Last updated on Jul 11, 2024

Here's how you can navigate the common mistakes when negotiating a salary or raise.

Navigating salary negotiations can be tricky, but it's a critical skill for your career progression. Whether you're discussing a new position's compensation or seeking a raise, many fall into common traps that can hinder their success. As an executive, you understand the importance of preparation, clear communication, and strategic thinking. This article will guide you through the process, helping you avoid mistakes and confidently secure the salary you deserve. Remember, it's not just about the numbers; it's about recognizing your value and ensuring your compensation reflects that.

1 Know Your Worth

Understanding your professional value is the cornerstone of any salary negotiation. Research the market rates for your role, considering factors like industry, location, and experience. This knowledge equips you with a solid foundation to argue your case. Presenting a well-reasoned argument based on data shows that you're not just asking for more money but that you're aware of the industry standards and believe your skills warrant such compensation.

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Greg Dyer

Chief Commercial Officer at Randstad USA
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Knowing your worth comes down to being able to articulate your accomplishments (personal and leading teams) and the value those accomplishments bring to the organization. Over time, those who contribute the most value creation to any organization are deemed worth more and ultimately your ability to quantify impact and share specifics is a key part of demonstrating your worth.

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Dr. Iván Araya Canelo

Fundador de Araya Consultores en Ingeniería Financiera SpA | Docente pregrado y MBA | Investigador en Estructura de Capital | Miembro del Comité de Asuntos Corporativos de la Cámara de Comercio Santiago.
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El problema de mirar las investigaciones del mercado es que no sabemos en qué parte de la desviación estándar se sitúa la empresa en la cual trabajamos. Yo recomiendo que, para discutir un aumento salarial, el trabajador debe mirar el tiempo entre el último aumento y el salario esperado. Es decir, si el último aumento salarial fue el año pasado, debería compararse el nivel de responsabilidad de esa época y el nuevo nivel que responsabilidad que se posee hoy. Mostrar un pequeño recuento de los aporte o éxitos entre ambos períodos, y los desafíos tomados en los últimos tres o cuatro meses. Mirar algunos indicadores de crecimiento del negocio y sus proyecciones.

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2 Timing Matters

Choosing the right moment to initiate salary discussions is almost as important as the negotiation itself. Aim for a time when your contributions are fresh in your employer's mind, such as after the successful completion of a significant project. Avoid sensitive periods like company-wide budget cuts or downturns. Timing these conversations right demonstrates strategic thinking and an understanding of the business's overall health.

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Dr. Iván Araya Canelo

Fundador de Araya Consultores en Ingeniería Financiera SpA | Docente pregrado y MBA | Investigador en Estructura de Capital | Miembro del Comité de Asuntos Corporativos de la Cámara de Comercio Santiago.
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El pensamiento estratégico está basado en que el trabajador solicite a su jefe una reunión, no para esta semana, más bien para dos o tres meses en el futuro. Un mes antes del plazo, recordarle al jefe que hay conversada una reunión para 60 o 50 días más; en el último mes, recordarle que se aproxima el plazo y que necesitas que te confirme día y hora de la reunión para ver el aumento salarial. No olvidar tener bien estudiados los logros y explicadas las nuevas responsabilidades. En ningún caso mencionar el costo de la vida, solo: productividad, compromiso y competencia.

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3 Articulate Value

When negotiating, clearly articulate the value you bring to the table. Highlight specific achievements and how they've benefited the company. This isn't just about past performance; discuss your future potential and how you plan to contribute moving forward. By framing your request around the value you offer, you're not just asking for more money; you're presenting an investment case for why you're worth it.

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Darrell Croteau - Intelligent Solutions

🔹I help you transform Sales and Operation Frustrations into increased Profits🔹Change Leadership 🔹Leadership Development 🔹Intelligent Solutions 🔹
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When negotiating, clearly articulating your value is paramount. Highlighting specific achievements and their impact on the company showcases your past contributions and sets the stage for discussing your future potential. This approach transforms your request into a compelling investment case, emphasizing that you're not merely seeking more money but presenting a strategic opportunity for the company's growth. Lead with purpose and vision, and remember that intelligent solutions and transformative leadership are key to unlocking unparalleled success.

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4 Avoid Ultimatums

Ultimatums can backfire and often come across as confrontational. Instead of painting yourself into a corner, maintain a collaborative tone. Express your desire for a fair compensation package while showing willingness to find a mutually beneficial solution. This approach keeps the dialogue open and constructive, paving the way for a positive outcome regardless of the immediate result.

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5 Practice Negotiation

Like any skill, negotiation improves with practice. Role-play scenarios with a friend or mentor to refine your approach. This helps you anticipate objections and prepare responses, reducing the likelihood of being caught off-guard during the actual conversation. Practicing also builds confidence, ensuring you'll remain composed when it's time to discuss real numbers.

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6 Flexible Options

Sometimes, an increase in salary isn't immediately possible. If that's the case, consider what other forms of compensation could be valuable to you. This could include benefits like additional vacation time, remote work days, or professional development opportunities. Being open to alternative forms of compensation shows that you're reasonable and adaptable, qualities that are highly regarded in any professional setting.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can navigate the common mistakes when negotiating a salary or raise.

1

2

3

4

5

6

7

1 Know Your Worth

2 Timing Matters

3 Articulate Value

4 Avoid Ultimatums

5 Practice Negotiation

6 Flexible Options

7 Here’s what else to consider

Executive Management

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Here's how you can navigate the common mistakes when negotiating a salary or raise.

1

2

3

4

5

6

7

1 Know Your Worth

2 Timing Matters

3 Articulate Value

4 Avoid Ultimatums

5 Practice Negotiation

6 Flexible Options

7 Here’s what else to consider

Executive Management

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