How to build leverage to negotiate substantial and recurring salary increases
Who doesn’t want their salary to increase substantially year over year during their career? A 10 percent annual salary increase gives you a double paycheck in about eight years. Make the annual 20 percent increase and the paycheck will double in about four years. But is it even realistic to want such increases, year after year? Well, of course, it depends to some extent on the job. But basically the answer is: yes, it is realistic, given that the right race strategy is chosen.
For most people, I mean people who do not work in the family business, etc. – he does not. The # 1 strategy for recurring substantial salary increases is spelled out: building long-term leverage. Anyone skilled in the art of negotiating a salary knows that when a salary is negotiated, it all comes down to bargaining power – that is, leverage. In a salary negotiation, bargaining power is a measure of which party, the employee or the employee, is most dependent on reaching an agreement on salary. However, in other words, the part that depends the most on the other is the part with the least leverage.
Thus, a person will be able to get substantial and recurring salary increases by constantly working on their leverage. Here are some actions to take:
Always look for external options.
In a salary negotiation, the employee’s best weapon may be the threat of resignation unless he obtains the requested salary. However, quitting without having a new job is probably not a good option. And finding a new job takes time for most people. Therefore, you cannot pick one up the day before your salary negotiation, but must have prepared it in advance.
Strive for excellence in the relevant area.
Being the best, being the expert, having a reputation for the highest quality – these are qualities that are not achieved overnight, but only after long, hard and conscientious effort. In the end, quality and excellent performance will win, so you need to start the work to get there today.
Make sure you’re not the impatient one.
All things being equal, the party most impatient to reach an agreement is likely to be the losing party in the negotiation. You should try to avoid being caught off guard when a negotiation is necessary. If negotiating contracts for a company, make sure you know the term of each major contract so that you can start looking for outside options, gathering information, and more. long before you have to sign a new contract.