Chapter 1. How to prepare to negotiate effectively?

First things first! Salary negotiation is a skill developed based on knowledge of financial literacy among other disciplines. So, what do you need to do before you negotiate salary?

How to

Know yourself

• • You can start by conducting a self-assessment exercise of your:
    • Values
    • Attitude
    • Skills
    • Knowledge
    • Abilities
    • Experience
    • Educational level
    • Lifestyle
    • Social standard
    • Market target
    • Career preference
    • Communication style
    • Interpersonal effectiveness
    • Philosophy around money and work
  • Once you figure out your priorities in life and work, you will be able to articulate your goals and preferences in making financial decisions fully

Practice expressing your value eloquently

• • In addition to assessing your strengths and weaknesses, you need to be able to express your value to your prospective employer eloquently
    • Many make the common mistake of regurgitating verbiage from a Google search
  • Rehearse your true qualities, values, skills, and experience; then, communicate them effectively to your employer as you speak from the heart
    • Honesty and authenticity are greatly appreciated by good employers and will keep you credible in the long-run

Secure an offer first

• • Knowing when and how to negotiate is as important as knowing yourself, your value, and your preferences
  • If this is your first job:
    • Postpone the money discussion until after you receive an offer
    • To discuss salary prematurely is detrimental to a first-time applicant in most cases
  • First, secure an offer, then discuss compensation

List and prioritize negotiating points

• • Keep in mind that salary is only part of the full compensation
    • You are seeking a stellar offer of which all elements of wellness are being considered, including but not limited:
      • Salary
      • Insurance
      • Retirement plan
      • Vacation
      • Sick and family leave
      • Advancement and promotion
      • Reasonable workload and work hours
  • You need to list your negotiating points in terms of priorities and relevance to your own situation
    • Your goal is to establish a successful starting foundation on which you continue to build your career, personal and professional satisfaction, and financial advancement

From a purely economic concept, employment services rendered can be treated as products. Employers are willing to make a financial offer in return for this product. Employees are at liberty to accept, reject, or negotiate for the best compensation they deserve equitably in return for their services. Most companies establish a salary range for each level of service. Employers attempt to save money by hiring at the lower spectrum of the range. It is your responsibility to evaluate and understand the market-based range and negotiate to receive the compensation you rightfully deserve. You also need to prepare yourself to walk away if an employer does not appreciate your market-based worth. Your goal is to reach a mutually agreeable win-win deal that is fair to you and the employer. 

 

Practice

Savvy consumers practice almost daily to save money when they purchase products. However, opportunities to practice salary negotiation skills are not as widely available, hence the need for mock-practice and group exercises. Most universities, including Penn State, have career services Links to an external site. that can help you prepare to negotiate effectively, ask for a raise, or change jobs.

Now you know you can get additional information and help, so think of paying it forward and discuss available services with a friend or a family member.

 

Congratulations! You can move on to Chapter 2. How does salary negotiation close the pay gap?

To review the full module on Salary negotiation, click here.