Being paid what you’re worth is an important part of a fulfilling career. There’s no denying that we all need money to pay our bills and enjoy our free time. But money can be a sensitive topic and sometimes we have no idea what others in our industry are earning. Discovering accurate salary research for your job title and sector can help you evaluate whether you’re being fairly rewarded for the skills and experience you bring to the table.
In this article, we show you how finding the right data, and using in the right way at the right time, can help you prove that you deserve a pay rise by showing where you are being undervalued financially. Try these seven tips for collecting and using salary information to be successful in your next salary negotiation.
1. Don’t Try to Manipulate the Salary Research Data You Collect
When you’re gathering salary information to bolster your negotiation, be honest about your role, qualifications and certifications. For example, if you’re an intermediate accountant, look at salary data for professionals at the same level and discount information about senior accountants or CFOs.
These higher-level roles will inevitably receive greater renumeration by nature. Your purpose is to recognize the industry standard for your level. In other words, it’s important to look for and present the data for the job that you’re actually doing rather than the work you’d like to or think you should be doing.
Similarly, don’t include in your salary research any qualifications that you have but aren’t utilizing in your current job. You may have a PhD in nuclear physics, but if you work as an accountant, that PhD won’t affect your salary. However, do consider geography when checking salary information. Someone working your job in Boston will be paid more than someone doing the same job in Brush Cut, Wyoming, for example, so be realistic.
2. Consider the Source of all Salary Research Data
The gold standard for compensation data is a salary survey completed by your company’s direct competitors. The next best salary research is created with salary information collected from employers in the same industry then scrubbed by compensation experts.
Trade association salary data, especially that which is created with data self-reported by members, won’t be taken as seriously by those in the know. When you’re looking at trade association sources, there is an element of subjective opinion, along with a certain agenda, so it’s best to stick to objective studies.
Try to find salary information that is transparent about which companies were included in the research as well as the quantity of data points and how it was chosen. This will give you the most reliable and relevant insights. You should also pay attention to how the results are presented, for example if salaries are shown as an average, median, mean or mode - and favor those using median as the most valuable.
3. Don’t Use the Salary Information the Day It Comes Out
The right time to ask for a pay raise may or may not be when the salary research comes out. It can be tempting to see a disparity compared to your own earnings and jump the gun to immediately invite your boss to a discussion about pay. But take a breather before you do.
A successful salary negotiation requires careful preparation, so take you time. It’s also usually best conducted during your annual performance review. This is a time dedicated to focus on what you deserve, and a salary that accurately reflects your skills and position is part of that. Your boss shouldn’t be taken by surprise hearing you open this conversation during your review, since they’ll be looking at your results and your impact on the organization at this time.
Just as you need to take your time with your review preparation, your boss also needs to prepare for salary negotiations. To offer you a raise, they’ll need to know the state of their budget, so just dropping into your manager’s office to ask for a pay rise because a salary survey came out last week likely won’t work.
When you see relevant salary data, note down any trends, and tuck them away until your review or another relevant opportunity. Don’t worry, if you have to wait a few months, you can adjust the numbers accordingly to keep them accurate.
4. Don’t Expect Data Alone to Get You a Raise
You’re not worth more simply because someone else gets paid more to do the same job. That is only part of the story. Before presenting your salary research, explain why you deserve a raise in terms of your personal professional attributes.
Outline soft and hard skills you bring to your organization and quantifiably illustrate how you contribute to company’s KPIs and bottom line. Then, use your salary information to back up your salary negotiation and show how your industry typically rewards people with your value.
5. Mind What You Say
If you were a manager, which of these phrases would you rather hear?
“This data shows you’re underpaying me by $10,000 a year, so if you don’t give me this raise, I’m going to go look for another job.”
“Based on some conversations I’ve had with individuals in my role elsewhere, and data from in this research, I understand that other professionals delivering the same quality and quantity of work have a more attractive compensation structure.”
You picked the second statement, right? The first creates a hostage situation where your salary increase is the ransom demand. The second is a professional request to have your paycheck reflect an industrywide salary range.
6. Follow Up Your Demand by Talking About Why You Love Your Job
As well as asking for what you don’t have, be sure to mention what you value about your current situation, i.e.: what you love about your job and why you want to make staying a financial option in your life. By doing this, your goal is to show your manager that if they invest in you with a higher salary then you’ll be committed to growing in the role and bringing even more value.
Try this line:
“I feel I’m successful in this role, and I enjoy working here, X about our company’s culture and mission are really important factors for my career. In the past six months, I’ve successfully done A, B and C and have brought D, E and F to the team. And in the next six months I plan to do G, H and I.”
7. Expect Your Boss to Push Back
Most larger organizations participate in salary surveys where participants get the results. Your boss may come back with other salary research based on data collected from your company’s direct competitors showing that the salary you're asking for is too high. This is why it’s important to also come prepared with other reasons for why you deserve a raise, such as what you contribute to the team and the company.
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Copyright October 1, 2023 - Monster Worldwide, Inc. All Rights Reserved. You may not copy, reproduce or distribute this article without the prior written permission of Monster Worldwide. This article first appeared on Monster.com. To see other career-related articles, visit https://www.monster.com/career-advice/.
