Why Is Financial Health Literacy So Important?

Is your financial literacy up to scratch? Many people don’t think about it until they’re faced with a financial puzzle to work through, whether it’s applying for a mortgage, picking a savings account, or deciding whether to save for retirement. 

How To Negotiate Your Next Salary

Negotiating your salary can be a very uncomfortable situation. It can be tempting to accept the first offer during a competitive job market that sounds reasonable, but this is a mistake. Seventy percent of hiring managers expect a salary and benefits...

Negotiating your salary can be a very uncomfortable situation. It can be tempting to accept the first offer during a competitive job market that sounds reasonable, but this is a mistake. Seventy percent of hiring managers expect a salary and benefits negotiation when they make a job offer as part of the hiring process. The salary negotiation is an opportunity to increase your compensation and demonstrate your negotiation skills that can be used in other aspects of the job. 

 

1. Know Your Worth

For a successful salary negotiation, it is important to understand how much you are worth. Look up what the market rate is for the work you will be doing be in your area. Find out the average rate for the job and adjust it to the area's cost of living. Salaries will be lower in areas where the cost of living is lower. You can expect higher salaries in areas where the cost of living is high. 

Your value will be higher if you have more education and skills that can be used to increase a company's revenue. Think about the years of experience and transferrable skills that you can use to help the company. 

2. Salary Negotiation Steps

Once you have done your research, you will be prepared to build your case for a higher salary. Employers will be asking "Why do you deserve this salary?" Have some examples of quantifiable results that you can share with them and explain how you can use the same skills in your new position. 

Anticipate a bit of a back-and-forth during the negotiations. You probably won't get everything that you ask for, but you may end up with a better benefits package than you expected. 

3. What to Say During a Salary Negotiation 

When entering a salary negotiation, it is important to confidently use phrases that are effective at demonstrating your value to the company. If you are uncertain about how to express yourself, it will be evident to your future employer. Using a few of these key phrases can showcase your confidence and value to the company. 

"Based on my research..." 

This phrase shows that you have taken the time to find out about the competition. It demonstrates that you aren't making up a number but are grounded. You have done your homework and you know what you are talking about. 

"Is that number flexible?" 

When the employer offers a low-ball salary, it is important to push back a bit. The phrase, "Is that number flexible?" will help you start the negotiation with tact. It allows the employer to offer you more or discuss the other perks of working for the company. 

“If you can do that, I’m on board.”

Often recruiters are anxious for salary negotiations to end. It is often appreciated if you can spell out exactly what it will take for you to accept an offer. You will be doing the hiring managers a favor by letting them know exactly what you want. 

 “Do you mind if I take a couple of days to consider your offer?”

Even if you love the initial offer, it is good to take some time to consider it. This phrase buys you time to consider the offer and determine an appropriate counteroffer. It enables you to move the negotiations to email where you can be very deliberate with what you say. This can make your salary negotiation more successful.

4. What to Avoid During a Salary Negotiation 

There are a few phrases that you will want to avoid at all costs. They can leave you in a poor position to negotiate or eliminate the possibility of an increased salary offer.  

“Your original offer works for me.”

This ends your negotiation. Remember, if you do not ask for more money, you will not get it. 

“My current salary is…”

You never have to reveal your current salary. When you do this, you give the employer an idea of what other companies value your efforts. You want to get paid based on your market value and not what you are currently being paid. 

“I want more than that.”

This phrase is too vague for a negotiation. You need to specify the dollar amount that you are looking for based on your market research. The company does not want to guess what to offer you.

5. What to Do After a Salary Negotiation

Whether you negotiate your salary successfully or not, it is important to evaluate your salary negotiation. This will not be the last time that you negotiate your salary. Review what you did well and think about areas you can improve. 

If your salary negotiation was successful, be prepared to use the skills that you highlighted in your job. A successful salary negotiation often comes with increased responsibilities since bosses respect employees that can negotiate. You may discover that your boss is trusting you more and asking for your input on bigger decisions. 

Once you have negotiated that new larger salary, make sure you are signed up for the Thinkflow cashflow management app to keep track of your extra income.

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