How much would you like to earn?

As an already active employee, your preparation starts with an analysis of your current situation. Take a close look at what you are currently earning. This includes not only your monthly salary. Also consider other salary components such as bonuses, profit sharing or overtime pay as well as non-monetary benefits (railcard, capital-forming benefits, company pensions, additional company pension plan) from the employer and also analyze the difference between gross and net earnings.  

In the next step, get an overview of the market situation. Although the salaries of better-earning colleagues at the same hierarchical level should never be used as an argument in negotiations, knowledge of the average salaries customary in the market is an important point of reference for your own negotiations and will help you to better assess the room for maneuver. Keep in mind, however, that several factors can have an impact. Identify them and include them in the estimate. At this point, also clearly define for yourself what you can offer in concrete terms. This includes the following points in particular:

• First of all, of course, it is taken into account if an applicant brings very good professional qualifications, which is reflected in the remuneration.

• Rare or special professional qualifications are also remunerated more than those of professional or specialist groups that are found in large numbers. In this context, supply and demand determine your market value.

• The degree of (personnel) responsibility of the professional position plays a significant weight in the context of the classification of the market value.

• Also of importance are factors that are external to the employee, such as the size of the company. For example, large corporations generally pay higher salaries than medium-sized companies.

• The employer's current earnings situation must also be taken into account when assessing the market.

• Last but not least, industry affiliation plays a role. For example, industries with low margins (e.g., retail) pay significantly lower salaries than profitable industries (e.g., pharmaceuticals).

This information helps in assessing one's own situation and in answering the question about the target salary to aim for.

The right amount of the salary demand is often decisive and has already ended one or the other application process. On the one hand, too high a demand can be harmful. The negotiating partner thinks from the outset that he cannot satisfy the demands and expectations and breaks off the negotiations or even the entire application process. But a demand that is too low can also have negative consequences. You may be able to reach an agreement quickly, but you may sell yourself well below cost. You may leave the impression that you have not prepared or informed yourself well, which, in the worst case, can also lead to the termination of the application process.

While for the entry-level employee, the goal is to position themselves as well as possible in the salary structure of their future employer, the transferring or renegotiating employee naturally wants to improve their situation. After they have assessed their position in advance, the fundamental question is what salary steps are possible at all.

In a market situation where the economic development is not clearly foreseeable, it is of course questionable whether salaries are currently moving upwards at all. From experience, however, it can be said that the remuneration of specialists and managers is always evolving; even in economically weaker times. It is also a fact that salaries in the legal market have also developed very positively in the recent past.

Basically, it can be said that when renegotiating salaries, more than a ten percent increase is not to be expected. As a rule, five percent is already a good result. Employees who are of great importance to the company, who deliver good results and whose employer is in a good financial position have a good chance. Salary increases above this can usually only be achieved by changing jobs, but this is no guarantee. If necessary, other considerations also play a role and there are reasons to accept a salary reduction. These can be a long-term perspective, such as partnership in a law firm or a management position in a legal department, but also a better work-life balance. 

Use these numbers as a guide and set several goals for the upcoming negotiation: Define a desired goal that represents your maximum target salary and also a minimum goal as a hurdle that you definitely want to jump over. Plan possible alternatives for the negotiation if salary targets are difficult to achieve. Think about other forms of non-monetary compensation, performance-based increases or bonuses.

If the salary negotiation does not take place as part of a job application process, make sure you bring up the subject at the right time, e.g. after promotions, successful project completion or in a review meeting.

Prepared in this way, you can face the salary negotiation. Be confident and self-assured and pay attention to your body language, which should convey an open and positive attitude.

At the beginning of any negotiation, it is important to break the ice, if necessary with a little small talk. When moving on to the topic, avoid concrete figures and demands at the beginning, paraphrase the topic and talk about development and promotion opportunities, more responsibility or new projects. In this context, present your successes that are directly related to the company's goals, but remain modest and do not get too long-winded.

At the end is your concrete demand. Here you should give a figure or a negotiating range, although the latter always runs the risk of starting at the lower end of their target. Respond to counter-questions in a matter-of-fact way and save some good arguments for this phase of the negotiation.

Give the topic of "salary negotiation" sufficient importance and prepare well. If necessary, it makes sense to discuss the topic with a neutral person and gather further food for thought.