track record show that I can work productively, independently, and efficiently in a remote setting. I hope we can consider this as an alternative to my compensation request.”

Scenario 3: The offer matches or exceeds your asking

This is the ideal scenario, but don’t say yes right away. Evaluate the offer and the responsibilities that come with it. Make sure that the role aligns with your career goals and further development.

“Thank you for granting my request for a raise. I sincerely appreciate the consideration and the recognition you have given me. As we move forward, I want to clarify the role’s responsibilities and how we can work towards my career progression.”

Mastering the art of negotiating for a higher salary is a useful skill and a valuable tool to use to advance in your career. Arm yourself with practical negotiation skills to set you up for career success. Develop your strategy and take time to prepare.

Ready to use your salary negotiating skills on your next job application? Update your JobStreet profile and #LetsGetToWork in your desired industry. For more expert tips, visit the JobStreet Career Resources Hub.