Even a slight increase in your yearly income can make a huge difference over the span of your career. A recent study from George Mason and Temple Universities showed that a 5 percent gain near the beginning of your career could mean an increase of $600,000 over a forty-year period.
Why You Should Negotiate
It is easy to see that negotiating a salary increase can be beneficial, but it is harder to figure out how to do it successfully. Normal techniques for any negotiation apply, with one big difference. This is not just a transaction that you want to win; it is the beginning of your relationship with your new employer. Your goal negotiating for more is to create a win for both you and for the employer.
Initial Salary Question
Early in the interview process, interviewers may ask your salary expectations. You might be worried about pricing yourself out of consideration, or that you’ll go too low and leave money on the table. While there’s no perfect way to handle this type of conversation, there are some best practices that can help prepare you. One option you can choose is to deflect the conversation to later in the process (ideally when they offer you the position). That might sound like this:
“I believe my target salary is within the normal range for this position and my experience, but salary isn’t the most important consideration for me. What’s important to me is XYZ.”
Tell them what drew you to the position, such as upward mobility, company culture, or the ability to make a difference. A recruiter might push further to get a specific number from you, so be sure to do some salary research and know your salary expectations before applying for jobs. It might be best to provide a range for them to work with.
Research
First, research to see if the company or its competitors include salaries in their job postings or on the career pages of their company websites. Certain types of positions will clearly state wages, salary and benefits, and others won’t. Keep in mind when looking at comparable wages that you may need to make adjustments if the role is for a different level of experience or in a different location.
If a range is stated, consider your years of experience, skill level, and unique qualification, then determine where you should fall on the scale. Whether you are stating an initial range to an employer or are reiterating your numbers in the negotiation process; be sure to be able to express clearly why you merit that salary and what value you bring to the organization.
Other resources
If you can’t find a salary on a job posting or career page, find another online resources where company employees post general pay ranges and reviews for similar employers. You might also want to look at the Bureau of Labor Statistics website to find out what the general compensation is for a role. Keep in mind that this data is based on Census information and will not be current. You’ll need to adjust the amount to be both current and appropriate for your location; salaries can be higher or lower overall depending on the city and state.
Ask for Time
It is okay to ask the employer for time to consider their offer, in fact it is advisable so you can carefully consider the details and prepare your counter-offer. Be respectful of the employer’s timeline, give them a timeframe, and try to get back to them as soon as possible.
The Counter-Offer
If at all possible, make your counter-offer in person. For any crucial conversation, face-to-face is preferable so that you can read body language and facial expressions.
Thank the employer for their offer and express to them what is important to you about the role and what value you bring to the table. Then tell them your number. For example:
“Thank you again for offering me this position and allowing me time to consider. It is important to me to work hands-on with customers and this role will allow me to do so. I bring 10 years of experience in customer service in this industry and have a track record of improving repeat business for my previous employers. I feel comfortable that the value I bring merits a slightly higher salary of $XYZ. Do you think you’d be able to meet this number considering my experience?”
After you’ve made your counter, be patient on their response. Give the employer time to consider and formulate their thoughts; you do not need to fill any silence. The employer may counter as well, reject the number, or accept. Regardless of their response, keep the tone of the conversation positive and focused on getting the best result for everybody.
Practice
If you haven’t negotiated much before, you might want to practice role-playing a few different negotiation scenarios with a friend. You could also try practicing by negotiating for a smaller scale item. Good examples of a small-scale negotiation are negotiating a deal on your dry cleaning, an item at a store, or yard sale. This type of practice can help you get comfortable with the act of asking for more, which is often the biggest barrier for people to overcome.
Full Compensation
When you consider a job offer it is important to consider the full compensation package and the same is true when you consider what you want to negotiate for. Some employers have fixed salaries or don’t have much room to negotiate pay, but might have some flexibility when it comes to other parts of your full employment package, such as paid time off, flexible work hours, remote work opportunities, and bonuses. Identify areas that are of value to you ahead of time, so that during the offer and negotiation phases you are ready to ask for more of what matters most to you.