One of the most important career resources you can obtain is the ability to negotiate a salary that will start things off enthusiastically for both you and your new employer.  The first thing to clear up is that a salary negotiation is a process that should begin before your first interview, not a wrangling between your prospective new employer and yourself at the end of the interviews.  Although salary negotiations can sometimes be uncomfortable, they are a necessary part of the hiring process.  If you make a mistake you could end up without a job offer you would have otherwise had, or end up accepting and being stuck below your value in salary for years to come since future raises are usually a percentage of the initial salary you accept.

Research the salary range –Your goal is to understand what the salary range is for someone with your level of experience, education, and track record in the job you are interviewing for.  There are many resources available to give you an understanding of what salaries are being paid.  You can start with our Salary Calculator giving you statistical data, our Cost of Living Calculator, and our Salary Forum which allows you to ask others in your field what their experience has been.  Another good resource is the U.S. Bureau of Labor Statistics.  Once you have a range of salaries, you need to determine where you fall within that range and why.

Create value – The interview process is your opportunity to create interest in hiring you and getting the company to see the value you would bring to the position ( see interview tips).  If you believe you should be paid near the top of the salary range, during the interview process you need to display the attributes that justify that salary.  Without 'selling' your worth in the interview process the company has no reason to offer you a job, let alone negotiate a better salary.

Avoid being too specific too soon – It is best to let the company initiate the first detailed salary discussion, typically they will do this as they are getting close to making a job offer.  Leading up to this point, the most valuable tool you can give yourself in your salary negotiation is information.  Probe during your interviews for details on what the steps are in that process and what the company is expecting to pay for this position.  Try to stay generic in your answers without avoiding direct questions if you are asked about your salary expectations.  If asked about your current or most recent salary you should answer honestly and directly, adding that if offered the job your decision will be based on what is most appropriate for this position.  Usually you will be asked about your salary expectation early in the interview process, this is a way to weed out candidates.  If you answer with a figure that is too high, you risk screening yourself out of the interview process.  If you answer with a figure that is too low, you risk screening yourself out of the interview process or end up being offered a salary below your value.

Be enthusiastic, not over-anxious – If you interview well enough, at the end of the hiring process the company will make you a job offer with a proposed starting salary.  There is some old negotiating advice that tells you to play it cool and not show your excitement.  While it is true in salary negotiations that you do not want to come across as overly eager or desperate, you do need to show interest in the job throughout the hiring process.  If you are excited about the position and would accept a good job offer, make sure when you are interacting with the company you let them know.  The key is to ponder your decision using logic and not emotion, taking all aspects of the job into consideration knowing at what point you should respectfully walk away.

Consider all aspects of the job offer (see employee compensation)- When evaluating a salary offer there are both offsetting and augmenting points to calculate.  There are times that a company truly is unable to offer additional salary, consider what might offset accepting a lower salary;Does this position add to your career experience and increase your future value?  Would this new position improve:

• Your commute?
• Work hours?
• Amount paid for insurance or other benefits?
• Work schedule?
• Bonus pay, profit sharing, stock options, 401(k)?
• Paid training, paid C.E.U.'s, paid industry conventions?
• Travel Per Diem?
• Work laptop, work cell phone, internet access?
• Start date?

You can often negotiate most of these points and might offset a lower salary.  Also, consider points that augment your value; Do you bring added value to this job such as... this exact previous work experience?  bringing existing clients to your new employer?  specialized training that applies to this job?  Anything that can separate you from other candidates for the job may add value in paying you a higher salary.

General tips:

 

1. Generally, you will receive a job offer verbally before it is made in writing.  When you receive an offer you have three choices; accept the offer as-is, decline the offer outright, or counter-offer.
2. If you need more time to decide, let the company know a specific date you will have an answer for them.
3. To counter-offer, you should let the company know that you accept the offer of employment if a new offer meets what you are requesting.  It is easier for the company to provide a new offer if they have a solid commitment from you to start the position.
4. If you have persuasive documentation to support your position of your salary value, such as Bureau of Labor Statistics, previous pay-stub, etc., the time to share it is after the initial revelation by the company that they will be offering you the job or when you propose your counter-offer.
5. Some employees that are paid at the top of a pay range can have future pay raises hindered due to reaching the 'ceiling'.  Be sure to uncover if this company does this when you are in the detailed portion of salary negotiations.

Common errors to avoid:

 

1. Don't play games such as "Hard-ball" or "Win/Lose" negotiations.  Contentious, confrontational demands will send the message that you may be difficult – this decreases your value as a loyal team contributor in the eyes of most employers.
2. Do not pit offers from two or more companies against each other – going into "Auction" mode will greatly decrease your value in the eyes of most employers.  Good etiquette is to make no more than one, sometimes two counter-offers to any one company.
3. Avoid excessive delays / stringing along good-faith offers from a prospective employers – they may be accommodating if you have a need to wait for a certain date or event, but they often have their own deadlines you should consider as well.
4. Be cautious of when and how you use the words "Okay", "Sounds good", and "I'm flexible" when discussing salary.  Often they lead the company to believe you will accept an offer on the lower end of the salary range.
5. Instead of using phrases such as: "I'd like to be at $X", be able to say something along the lines of "The range of what others with my experience are paid is $X to $Y, my experience/training should put me on the higher end of that range"
   
   
   

We hope these salary negotiation tips lead to higher pay for you in your next negotiation.

 

You also can gain insight into maket salary trends, ask about current salaries and add to the information in our Salary Forums.