Surveys have shown that about 40% of people never negotiate their salaries. They accept the initial offer from their employers and choose to live with it.
If you're someone who accepts the initial offer, it's vital to understand that you're most likely leaving money on the table. Companies rarely offer the top of their budget for the position they are hiring for in their first offer, leaving room to negotiate. Companies plan for and expect a negotiation, whether you're interviewing for a brand new position or in an annual review speaking about a potential raise.
We've put together a list of salary negotiation tips to help you negotiate your salaries more effectively. Check them out below and put them to good use the next time you want to go through the salary negotiation process.
Amelia Kinsinger
Salary negotiation research and preparation
Salary negotiation isn't a scenario where you say, "I'll just wing it." You must research and have a plan in advance to ensure you're armed with the information you'll need to participate in a salary negotiation.
For example, you should look up the average salary for the job title before the salary negotiation. There are lots of different salary comparison websites out there that you can use for this purpose. They'll give you a general idea of how much money you should ask for during a salary negotiation.
You'll be able to make a more compelling case to an employer when you do your homework and figure out how much money you should be making. It'll give them a better indication of where you're coming from during a salary negotiation.
Next, you should layer in your experience and self-worth. Looking up the average salary for the role is just a starting point. What experience do you have in the role, or what intangible traits do you possess that adds more value to the company? Once you start answering these questions, you can begin adjusting where you think your number is.
Don't worry if your final number exceeds the role's budget. If you prepare a coherent argument for what you believe you're worth, the employer may make adjustments to justify giving you more than what they said the top of the budget allows for.
Now that you've researched and created a case for why you've arrived at the number you have, start preparing a pitch for an employer. An employer will respond better to your request for a higher salary when it's clear that you've created a strong case for yourself.
The pitch should include your comprehensive explanation of why you deserve the number you are proposing and what else you need to succeed in your role. Is the vacation offered not enough? Ask for more. What type of equipment do you need to perform at your best? If it's a Mac, ask for an Apple computer (with specific specs if needed). Is the bonus or bonus structure different from your expectation? Discuss it. Salary negotiation isn't just about the base salary–it's about the entire compensation package.
If you're sending your negotiation through writing (like email), be sure to proofread many times over to ensure there are no mistakes. If it's over the phone, practice your pitch verbally until you're comfortable, and jot down notes you can refer to during your conversation.
Develop your salary pitch
How to negotiate your salary
Surveys have shown that
about 40% of people never negotiate their salaries.
40%
There's an old adage you may have heard before that usually goes something like, "the first person to say a number loses." This applies more if you're interviewing for a new position. Annual raises and promotions inherently mean that your manager will tell you what the company is proposing for the raise. However, when interviewing for a new role, often, it's in the initial phone call with HR that they will ask you what your salary expectations are.
Suppose the job posting didn't list compensation, and they don't say it before asking about your expectations. In that case, an appropriate response could be, "I don't only consider the base salary when considering a role. Can you tell me what the budget is and more about the compensation package overall?" At that point, they will likely tell you their salary range and a little about their PTO policy and ask if that's in line with your expectations. If it doesn't meet expectations, don't cringe or shy away from telling them what they are. Be confident in your self-worth. You still don't have to say a number.
You can say something like, "that's a little below my expectations," or "my range is more between X and Y." Giving a range back can show that while their initial offering may differ from yours, you're willing to negotiate.
Who goes first?
More often than not, salary negotiations will have some back-and-forth. During this time, confidently ask any questions you may have, like:
Cover all bases
"What metrics are used to determine success in my role and bonuses?"
"What benefits will be included along with my salary, and are these benefits negotiable?"
"When will I be eligible for future promotions and salary increases?"
The answers you get to these questions will reveal how an employer handles salary increases over time and should be one of the determining factors of whether or not you accept the offer.
Be aware of and don't be afraid to use different leverage points to your advantage in salary negotiations. Here are a few common examples:
Know what leverage you have to use
You currently have a job.
This can be a big one. Did the company/HR rep find and reach out to you first? If you are employed at the time of interviewing for another job, then this is one of the most significant pieces of leverage you could have. You are in no rush to jump into something else and have the luxury of waiting until the perfect opportunity comes along.
You have more experience than what they want.
If you're interviewing for a new job and they want three years of experience, but you have five, be sure to highlight that as a reason why you deserve more.
Remember, confidence is the most crucial part of any salary negotiation or raise conversation. Be confident in your self-worth and your wants. The "worst" thing that can happen is you get a no. But if you deliver a compelling case for why you deserve what you're asking for, then it will happen.
Confidence is key