Do you know the difference between ‘worth’ and ‘value’ when it comes to salary negotiations? This is something that I have seen come up time and time again with salary discussions. Your worth and value are very different. Being clear about what is up for negotiation is critical to how you come out of these discussions feeling.
The key with salary negotiations is understanding that you are demonstrating your value the moment you send through your CV, throughout your interviews and then finally, at the actual salary negotiation discussion. The value you demonstrate throughout the entire process determines if your salary negotiation is successful.
The difference between your worth and your value is that your worth is intrinsic.
No one can take that away from you.
Your VALUE however extrinsic and subjective. Meaning your value is what you bring to the company that makes them want to invest in you (by way of hiring you and giving you a salary) and determined by how they perceive your value. Your value therefore includes a mix of your experience, results, skills, qualifications, passion, dedication and ‘fit’ to the company. However, regardless of all these things, you will not be credited for this value unless you take responsibility for articulating it, demonstrating it and finally, negotiating it throughout the hiring process.
Your value therefore is different to your worth.
As you can see, there are quite a few subjective elements here that are highly problematic in business environments that have a very narrow view on what a good ‘fit’ is. That is a discussion for another day. For now, the message is that your worth truly is intrinsic and your value is extrinsic. Value and how people perceive that value is subjective and every salary negotiation is therefore determined on this.
If you have low self worth, this is inner work that must be addressed from within. No amount of external validation will elevate this for you. Low self worth often results in imposter syndrome – particularly in situations where you have been able to articulate your value and secure that job or promotion but don’t feel truly deserving of it.
Adversely, value in the context of careers is subjective and external to you. Your value is what you bring to the company that makes them want to invest in you (by way of hiring you and giving you a salary). This is the mix of your experience, results, skills, qualifications etc as mentioned above. This for example, is where the person who is perhaps more capable of ‘bragging’ or ‘networking’ gets noticed as they demonstrate a higher perceived value than everyone else.
Women, on average, are less likely to negotiate because of low self worth, and/or an inability to demonstrate their value. Again, as we distinguished the difference between the two, it is important for you to recognise which area is holding you back.
Which of these questions did you say no to?
Do you believe you deserve to be in an incredible job that pays your worth?
Do you know HOW to handle a salary negotiation discussion and talk effectively about your value?
If you answered no to the first question then I would highly recommend you prioritise some inner work and focus on how you can elevate your self worth. If you would like some help with this, perhaps coaching with me is right for you.
If you answered no to the second question then it is simply a case of learning the skill of negotiation and being able to confidently articulate and demonstrate your value. Again, my coaching can offer you support with this too if you would like to learn how.