Let’s face it – salary negotiations can turn even the most confident professionals into a bundle of nerves. In an ideal world, you’d stride into that meeting room like a boss, list your achievements without hesitation, and name your price without breaking a sweat. 🎤
But in reality? Most of us end up with sweaty palms, shaky voices, and an overwhelming urge to accept the first offer just to end the awkwardness.
Here’s the thing, though – skipping negotiations to avoid discomfort could cost you big time in the long run. Let’s crunch some numbers to see why it’s worth pushing through those nerves.
The Tale of Two Accountants: Alex & Sam 👥
Alex and Sam both join accounting firms at the same time, each offered a salary of £60k. Alex accepts the offer, while Sam negotiates up to £65k.
Fast forward 25 years. If they both stayed in the same positions and received a 4% annual raise:
- Alex would be earning: £158,760
- Sam would be earning: £172,089
That’s a difference of £13,329 per year – all from one £5k negotiation a quarter-century ago!
And remember, this doesn’t even factor in if Sam negotiated higher raises each year.
Feeling motivated yet? Great! Let’s bust a common myth and then dive into our 3-step strategy.
Myth Busted: “Companies will be offended if I negotiate” ❌
This belief is as common as it is false. Most employers expect negotiation and often respect candidates who advocate for themselves professionally.
Now, let’s get you ready to negotiate like a pro!
Step 1: Do Your Research 🕵️♂️
Before you start negotiating, you need to know your market value. Here’s how:
- Use Glassdoor to check salary ranges for your role and experience level.
- Network with colleagues. Try this script: “I’m preparing for my review and considering asking for a raise. Would you be comfortable sharing your salary range to help guide my negotiation?”
Step 2: Prepare Your Magic Numbers 🎱
You need three key figures in your negotiation toolkit:
- “Reach for the stars” ⭐: The highest number you can say without laughing. Base this on the upper end of your market research.
- “If the shoe fits” 👠: The number you’d be happy to accept. It should allow you to live comfortably.
- “Thank U, Next” 👋: Your walk-away number. This is the minimum you need to cover your expenses and feel valued.
For example, if you’re a Senior Accountant in London, your numbers might look like:
- ⭐ £75,000 (reaching high)
- 👠 £68,000 (happy medium)
- 👋 £62,000 (absolute minimum)
Step 3: Master the Conversation 🗣️
Golden rule: Don’t discuss salary right away. Use the interview process to showcase your value first.
If they ask about salary expectations early, try these responses:
Them: “What are your salary expectations?”
You: “It’s a bit early to discuss that. I’d love to learn more about the role first. Can you share the budgeted range for this position?”
If they insist:
You: “I’m open to considering your best offer based on the value I can bring to the role.”
Remember, negotiation is a normal part of the hiring process. By preparing thoroughly and approaching the conversation confidently, you’re setting yourself up for long-term financial success.
At Dead Simple Accounting, we’re all about empowering professionals to maximise their earning potential. If you’ve used these tips in your negotiations, we’d love to hear about your wins! 🎉
Want more finance tips and accounting insights? Stay tuned to our blog, or reach out to discuss how we can help simplify your finances and boost your bottom line! 📊💡
