Salary negotiations will come up again and again in your career. There can be various reasons for this: a job interview, a promotion, a new job in the company, or a completed probationary period. In this article, you can find out how to find the right arguments in the next salary negotiation when it is best to address the topic, and much more.
When is the right time for a salary negotiation?
In your professional career, there will always be moments when you can ask for a salary increase or when a salary negotiation becomes an issue. In the following, we present classic situations in which you can state your desired salary.
At the interview
Classically, the future salary is already discussed during the interview. Here you can start negotiations based on the offer made to you by the employer. It is best to think about your optimal salary and your pain threshold in advance.
After the trial period
Once you have completed your probationary period in a company, the topic of salary negotiations can become relevant. In this phase, however, you should not expect a salary increase, as this could possibly be too early for the employer.
At the employee interview
Salary negotiations or an increase in salary often take place in the annual appraisal interview. If you believe you deserve a higher salary, you must present the appropriate arguments. You can find out more about this below.
On a promotion
A promotion is an ideal time for salary negotiation: you’ve just proven that you’re destined for higher things – otherwise, you probably wouldn’t have gotten a promotion. Take advantage of this situation and get a correspondingly higher salary!
Upon termination of the employment contract
It is just as advantageous for you if your employment contract is open-ended. Again, they seem to trust you because you’ve proven yourself before. Seize the opportunity and talk about a salary increase.
Just before the completion of a project
This is possibly one of the best times to start talking about a higher salary. You as a project participant are needed for the successful completion, which is imminent at this point. If you start a salary negotiation now, your chances are very good.
In the graphic below you will find a clear overview of all the times mentioned for salary negotiation.
How much more salary can you ask for?
Depending on the situation, you can get an increase of up to 15% in a salary negotiation. The basic rule is: always go into a salary negotiation prepared and never just name any number. Get an idea of how much more you can and should ask for, and how you can convey that to the other person.
Here we give you an overview of how much more you can ask for at certain key points in your career. These numbers are a guide, assuming your current salary is in line with the market. If you are unsure about this, an independent determination of your “market value” based on serious salary statistics or with the help of a personnel consultancy can be useful. This can result in larger salary jumps than presented here. Larger salary increases can often only be realized by changing jobs to a new employer.
After the trial period
► about 3-5%
If you have successfully completed the probationary period, you can make a higher salary an issue. With a little negotiating skill, you might be able to get a 3-5% increase here. But don’t expect miracles after the trial period: your new employer may need a little more time to trust you.
At the annual employee appraisal
► about 3-7%
In any case, prepare yourself for the appraisal interview – especially with regard to the salary. It is important that you have concrete ideas about how much the increase should be and that you can also argue this is watertight. So you can definitely get a plus of up to 7%.
Tip: Pay close attention to what your manager says. Is he happy with them? Are there any points of criticism etc.? Depending on the feedback, you may need to adjust your demands a bit.
For a new task or responsibility
► about 5-7%
If you get a new job or more responsibility, you can use this as an opportunity to adjust the salary. In the best-case scenario, you can get up to 7%.
When applying / during an interview
► about 5-10%
“Apply, stating your salary expectations” – a formulation that can be read again and again in job advertisements. The headhunter will often ask you about your salary expectations. As an applicant, that can give you quite a headache. After all, you neither want to gamble too high nor sell yourself short.
When changing jobs, you can usually ask for between 5-10% more than in your previous job. You eventually give up your security and start the probationary period again. In order to get a first impression of the salary range in your position, it is advisable to compare your salary expectations with market salaries for your position.
You can approach this with the help of salary comparison portals, for example, or discuss it with your headhunter. A headhunter like TechMinds knows many different companies, positions, and salaries as well as your potential employer and can give you feedback on a realistic salary expectation.
For a promotion / shortly before a successful project completion
► about 10-15%
In both of these situations, you have the ace up your sleeve. They are in a good light thanks to the positive developments and should take advantage of that. In the best-case scenario, you can get up to a 15% increase here.
In the following graphic, you can see all the percentages listed again clearly.
How is the salary statement made up?
The salary expectations describe the expected gross income from non-self-employed work including all non-cash benefits in a period of twelve months. These include special payments such as Christmas and holiday bonuses as well as bonuses or additional benefits such as a company car.
Which aspects influence the salary expectations?
Your gross annual salary depends on various factors. The following aspects have a major impact on your salary:
- Experience and qualifications: A decisive factor in determining salary is your experience and success in your job, along with the underlying educational background. An applicant with an academic background will most likely get a higher salary than an applicant without a degree. In addition, the more work experience and knowledge you bring to the new job, the higher the salary.
- Location of the company: The salary scales in Germany differ both between East and West Germany and between North and South Germany. The southwestern metropolises of Frankfurt am Main, Munich and Stuttgart offer top-earning opportunities, with salaries in the new federal-state metropolises of Mecklenburg-Western Pomerania, Leipzig, and Dresden as well as Brandenburg being below the national average in some cases
- Industry: Even if you work in a large company with many employees, the industry in which you work is and will remain a decisive factor. The same positions are paid differently in different industries. According to Compensation Partner’s 2020 industry index, the mechanical engineering, software, and pharmaceutical industries are pioneers when it comes to compensation.
Salary negotiation: 3 convincing arguments
When you go into a salary negotiation, you should never do it unprepared. Think about how you want to argue the desired salary. In particular, if the initiative comes from you, you have to reckon with a headwind.
It is therefore important that you not only consider valid arguments but also prepare for counter-arguments and try to refute them. The more confident and confident you appear, the more successful you will be.
In the following, get to know 3 powerful arguments that can convince in salary negotiations.
1. “My salary is no longer appropriate for my area of responsibility.”
If you’ve taken on a lot of responsibility and made a lot of progress since the last raise, it’s definitely something you should address. Argue that the extra work you put in when you take on a new job should be rewarded accordingly. After all, you also make an important contribution to the success of the company.
2. “I am a major contributor to sales growth.”
With this argument, you have a good chance of hitting the bull’s eye – but of course only if it’s true. Sales figures are an objective, irrefutable argument for your contribution to success. Count on it and don’t give up! Also, if you are responsible for acquiring new customers, you should use that as an argument.
3. “I ensure cost savings in the company.”
You have established a process in the company that contributes significantly to cost savings? Then you should claim it. After all, with your commitment, you ensure that the company does not spend money unnecessarily.
Negotiate salary: These 10 tips make it work
If you consider a few aspects in your salary interview, you can increase the chances of a higher salary. First of all: good preparation is half the battle.
1. Take the initiative.
The best thing to do is start with salary matters and confront your manager with the desire to negotiate accordingly. Important: Only take this step if you have previously provided the corresponding service. Otherwise, asking for more salary could be seen as rude or unprofessional.
2. Talk about a “salary adjustment”.
A wording tip is not to speak of a “salary increase” but of a “salary adjustment”. You are not emphasizing that you want more money, but that something that was previously incorrect is being adjusted. And if something is adjusted, then it is probably a little more correct afterward. Of course, there’s no guarantee this tactic will work, but you should try it anyway.
3. Prepare arguments.
As already mentioned several times, good arguments are half the battle. The better you prepare and practice these, the less can happen to you in the actual negotiation. In addition to the three that we presented earlier in the article, you can of course think of other arguments. The only important thing is that they are performance-related and not flimsy.
4. Refute counter-arguments.
As you prepare and execute your arguments, keep in mind that counter-arguments will arise —especially if you’ve approached your manager about a raise.
Think in advance about which counter-arguments could be put forward and how you can successfully refute them. Then be confident and convincing in your execution. Don’t let the person you’re talking to be right about the argument he or she puts forward.
5. Appear confidently.
As in many other situations in which you have to prove yourself, your self-confidence is also important in a salary negotiation. The more confident you are, the less vulnerable you are. If you are unsure and cannot substantiate your arguments, you are more likely to fail with your demands. Be steadfast and hold back if your conversation partner wants to challenge you or unsettle you.
6. Base your demands on the salary that is customary in the industry.
Good preparation for a salary negotiation also includes looking at the salaries that are customary in the industry and position and getting a good overall overview of when which increases can be requested. Depending on what your research reveals: ask for a little more during the negotiation. This gives you a good chance of finally getting what you are entitled to according to the relevant collective agreement or the industry average.
It is also advisable to name a crooked sum in salary negotiations. This gives the impression that you have dug deep into the subject and have a clear idea of what to expect and how much you are worth.
We do not recommend providing complicated salary packages. Keep your salary expectations simple. Include all additional services in the amount you state in advance. The employer does not have to be explicitly reminded of all the additional benefits expected from him.
7. Don’t take the first offer right away.
If your manager proposes a sum, you should not usually accept it straight away, but negotiate a little more – even if you are perhaps already satisfied with the first offer. Feel free to try and see if you could get more out of it. Normally, employers initially lower the offer in the hope that you will accept it immediately.
8. Stay open to alternatives.
If you don’t immediately find common ground when it comes to a salary increase, it is advisable to seek talks. Get involved in negotiations on alternative services and benefits. In the end, you may not get more money than you would like, but you do get one more home office day per week, shopping vouchers, vacation days, or similar. You can also show your supervisor that you are also flexible when it comes to alternatives.
9. Keep Calm.
Throughout the interview, it is extremely important that you remain calm and do not show any nervousness or insecurity. Speak in a firm, calm voice and control your body language.
10. Listen carefully.
The better you listen, the faster you can react and respond to possible gaps in your opponent’s argument. It also gives the person you are interviewing the respect they deserve and shows that you take your job seriously.
The 5 don’ts in salary negotiations
You don’t want to leave a bad impression during the negotiation? Then you should avoid the following aspects.
Poor preparation
If you don’t think about the negotiation in advance, you probably don’t have the best cards in the moment of truth. Having no idea how much more you want to ask, having no arguments prepared, etc. can, in the worst case, result in you walking out of the salary negotiation empty-handed.
Too many emotions
It’s best to stay calm and avoid getting too emotional. This can quickly appear dubious and you become vulnerable. The more confident and cool you approach the matter, the more beneficial it is for the success of the negotiation.
Wrong timing
Never discuss salary issues face-to-face. In any case, make an appointment and then allow yourself enough time. Talk to your manager about the appointment and don’t try to stubbornly enforce your desired appointment. The more options you give him, the less likely you are to catch him flat-footed.
Sell below value
It is one thing to ask for too much. Asking too little and selling yourself short is something completely different. After all, you are showing your manager that you are unaware of your abilities. This could mean that you are no longer taken seriously in all future salary negotiations and that you also make yourself vulnerable in everyday work. Therefore, always find out in advance what you are entitled to base on relevant statistics and represent this confidently.
want to extort a salary increase
You make yourself just as vulnerable if you want to blackmail a salary increase by threatening consequences. This is unprofessional and dishonest. Better keep your hands off it! Instead, use valid arguments and say that you are not satisfied with your current salary because it is not in line with market standards.
You are implying that you would probably get more
How do I request more salary? The right wording
Below we have collected some formulations for you that you can use to discuss salary with your manager.
#1 “I’ve been working for you for a year now and I still feel very comfortable. So I would like to talk to you about my professional and financial future in the company.”
#2 “Since I’ve had more responsibility for a while, I’d like to talk to you about a salary adjustment.”
#3 “Recently I was able to successfully complete project X and I am about to complete project Y. I would therefore like to talk to you about a salary adjustment.”
#4 “Since my probationary period is about to end, I would like to talk to you about my future in the company. Since you have only spoken positively about my achievements so far, I would like to talk about future tasks and financial aspects.”
Salary negotiation checklist
So that you can draw up a precise plan for your salary negotiation, we have summarized the most important key points for you below and combined them into a clear graphic.
✓ Use a prominent point for salary negotiation. If you end your probationary period, are about to successfully complete a project, have assumed more responsibility, have been with the company for a year, etc.: In situations like these, you can make a salary negotiation an issue and argue accordingly.
✓ Set an appointment. Never bring up the subject of salary in person, but make an appointment. When choosing an appointment, consult with your supervisor and, if in doubt, accept an appointment that suits him.
✓ Prepare well. Put your arguments together and find out what you should be entitled to at what point in time-based on standard market payment. The best thing to do is to practice the conversation in advance.
✓ Be professional and confident from start to finish. Emotionality and irrationality will not get you there. Be confident – after all, you know what you’re entitled to – give merit-based reasons for wanting a raise and use clear facts and figures.
If you roughly stick to this roadmap and consider a few of the tips we gave you throughout this article, your salary negotiation will most likely be a success!
Bonus: Get salary negotiations right with an HR consultancy
It is not always easy to formulate the salary expectations and then enter into the negotiation. An application via a personnel consultancy has the advantage that you receive support and advice on the correct formulation of your salary expectations. This has two main advantages:
- The risk that you will not agree with the potential employer in the negotiation is significantly reduced if you apply through a recruitment agency. This is because they discuss the salary range with the company in advance.
- With professional support, you will make a positive and secure impression on the employer and at the same time meet your salary requirements. A headhunter can estimate your market value well based on their experience with a wide range of vacancies, industries, and candidates. That way you can’t make any unpleasant mistakes by gambling too high or underselling yourself.
Editorial Team
