How to Use a New Job Offer to Re-Negotiate Your Current Salary
The most challenging part of your work life will likely be re-negotiating your current salary. Even seasoned professionals struggle to negotiate better pay regarding their existing compensation. Mastering how to use a new job offer to re-negotiate your current salary includes a certain amount of risk, but there’s a possibility that things will work out well, and a potential salary increase is worth taking a chance on.
Renegotiating salary might feel unjustified, but it’s best not to overthink it. Instead, focus on researching and understanding all aspects of salary negotiations, knowing that a better financial position is the reward if it works out.
This article will guide how to use your new job offer to re-negotiate your current salary.
Understanding Your Value
Recognising your worth in the workplace is essential for career advancement and job fulfilment in today’s competitive labour market. It improves self-worth and empowers professionals to bargain for a higher salary, establish closer professional connections, and make wiser career choices. The three approaches below will help create a value awareness based on workplace contributions.
1. Self-Evaluation
Self-evaluation is the first and most crucial step in realising your worth at work. This entails assessing your abilities, background, and achievements closely.
Create a record of hard and soft skills assets. Evaluate how these abilities benefit the organisation and your present position.
Think back on your previous successes and achievements at work. Consider the tasks you have finished, issues you have resolved, or objectives you have met. When you can, quantify your accomplishments since it shows your value.
Ask co-workers, superiors, and subordinates for their opinions. Emphasise your abilities and pinpoint opportunities for growth using constructive criticism. Seeking feedback regularly is crucial for professional development.
2. Market Research
It’s also necessary to understand the employment market and the business’s expectations to recognise your value in the workplace. Carry out a successful market research with this approach:
Find out the compensation ranges for your position of interest. Salary benchmarks can be found on Glassdoor, Payscale, and LinkedIn Salary Insights. Knowing the going rate for that position can help you negotiate a better compensation package.
Create a solid professional network by participating in meetings, workshops, and seminars to keep up with business developments. Establish connections with mentors and peers who may advise you on future job paths and your value.
Keep up with the most recent developments in the field, new technological advancements, and shifts in the need for particular expertise. Taking the initiative to adjust to changes in the business can increase your value as a worker.
3. Setting Goals and Career Development
It’s time to create professional objectives and concentrate on growth once the evaluation of knowledge and abilities and investigation into the employment market have been done. Adopt this approach to tackle this stage:
Establish short- and long-term professional goals that fit your preferences and skill set. If you have defined objectives, your professional life will seem more purposeful and have direction.
Consider enrolling in classes, obtaining certificates, or attending seminars to improve your talents. Your present employer will value you more and find you more appealing to prospective employers.
Take the initiative to look for new possibilities and challenges at work. Offer assistance on initiatives that will advance your professional objectives and allow you to demonstrate your abilities.
Securing a New Job Offer
Salary negotiation aims to ensure workers get paid the value of their skillset and that it’s appropriate given the market worth of their abilities. Most companies expect salary negotiation, and many are willing to do so. Organisations aim for fair salaries within the role and the employee’s history to reduce turnover rate considering the cost of frequent recruitments and training.
Tips for Preparing for the Conversation
Here are a few tips to help you prepare for salary negotiation:
1. Start by evaluating what you have to offer
- Geographic location
- Industry and leadership experience
- Education
- Career experience
- Skills
- Licenses and Certifications
2. Research the current salary range
3. Prepare your talking points
4. Schedule a time to discuss
5. Rehearse with a trusted friend
6. Be confident
7. Be respectful
8. Share job-related expenses you’re incurring
9. Be flexible
10. Ask questions
Approaching Your Employer
When requesting higher wages, give the employer one or two compelling reasons to invest more, as spending more is only justified by value proposition. It’s crucial to refrain from requesting more money without a good cause.
Give the hiring manager a suitable instance of exceptional performance to convince them to raise salary packages appropriately.
It helps to fit salary negotiation strategy into this framework as a starting point: Why do you think your compensation should be more than what the company currently pays you?
Negotiating with Confidence
It’s just as crucial to conduct negotiations confidently as it is to use words. If confidence is projected, the employer will be more responsive to feedback.
Arrogance, or an overblown feeling of significance, should not be mistaken for confidence, an appreciation of skills and attributes. In a negotiating situation, it can also be detrimental to overexplain or apologise for the request as it portrays a lack of confidence. Rather, simply and firmly express desired pay along with a brief justification.
Considering the Outcome
Use Stalling to Your Advantage
Executive career coach Jack Chapman suggests saying ‘Hmmm’ instead of ‘OK’ when an offer is made. This gives you some seconds of silence to craft a suitable response, and the other person will likely improve his or her offer during such silence.
Ask Questions
Ask open-ended questions to keep the conversation moving and show a willingness to collaborate on the matter. For example, “How flexible is the company regarding the terms of the job offer, especially regarding salary and benefits?”
- “Could you provide insight into the factors that determine the budget for this position and how my skills and experience align with those considerations?”
- “What metrics or benchmarks are used to evaluate performance and potential salary increases or bonuses in this role?”
- “Can we discuss the potential for bonuses or performance-based incentives tied to achieving specific goals or targets?”
- “How can I contribute to the team’s success beyond the outlined job description, and how might that be reflected in compensation or advancement opportunities?”
Consider Other Options
If the hiring manager won’t budge, try negotiating for flex time, more vacation time, a better title, or plum projects and assignments.
Keep Negotiating
Negotiation is complicated, but the more practice you put into it, the easier it becomes. Even better, there’s the promise of more money on the horizon! So, get out there and start negotiating. This article’s insights are a great place to start.
With RKY Careers advisory session, you can move from a place of uncertainty and obscurity to a place of fulfilment and advancement in your career!
Discover how to confidently leverage a new job offer to negotiate a higher salary.
Our expert advisors provide tailored strategies for assessing your value, conducting market research, and navigating salary negotiations.
Don’t settle for less—maximize your earning power and propel your career forward.
Click on the button below to start achieving the salary you deserve!
Conclusion
Regarding salary negotiations, leveraging a new job offer to re-negotiate your current salary can be a strategic move. Understanding your value, conducting thorough market research, and setting clear career goals are pivotal. Preparation is vital, from evaluating your worth to rehearsing conversations and approaching your employer with confidence and compelling reasoning. Negotiating with finesse involves active listening, asking important questions, and exploring alternatives if necessary. While negotiation might seem scary, practice and consistency will improve the outcomes.
FAQs For How to Use a New Job Offer to Re-Negotiate Your Current Salary
How Do I Ensure My Current Employer Takes My Request for a Salary Renegotiation Seriously?
To ensure your current employer takes your salary renegotiation seriously, present a well-researched case highlighting your value, industry standards, and accomplishments. Schedule a formal meeting, communicate respectfully, and express your commitment to the company’s success while advocating for fair compensation based on market trends and your contributions.
Is It Risky to Tell My Current Employer About a New Job Offer?
Disclosing a new job offer to your current employer carries inherent risks. While it may prompt them to reconsider your value and offer better terms, it could also strain your relationship or lead to repercussions, especially if they feel blindsided or interpret it as a bargaining tactic.
What Should I Do if My Current Employer Matches the New Job Offer but I Still Want to Leave?
If your current employer matches the new job offer but still intends to leave, express gratitude for their consideration but reiterate your decision based on factors beyond compensation. Communicate respectfully, maintain professionalism, and emphasise your career goals or aspirations that align with the new opportunity.
How Can I Negotiate if My Current Employer Can’t Match the New Job Offer’s Salary but Wants to Keep Me?
If your current employer cannot match the new job offer’s salary but wishes to retain you, explore alternative incentives such as flexible work arrangements, professional development opportunities, or additional benefits. Engage in open dialogue, negotiate respectfully, and seek mutually beneficial solutions that recognise your value while addressing their constraints.
