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May 2, 2022 Category: Information System (4 minutes read)

Are These Salary Negotiation Myths Getting in Your Way?

Are These Salary Negotiation Myths Getting in Your Way?

Myth #1 - Your market value can be a fixed number

You've probably heard that market value is important. It is likely that you have spent much time searching online for industry norms or pay rates. It can be difficult to base your negotiations upon market values.

Reality: The market value is a moving target

The stock price is not the true market value. Although there are some historical factors that could influence the company's market value, it is mostly determined by forward-looking and dynamic elements such as how investors value the company and the story it tells. It doesn't matter if you have a track record of success. It all depends on what other employers are willing to pay you and the story that you can tell about your value.

These suggestions will help you to estimate your value during negotiations:

  • When comparing your salary, be bold. When you negotiate for a job, try to get at least 15% higher. Communicate the maximum salary range you can see online.
  • Accepting a lower offer than what is offered will not be acceptable. Companies want to maximize their profits. It is almost never a good idea to accept the first offer. Sign bonuses range from $0 up to $150K, and equity can be as high as $140Kor $1.5M 
  • Don't limit yourself to market value. It is constantly changing. You can help raise expectations by pushing the boundaries of what is reasonable.

Myth #2 - Compensation cannot go beyond what a company has offered you

  • You might have heard that employees at the top end of their salary range cannot receive a higher salary from the company.

 This explanation might make it appear that there is no room to negotiate.

Reality: There are many ways to arrange your salary bands

  • It's more common than most people realize.

 Move beyond the salary range. This department is responsible for ensuring the company stays on budget, not your future team. It is also responsible for driving the business forward.

There are many ways to get around salary ranges.

  • Ask for approval from HR. Are you willing to talk with your manager? There may be a misalignment of expectations regarding how I will contribute. To show your manager that you are more valuable than the band, you might be asked to speak to them.
  • Negotiate to be promoted to a better job. "I want to be a senior-level worker that adds the greatest value to your company.
  • Negotiate non-salary factors to increase your total compensation. Base salary is usually determined by salary bands. You might be able to increase equity or sign bonuses, relocation stipends, or other benefits if the company doesn't negotiate.

Myth #3 - A counteroffer is required to get a company's offer changed.

This is a popular way to negotiate higher compensation. Many people believe they can't negotiate without making counteroffers.

Reality: Contra offers are not an option

While counteroffers can be a powerful negotiation tool, they can sometimes be harmful. They limit your compensation to the amount you have received elsewhere.

These are some tips to help you include counteroffers in negotiations.

  • You should not give your personal information to the company, even if asked. They may even tell you that they can't negotiate with you if they don't have one. To get around this, you can say something like, "I would rather my compensation be based on my value to your company than how other businesses value me."
  • Negotiate based on your value. Tell them that you have other options.
  • Only make counteroffers if you are unable to negotiate with the company and have better offers.

Myth #4 - If you don't negotiate compensation, it is because you aren't passionate about your work.

Negotiations can often be viewed as shameful by many people. If you really care about the work, you won't feel like you're a team player when you ask for more.

Reality: All Companies Expect Everyone To Negotiate

Negotiation is expected by companies, even if they do not act according to the agreement. You should be paid accordingly.

These strategies will help you overcome the shame of negotiating:

  • Search for professionals older than you. These professionals have been there, seen it all, and are able to see the realities of the industry. They can also be part of hiring managers.
  • Discuss your negotiation successes with other people. You may be surprised at the results you get simply by asking.
  • Discuss your fears with a mentor. This will allow you to determine if they are valid.Z

Myth #5 - You can't ask for assistance in negotiations

It's easy for companies and individuals to control the negotiations. You might feel like you are responsible for everything, given your job.

Reality: It is normal to require and use assistance.

Many people don't realize that there are others who can help them negotiate. They are often fortunate to have a mentor in their industry who is invested in them.

If you don't have mentorship, you need to be proactive. It is perfectly normal to depend on others for information or support.

If you are unsure, don't be afraid to ask for help.

  • Negotiation is a skill that companies excel at. This will be your primary role. You might have support from the HR business partner, compensation analysts, or the hiring manager. You shouldn't limit the value of their experience, which could be decades or even decades.
  • Experts have access to more information than yours when it comes down to determining market values. This information includes what their team members are being paid, as well as what others make in similar positions at other businesses.
  • It's normal to ask for help in other areas. When you negotiate your career, it is crucial to have someone on your side.

Sources:

https://www.themuse.com/advice/negotiation-myths

https://www.payscale.com/career-advice/dont-fall-for-these-5-salary-negotiation-myths/

https://www.salary.com/articles/10-salary-negotiation-myths/