At Elfin, we want to help all women become financially independent. Making smart money moves, creating passive income and building wealth. Salary is a very important pillar here, duh. Earning more means more money, more independence and simply having more left over to save and invest. But unfortunately, women still earn a lot less salary than men. Just to generalize: we are modest and also a bit reluctant to enter firmly into negotiations. But we are going to change that! In this article, 5 tips for a successful salary negotiation. Read, learn and negotiate more 😉
Also read this article with mindset tips for negotiating with confidence.
To shock: 13% less pay
On average, women in the Netherlands earn a 13% lower gross hourly wage than men. In a working life, this adds up to €300,000 (!) on average. 40% of women in the Netherlands are not financially independent, meaning they earn less than €950 per month net. In part this is because women are more likely to work in sectors where wages are low, but even after adjusting for 20 factors, there remains an “inexplicable” difference of 7% in business and 5% in government.
One reason for this difference is differences in bargaining. For although women are as likely to ask for a pay raise as men, they are less likely to get what they ask for.
In 2023, a report came out showing, then despite awareness around the salary gap, women still earn less than men. Last time, men’s salaries rose faster (by an average of 16%) than women’s (by an average of 9%).
In this blog, we give you 5 tips for a successful salary negotiation.
1. It’s always a good shot: everything is negotiable.
Many people are reluctant to negotiate: after all that applying, writing letters, and interviewing, you want nothing more than to get it done. Sign that bite, and start working! And besides, shouldn’t you be grateful that you have a job at all? The salary they offer is already hearty, so what are you whining about? You don’t want them to find you stingy or disgruntled, do you? And how do you actually keep a good relationship with your (future) boss when you start negotiating?
All great excuses, but negotiating pays off, and the moment you change jobs is the perfect time to do it!
If you are applying for a new job, assume that the first offer you receive is negotiable. 94% of employers are willing to negotiate, and there is probably even a margin factored in because they assume you will negotiate. Depending on the sector, it is usually between 5 and 20 percent.
Trying always pays off. Even if they say no, the fact that you asked once makes it easier to start the conversation again in a while.
2. Prepare well
Your supervisor or HR manager on the other side of the table negotiates by the conveyor belt. They have set questions and tricks they always use. For you, negotiating is probably a scarce business. So it is important to prepare very well.
Seek information from colleagues, friends and acquaintances. What is a customary salary for your position? In your sector, or in other sectors? Ask around, both with men and women, with people in the same position and who have more experience than you, so that you can compare.
Think about what amount you prefer to come out at, and what is important to you besides salary. Maybe you want more pension, vacation days, or flexibility? Or do you actually want a different interpretation of your position?
3. Bet high
It is to your advantage to start as high as possible. But then again, how much can you ask for? The important thing is that you can explain why you deserve something. As long as you can argue that well, you can bet as high as you want. And this is often higher than you think.
The higher you start, the higher the “anchor” for the rest of the negotiation. This becomes the benchmark, and all subsequent moves are compared to this first step.
Do you get a “yes” on your first proposal? Then you may have asked for too little.
4. Put yourself in the other person’s shoes
Many people in a negotiation are mainly concerned with themselves: how do I come across? How do I have a good conversation? How do I make sure I appear professional?
We often forget about the other, when it may be even more important to think about that. How much influence does he or she have? Can the other person decide to increase your salary, or does that require permission from higher up? Also consider what the other person’s alternatives are. How irritating would it be if you didn’t come to work there after all because negotiations broke down? Or if you were to leave your current organization, when you have so much experience, and it is so hard to replace you? And what is actually most important to the other person? Does it want to pay as little as possible, deal with it as quickly as possible, or keep the relationship as good as possible?
Consider when the other person will come out of the negotiation successful, and try to capitalize on this. That way you can even improve your relationship during the negotiation!
5. No is the start of a negotiation
Do you get a “no? Don’t give up! ‘No’ is the beginning of a negotiation. Some negotiation gurus even say it’s better to get a “no” than a “yes. So don’t be put off by a “no,” this is all part of the game that is a negotiation. Listen quietly, let a silence fall, and ask questions: why does the other party say no? Can you modify something to make the “no” a “yes”?
And does it stick with a “no”? Then remember that a “no” is not final. It means “no, given how I look at the world today. And that could be very different tomorrow, or in a few months!
Now you
These 5 tips for a successful salary negotiation will surely get you started. Should you like to get really serious and go into your negotiation like never before? Become an Elfin member and get access to the webinars that will help you here.
