The perfect finance role offers more than just an excellent salary. It should also provide access to a supportive, diverse, and inclusive company culture, opportunities for career progression, and a chance to fulfil your role.
However, ensuring you earn what you’re worth is still important in today’s competitive finance landscape. As skill shortages continue to hamper the industry, 90% of employers have increased salaries, looking for ways to attract and retain more candidates.
A 2024 study found finance and accounting professionals saw the second most significant salary increases in 2023. This means now might be the perfect time to arrange a discussion with your employer and ensure you’re getting the compensation you deserve.
Unfortunately, salary negotiations can be difficult to navigate.
Today, we’re sharing what you need to know to ensure a fruitful conversation.
Understanding your Market Value
Before you dive into a salary negotiation in 2024, it’s important to understand your market value. The amount you’re “worth” in terms of salary varies depending on numerous factors, from your skills and experience to your leadership abilities and unique credentials.
Start by researching industry standard salaries for a professional in your chosen role. You can use market reports and job listings on forums and social media sites to determine how much the average employer pays for someone with your skills. It’s also worth talking to a financial recruitment company; they can give you deeper insights into the current hiring market.
Remember, when determining a salary benchmark, don’t just look at the money you’ll make but the benefits offered by the company, such as flexible working hours or paid time off.
Next, consider the factors that might influence the salary you can request. For instance, if you have certain technical skills that most candidates in your role might be missing, you may be able to request a higher salary than most. You may also be able to increase your compensation if you have numerous years of experience or a good track record for success.
Certain financial and accounting credentials, such as CPA certifications, can also increase your value.
Preparation: The Key to Successful Negotiation
Preparation is the key to success in any salary negotiation. Once you’ve researched and determined what you might be worth, the next step is to prepare for a lucrative conversation with your employer or supervisor. By demonstrating your worth, consider how you can validate your request for a specific salary. For instance, you can draw attention to:
- Qualifications: The additional credentials you’ve earned over the years may make you a more valuable asset to the company.
- Achievements: Specific, quantifiable insights into what you’ve achieved, such as saving the company 20% on certain fees or increasing productivity by 30%.
- Years of experience: Insights into the amount of time you’ve spent either with this company or in the financial industry.
- Technical and soft skills: Skills that make you a valuable addition to the team, such as resiliency or knowledge of financial software and technology trends.
It’s also important to consider things from your employer’s perspective. For instance, if you know your company is currently recruiting specialists with skills you already have, this could mean they have the budget to increase the salary they offer you. However, if your employer is currently struggling with financial difficulties, they may be limited in what they can offer.
It’s worth preparing a range of offers you would be comfortable accepting to pave the way for a successful negotiation. However, this doesn’t mean you should accept anything less than you’re worth. Make sure you know what you’re not willing to negotiate on.
Effective Communication Strategies
Once you feel prepared for your salary discussion, it’s time to think about how you will initiate the conversation. If you’re joining a new company, it may be a good idea to discuss salary options immediately as soon as you’re offered the job.
If you’ve been with the same company for a while, you might approach the discussion after a positive performance review. Make sure you:
- Prepare to answer difficult questions: Your employer might ask for specific reasons why you should receive a salary increase. Be prepared to demonstrate your value quantifiable and clearly, with plenty of evidence.
- Know how to handle counter offers: Your employer might not agree to the first salary you suggest. Have a clear idea of what you’re willing to negotiate, and be ready to pitch counterarguments or ask your employer to explain their thinking.
- Practice the conversation: practising your conversation with your employer with a friend or colleague can help increase your confidence. It’s also an opportunity for you to pinpoint any issues with your argument.
Rehearse your talking points regularly before the discussion, and ensure you’re clear and confident in the conversation. Stand up straight, use good body language, and speak with determination while maintaining a professional tone.
Common Mistakes to Avoid in Salary Negotiations
One of the reasons salary negotiations are often daunting for finance professionals is that there are many pitfalls you may need to avoid. It’s easy to make a mistake, particularly if you’re nervous about taking the next step in your career. Ensure you don’t:
- Automatically accept the first offer: Although you might want to avoid getting into a complex negotiation with your employer, it’s important to fight for what you’re worth. Don’t undervalue your worth; make sure you’re ready to stand up for yourself.
- Forget to be professional: If you know you deserve a higher salary, getting too defensive or aggressive in a conversation is easy. Make sure you stay professional. Thank your employer for everything they’ve done for you so far, and keep your emotions in check.
- Make hasty decisions: If your employer refuses to raise your salary to meet your salary expectations, don’t immediately threaten to leave the company unless you’re willing to do so. Consider options for compromise, like asking for additional benefits instead of higher pay or asking to review your salary again later in the year.
Make sure your discussion with your employer doesn’t harm your relationship with them or negatively impact your professional brand.
Navigating Post-Negotiation Steps
After a salary negotiation ends, there are still a few steps to take, even if you’ve successfully earned the pay increase you wanted. If you get the requested salary, ensure your employer confirms the new salary and benefits in writing. This will make fighting for your deserved compensation easier if something goes wrong.
Thank your employer for their support, and ask them for feedback on demonstrating that you’re worth the extra income. This will show you’re committed to being the best possible employee for your finance company.
Consider your options carefully if your negotiation doesn’t go according to plan. Ask whether you can review your salary again later, potentially when the company is in a more stable position. Alternatively, ask whether your employer would be willing to offer other benefits instead or consider a salary increase if you complete additional training.
If it seems unlikely that you’ll get the compensation you want, consider whether you’re willing to continue in the same role or whether it might be a good idea to work with a recruitment company to explore other opportunities.
Navigate Salary Negotiations Successfully
Salary negotiations can be a daunting concept for any financial professional. However, they can also be essential to ensure you get the compensation you deserve. Successful salary negotiations rely on your ability to prepare effectively for the conversation, demonstrate your value, and communicate clearly with your employer.
If you cannot get the salary you want, remember you can always consider working with a recruitment professional to find a role with better compensation and more benefits. Reach out to Rebus Recruitment to find out how we can help you get the right role in finance.
Thanks
Rachel
About Rebus Financial Recruitment
Rebus Financial Recruitment provides a specialist and focused recruitment service to its customers, ranging from various organisations, including SMEs, to large PLCs.
We strive to offer both the client and candidate a seamless recruitment experience. Using our expertise, we get to the heart of employer and employee needs, and, in doing so, we match the two perfectly.
To learn more, contact one of our team members today or call us at 01282 930930.
