How To Negotiate Salary: Expert Tips For Securing The Pay You Deserve

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Learn how to negotiate salary effectively with our comprehensive guide. Discover strategies to secure the pay you deserve and advance your career. | SUCCESS

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business women shaking hands showing how to negotiate salary

At some point in the hiring process, a potential employer will present a compensation and benefits package. This number, however, may not reflect the value you can provide to the organization. If your offer doesn’t align with your education, career level, skill set or experience, you’ll need to know how to negotiate salary.

Successful salary negotiation can ensure that you’re compensated fairly and boost your professional success. It also sets the foundation for your future earnings since most raises are calculated as a percentage of your current salary.

According to Fidelity Inv e stments, 58% of young professionals don’t negotiate their job offers— which leaves a lot of money on the table. However, according to that same survey, 87% of candidates who do negotiate receive at least some of what they ask for.

Advocating for yourself in a salary negotiation requires a cool head, professionalism and lots of preparation. It might feel daunting, but with these tips and strategies you’ll be prepared to command the compensation you deserve.

It’s best to negotiate your salary after an offer is made. By this point, the employer has completed their deliberations and invested some time in you. That means they’re more likely to negotiate rather than backtrack to other candidates.

However, negotiating your salary after the interview isn’t always possible. In many cases, an employer will ask for your salary requirements upfront to gauge whether the interview process is worth their time. If your salary needs and their budget are too far apart, they will end the process and move on to other candidates.

This is why it’s important to understand your salary needs—and be ready to defend your request—before the first interview.

Be prepared to justify your salary expectations based on industry standards, the company’s financial position, current market conditions and the value of your skills and qualifications.

A salary negotiation is one of those awkward money conversations that many of us find stressful. But don’t worry—we’ve got you covered.

These 11 tips will equip you with the knowledge and confidence to advocate for yourself throughout the salary negotiation process.

Setting reasonable salary expectations requires a thorough understanding of the market and your professional value. You’ll need to do some research to generate a figure that’s ambitious—but also reasonable.

Search for salary information for similar positions in your area. Indeed Salaries, Payscale and Glassdoor are great resources to create a baseline, especially if you need to compare hourly to salary wages. Find an average for your role and adjust your salary requirements up or down based on your:

If you’ve been in your career for years you may have a handle on this information, but research can still validate your assumptions. If you’re considering a career change, this type of research is vital.

If possible, reach out to colleagues in your field to determine what a reasonable request or counteroffer would be. Recruiters who work in your industry can also be great sources of advice. If you have offers from other organizations, consider them as well.

Next, consider any job-related expenses you might incur, especially if you’re moving to a new market, increasing your commute or setting up a home office. These might include:

It’s also beneficial to understand the company’s financial position. For instance, if they’re a lean startup without much funding, you might be better off asking for stock options or equity instead of cash compensation. But if the company posts billion-dollar profits, they probably have more room to negotiate.

A fundamental rule of salary negotiation is to ask for a slightly higher number than you expect. This gives you room to negotiate down and still end up with an acceptable figure.

Generally, it’s not advisable to offer a salary range because employers will typically opt for the lower end. In some cases, employers post artificially low salary ranges to entice recruits to ask for less. So if the employer insists on a range, make sure the low end is an amount you’re happy with.

Try to settle on an exact figure. Some research has shown that employees who offer a specific number—say $73,280 instead of $73,000—are more likely to get an offer they’ll accept. In these cases, the employer assumes you’ve done your research and know exactly what you need.

It’s also important to determine the minimum salary you’re willing to accept for a position—taking into account both cash compensation and benefits—and stick to it. When deciding on a number, consider your personal budget, your current salary and the value you can provide to an organization.

Any offer or counteroffer you make should be paired with a persuasive justification. It’s your job to articulate your value and explain why you deserve that figure while negotiating salary.

Make some notes about your unique situation and how you derived your salary request. For instance, if you want a higher-than-average salary, explain why your specific skills, accomplishments and credentials warrant it. And be sure to note any competing offers you’re considering.

Justifying your request helps the hiring manager make a decision. It also provides ammunition to use on your behalf if they need to convince a superior that you’re the right choice.

Your salary is just one element of your total compensation package. You can also negotiate other aspects, including:

Take some time to think about benefits that could offset a lower salary. Then, if a hiring manager can’t meet your salary goal, you’ll be ready to negotiate around other forms of compensation. In many cases, you’ll find some room to maneuver.

Since you don’t know when the hiring manager will discuss compensation, it’s best to have your salary pitch ready before the first interview. You can always amend your salary requirements and your pitch as you learn more about the position.

Compile your research into a concise, digestible argument. Reference your industry and geographic data alongside your experience and potential impact. Be specific, but don’t overwhelm the hiring manager with numbers. If possible, provide examples of salaries offered by other employers for similar roles (bonus if you can cite salaries from their direct competitors).

Your pitch doesn’t need to be long. A minute or two should be enough time to make your point. But you’ll want to practice with a friend or colleague before the first interview. This will help you identify weak points and opportunities to make a better argument.

Depending on the hiring process, you might discuss compensation during a meeting—in-person, remote or over the phone—or via email.

Speaking to the hiring manager directly lets you have a genuine back-and-forth conversation. It’s an opportunity to communicate your needs and express gratitude more immediately and personably. But these conversations are stressful for some people. And while avoiding them might be a habit that’s holding you back, you might still prefer to communicate in writing.

Negotiating your salary via email takes a lot of the pressure off. You can take the time you need to structure your argument and carefully craft your appeal before hitting send. That said, email lacks the personal, human-to-human connection that might tip the scale in your favor.

Negotiating the salary offer can be stressful for both you and your employer, so it’s important to remain level-headed, polite and positive throughout the process. Speak confidently and avoid overexplaining or apologizing for your salary requirements, which can undermine your credibility.

Most importantly, avoid becoming aggressive, feeling insulted or acting entitled. Show gratitude to the hiring manager even if the conversation doesn’t go your way. Finally, listen carefully to the employer’s needs and concerns; you’ll be more likely to find mutually beneficial common ground.

When the conversation is over, make sure to get the final offer in writing. This offer letter should include the salary, benefits and any special arrangements you negotiate. It should be signed or acknowledged by the hiring manager and someone in the organization who has the authority to make compensation decisions.

In some cases, employers simply won’t be able—or willing—to meet your salary request. If the salary is below your bottom number and the benefits don’t offset the pay, you might choose to reject the offer.

If you choose to accept the position, however—perhaps because you believe in the company’s mission or see opportunities for professional growth—you should stay positive and demonstrate your continued commitment to the role. Express that you’re willing to work hard even though you didn’t get what you asked for.

Next, make it clear that you hope to work toward your salary goals quickly. Ask to set a timeline for reevaluation, including specific goals and improvements you’ll make to secure higher compensation. Document everything so there’s a record of this agreement.

The key to successful salary negotiation is to be prepared and communicate clearly and assertively with the new employer. Your job is to advocate for yourself while maintaining professionalism throughout the process, regardless of the outcome.

And, remember, if you believe you’re worth more in your current role, it might be easier to ask for a raise than to start from scratch.

Use the salary negotiation tips outlined above, be confident in your capabilities and you’ll be ready to land a salary that reflects your true value.

Photo by mavo/Shutterstock.com

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