Even in our line of work, we often meet people who aren’t very familiar with innovation. As such, we often get to answer the question of what exactly innovation in business is, and why businesses should care about it.

The Importance of Innovation in Business

Modern businesses grow and succeed in today’s corporate climate for a myriad of different reasons. Some are known for their products, others for their services, and others still for less easily-defined factors such as strong brand loyalty or captivating ad campaigns.

If you were to look at the organizations that truly stand out from the pack today as clear leaders within their industries, however, it would be clear that they all have one common factor: they all embrace innovation.

These innovative leaders include relatively new organizations such as Uber and Amazon —which changed processes at the core of their industries in order to disrupt the status quo—as well as stalwarts like Microsoft and Apple , which have been around for decades but owe their continued success to constant reinvention and innovation. Yet, no matter its industry or current standing, an organization cannot expect to maintain a competitive edge if innovation is not part of the overall business strategy.

Three industries embracing business innovation

Law

Cambridge-based law firm, Taylor Vinters, has partnered with artificial intelligence-focused startups Pekama and ThoughtRiver. At the same time, it has sold off other elements of its business, such as regional real estate, that were deemed a distraction from core aims.

The firm’s managing partner, Ed Turner, explains: “Assuming it’s an accepted proposition that fundamental change is going to be necessary, it’s important to understand the purpose of your organisation and why there’s a need for it in the future. Having a clear understanding of that is absolutely essential, particularly in the mid-market.”

Packaging

When it comes to business innovation, the packaging sector offers some of the most exciting examples around. Public opinion and global expectations of sustainability, health, and convenience dictate packaging design and currently the tide is turning against plastic. This has encouraged retailers and manufacturers to explore alternative materials and led to the rapid development of fibre-based materials and creative inventions, such as biodegradable seaweed pouches for ketchup.

New technology has also allowed companies – particularly those in the food and beverage sector – to innovate and adapt to meet new demands. Online grocery retailer, Ocado has embraced “co-botics”, where robots work alongside human employees. Robots deliver pallets of goods to humans who pick out the specific customer orders. It is likely that this is where the future of automated packaging lies, delivering a superior performance than could be achieved by either robots or humans working alone.

Online food delivery service Just Eat is trialling seaweed sachets, developed by Skipping Rocks Lab, which are biodegradable within six weeks

Healthcare

It is not only the private sector which must be constantly looking to innovate. The NHS is one of the largest employers in the world and with increasing demand placed on it by the UK’s aging population, finding ways to cut costs and improve services is crucial.

To do this, the NHS is harnessing new technologies and making much better use of data. Along with implementing artificially intelligent chatbots to help patients self-serve, the NHS Blood and Transplant department has begun working with digital consultancy T-Impact to improve and automate its process for matching donated hearts with recipients. This has resulted in the world’s first allocation of a heart using a cloud-based system.

This streamlined process has removed 40 steps that were performed manually by staff, creating a 68 per cent reduction in NHS administration time. “These are the sort of improvements that well-run digital transformation programmes can deliver,” says Keith Stagner, chief executive of T-Impact.

Examples of innovation in business

Now that we’ve established that innovation is both crucially important for the future of any business, and that it’s something that every business can do, let’s dive a bit deeper by looking at a few examples of the kinds of innovations that businesses could pursue.

Generally speaking, the more new technology an innovation includes, and the bigger of a market impact it pursues, the more likely the innovation is to fail. On the other hand, these kinds of innovations also lead to superior returns if they are successful.

Thus, a business that is new to innovation shouldn’t usually pursue these kinds of innovations unless they have their backs against the wall and have no choice since they simply don’t have the experience or the skills to pull off such an unlikely feat, at least on paper.

It’s thus usually a much better idea for a business new to innovation to continue operating with proven technology, and in a market with known demand that they also happen to understand, while gradually building the capabilities needed to succeed in innovation.

Process innovation

Thus, there are typically plenty of opportunities where even minor adjustments could lead to significant savings in cost or time. The beauty of addressing these low-hanging fruits is that the benefits start to compound quickly, which leads to a significant impact in the long run.

So, if you’re not sure where to start innovating, asking your employees how they’d improve the current processes related to their own work is an easy way to get started and gain some momentum for innovation. It’s virtually guaranteed to lead to useful improvement and is something everyone can relate to.

Incremental product innovation

However, especially with product innovation, there will always be more ideas than you can implement. Thus, prioritization will be of the utmost importance if you’re looking to innovate around an existing product.

Improved customer experience

With the added competition we’re seeing in nearly every market, a solid customer experience is simply a prerequisite for staying in business. Furthermore, a superior customer experience can even become a key competitive advantage.

The nice thing with customer experience is that there are typically a few major pain points and opportunities which can be quite easy to fix with the right kinds of innovation, and be enough to lead to measurable results.

Business model innovation

These are naturally big changes, but if you’re able to find the right business model that complements your strengths, business model innovation can create a a strong and sustainable competitive advantage.

In the last few years, we’ve seen more and more industries adopt innovative business models, such as moving from selling individual products to subscription services and value-based pricing models. If you’re looking for inspiration, this list provides you with a plethora of possible business models to consider.

Sources:

https://www.northeastern.edu/graduate/blog/importance-of-innovation/
https://www.raconteur.net/business-strategy/business-innovation-guide/
https://www.viima.com/the-innovation-archive/innovation-in-business

Crawford also recommends thinking beyond base pay alone. “Ask yourself: What do you value?” This might include stock options, paid time off, a yearly bonus, commuter benefits, or childcare benefits. Think about how the presence or absence of these would affect your salary expectations. For example, you might decide tuition assistance or the ability to bring your dog to work is worth more to you than another $5K a year. On the flip side, major gaps in benefits—like the lack of an employee health insurance plan—might raise your salary requirements drastically. Check the job posting or the company’s website or Muse profile ahead of all your interviews to get a sense of what benefits and perks each company offers.

How to answer: ‘What are your salary expectations?’

The way you respond to this question can be a real factor in whether you get the role, and the way that you’re paid if you do. Aim too high without backing it up and you may lessen your chance of landing the role, but go too low and you may send the message that you don’t know the value of your work. But a little research and preparation can help you to hit the right mark.

Employers want to know how well you know your worth—or level of skill and experience in the industry. They also want to ascertain if you are at the level that they are looking for. But the main reason employers ask about your salary expectations is to ensure that they’re not wasting anyone’s time, says Leah Lambart, career and interview coach at Relaunch Me.

“There’s usually no point progressing with the recruitment process if the candidate’s salary expectations are way outside the salary range that has been budgeted for the position,” Lambart says. “In most cases, the hiring manager won’t have a lot of room to move outside of the range, unless the role is highly specialised and it’s likely to be very difficult to find a suitable candidate.”

“If this question is asked in the initial screening call, it’s likely that the recruiter is trying to gauge whether you’re at the appropriate level for the role. If your salary expectations are way under the range, then it’s an indication to the recruiter that you may be too junior for the role. In the reverse, if your expectations are way above the range, then this is an indication to the recruiter that you may be over-qualified.”

Give a Salary Range

Responding to questions about salary with a single number limits your ability to make something work with the company, Crawford says. Her secret recipe for successful negotiations is to “come from a place of collaboration and service.” By giving a salary range, you show that you’re willing to be flexible and work with your prospective employer.

And by giving any numbers at all you’re “voicing the value you bring to the table,” Crawford says. Showing that you’ve done your research and you know what you’re worth tells an interviewer that you’re serious about your skills and what you can bring to their company.

Of course there are some drawbacks to giving salary numbers in an early round interview. Waiting until you have a job offer could give you more leverage to negotiate, Fink says. You might also fear leaving money on the table by going too low or losing the opportunity by going too high. But if you’ve done your research, going too low is less likely and going too high means the job wasn’t right for you.

When giving your salary range in an interview, “try to keep the bottom of your range toward the mid-to-high point of what you’re looking for,” Fink says. For example, if you’re personally looking for $85,000 to $100,000 and your best guess of what the company has budgeted is $80,000 to $95,000, you could give a range of $92,000 to $100,000, so that even if the company negotiates below the range you stated in your interview, you’re still happy.

In your answer, “it’s usually worth pointing out that the salary is only one component of what you’re looking for, and that you are considering salary as part of an overall opportunity,” Fink says. You might also want to reiterate what you bring to the table for a prospective employer when formulating your answer to support the range that you’re giving, Crawford says. The company is getting something for their investment—a great employee.

How to research job salaries

When preparing an answer to a question about your ideal salary, it’s crucial you provide not only a number you feel comfortable with but the appropriate compensation for the job based on real data. Luckily, it’s easier than ever to find this information.

to find the average pay for the position you’ve applied for. These salary estimates come from data submitted anonymously to Indeed by users and collected from past and present job advertisements on Indeed.

can also help you get an idea of what other employers are offering for similar roles—75% of new jobs posted directly on Indeed include salary information.

Keep in mind that salaries vary not only by career level and company but also by geographical location. When researching the typical salary range for a position, remember to consider where the role is located and the cost-of-living in that area. For example, a job located in a big city like Los Angeles will likely pay a higher salary than the same position located in rural Texas. When using Indeed Salaries, be sure to select the location from the drop-down menu.

This page will tell you how the salary for the position in your geographic area compares to the national average, the salary for the job at various companies nearby and the average salaries in other cities near you.

This data can help inform your answer to questions about salary expectations, but this isn’t the only criteria to consider. Your salary expectations should also factor in your seniority, experience level, educational background and any specializations or unique skills other applicants in the field may not have.

How to deliver your answer

Be confident

Being self-assured when talking about your salary expectations can signal to the interviewer that you know your worth. If you’ve done your research and feel confident in the experience you would bring to the role, say so.

State your expectations with a clear, calm voice. If you’re feeling nervous, take a deep breath before answering. Maintain good posture by sitting up straight, and try to reduce fidgeting. One of the most reliable ways to feel confident is to prepare your answer. Have your reasons written down and with you so that you can be prepared to justify your salary expectations.

Share your reasoning

This can include citing your years of experience, education level or unique skill set that only you bring to the role. Giving an honest informed response can help the interviewer better understand whether your expectations align and if you both determine you’re the right fit, what salary is appropriate.

Learn the Art of Salary Negotiation

1. When negotiating a job offer, keep things positive – even if the offer is one you’re having a great deal of difficulty drumming up enthusiasm about. Show gratitude for the offer and enthusiasm about the potential of the position before you dive into negotiating mode.
2. Make your counteroffer one that is fair, well-reasoned, and thoughtfully presented. CBS Money recommends providing a salary range as part of your counteroffer – indicating that companies will often avoid offering the lowest range in an effort to avoid seeming impolite. Though if you do provide a range, make sure the bottom number is one you can live (and work) with. Providing a salary range also gives the employer the impression that you’re flexible – a trait they often prefer in employees.
3. The third tip, and perhaps the most important when it comes to your long-term career goals, is this: be willing to walk away if the offer isn’t right for you. It’s hard to do, especially in a competitive job market. If you’re not desperate to put food on the table or a roof over your head, it may be better, in the long run, to wait for the right offer, rather than simply taking the opportunity that’s available right now.
4. Finally, keep in mind that some companies may have a limit on salaries they can offer, but that doesn’t mean they can’t offer compensation in other ways. If you get pushback on a higher salary, try negotiating for other benefits that could sweeten the deal for you:

• Performance bonuses
• Signing bonuses
• Future pay raises
• Additional vacation days
• Company stock
• Retirement contributions
• Health benefits
• Flexible work hours

References:

https://www.seek.com.au/career-advice/article/how-to-answer-what-are-your-salary-expectations
https://www.themuse.com/advice/what-are-your-salary-expectations-interview-question-answer-examples
https://www.indeed.com/career-advice/interviewing/interview-question-what-are-your-salary-expectations
https://www.indeed.com/career-advice/interviewing/what-are-your-salary-expectations
https://resources.biginterview.com/interview-questions-answers/salary-expectations/