How to Negotiate Your Salary If You're Underpaid, with Ramit Sethi

[Music] you want to take a different approach when it comes to negotiating your salary if you find out that you are underpaid now many people are being underpaid and they simply don't know it so step one find out if you're being underpaid use these three websites payscale.com salary calm and Glassdoor calm go and find out exactly how much you should be being paid you can triangulate it by your geography by the type of company in fact even the company that you work at and you can find out if you're being underpaid or not now you will find that a lot of people are dramatically underpaid let me give you some examples of people college graduates because they're stupid and don't know how to negotiate women because they don't negotiate and many basic aliy everyone everyone's underpaid if they're top performers average performers go to hell because you're a commodity you can be traded in and out that's how hiring managers think about it but if you are a top performer you can negotiate your salary often to a huge salary increase now here's how you do it first of all at a high level you need to go in and make your boss aware that you're being underpaid now chances are he already knows this but you're going to do it anyway and you're going to do it respectfully you don't want to go in to your boss and be like hey boss this sucks how come the numbers are correct you're under paying me the first thing I do is they get defensive so I'm going to show you how to do that respectfully then you want a marshal defenses you want to show them how much you should be being paid and then three you want to end with a positive note saying here's what I'd like and here's also what I'm going to do to increase my performance these are the three steps okay so step one you walk into your boss's office you set up a special meeting you don't just do this on the lunch break set up a special meeting you say you know I'd like to discuss my compensation I've been having a great time working here I feel like I'm really getting to help with the product development and in fact just in the last three weeks we've made XY and Z contributions and we are ahead of schedule to do the launch so you're starting off with a very positive affect you say but one thing that I like to discuss with you is my compensation so it seems that I'm actually being underpaid and here's what I've found I pulled some numbers from different areas salary comm etc and what I found is that for someone with my level of experience and the role that I'm participating in I should actually be be paid about 15% more now as I said I really enjoy working here and I'm looking forward to continuing working on this project but we need to make some sort of adjustment so that there's a fair number for both of us here okay what have I done there I started off really positively I love working here here are my accomplishments here's what I'm looking forward to doing then I said well I like to discuss compensation it seems that not you are a jackass but it seems that I'm being underpaid somehow heaven and earth has conspired to somehow under pay me it seems that I'm being underpaid here's the data and I'd like to discuss a salary adjustment not I'd like you to give me more money because what does that make me do it makes me hold on to my wallet I'd like to discuss a salary adjustment okay great so what then so you then you have to explain why you deserve it and then you move on to the positive part of the compensation discussion say so what you say now is you know I'd like to discuss a salary adjustment and based on the numbers here it looks like I should be paid approximately 15% more shut up this is where you shut up now you let them talk to many novice negotiators continue running their mouth and every additional word you use decreases your power so be quiet and let them talk and here's what likely they will say they'll say something like either okay well we can discuss that great in that case you're off to the races and you have a very good shot at that or they may counter with something like well you know times are tough in the economy is tough this is a very common tactic okay here's the issue average performers accept that and they're like yeah I understand the economy's tough you know what a top performer says they say something like this well I understand the economy's tough but I've been making extraordinary contributions and I'd like to be compensated right now I'm not even being compensated at the average number of someone with my experience quiet throw it back to them you see top performers play an entirely different game than everyone else if you're not being compensated because of the economy that's not your problem that's the company's problem they will find a way to pay you an additional five six $10,000 to a company that is nothing it's a drop in the bucket that's how top performers think because it's true average performers they care about the company's finances when really that's not their problem it's the company's job to retain you so now you're throwing it back and letting your boss handle it your boss will often say well I think we can make some sort of adjustment here and then you discuss the details well you know according to the numbers I'm being paid under paid fifteen percent and in fact if you look at the top range I actually would be paid twenty-five percent so what I'd like to discuss is an immediate adjustment to the average number and then I'd like to discuss how to do an extraordinary job over the next six months to hit the top of that range see what I did there I said an immediate adjustment to the average rate which probably is worth three to five thousand dollars to you instantly at least and then how can I get to the nine ten $15,000 raise how do you do that because you're going to discuss the third part of the conversation which is what am I going to do to be an extraordinary candidate so all of these things work together to help you get from being underpaid to being fairly paid or often lavishly paid and this is how you can use these negotiation techniques to raise your salary starting in the next couple of weeks enjoy

Channel: I Will Teach You To Be Rich

Views: 266,166

Rating: 4.9135447 out of 5

Keywords: How to negotiate your salary, Salary negotiation, How to negotiate, negotiation

Id: d3qfJeLQDoY

Length: 5min 53sec (353 seconds)

Published: Thu Jun 11 2015