Tags: pay raise | negotiate

How to Negotiate a Pay Raise Amid Layoffs, Inflation

How to Negotiate a Pay Raise Amid Layoffs, Inflation
(Jochen Eckel/AP)

By    |   Friday, 09 August 2024 01:31 PM EDT

Securing a job offer is an exhilarating moment, a testament to your skills and hard work being recognized. However, the joy can quickly turn to disappointment when the offer is lower than expected, leaving you feeling undervalued and conflicted about your next steps.

According to a recent survey by CareerBuilder, more than half (53%) of employers say they are willing to negotiate salaries on initial job offers for entry-level workers, and 52% say when they first extend a job offer to an employee, they typically offer a lower salary than they're willing to pay so there is room to negotiate.

With the labor market showing signs of weakness and employers easing hiring, there is a rising share of jobless Americans.

Given these conditions, turning down a job offer feels risky, but the low ball offer undervalues your worth and skills. In this situation, consider negotiating for better terms or evaluating whether the job aligns with your long-term goals before making a decision. Here are 5 tips on how to counter a lowball salary offer in a slowing job market:

  • Ask Strategic Questions. Ask questions rather than making demands. The person asking questions controls the conversation. And, you want to get them to the solution rather than pitching it to them. E.g. Is there a range for this role? What is the top of the range? What typically determines where in the range someone stands? Etc. By asking strategic questions, you gain valuable information to help you better understand the employer's position and find ways to negotiate a better offer.
  • Set Goals and Be Prepared to Walk Away. Enter the negotiation with your highest desired salary and be prepared to walk away if necessary. This mindset helps prevent you from being anchored by a low offer. Write down your goals and desired outcomes to remind yourself of your worth and to stay focused during the negotiation.
  • Be Comfortable with Silence and Delays. Embrace the discomfort of negotiation tactics such as silence, taking time to respond, and not immediately expressing gratitude for a low offer. Practice these strategies to become more comfortable. For instance, after receiving an offer, say, "I understand the offer. I'll need some time to think about it," and follow up later with a counteroffer or questions.
  • Have a Decision Tree Ready. Prepare a decision tree to guide your responses based on different offer scenarios. Think through how you will respond if you get a low ball, a decent offer, and a better than expected offer. For example, if you receive a low ball offer, you might want to say, “I’m excited that it appears that we both feel there is a match for me to work here, however, I'm disappointed by the offer. Can you tell me more about what it’s based on? What is the range for this role?” If you hadn’t prepared, you might be too soft (afraid you might lose the offer) or too strong (emotionally charged, saying something you’ll regret). This approach ensures you have a planned, confident response ready.
  • Use Data in Your Counter Offer. Respond to low offers with a positive and constructive approach. Before negotiating, research what the company pays overall, what they pay for that role, what the cost of living is in your area compared to others, etc. And then use this information by sharing the precedents/objective data. Rather than asking for it or making counters, put some of these data points on the table and see how they react.

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Andres Lares is a managing expert at Shapiro Negotiations Institute!

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Securing a job offer is an exhilarating moment, a testament to your skills and hard work being recognized. However, the joy can quickly turn to disappointment when the offer is lower than expected, leaving you feeling undervalued and conflicted about your next...
pay raise, negotiate
596
2024-31-09
Friday, 09 August 2024 01:31 PM
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