Generally, two opportunities influence how much money you make: when you get a new job and when you ask for a raise in an existing job. Money is usually the most sensitive issue in the hiring process. Discussing compensation often causes anxiety for both employees and employers. Negotiating an initial salary can be stressful; it gets more challenging once you have the job and want a raise.
Confidence is essential in negotiations. You've probably heard the saying, "Negotiate from a position of strength." Strength comes from confidence. Confidence comes from being prepared (doing homework), reaching the right decision-maker, having the right timing, and knowing what you want from the negotiation. One of the best things you can do to boost your confidence is to practice (role-play) your salary negotiation with someone. Ideally, practice with someone with negotiation experience — a career coach, a friend or neighbor in sales, or a lawyer. This guide will help you with the rest: research, timing, and assessing your strengths to justify a higher starting salary or a raise.
According to a CareerBuilder survey, 45% of employers are willing — and expect — to negotiate salaries. Still, only half of workers do, potentially missing thousands of dollars.
Negotiating your salary doesn't have to be daunting. It's a pivotal skill shaping your financial future and job satisfaction. Whether starting a new job, eyeing a promotion, or seeking a raise, understanding the art of total compensation negotiation is key. Here's your comprehensive guide to advocating for your true worth.
Do Your Homework
Before initiating any negotiation, conduct thorough research to understand the industry standards, salary ranges for similar roles in your location, and the specific company's compensation practices.
Research the prospective employer and its salary structure. Talk to current or former employees. Alums of your college or university who hold similar positions or are employed by the same company may provide helpful information. (LinkedIn can be a good source of contacts for this.)
One of the easiest ways to research salary information is online. Some websites offer solid salary information, including:
Bureau of Labor and Statistics (wage data by area and occupation)
Occupational Outlook Handbook (earnings)
Payscale.com (requires you to contribute data to receive information)
Glassdoor.com (requires you to contribute data to receive information)
The Riley Guide Salary Guides & Guidance (salary info and additional research tools)
SalaryExpert.com (allows you to search jobs by pay range)
Robert Half International Salary Guides (accounting, finance, financial services, technology, legal, creative positions, administrative jobs)
You can also do a Google search for "average salary for (job title)." This can lead you to more specific salary data for a profession.
When using sites like Payscale.com and Salary.com, compare job responsibilities, not job titles. A job title can mean different things at different companies.
If you are relocating, part of your research should include cost-of-living adjustments. To assess city differences, you can use the CNN Money Calculator.
Research your market value
Research your market value - what you’re worth — for your position, level of experience, and industry. In addition to online salary sites, you can get information from your professional or trade association.
Identify and highlight your unique skills, experiences, and achievements that contribute to the role. Quantify your accomplishments whenever possible to showcase your tangible impact on projects, revenue generation, or cost savings. Understanding your value proposition strengthens your negotiation stance.
How to Handle a Request for Salary on Application Forms
You may be asked for salary information on an application form — or be faced with a "current salary" or "desired salary" field on an online application. Your answer may be used in the screening process: if your answer is too high, you may not be considered for the position. This number will also likely come into play at the interview/offer stage — it can establish the range for the company's offer.
It is illegal for employers to ask for your current salary in the following states:
California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Massachusetts, New Jersey, New York, Oregon, Vermont, and Washington. These laws aim to promote pay equity and prevent salary history discrimination during hiring.
On a paper application form — or if the online form allows you to type in whatever you want — you can write “Negotiable.” This allows you to discuss your salary history and expectations later.
Leave it blank if it's not a required field on an online form. If the "desired salary" field requires you to enter a figure, however, you have a couple of options:
Enter $0, $1, or $10 (the minimum number you can) — it will be clear you’re not answering the question (most employers will know you aren’t offering to work for free).
Enter $999,999 (or the highest number you can). Like answering $0, this shows you are purposely avoiding the question.
If you can, enter a range — some online forms will allow you to enter two numbers.
You can enter your desired salary — but know that it may lead to you being screened out (if it’s too high) or offered a lower salary in the interview (if it's too low).
Timing Is Key
Choose the right time for negotiations. Avoid discussing salary too early in the hiring process; wait until the employer is genuinely interested in hiring you or until a performance review for a raise or promotion.
In negotiating an initial salary for a job, you (the jobseeker) do not want to be the one to bring it up in an interview. Let the hiring manager be the first to discuss salary. Only bring up money once the interviewer brings up money if you can help it. Remember, they want you to accept the job. The company has put a lot of time and effort into finding the right candidate — you!
The money issue will likely come up in the interview when the company is serious about you as a candidate. Only negotiate salary or benefits once you've been offered the job. You certainly do not want to price yourself out of the running or settle for less than you are worth. Employers often have a salary range available for positions, leaving them room to negotiate.
At some point, you will likely be asked about your desired salary. If you're pressed about your desired salary and feel you must name a figure, give a salary range instead of your most recent salary. And don't forget to add, "…that doesn't include the value of insurance or other benefits." The bottom of your salary range should be the minimum you're willing to accept. Your salary research and unique qualifications will dictate the top of the range.
Naming a salary range allows you to find a figure that is also in the range the company has in mind. Many companies base their offers on sliding salary scales.
Here are a few strategies for success when an interviewer asks about your compensation requirements:
"What was the compensation package for the individual previously in this position?" then, base your answer on that information.
"What range did you have in mind?" where your answer is always at the high end of the range that you were considering, or
“What are you willing to pay an individual in this position with this level of responsibility?” and use that information to answer the question.
The more information you can get from the interviewer, the more educated and appropriate your response can be.
If asked for your salary requirements, first ask for the pay range for the position. Then, you can respond with, "That's in the range I was expecting. Once I better understand the position's requirements and the value I can bring to the company, we can discuss the specific compensation."
Don't tip your hand. If the interviewer asks you to supply a dollar amount that would satisfy you, don't give a concrete number for which you're willing to settle. You want to avoid taking yourself out of the running by naming an absurdly optimistic figure, and you want to avoid naming a figure lower than the company is ready to offer. Instead of naming a price, say, "Based on my experience and skills and the demands of the position, I'd expect to earn an appropriate figure. Can you give me some idea of the range you have in mind?"
Or you can try the "salary two-step, which goes like this: "Your company has a wonderful reputation for offering fair compensation and benefits, and I'm confident that we'll be able to reach a package that will be a win-win for all. What I'm curious to know more about is…" Then, ask one of the 10 questions you've prepared for the interviewer. This way, you might be able to set the salary question aside until you have a job offer – that's when you'll have the most leverage.
Communication: Approach negotiations confidently and clearly, expressing your enthusiasm for the role while justifying your desired compensation.
Be a Good Listener: Understand the employer's perspective and engage in constructive dialogue to find mutually beneficial solutions.
Know what You Want: You don't have to accept the first salary offer you're given. Jack Chapman, author of "Negotiating Your Salary: How to Make $1000 a Minute," suggests responding with a "hmmm" instead of "okay" when presented with a salary offer. (Okay, constitutes acceptance; "hmmm" gives you room to negotiate.)
Focus on Total Compensation: Consider the full value of the compensation package beyond salary, including benefits, bonuses, remote work options, and professional development opportunities.
Benefits can make a huge difference in your compensation package, so pay attention to them! The most important benefit to consider is health insurance. If the company pays only a percentage of these costs, make sure that you can afford to pay the difference out of your pocket.
Non-cash benefits can add 30 to 40 percent to your total compensation package. Other benefits and negotiable items may include:
Health insurance
Vacation and sick/personal time
Retirement plans
Bonuses and/or incentives (including a signing bonus and profit-sharing plans)
Tuition reimbursement
Stock options
Flexible schedule (telecommuting)
Other insurance (dental, life, accidental death, disability insurance)
Company-supplied equipment (laptop, cell phone)
Company car (or car allowance or other transportation expenses)
Health club membership
Association dues
Relocation expenses
Discount on company products
Expense account
Childcare expense reimbursement
Salary reviews (negotiating more frequent reviews and/or raises based on merit or performance vs. cost-of-living)
Space (i.e., an office with a window)
Overtime policies (if it’s available, and you want to work it, to increase your pay)
Severance package
Be Flexible: You can also ask if the company's offer is flexible. The "worst case scenario" might be that the interviewer tells you your salary is set by company policy, and there is no room to negotiate.
Negotiation is a collaborative process. Explore alternatives if your salary expectations still need to be met, such as performance-based reviews or additional responsibilities.
Bottom Line: Establish your minimum acceptable compensation package and assess if the offer aligns with your long-term goals.
Follow-Up: Ensure all negotiated terms are documented in writing, expressing gratitude for the opportunity and maintaining professionalism.
Remember, negotiation is a skill that improves with practice. By mastering these strategies, you can confidently advocate for fair compensation and pave the way for your professional success.
Need more help deciding your next career steps or landing your dream job? We also offer a comprehensive Career Assessment Center, resumes and writing services, and even a free consultation to map your journey to professional success.
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The Life Working® Career Coaching Team