Salary negotiations are nerve-racking for anyone; it's especially challenging if you are early in your career. Having little experience, due to a short career, You don't have the experience, or specialized skill, developed over a long career that shows your ability and added value to the company. Also, employees who are in the early stages of their careers may rely on their colleagues and managers for mentorship, training, and direction. Because of this, millennials are less likely to negotiate their salary. Employers know that they are likely to engage in some type of salary negotiation, so they leave room in the initial offer. Unfortunately, far too few millennials take advantage of this fact.
The Importance of Salary Negotiations
Getting more money is not the only reason to negotiate your salary. Negotiations show employers that you are a valuable employee and confident in your work. Negotiation has long-term financial rewards. Your raises and percentage-based bonuses will be larger when you have a larger starting salary. Also, your current salary can determine the salary of your next job. Not negotiating your salary is leaving money on the table.
Six Salary Negotiation Tips for Millennials
1. Do Your Homework
The salary for similar roles in a similar industry will have a comparable salary range. Take into consideration how geography can affect the pay rate of the same job, even at the same company. If the job is in an area where there is a high cost of living, the salary range is higher. Salary numbers are hard to determine, mainly because no one really discusses the details. There are several websites that can help research that salary scales of a particular industry. Payscale and Glassdoor are two examples of websites that provide information about industry salaries and companies.
2. Don't Just Look at the Salary, Consider the Entire Package
For most people, salaries are the biggest motivating factor. Other job benefits that have a financial impact include matching in your retirement account. Retirement account matching is essentially the same as a salary. If negotiating your salary is not possible, you may be able to negotiate more vacation days, stock offerings, work-from-home days, and other non-salary perks.