How to Negotiate a Salary Increase and Better Benefits

Want to Earn More? It Starts With Asking – Strategically

Negotiating your salary, hourly wage, or benefits can feel uncomfortable; however, it’s often the quickest and most effective way to boost your income and advance your career.

Yet most people don’t realize how much situational power influences salary negotiations. Whether you’re discussing a job offer, a performance-based raise, or a benefits adjustment, understanding power dynamics and applying proven tactics can greatly enhance your outcome.

Understanding ‘Situational Power’ in Compensation Negotiations

If one side holds situational power and leverage and decides to use it, the result usually favors them. That’s why it’s important to evaluate your position.

• Is your expertise, qualifications, and potential contribution in high demand?
• Is your skill set rare in the current job market?
• Do you have another job opportunity or offer?

If the answer is “yes” to the questions above, you might have more leverage than you think – however, only if you recognize and use available leverage.

Key Salary Negotiation Tips for Employees and Job Seekers:

1. Research and Know Your Value
   Use platforms like Glassdoor or PayScale to find salary benchmarks. Understand your unique strengths and prepare to communicate them clearly.
2. View The Other Side’s Initial Offer as a Starting Point (Their Opening Negotiating Position)
   Most posted salary ranges are just initial offers, not the final outcome. Learn how to carefully manage the process to reach your desired outcome (your goal for the negotiation).
3. Set Realistic Expectations Based on MPP
   Use a Maximum Plausible Position (MPP) – a request that’s ambitious – yet still seen as reasonable and defensible to the other side. Having unrealistic expectations that are not based on market conditions might derail the negotiations. Also, consider the after-tax impact of a salary or hourly wage increase.  If the increase puts you in a higher personal overall tax bracket – the “net effect” of the salary increase might be negligible in terms of take-home pay.
4. Always Use Real Dollar Amounts – Not Percentages
   Never say “I’d like a 10% raise.” Say: “I’d like to discuss an increase to $78,585.00 based on my performance, contributions, and increased responsibilities.” Don’t use percentages when you negotiate. Use real dollars.
5. Time It Right
   Choose strategic moments (e.g., post-project success or annual reviews). Avoid asking during budget cuts or the end of a fiscal quarter or year – unless you hold situational power leverage.
6. Document Everything
   Always get the details of a new or revised salary or benefits, terms, and conditions in writing. Protect your interests and avoid future confusion or misunderstandings.

Common Mistake to Avoid: Letting Emotions Take Over

Negotiation is about process – not emotion.  Learn to manage your mindset, read the other side’s negotiating personality type and corresponding style, and always remain composed under pressure.

Unfortunately, I can’t share all of my ‘how-to’ secrets in this blog post. In this post, I’ve covered some high-level insights into this topic.   Hire me as your negotiation skills trainer or coach to learn proven strategies, tactics, questions, questioning techniques, and tips that can help you improve results.

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