People don’t talk about it in good company, but the higher the share of revenues paid to an employee the lower the share of revenue to company ownership. This is why companies try to pay their employees less than they deserve. We don’t live in a utopia and if you want to get paid more you will need to negotiate for a higher salary. This article will teach you how to know your worth and negotiate a higher salary.
If you follow the instructions in this post you will create a win/win situation in your career
The issue is that most people are too lazy to put in the work with their career development. They want to be “Laissez-Faire” in their career and it shows by their lack of results. Following the steps below is the easiest way to add $10,000+ to your annual salary.
The trait of good employees
Good employees are employees that do what the company needs, and voluntarily take on more responsibility. They understand that to have exemplary performance at a company they need to do more than is expected of them. Any high performing and ambitious person will take on more responsibilities because they want to achieve more success for themselves and their company. This is how people get score well on performance reviews and get promotions in their career.
The truth is that this is one of the only ways new employees at a company can demonstrate their performance. Simply doing the work assigned to them at a satisfactory level is often not enough to be a top performer. The number one trait of good employees is that they voluntarily accept greater responsibility.
A good employee who has voluntarily accepted more responsibility will soon start to understand the reality of their situation. They have been performing phenomenally and doing more work for their company than their job description assigned to them. The realization they will make is that they are only being paid for the amount of work on their job description. They are an overachiever who creates more revenue for their company, but they are not being fairly compensated for the work they do.
This is the situation of the underpaid overachiever, and it often turns them into an insecure underpaid overachiever. Unfortunately for them, this is exactly the position some companies want their employees in. It often takes people a decent amount of time to realize the position they are in. They are underpaid for the work they do for their company. Now they realize they need to negotiate a higher salary, but they don’t know how. The rest of this article will explain how to negotiate a higher salary.
To negotiate a higher salary you need to create leverage on your side of the negotiating table. You can’t just walk into your bosses office and say “please pay me more, I am doing more than you are paying me for.” This will not work, this is business you need to learn how to negotiate. When you negotiate you need leverage over the other party. If you go to your boss and simply ask for more money they will say no and all you can do is sulk as you walk back to your cubicle.
Your employer needs to lose something if you leave (an asset for the business) for you to negotiate a salary, if you are not unique or skilled you cannot negotiate a salary. If you have nowhere else to go (no outside job offer) then your employer has no fear of losing you. They understand that you are not going to quit without having another job lined up beforehand. You need leverage and this is why both McDonald’s fry cooks and 22 year old recent college graduates never negotiate their salary. They are both dispensable and are the lowest level employees in their organizations.
So how do you create leverage? The best way to create leverage as an employee is to have other opportunities. Build an online business so that you have a consistent secondary source of income. Start learning in demand skills for your industry on the side of your main job, this could involve going for a degree or simply to take some online certifications of an in-demand skill. Doing this will ensure you are being proactive about keeping up to date with the skills that are needed in your industry.
Most importantly you need to update your resume and cover letter and start applying for new jobs. You should also look at the networking organizations in your industry and join those, or at least start going on networking coffee chats with professionals in your industry. Lastly, you may need to brush up on your interview skills. Be honest with yourself, if you are not comfortable about talking with a random person for 30-60 minutes your interview skills work.
You should be applying to jobs and your resume/network should be strong enough to at least secure you an interview at this stage. You should be crushing the interview and secure at least one job offer at a company you would actually join, for more money than you are currently making. Ideally you would have at least two job offers offering more than you currently make, but one offer will do.
The Win/Win Situation
Don’t sign your new job offer yet, first you need to talk to your company. When you get your job offer(s) from another company you need to go to your boss and tell them you are planning to leave for a better opportunity. If they want to keep you (they should) they should give you a counter offer matching the salary of your new employer. If they don’t offer you a higher salary they do not value you as an employee and you should take the offer from the other company. If they do offer you a higher salary you can choose between the two offers. Either way you have created a win/win situation.