Knowing how to negotiate a salary offer is a valuable skill that can help you determine the fair value of your work. This article discusses salary negotiation strategies for advisors and bankers in the commercial banking industry.
Importance Of Salary Negotiation
Salary negotiation allows private client advisors and commercial bankers to attain remuneration packages that align with their worth. It also empowers the candidates to secure better financial stability and uncover opportunities for professional growth.
Strategies for Negotiating a Fair Salary
Below are some strategies for negotiating a fair salary as a private client advisor or commercial banker:
1. Research the National Average Salary for Your Position and Level of Experience
Note that employers always want to hire as cheaply as they can. Knowing the average salary gives you a starting point for discussing your salary with the employer. Many companies are now sharing salary ranges due to pay transparency.
You can research the numbers using The Anderson Search Group Compensation Guide. You can download it here.
Additionally, asking a friend or people in your network about their estimated salary range can give you a ballpark number.
2. Compare Salaries for Similar Positions in Your Industry and Geographic Location
After receiving a job offer, compare your package with the average salaries. For example, the average salary of a commercial banker is $98,723 but the range typically falls between $85,382 and $114,697. If you are offered a package lower than the average, you have data to justify a negotiation.
3. Prepare a Pitch That Justifies Your Desired Salary Based on Your Skills, Experience, and Value to the Organization
If the employer offers you a salary that’s lower than the average, consider it your main negotiation point. Highlight your background, skills, and experience to improve your position.
For example, some of the highly sought-after skills for private client advisors include relationship building, financial planning, and regulatory compliance. Commercial Bankers are well-versed in credit analysis, industry expertise, and relationship building.
Continuous learning is crucial for remaining competitive in these dynamic roles. An individual with these skills has a strong and valid position to negotiate for a deserving salary.
4. Determine Your Aspiration Point, Resistance Point, and BATNA (Best Alternative to a Negotiated Agreement)
Your aspiration point is the ideal result you want to achieve from the negotiation. To determine your aspiration point, consider your goals and needs.
The resistance point is the lowest acceptable outcome – something you’re willing to settle for in the negotiation. It represents the point beyond which you would be ready to drop the deal. Observe your bottom line and the minimum requirements to make the agreement worthwhile.
BATNA is the alternative course of action, i.e., when the negotiation doesn’t land on a satisfactory agreement. To identify your BATNA, consider other opportunities or potential deals that you could pursue if the current negotiation fails. You’ll be ready to make informed decisions aiming for the best possible conclusion for yourself.
5. Don’t Consider Negotiating Until You Have the Offer Letter in Hand
It’s best to discuss your salary after you have a job offer in writing, not during the beginning of the interview process. You have more power to negotiate once you’ve shown you’re the best fit for the job and know what the employer expects from you.
6. Deliver Your Negotiation with Confidence
Ask about the company’s budget for the position first. Avoid sharing your past salary, and don’t mix salary negotiation with other work conditions. Remember to consider other compensation components like bonuses and benefits.
During the negotiation, try being silent to reach a win-win agreement. Be confident in asking for a higher salary, as companies often expect it. However, be prepared to walk away if they can’t meet your least expectations. Feeling fairly compensated is essential for job satisfaction and success in your role.
7. Develop Alternatives to the Current Negotiation to Increase Your Flexibility at the Table
It’s always best to research salary data in private client advisory firms and commercial banks and explore additional benefits and perks. Propose a tiered compensation plan based on performance. Also, discuss signing bonuses or relocation packages.
8. Remember to Make It a Collaborative Effort
Collaborative negotiation is a better way of reaching fair agreements than competitive negotiation. Collaborative negotiation ensures fairness by distributing the outcome equally among all parties involved.
Mastering the art of salary negotiation is essential for private client advisors or commercial bankers. It empowers professionals to secure a compensation package reflecting their skills, expertise, and contributions.
Are you looking for growth in the commercial banking sector? Reach out to The Anderson Search Group to find great roles with market-competitive salaries.