Sometimes it’s necessary to write a salary negotiation letter to clarify your position and ask for higher pay or a raise. That time we call “The Now Moment.” It’s when you NEED that higher salary now and negotiating is the only way to get it. Whether you are responding to an offer letter for a new job, getting a raise in your current position, or have an internal offer for a new position at your current company, you need to negotiate your salary to make more money right now. It can be scary–especially in a tough economy, but do yourself a favor and make it happen! While we at Springraise Salary Negotiation recommend you do as much negotiation as possible in person, over the phone, through a recruiter, or even an HR rep–a letter can be a powerful way to justify your request for more money.
What You’ll Lose If You DON’T Negotiate
A joint study by George Mason University and Temple University surveyed employees across many jobs and industries. What they found may surprise you. People who chose to negotiate (rather than accepting the company’s first offer) got an average of $5,000 more in annual pay. And that starting starting salary builds on itself. Let’s give an example. Two people start a job at the same time, both getting offers of $50,000. One accepts the $50,000, and the other negotiates for an extra $5,000, bringing her salary up to $55,000. Now, if they both perform equally well and thus receive the same percentage raises throughout their careers, the one who negotiated the higher starting salary earns $600,000 more over a 40-year career.
That’s right: $600,000.
Now do you see why you MUST know how to negotiate?
[Note: Our salary negotiation guide, SpringRaise Your Salary gives you PROVEN salary negotiation methods to get the money you need in your Now Moment and rocket your salary for the rest of your career.]
Key Salary Negotiation Steps
There are steps you must follow in salary negotiation that will better position you to get paid what you want and deserve.
- Know how your salary compares to others doing similar jobs in your geographic area. This can be accomplished in several ways including by getting your very own personalized SpringRaise Market Value Report as part of our guide, SpringRaise Your Salary – How to “Spring” Your Salary to Change Your Life.
- Know what data you need to convince the company that you’re worth the money you want. Certain pieces of data compel employers not only to consider your request for more money, but in good faith, to actually accept it. [Our salary negotiation guide lays that all out for you.]
Two Main Goals of Your Salary Negotiation Letter
If you must write a salary negotiation letter, it must achieve two goals:
1. Justify your request for higher salary
Justification of a higher salary request or raise can be difficult because there are few external sources that a company will consider valid to justify your request. There are some great pieces of information that companies do use including salary surveys. These surveys are sold to companies so they can get a sense of what competitive salaries are at different levels. If you have that report, then you have equal ground whether looking for higher pay or negotiating salary for a new job. Another powerful justification is to know the company’s salary scale for your position. Some companies publish it, but for those that don’t, having that information makes your negotiation that much easier.
2. Convey that you’re willing to walk away from the offer
Positioning in negotiation is key. The ultimate power in a salary negotiation is walking away. Companies spend thousands of dollars to get people in the seats to interview. When they like someone, they WANT that person. If you are that person and there’s a credible threat that you’ll walk away from the offer or leave your job for a competitor, companies tend to negotiate.
Let me make this clear:
***It is cheaper for them to increase your salary than it is for them to search for candidates.***
I have hired many people throughout the course of my career and this is generally accepted law, not theory. It’s a secret employers don’t want you to know! So have confidence and don’t be afraid to actually walk away if the salary isn’t right. Look for another job, even in this economy. For more information, check out our salary negotiation guide, SpringRaise Your Salary. This comprehensive guide walks you through the salary negotiation process, gives you real examples of how people have increased their salaries through letters and personal relationships, as well as gives you insight into how employers make salary decisions. SpringRaise Your Salary is a must-have if you’re in your Now Moment and you’ve just gotten a job offer or raise and want to increase your compensation. Not acting can lose you thousands of dollars. I’ve seen it happen. Don’t let it happen to you.
FREE Sample Letters: If you would like FREE sample salary negotiation letters, simply fill out the form with the subject “SNL” and we’ll send you your samples right away.