Salary negotiations: Headhunter reveals seven common mistakes

Negotiating salary is an unpleasant challenge for many people – money is not something you talk about. But you should. A fair wage is one of the main factors for job satisfaction. Ultimately, a sense of purpose and team spirit don’t pay the rent.

The most important step on the way to your desired salary is to ask for it in the first place. It is more the exception than the rule that your boss makes an offer of his or her own accord. “Going into the conversation well prepared and with a strategy can literally pay off,” says Oliver Kempkens, a headhunter who places executives in companies, start-ups and medium-sized companies. He told Capital seven pitfalls that often lead to salary increases failing.

#1: Selling yourself short

Anyone who makes a significant contribution to the success of a company should be rewarded accordingly. At the same time, a pay rise can also be an incentive to throw yourself into work again in the future. But simply demanding more money is too banal a negotiation strategy. Before a salary negotiation, you should therefore be clear about what you have achieved and what tasks you want to devote yourself to in the future. A well-founded self-assessment can convince even critical superiors. “The aim is to undermine arguments against a higher salary,” says HR expert Kempkens. “This is achieved through apparent objectivity, which can be used to substantiate the negotiating position.”

You can go into the interview with particular confidence if you bring added value to your company. “Small companies in particular want people who take on responsibility beyond what they are contractually required to do,” says Kempkens. “With a little more effort, you can really stand out. It shows that you are attentive to your colleagues and the organization.”

#2: No exchange with colleagues

Preparation also includes talking to your own team beforehand. This will give you a feel for your colleagues’ salaries and an idea of ​​your own position in the company. You may also learn about circumstances that superiors could cite against a pay rise, notes expert Kempkens: “If your colleague has been there for ten years without a pay rise, why is it time for you?” Such insights help to anticipate counterarguments.

#3: Entering salary negotiations without a desired salary

The request to name a specific figure is probably the decisive moment in any salary negotiation. The right answer depends on where you stand: length of service, market value, industry-standard salary ranges or the share in the company’s success are all decisive factors. If the sum is higher than what is feasible, you will inevitably offend the other side. “Something between inflation and ten percent over the course of an year is a limit for which you can usually come up with a good basis for argument,” says expert Kempkens from experience.

But you shouldn’t start too low either. The first number is just the basis for negotiation, and both parties often end up meeting in the middle. If you only end up with a few euros more per month, the joy of an approved pay rise quickly disappears. It is therefore important to know how much tax and contributions will be deducted from the pay increase. There are gross-net calculators online that you can use to check what difference an increase in gross pay actually makes after deductions. “However, you negotiate in gross terms because the employer also thinks gross,” says Kempkens.

#4: Have rigid salary expectations

An alternative strategy would be to simply express your desire for a higher salary without immediately offering a sum. If you let the other person make a suggestion, you put it in their hands to translate your own performance into a monetary amount. This could lead to a pleasant surprise: “Bosses tend to set their sights higher rather than lower,” says headhunter Kempkens. “Perhaps the employer offers 25 percent more, even though you were only hoping for five or ten percent.”

#5: Choosing the wrong time

“The right moment for a salary negotiation is when I can prove my performance,” says headhunter Kempkens. The best time to present this to your boss is usually the annual employee review, in which the goals you have set are evaluated. If you have achieved visible success more quickly, you can also set a separate appointment for your request. A completed project, new customers or if you have recruited a new employee can be suitable hooks.

#6: Not knowing the requirements profile

“Experience has shown that managers in Germany give little thought to what tasks a position entails, what someone needs to bring to the job and how performance can be measured and evaluated afterwards,” reports Kempkens. But only if you know what is expected of you can you then correctly name your successes and highlight what you have achieved beyond that.

If the requirements profile remains vague, it is worth asking what you have to do to get the salary you want. “This puts you ahead of 90 percent of your colleagues because they don’t do that,” says expert Kempkens. “It’s best to set the course for this on the first day and let those in charge define what performance they expect and where the path should go.”

#7: Being inflexible

Cash is king? That hasn’t been true for a long time. There are now many salary alternatives that employers can use to show their employees’ appreciation. “A few hundred euros more or less usually doesn’t change your lifestyle much,” says Kempkens. “But flexible working hours, home office or additional vacation days might.” Corporate benefits such as a bicycle paid for by the employer, rail card, company car or a fuel card can also be a type of alternative compensation. “Once you have figured out what is important to you, such offers can be part of the salary negotiations,” says Kempkens. This flexibility can even be a major advantage, the headhunter knows: “A realistic self-assessment, added value for the company and flexibility – that creates sympathy and strengthens your own position.”