Are you in the middle of negotiating a job offer and want to know how to negotiate your salary with Ramit Sethi? Whether you just accepted a job offer and want to negotiate for a higher starting salary or you were rejected for the job and want to negotiate your counteroffer, this article will teach you how to be successful in your negotiations.
Ramit Sethi is a personal finance guru, and in this episode he gives some great tips on how to negotiate your salary.
First, you should be prepared. Start by doing research on the company you are interviewing with so that you know what they pay their employees, and what they’re looking for in their employees. Then, when you’re conducting an interview, have an idea of what kind of salary package makes sense for the position based on what you learned about the company and its culture.
Second, don’t just ask for an amount that seems appropriate—ask for one that seems generous. You need to show that you’re willing to go above and beyond what’s expected of you if they want to hire you. And thirdly, make sure that everything is within reason—don’t ask for more than ten percent more than what they offer as a starting point because it could come across as too demanding or greedy (even if it isn’t).
This video is only about 20 minutes long but filled with tons of practical advice for anyone who wants to get better at negotiating their salary.
How to negotiate your salary with ramit sethi youtube
Introduction
This video is an excerpt from Ramit Sethi’s Negotiation Bootcamp course.
Set a goal before negotiating your salary.
The first step to negotiating your salary is setting a goal. The goal you set should be realistic, and ambitious enough that it will push you to work hard in order to achieve it. You also want this goal to align with what your employer is looking for and the value that you can bring them.
You don’t need to worry about other people’s goals; there’s no point competing with them. Focus on how much money or equity compensation you want and why – then use those reasons as leverage when negotiating!
This article gives some examples of tangible goals:
- I have worked here for 5 years, so I think I deserve a raise after my next review cycle
- My salary should match up with what similar companies are paying (with data)
Analyze the company you’re applying to.
- Analyze the company you’re applying to.
- Check out their financial situation and growth rate. Are they doing well financially, or are they struggling? If you notice that a company has been in a downward spiral for several years, this may indicate that they’ve recently undergone layoffs and are not hiring. On the other hand, if they’ve been growing steadily over time (and have plenty of funding), then it’s likely that they’re hiring new employees as well. The more information you have about them, the better able you’ll be to determine whether or not your salary demands will be met by such a company.
- Consider their industry: What type of work do they do? How does this compare with the kind of work you’d like to do? Are there any other companies in your field—or related fields—that pay higher salaries than this one does? What sorts of positions do these organizations offer (i.e., entry level vs senior management)? Do these organizations offer career progression opportunities similar to those at your potential employer?
Learn about their budget.
Before you go in to negotiate your salary, it’s a good idea to learn as much as possible about the company. This will help you make sure that what they’re offering is in line with what other companies are offering. You can do this by understanding their budget and how much money they have to work with.
It’s also important to figure out how much money the company has; this will let you know how much room there is for negotiation. For example, if the company has no wiggle room at all when it comes to salaries (or even benefits), then there won’t be any possibility of negotiating your salary at all!
Research salaries for similar jobs in similar industries.
Before you start talking about your salary, there are a few things to do. First, check out the market rate for your job and similar positions. Look at job descriptions and salary surveys on websites like Glassdoor, Salary.com and Payscale.com. You can also find industry-specific information from association sites like the American Bar Association or American Medical Association (AMA).
Next, research what companies in your industry typically pay for new hires with similar experience as yours: usually this means people who have three to five years’ experience in their field (depending on its complexity). This will give you an idea of how much money companies are willing to spend on someone with experience who’s not yet at the top of their game—and it’ll help keep you from getting into any uncomfortable conversations with hiring managers who want to hire someone else because they think they’re worth more than they actually are!
Replace the word salary with “total compensation.”
In this section, Ramit recommends that you replace the word “salary” with “total compensation.”
While it is often helpful to think about your salary as a measure of your worth, you should consider other factors when negotiating pay. Total compensation includes things like dental and medical benefits, retirement contributions, and paid time off (PTO) days.
You can use total compensation to compare different job offers. For example, let’s say one job offers $50K in base salary but no benefits while another offers $80K in base salary plus health benefits worth $10K annually. When considering both jobs side by side, it’s clear that the latter is more valuable overall—and if you can get that same offer from another employer without having to move or change jobs first—that might be something worth considering!
How a job is different from other jobs should be reflected in total compensation.
You should try to avoid any salary negotiation that takes place before the job offer has been made. That is not only a breach of protocol, but it also allows your employer to know what you are seeking so they can adjust their offer accordingly.
If pressed on the matter, list out all of your responsibilities and accountabilities at work in terms of time spent on each task, how much they make you responsible for, whether or not there are other people who share these responsibilities with you (and if so, how?), etc. Then go through each one and explain why it differs from similar roles with other companies—or even from your own role at another company. For example: “I’m responsible for managing our social media accounts here at Acme Corp., whereas their competitor’s intern does this instead.”
Consider non-financial aspects of the job offer.
- Consider non-financial aspects of the job offer.
- You should also consider non-financial aspects of your job offer, such as vacation days, sick days and flexible hours. If you’re working remotely or want a telecommuting option, it’s worth asking to see if they can accommodate that request as well.
- How much transportation assistance is being offered? Is there a company car? Are there public transit passes included? Are there reimbursement options for other forms of transportation?
- What kind of health insurance coverage is included in this position? Does the company offer dental benefits and/or life insurance plans? Do they pay into Social Security and Medicare taxes on behalf of their employees (and how much)?
The hiring manager is not your friend.
The first thing to keep in mind when negotiating salary is that the hiring manager is not your friend. Don’t get me wrong—they’re not trying to be mean or unfair, but they do have a job to do: get the best value for their company. And if you’re doing what you should be doing—proving your worth through your work, demonstrating how much more valuable than other candidates you are—you can use this information against them.
You must remember that they aren’t out to get you; they just want what’s best for their business. They aren’t trying to mess up your life by underpaying or overpaying; their goal is simply to make sure that each member of the team makes its mark on a project while also working well together as a whole unit and getting results in return. But if we were talking about cars instead of people: Your job isn’t just about getting paid; it’s also about proving yourself worthy of having others pay money directly into your bank account every two weeks (or however often).
Keep your salary history private.
Equipped with the knowledge and confidence you’ve gained from reading this article, you are now ready to negotiate your salary.
- Remember that the first thing you’ll need to do is ask for more money. Don’t be afraid of being seen as greedy or entitled; don’t worry about what others will think of your request—you deserve it!
- If they say no, don’t worry: You can always walk away and try again later at another company. Or even better, consider a different position within this company if one exists that would align better with your interests and abilities than the one currently available (and perhaps pay more).
- Finally, remember not to let fear hold back any request or other decision-making processes throughout these negotiations—you have nothing to lose by asking questions and making requests!
Use a script when negotiating your salary.
Ramit Sethi, author of I Will Teach You to Be Rich and host of a YouTube channel with more than half a million subscribers, recommends using a script when negotiating your salary. “You don’t have to memorize it,” he says. “Just write it down and keep it in front of you.” He also advises trying to say “I” instead of “you,” as this phrasing makes him feel more confident.
When asking for something like more vacation days or education reimbursement, try using phrases like: “I would really appreciate that because…” or “…would make me feel better about my decision.” If a company counteroffers during the negotiation process (which is perfectly fine), Ramit suggests responding with something along these lines: “Thank you so much for making an offer on this role; however… I’m looking for X amount of dollars per year.”
You can negotiate your salary even if you’ve never done it before.
If you’re scared of negotiating your salary, you’re not alone. Lots of people are afraid to negotiate their salaries because they feel like they don’t have the experience or expertise to do so successfully.
However, it’s important to remember that negotiating your salary is not something that only experienced people can do. In fact, I’ve seen many newbies negotiate their way up from a starting salary of $40K/year to $60K/year in just a few years’ time. This is especially true if they found themselves working at a company where they were valued and respected by management and coworkers alike—a situation where the lower end of possible pay range would still be generous enough for them! So even if you’re just starting out or otherwise lack confidence in yourself as an employee (or simply want proof), here’s how Ramit recommends approaching this process:
Conclusion
You can set yourself up for salary negotiation success by practicing, asking the right questions, and planning ahead.
