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personal finance

How to negotiate a raise

Over the last ten years, I’ve hired hundreds of people and the vast majority of people don’t know how to position or negotiate their salary. This puts them at a significant disadvantage.

Getting a fair market salary is a key step to freedom for both financial independence and entrepreneurship. Key steps:

  • Negotiate from a position of strength (if you can)
  • Use positional negotiation. This means you negotiate the position, not the specific number.
  • Negotiate not just the salary but all other aspects of the offer.
  • Don’t discuss your past salary. It puts you at a disadvantage for getting to a fair outcome and it may be illegal for the employer to ask. 17 states explicitly ban this.
  • Get to a Win-Win. Negotiation of salary is about finding a fair market value. Look for opportunities to increase your value to the organization, not just your salary.