Salary Negotiation for Technical Professionals

Salary negotiation is a tedious and daunting task for any professional, never mind technical professionals.

 

The thing about negotiating your salary is that it's more of an art than a science. After all, aim too high and you lose the whole thing by looking unrealistic and out of touch with the current market. Aim too low and you can instantly throw away thousands of dollars each year.

 

Failure to negotiate properly is equivalent to going to your bank, taking out a few thousand dollars, walking out , throwing them in the middle of some street and then standing there and watching as people walking by take your money.

Salary negotiation starts the moment you get a call for a new job.

 

If you're contacted by a recruiter or the actual hiring company, then somewhere early on in the process they'll ask for your salary requirements.

 (It's funny how they're generally called salary requirements. They're really more like salary expectations.) This should be easy! You should already have a number in your head that you're trying to reach. Here's a rule of thumb. Expect to negotiate.
 
Therefore one way of saying that initial number is to take your current salary and multiply by 1.15. In other words an increase of 15%. Now, this number might be different with the addition of several factors. These we can discuss at more detail at another time.

What you're really aiming for is a nice 10%-15% raise for your next position. Some get 5% and some get 25%. 15% is a conservative number that plays it safe. Just remember that usually salaries are progressive. They do not jump by 100% every time (usually.) This also means that the higher salary you receive this time around means the higher potential salary you will receive the next time also. It compounds over time.

Most likely, if your prospective employer needs you more than you need him/her then you might be able to keep that 15% raise. However, if you need them more than you might negotiate down to 10%. The Main point is that you restrict your range so that you're talking $100s rather than $1000s.
 
If you go the rout of very high (like the 25%-40% raises) you might lose all and they'll know that you're deliberately increasing your expectations so that they can negotiate down, and they will (push down harder, that is). If you're lucky you might end up with 20% but you might also lose all.
 
Initially, you want to take a more conservative stance on your raise and then hold your ground. Generally you don't want to gamble. Any negotiation must be a reasonable negotiation so that afterwards good relations is maintained.
 
Joe Shaheen is a Staffing Industry writer and Senior DxDt Consultant. Feel free to redistribute this article but please show due credit and referencing.
 
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