Salary Negotiation | How to Ask for What You Deserve?
I always hated negotiating. You may have seen people who count the coins and pay the exact price in a local flea market. I am that guy. So it was no surprise that when I first got a job offer in Germany, I happily settled for whatever salary the company offered. I knew I was paid less, but somehow I never asked for a raise. Every morning I wake up and think, "Today is the day I will ask for what I rightfully deserve.” Then you go to the office, stand in front of the manager's cabin, and tell yourself; I think I have a cold; let's do it another day.” I was so uncomfortable even bringing up the topic. I don't know. I guess I just didn't want to look braggy or needy. Also, what if, worst case, I get fired? Those were my thoughts. Somedays, I will watch a motivational video to boost my confidence(Courage boosting on the side, health indicator from video games).
Even then, the conversation went something like this. [Me: about to ask a question. But not getting the words] [Boss: Yeah, tell me, Tell me. Tell me. With round eyes ] [Me: "Nothing, sir. All good. I will skip my morning coffee, save some money, and I will be happy with my life."] It was a total disaster. Not just because I was paid less. I was not feeling good about myself, and it was affecting my overall confidence. But then something happened, and fast-forwarded six months, I got the biggest salary hike in my career. And this is the story of how I did it.
If you are new to the blog, my name is Srijith, and here we talk everything about wealth, happiness, and sometimes credit cards. On the first day of my transformation, I woke up from my sleep and, like every other day, went for my morning run. No, I didn't. I stayed in bed, reached for my mobile, and aimlessly scrolled through social media. Then I saw a new message notification. It was a forwarded message on WhatsApp with an inspirational quote, You can do it. All it takes is a plan. and a photo of a guy next to it. Usually, most of the forwards I get on WhatsApp are like this. So I ignore such messages. But the guy in the photo looked familiar.
So I went to Google to dig a bit deeper. That was Ramit Sethi, a famous personal finance advisor and the author of the book I Will Teach You to Be Rich. I read about him online, and out of curiosity, I ordered the book on Amazon. The book was delivered to me in a few days, and between those pages, I found the wisdom I was searching for. This book had practical tips on how to negotiate a higher salary. I then did some additional research on the topic and came up with a strategy. And this blog, I will share all that knowledge with you so that you don't have to wait anymore for that much-needed salary hike. Remember that this is not a magic trick or a one-time event. There are three stages. And it starts 5 to 6 months before you even ask for a raise.
Stage 1: The Proposal
So I kicked off stage 1 by emailing my manager and asking for his time to discuss improvement opportunities in my work and career . Once I got the meeting confirmed, I began my preparation. I started making a list of all the tasks that I am currently working on and areas where I can make improvements. To this list, I added pieces of training I could attend and some new responsibilities that I could take up. When it came to the day of the meeting, I told my manager. Thank you for your time. I would like to be a top performer for this company. Could you help me to understand what it would take to get there? Now, your manager may not have come prepared for this and have any concrete suggestions for you.
So that's where our preparation comes in handy. So I tell him, I am currently doing this and this. I intend to complete XYZ tasks in the next six months, attend these new training, and take up these new responsibilities. And I will keep you updated on the progress. One pro tip: Only give away 75% of what was there in your list. Dial it down a little so that when you deliver on the promise, it is better than expected. Finally, we both agree on what it takes to be considered a top performer.
And then, before we conclude the meeting, I tell him I have one more point to discuss. He said, yes, tell me, Srijith. So I asked him, If, at the end of these six months, I exceed the expectations, would you be open to discussing a possible salary hike?" He thought for a moment and said yes. There was no way he was going to say no. Because one, he didn't have to make a decision immediately. I wasn't asking for a raise. I was just asking for a path to get a raise. And second, I promised to provide value and exceed expectations. And I don't think any manager would say no to that.
Stage 2: The Act
Now comes the second stage of our strategy. The Act. This is the time for you to deliver on your promises. I started working on my tasks, tracking and documenting everything. If I was expected to complete a task in 4 months, I did it in 2. And then I wrote down the steps I took to get there. Whenever I did something that benefited the company, I noted it down. And I kept updating my manager about the progress once a month. I know this phase isn't easy. But as I said, this is not a trick. You have to put in the work. Then five and half months into my plan, I move the final piece in the puzzle.
Stage 3: The Closure
Now it's game time. I scheduled a one-on-one conversation with my manager to give a final update on my progress. One pro tip. If it is an option, time the whole strategy so that this meeting, where you ask for a raise, happens during the annual performance review. Most likely, towards the end of the year. This is the time when most managers expect these discussions to happen. Now, after putting in so much effort for the past few months, the last thing I want to do is walk into this meeting without any preparation. So I write down my current salary and the competitive salaries for a comparable position, along with a summary of all that I achieved in the past few months. I also prepared counterpoints for all the excuses my manager could throw in my direction not to give a hike.
Like, for example, if the manager says I have to put in more effort or take on more responsibilities, then I am gonna remind him of what was agreed initially to be considered a top performer. If not having enough experience is the blocking point, I will explain to him how I am giving value above my current experience level. You get the point. So now, on the day of the meeting, I reach the office early. I am eagerly waiting at my desk for the meeting to start, pretending to do some work, but I am tense. It doesn't matter how well you prepare; sometimes, it gets to your nerve.
Finally, I was in the meeting room, and I explained to my manager how I could deliver more than what was expected of me. And I can see from his face that he is impressed. Now at the end, I bring up the topic, "You remember we had discussed a possible compensation adjustment. My boss says, Yes, I do remember. So I have researched blah blah websites and talked to a few people in the same career trajectory as me and believe I should be earning around 70-75k.
That was a mistake. I should have given an exact number instead of rounding it off or asking for a range. Like always, ask for $57,650 instead of $55,000. Your employer will be more likely to assume that you have done serious research into your market value. But now my boss is not saying anything. And in my mind, I am thinking, "I have done more than what he expected me to do. There is no way for him to reject my proposal." Or so I thought. But he said. Yes. I can't explain how relieved I was at that moment. You know, it wasn't just about earning more. That was always there, but more than that, I had overcome a long-standing fear of mine. And I knew this would flow over to other areas of my life.
Being silent about this only benefits the companies and the managers who are okay with not paying you more. I hope this blog inspired you to be more confident and stand up for what you deserve. If you are planning to switch companies and want to know how to negotiate the salary with your new employer, I will soon come up with a blog for that. Until then, you can learn some practical tips from this guy. Do visit my blog again and share it with people who need it.
