Most readers have been down this road before. Work hard in your job and in your career, and you get to a point where it’s time to ask for a promotion or a raise (or both!). As workers and professionals, it is not outlandish to think of ourselves as assets just like stocks or real estate – we have a market value, and often times that market value increases over time because the company makes a profit or the property is in high demand.
In that sense, salary negotiations are not all that different from stock investing – investors often pay a premium to own a good company, just as a company should pay a premium to have a valuable team member on staff. Negotiating a higher salary means asking for a fair value where the value is due. But there is another, crucial factor that gives importance to salary negotiations:
Making more money can mean more aggressively pursuing our long-term financial and retirement goals.
We tend to think of retirement planning in terms of investing and rates of return, but our income level often determines how effectively we’re able to save and accumulate assets over time. To the extent that making more means saving more, salary negotiations actually become an important part of retirement planning.
Many readers have negotiated salaries before, so we won’t go overboard in giving tips to the experts, so to speak. But we thought we’d outline a few helpful reminders for professionals who might see 2018 as a year where a higher salary is warranted.
5 Tips for Your Next Salary Negotiation
- Document Your Achievements – when preparing to ask for a raise or promotion, start by documenting your short and long-term contributions to your role and to the company. This will help boost your confidence as you prepare and will serve as a reminder to your supervisor just how valuable you really are.
- Do Your Research – there are a lot of salary comparison tools available on the internet these days. Find out what people in similar roles at different companies in your area are getting paid. This will help you set a number to work from. Also consider contacting a recruiter to discuss possibilities and to help set expectations.
- Don’t Rush to Accept the First Offer – this is salary negotiation 101, but those of us who are excited about a new job opportunity or a new role in a company, may lose sight of the fact that the employer needs us just as much as we need them. It often makes sense to see an offer and “sleep on it,” giving you time to consider a potential counter-offer.
- Let the Employer Make You an Offer – when setting a meeting to ask for a raise or a promotion, it’s good practice to outline your value-add, state your case for receiving a higher wage, and then leave it in the employer’s hands to make an offer. Then, see point #3.
- Consider Negotiating Additional Perks – there are other ways to get more compensation out of an employer, which may not actually mean more money. Such perks could include membership to a health club, commuting reimbursement, vacation time, and/or the opportunity to work from home more often.
Whatever Your Income Level, Work with WrapManager to Build an Investment Plan
No matter what your income is, there are likely plenty of options for building an investment plan designed to move you towards your long-term goals. As time passes and your income changes – hopefully with plenty of raises – WrapManager can help you adjust your plan to pursue your goals in a way that hopefully maximizes use of the resources you have available. Start working towards the future with us today by reaching out at 1-800-541-7774 or by starting a conversation over email at wealth@wrapmanager.com.