Many people fail to appreciate the non-monetary benefits of negotiating. In addition to the obvious increase in current and future income, (the money you negotiate now, the interest on the portion of the increase that you bank, and additional income on future raises) making the choice to negotiate benefits us in a host of other ways that are advantageous to our career.
Negotiating a robust salary that reflects our standing in the industry can also influence the title that goes along with the job. The higher our compensation, the more likely we are to garner a prestigious title, and as a side benefit of that title, the more credibility we bring to the role. By the way, negotiating the right title should be part of your overall strategy. A well thought out compensation strategy is never just about money and should reflect current and future career goals. It is also fair to mention that money and title only go so far.
That initial credibility boost will quickly evaporate if we fail to deliver value. In addition, those who believe in themselves enough to negotiate are more likely to be perceived as highly valued and therefore awarded the bulk of the plum work assignments.
The increased visibility garnered from these projects can translate into greater access to the organization’s movers and shakers.
So what seems like a simple demonstration of confidence — negotiating compensation — can have a far-reaching impact on our career. As a result, we are more likely to gain the attention of potential mentors and influential decision-makers who can help us move up the corporate ladder.
Every time we make the decision to negotiate our self-confidence improves, our credibility with bosses and peers increases, and our career gains momentum. The very act of negotiating even a small win increases the likelihood that we will negotiate in the future.
It is helpful to remember that your compensation provides important information about your confidence, abilities, level of responsibility and overall expertise. It gives your boss or future employer insight into your future potential and current readiness for additional responsibilities. If your salary is not an accurate representation of your expertise and skills, it is up to you to change that perception.
At a recent presentation on salary negotiation one man shared his story. Joe was offered an internal promotion as a contract manager with what seemed like a significant bump in pay. After doing some research he realized that the salary was lower than industry standards. Before saying ‘yes’ he decided to negotiate. The company president sheepishly agreed to the increase in compensation, admitting, “I shouldn’t be surprised; it is exactly what I expect you to do with our vendors.”
One of my clients negotiated a $30,000 increase when she was offered her current position. She did this with confidence and the sure knowledge that she would deliver far more than the organization expected. Was this the first time she negotiated? Heck no! During the more than 15 years we have worked together she has honed her negotiating skills. She does her homework and shows up prepared to make the case for her value.
With a little preparation and practice you can negotiate your overall compensation too!