By Kate Quick
Salary negotiation can be uncomfortable, intimidating, or undesirable. Many people worry that they will come across as pushy or rude or that it will even affect their chances of getting the job. However, salary negotiation is an essential part of career development and, when done correctly, can lead to not only an increased salary but also impressing your potential manager.
While it can feel daunting to ask for more money or benefits, salary negotiations are common. Employers and hiring managers often expect candidates to negotiate and will set the original salary lower than their maximum limit.
On the other hand, prospective employees are also likely to accept whatever offer their potential employer makes without negotiating for more. While there are many reasons why this might occur, the main reason is that many individuals don’t know how to negotiate effectively. This blog provides ten tips on negotiating respectfully and effectively.
Evaluate what YOU have to offer.
Knowing your assets and what you can offer an employer is important before initiating the salary negotiation process. Several factors can influence your compensation, such as:
- Geographic location: Consider the cost of living in your geographic area.
- Years of industry experience: If the job requires one to three years of experience and you meet the higher end of the range, it might warrant a higher salary.
- Years of leadership experience: If the employer prefers or requires leadership skills and you exceed their expectations, it may justify higher pay.
- Education level: Related bachelor’s, master’s, PhD, or specialized degree programs can increase compensation.
- Career level: Generally, you can expect a higher pay range as you progress in your career.
- Skills: Niche or technical skills that take time to master may attract higher salaries.
- Licenses and certifications: An employer may require or prefer that you have specific licenses or certifications. If you already have them, you may choose to request higher compensation.
Research market salaries
Start by researching industry standards and average salaries for your role, experience level, and location. This information provides a baseline for your negotiations and can be used as justification for why you deserve a different salary. Some common places to determine market data include:
Know when to give a salary range versus a salary point
If asked during the application or interview process, communicate your salary expectations in the form of a range, not a specific number. Ensure that the lowest number in your range is still a number that you would be comfortable receiving. You also might consider giving the employer a slightly higher range than your goal. This way, if they negotiate down, you will still end up with a salary offer that you are comfortable accepting. Once you are done interviewing and have been given an official job offer, it is appropriate to give a specific salary number, but ensure that this number is based on market data. Salary ranges for roles are sometimes posted online and can be used as a negotiation tool.
Prepare specific talking points
Answer the following question as a framework for your conversation: Why do you feel you deserve a higher salary than the one the employer offers?
Compile a list of your accomplishments throughout the year, highlighting specific projects, initiatives, or goals you have achieved and how they have positively impacted the company. Consider your years of experience, skills, certifications, and other specific points you can communicate that warrant a higher salary.
Timing matters when initiating salary negotiations
Timing matters in salary negotiations. It is a good practice to request your desired salary or compensation package once you receive a job offer, preferably a written offer. This is because by this point, you have demonstrated that you are the best candidate for the job and fully understand the employer’s expectations. Negotiating after you have already received an offer can provide you with more leverage and a stronger likelihood that the employer will say yes. If you bring up your salary expectations too early in the interview process, the employer may be less inclined to keep you as a candidate.
Consider the entire compensation package
Salary negotiations extend beyond the base pay. If the employer can’t meet your salary expectations, be prepared to negotiate for other benefits, such as vacation/paid time off, hours/workplace flexibility, training, certifications and professional association dues, or medical and dental insurance. You may also consider negotiating for tuition reimbursement or training fees. Sometimes, these alternatives can be just as valuable as a paycheck.
Practice your pitch
Rehearse your key points and responses to potential counterarguments. Conversations about money can feel uncomfortable, but with lots of practice, you will gain more ease and confidence to discuss your salary. Consider practicing with a trusted friend, family member, or colleague and ask for their insight.
Be confident, yet remain professional and personable
The more confidence you convey, the more confident the employer will be in their consideration of your feedback. Lack of confidence can also result in over-explaining or apologizing for your request, which can reduce the effectiveness of your negotiations. However, ensure that you keep the tone of the conversation positive and professional. Focus on your contributions and growth rather than making demands or coming across as arrogant or entitled.
Show passion and gratitude for the position
If you are at the job offer phase of the interviewing process, you have likely invested much time and energy applying and interviewing for the position. The employer has also invested their time in the process, so make sure that you recognize this and thank them for considering you. Be sure to share specific reasons why you are excited about the job, such as their culture or services, while also avoiding promising anything. If they do not agree to your requests or you ultimately decline the offer, ensure that you still express gratitude for their time.
Be prepared for tough questions
Employers and hiring managers are used to negotiation, so they may ask important, sometimes intimidating, questions to determine your motivation and interests. When asked these questions, remain calm and answer honestly and respectfully. Some questions difficult questions that you can expect include:
- Are we your top choice?
- If we increase the salary, will you accept the position immediately?
- Do you have any other offers?
Get everything in writing if possible
After the negotiation, follow up with an email summarizing the discussed points and again expressing gratitude for the conversation. This email ensures that everyone is on the same page. If an agreement is reached, ensure that the terms are entirely and clearly documented in writing. Having a clear record helps avoid future misunderstandings or miscommunications.
Although these tips are intended to help you effectively negotiate, employers may still deny your requests for higher compensation. This may happen because they are unable to spend more, or they have another candidate who is not requesting a higher salary. Employers may also counter-offer with a higher salary than their first offer but not as high as your goals. If this occurs, you must determine if the job is worth the lesser amount. Regardless, it is okay to decline a job offer as long as you respectfully do so. If the employers are unable or unwilling to meet your expectations and the other benefits are insufficient, you might deem the job not worth your time, experience, and expertise and decline the job offer.
Salary negotiations are difficult, but they are doable with preparation, confidence, and flexibility. By presenting a well-reasoned case for your worth to the prospective company, you increase the likelihood of a successful outcome that benefits both you and the employer. Learn more about salary negotiation by visiting the Career Library and reviewing the other resources available:
- How to Approach End-of-Year Salary Negotiations
- LinkedIn Learning: Negotiating Your Salary With Confidence
- LinkedIn Learning: Salary Negotiation & Tips
- Negotiating Salaries & Job Offers
- Navigating Multiple Job Offers
- How To Negotiate Salary After a Job Offer
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