Firstly, the notion that “you can’t negotiate your salary,” is a financial fallacy because every part of your compensation package, including your salary, is open to negotiation. Many people falsely believe that the first salary offered by an employer is the final offer, but most of the time, companies expect employees to negotiate. Employers often leave room in their budget to negotiate salary, and they typically respect employees who value their worth and advocate for themselves. Not negotiating salary can cost individuals significantly over their career.
Many people are uncomfortable discussing money and may feel that it’s impolite or aggressive to negotiate salary. Others may feel intimidated or anxious about negotiating in a professional context, fearing that they could potentially lose the job offer. So, it’s a common trap to fall into, but it comes from misconceptions about the salary negotiation process.
An effective financial strategy in this scenario is learning how to effectively negotiate your salary. This means doing your homework researching market rates for your role and industry, knowing your worth, presenting a compelling case based on your skills and accomplishments, and being prepared to counter with a rationale and composed manner when the employer presents their offer.
Here are some additional readings:
“Women Don’t Ask: Negotiation and the Gender Divide” by Linda Babcock and Sara Laschever. Book Link. This book discusses why many individuals, particularly women, do not engage in salary negotiations and suggests possible solutions.
“Negotiating Your Salary: How to Make $1000 a Minute” by Jack Chapman. Book Link. It’s a comprehensive guide to salary negotiations, offering step-by-step strategies and insightful anecdotes.
“Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher, William L. Ury, and Bruce Patton. Book Link. While this book is not specifically about salary negotiation, it provides key insights into effective negotiation techniques, which are largely applicable to salary discussions.
“10 Myths About Negotiating Your First Salary” by Deborah Kolb & Elizabeth Riley on Harvard Business Review. Article Link This article clears up misconceptions surrounding first-time salary negotiations.
“I Will Teach You to Be Rich: No Guilt. No Excuses. Just a 6-Week Program That Works” by Ramit Sethi. Book Link.