Businesswoman and businessman HR manager interviewing woman. Candidate female sitting her back to … [+]
I spent 10 years in human resources and recruiting roles. Here are my top secrets to negotiate pay that employers don’t want you to know.
Women of color too often set lower salary requirements than white men. I saw this firsthand when worked for several financial services firms and tech startups.
Now as a money coach, I field questions from fellow women of color like this:
“I have been working at this company for several years now. And I know for a fact that I am underpaid for my job. I know this because I do salary ranges for other people’s jobs and I am well below the median. I would like to have a discussion with my manager to discuss a salary raise and I don’t know how to start.”
Negotiating pay is easier said than done, especially if you’re a woman battling imposter syndrome. Here are six secrets as a former recruiter I want you to know to help you in your next pay conversation.
1) Use A Very Specific Number When You Are Asked What You Want
I read a 2013 study from Columbia Business School that showed for example, $50,750 as a number that you’re going into the negotiation with, instead of $50,000, guess what?
It makes you present yourself as assertive, smarter, and much more informed.
As a recruiter, when an employee or prospective candidate used a more specific and precise number in their initial negotiation request, I was more likely to get the final offer closer to what the person requested.
It made me believe the candidate was coming from a place of information and research and competence, and not just pulling a number out of the blue.
Now if you’re thinking how do I pick that number? It can be based on the research that you find for the job that you are in, looking at the salary ranges. But it can be based on your own needs.
For example, if you are buying a new home, and you know that your mortgage payment is going to increase by $100, then increase the job pay that you’re looking for by the amount that you want toward your mortgage.
Or it could be my favorite number: How much debt do you want to pay off this year?
Your employer doesn’t need to know that’s the reason. The simplicity of your specificity will rarely get pushback.
2) Let LinkedIn Say What You’re Afraid To Brag About Yourself
I’ve interviewed hundreds of candidates over the years and women have a really hard time bragging about their skills, and what they’ve accomplished.
If you are going for a salary negotiation, you must be willing to document and speak to what you’ve already accomplished, not just what you think you can bring in the future. LinkedIn is the perfect place to document your accomplishments because it is public, whereas your resume and performance reviews are private.
It also sends a clear signal to your current or potential employer that you are not afraid to share with prospective employers who are looking for you.
The days of unquestioned loyalty as an employee are dead. It’s okay to let your employer know it’s a two-way street.
3) Leverage Public Customer And Co-worker Testimonials On LinkedIn, Too
One of the best features of LinkedIn is the option to post recommendations. It shows that a real person took the time to write a recommendation for you that would be publicly shared, and it feels more credible.
I have more than 15 recommendations on my LinkedIn profile that have gotten me business opportunities that I otherwise wouldn’t have acquired.
It’s a strategic way of saying you’re awesome, without actually having to say it yourself.
4) Don’t Get Trapped Into The Fallacy Of A 40-Hour Work Week
If your negotiations fail for higher pay, work less. Sounds crazy, but by law, if you are a salaried employee, your employer cannot dictate how many hours you work.
Otherwise, the employer is legally obligated to pay you overtime.
If you’re getting a salary that’s lower than you want, consider how you can do that job in fewer hours. And no, you don’t need your company’s permission or to broadcast that you are working less.
5) Don’t Rule Out Negotiating Employee Offers Into Consulting Work
A company that courted me for years wanted me to be an employee. They offered me $85,000 simply because the person who just left the job made that much at 40 hours a week.
I considered the time and energy that it would require for me to deliver what she did, and I knew I didn’t need 40 hours to do the job well.
I said, “I would still love to work with you, but as a consultant. I’m happy to take the $85k, but I’ll make my own hours and still run my own business.”
The CEO said, “I don’t know how that’s going to work. How can you do your business and also work for us?”
I said, “Would you be asking me this, if instead of a business, it were kids? Let’s try it out for six months. And if you don’t like what I’m doing, we can both end the contract six months from now.”
I got so efficient at this secret, that I was working maybe 10 hours a week, for the same amount of pay that the employer gave someone else to work 40 hours a week. At the end of the six months, they still wanted to pay me the same rate and continue the opportunity.
6) The Hardest, But Most Effective Strategy: Set Your Finances Up For Freedom To Walk Away
This is your biggest tool in any negotiation. You need to be willing and able to walk away. When considering your numbers, you need a walkaway point, an offer that you have to turn down.
This can be based on your financial need, your market value or simply what you need to feel good about the salary that you’re bringing home.
I strongly advocate getting your personal finances in order, particularly paying down all consumer debt and having three months’ worth of expenses saved.
Being debt free now for four years, I have the confidence to walk away from any job in which the offer doesn’t match my needs or expectations. Having at least three months’ worth of expenses gives you the runway to wait for the right opportunity to come along, and not have to accept lower than you deserve.
