Let's talk about money: everything you need to know in advance about successful salary negotiations

Let's talk about money! Negotiating your salary is more than just a formal discussion - it's about recognizing the value of your work and being paid fairly. Whether you're currently in a recruitment process or have been in the job for a long time, the right approach can affect your financial future. Here we explain why salary negotiation is so important and when the best time to do it is.

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Why salary negotiations are so important:

A successful salary negotiation ensures that you are paid fairly for your work and your skills. Be bold and actively ask for a raise. More than 75% of employees who ask for a raise get one. 

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Statistics show that people who regularly negotiate their salaries earn significantly more than those who do not. The reason is obvious: every salary you negotiate lays the foundation for future increases, as percentage increases are often based on the current salary.

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But when is the best time to negotiate a salary and how much can you expect?

1. On recruitment: Joining a new company is the ideal time to negotiate your starting salary, which forms the basis for future increases. With a new job, you can expect a salary increase of up to 20%.
2. After professional successes: Have you successfully completed an important project or received special recognition? This is the perfect time to talk about your salary. An increase of 2 to 4 percent may be appropriate.
3. During annual performance reviews: Many companies offer annual reviews, which provide a natural opportunity for salary negotiation. Here you can usually expect an increase of 3 to 5 percent.
4. If there is a significant change in your role: An increase in your responsibilities should also result in an adjustment to your salary. For this, 5 to 7 percent is appropriate.

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What does the salary increase depend on?

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We have now shown you percentage guidelines for the salary increase, but this increase depends on many different factors. These include, for example

• Is the company a large and well-known player in the market or a small company?
• Does the company belong to a sector that is currently doing well or a difficult one?
• What are normal market salaries? 
• Is your company economically stable?

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You can usually find these things out by searching the internet. For example, you can use the salary calculator from the Federal Statistical Office to find out about standard market salaries.

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What are the alternatives to a salary increase?

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Sometimes, for various reasons, the employer may not be able to offer a salary increase. Therefore, consider bonuses or other additional benefits as an alternative. 

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What are the best strategies and techniques to use?   

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Salary negotiations can be nerve-wracking, but with the right preparation and tactics you can improve your chances. The right preparation is everything.

Always start with good research. This will help you to determine the appropriate level of your salary. With all the information, you can then easily explain and justify your monetary demands. 

You can use these to determine your realistic target and salary requirements. This includes naming the right opening offer. It's wise to negotiate a little higher initially to give yourself room for negotiation. But don't overdo it! For example, if based on your research and qualifications you think a gross annual salary of 40,000 euros is appropriate, start the negotiation at 43,000 euros. It's a good idea to use crooked numbers. Specific figures such as "39,540 euros" make a more thoughtful impression and are more convincing than rounded sums.

Once you have started negotiations, you should always emphasize your achievements. Emphasize how your work has directly contributed to the success of the company. Be specific and give concrete examples. It is a good idea to regularly document your achievements during your work. 

It is also a good idea to practise your conversation and arguments beforehand. After all, a confident demeanor does not come by chance. Prepare your possible answers to the employer's objections. 

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What should you avoid in a salary negotiation?

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When we discuss a higher salary with the employer, this is a negotiation. Such a salary negotiation should always be conducted professionally and objectively. Therefore, don't let your emotions get the better of you and always try to build your argument with concrete examples and facts. 

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In addition, negotiation means that there is always room for maneuver. Don't accept the first offer that comes along. Be open to suggestions, but also be prepared to make your own counter-offers. Make sure that you do not link them to an ultimate demand . This includes demands such as "If you don't increase my salary by 10% by the end of the month, then I'll work less". 

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Another important tip is to avoid comparing yourself with colleagues. In your salary discussion, focus exclusively on your own performance and qualifications. Comparisons can be perceived negatively and are often not helpful.

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How can you protect yourself after a negotiation? 

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Would you like to make sure that you receive the services you requested after your interview? Then a record of the results can help. Record everything discussed in writing and have your employer sign it. You can also agree regular salary reviews to adjust your pay to the market value and your performance.

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If you would now like to find out more about possible formulations and good arguments in a salary negotiation, then follow our next article in our magazine. 

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Are you looking for a new job? No problem, we'll help you find the perfect job for you! Register on WorkerHero today so that you can soon enjoy your first day at work with a new employer.

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