1) Knowing your “bottom line”:
Before starting your negotiation, take a close look at your finances and calculate your monthly expenses or a rough estimate of the monthly expenses at the job location. Then, determine the lowest possible salary you can earn and still be able to support yourself and your immediate family. Then, in the best-case scenario, evaluate how much you want to save monthly. At this point, you have the numbers for the worst and best cases, and you are ready to negotiate.
2) Market Research (what am I really worth?):
To obtain the pay you deserve, you need to know the going rate for your position in your specific industry and your geographic area. Therefore, carry out market research on what the intended role pays using sites like Salary.com, Payscale, Glassdoor, etc. For professionals, you may ask others in your field (ideally both men and women, to avoid falling victim to the gender pay gap).
3) Geographical Location: Will the location lower my living expenses?
It may make sense geographically to take a lower-paying job if you’re moving to an area where living costs are cheaper. “A job in Indiana isn’t going to pay as much as one in San Jose, California, but it’s all relative. For example, a 2-bedroom condo going for $1,100 rent in Indiana will cost you $5,000 in San Jose, California. So, before you get excited about that base pay, you need to crunch the numbers. For those applying for a new job and who have no clue about taxes for the new location, use neuvoo.com to get an understanding of your taxes or potential taxes at the location of your job.
6) When do I negotiate or renegotiate my pay?
A good time to negotiate your pay is during mid-year or end-of-year performance review with your manager. You can also negotiate your pay during your anniversary or when you have acquired a vital ability or degree, or certification that is needed to enhance your career or capabilities.
Since one size doesn’t fit all, you may need tailored guidance to help you through your negotiation. Please reach out to me to find out about my mentorship program. Let me help you evaluate or reevaluate your market worth and strategically plan your negotiation as you approach the end of the year review table.