How to Negotiate Your Salary According to Market Value
Learn how to perform salary negotiation according to the market value of your position. (Courtesy of AndreyPopov/Getty Images)
Salary negotiation is one of the most important conversations you will have when starting a new job. You can get a market value compensation that meets your demands and expectations if you negotiate it correctly. In this comprehensive guide, we'll cover tips for researching the market value of your position, ways to present your case, and techniques for use throughout the negotiation process.
What is a Market Value Salary?
A market value salary is the amount of money that an employee should be paid for their position, based on the current market conditions. This number is usually determined by looking at similar positions within the same industry and geographical location. While doing the salary negotiation, you will want to make sure that you are being paid at or above the market value for your position.
There are a few different ways to research the market value of your position. You can start by looking at the salary data of your career. The best way to do this is to look for data from a source relevant to your career path.
For those in the life science industry, BioSpace's 2022 U.S. Life Sciences Salary Report is a great place to start. There, you'll find the average salary for a majority of positions in the pharma and biotech industries, based on the responses of professionals working in the field.
Once you have a good understanding of the market value salary for your position, it's time to start preparing for your negotiation.
How to Negotiate Your Salary According to Market Value
When you are negotiating your salary, there are a few different strategies that you can use to get the best deal. With more people changing jobs now than in recent years and the pandemic still at large, workers have more negotiating power than ever before.
As a result, the most important thing to remember when negotiating your salary is that you are often worth more than the market value. The market value is simply a starting point for the negotiation, and you should always aim to get paid more than the market value. In this article, we will go over a few different ways that you can adjust your value as an employee so that you can get the best possible salary.
Before we get into the tips, though, let's go through what to consider while determining your leverage in the salary negotiation process.
Understand Your Employer's Limits
The first thing you need to understand is the size of the company and its flexibility when it comes to salaries. If you're negotiating with a large company, the hiring manager may have set salary ranges for specific positions. In this case, it's important to understand what the range is so you can negotiate within that range.
On the other hand, smaller companies may not have set salary ranges. This gives you more room to negotiate, but it's important to keep in mind that smaller companies often have less money to work with.
The second thing you need to look at is the company's financial health. If the company is doing well, it may be more willing to negotiate on salary. However, if the company is struggling financially, negotiations may be less likely.
The third thing you need to consider is the cost of living in the area. If the cost of living is high, you may want to negotiate for a higher salary. The cost of living is a good argument in your negotiation for a greater salary and can be utilized to "correct inflation," so to speak.
Now that you've factored in the company's size and flexibility, the company's financial health and the cost of living in the area, it's time to look at some salary negotiation tactics you can use to adjust your value as an employee.
Start at the Top
The first negotiation tactic is to start at the highest possible number. By starting high, you leave yourself room to negotiate down to your target salary. This technique is often used by experienced negotiators, as it can be difficult to come back from a low opening offer.
The most important thing to remember when using this technique is to be realistic. If you start too high, you risk being taken out of the running for the job. Keep in mind your position's market value, as well as the skills you bring to the table.
The second salary negotiation tactic is to sell yourself. This means that you should highlight all of your experience, accomplishments, and skills that make you the best candidate for the position. By doing this, you will be able to demonstrate your value to the employer and negotiate a higher salary. If you are not satisfied with the market value of your expertise, demonstrate an understanding of the company's needs and how your skills can help it reach its goals.
For example, you might say something like, "Based on my research, the market value salary for this position is X. However, I believe that I am worth more than that because of my skills and experience. I am confident that I can bring value to the company and help you reach your goals."
Confidence is Key
The most important thing to remember when you are negotiating your salary is to be confident. Walk into the negotiation with a clear understanding of your worth and what you are willing to accept. By being prepared and confident, you will be more likely to get the salary that you deserve.
When you do salary negotiation, the employer may ask you tough questions. They might try to lowball you by asking for your current salary, or they might try to get more information about your expectations. It's important to be prepared for these questions and have a response ready.
For example, if an employer asks for your current salary, you can say something like, "I am not comfortable sharing that information. However, I am happy to share my expectations for this position." Be firm but polite, and remember that you are under no obligation to share information that you are not comfortable with.
The worst possible scenario is that you are not hired, allowing you to move on to a different company. This also allows you to explore additional possibilities for higher compensation.
If an employer asks about your experience or qualifications, be ready to provide specific examples of your skills and accomplishments. By being prepared for these questions, you will be more likely to get the salary that you deserve.
Be Ready to Walk Away
If you are not happy with the salary offer that you receive, don't be afraid to walk away from the negotiation. Sometimes, the best way to get what you want is to show that you are willing to walk away from the deal.
Keep in mind, however, that walking away from a negotiation should only be used as a last resort. If you do decide to walk away, make sure that you have a backup plan in place. For example, you might say something like, "I'm sorry, but I'm not willing to accept anything less than $X. If you can't meet my salary requirements, then I'm afraid I will have to look elsewhere for employment."
By using these salary negotiation tactics, you will be more likely to get the salary that you deserve. Workers have more leverage than ever before, so don't be afraid to use it. Stand your ground and negotiate your value as an employee. Just remember to be prepared, confident, and willing to walk away from the deal if necessary.