As a job seeker, one of the most challenging yet rewarding aspects of the hiring process is salary negotiation. It can be awkward, but it’s essential for receiving the remuneration you deserve. If you’re new to the industry, changing industries, or looking for a raise, learning to negotiate your salary is imperative.
I will share the best tools for a successful salary negotiation, along with what you should do before and during the discussion to assertively secure what you deserve and never leave money on the table again.
Know Your Worth Before You Start Negotiating
Before you even enter a salary discussion, research is required. How else can you make a case for a salary increase if you do not know what the average salary is for the position within the industry? Several factors can lead to differences in salary for the same job. For instance, the salary for a particular position will differ depending on whether the job is in a major or minor city.
One good starting point for determining the average salary for your position is to check out Monster’s resume tools, such as their free resume builder, which is part of a broader suite of career resources, including salary tools and career advice. They often list salary ranges for a wide variety of industries and jobs.
You can use this information to determine if the offered salary is in line with the average for others in the same position within the same industry. This can support job seekers from crafting their resume to researching market pay and negotiating offers.
Understand the Total Compensation Package
Salary isn’t just about base pay. The whole compensation package counts. Benefits like health insurance, bonuses, vacation time, and stock options add up. Many people focus too much on salary and ignore other possibilities.
Take a lower salary, for instance. You may be able to negotiate more vacation days, a signing bonus, or flexible working hours. You can ask for a better rate if you’re a freelancer. If you work remotely, you may get a stipend to offset work-from-home costs. The total package can lead to more room for negotiation than you might expect.
Don’t Be Afraid to Start High, But Be Reasonable
Once you know what the market value is for your role, and once you understand the full compensation, then you can start to think about the target salary that makes sense for you.
When discussing a target salary with an organization, it’s a good idea to aim a little higher, but not so high as to be unrealistic. If you start with a number at the top of the salary range, then you give yourself room to negotiate downward to something realistic for that role.
One mistake people make is underestimating their own value and setting a target salary that’s too low. It may feel uncomfortable to talk about money, or you may feel like you’re going to seem “greedy” if you suggest a target salary that reflects your value. But ultimately, if you underestimate your target salary, then you’ll lose out. If you come in with a target salary that’s too low, the organization will likely respond with a counteroffer that’s also too low.
Rather than underestimate yourself, focus on being strong in your request and come in with a target salary that’s a little bit higher than what you really want. This will give you room to negotiate the midpoint between what you want and what you need. Be prepared to make an argument for your request, using facts and figures to explain why this salary makes sense for your experience, qualifications, and the role that you’ll be filling.
Practice Your Negotiation Skills
Salary negotiations are a conversation, not a battle. With confident communication, you can prepare and rehearse for these conversations with a friend or mentor. The more comfortable you are with your ask, the more likely you are to remain composed during the actual negotiation.
Start with your value proposition: Why do you deserve a raise? What skills and experience do you bring that create value for your organization? Do you have metrics from past experiences that demonstrate that value? For example, if you increased sales or streamlined a process, what were the actual numbers?
Be prepared to respond to the employer’s counterarguments as well. They may have questions or concerns. You can prepare how you want to address those concerns elegantly. Remember that you can also respectfully ask for time to consider an offer or agree to continue discussing it at a later time if needed. It’s okay to take a breath and consider everything before a final decision.
Timing
The timing of your salary negotiation can significantly impact your success. The ideal time to negotiate your salary is after receiving a job offer. There’s a risk that raising the topic of a salary too early in the discussion could give the impression that your main motivation is money. The best time to negotiate is after the employer has demonstrated your value and made an official job offer.
If you are in the interview process, the best time to negotiate your salary is after the employer has expressed interest in hiring you or has made a formal job offer. It is easier to make a case for the salary you deserve if the employer is already interested in hiring you.
For those interested in working remotely or even freelancing, there’s no harm in discussing rates early in the process. It is best to get this out of the way early to avoid misunderstandings.
Final Words
Salary negotiation is an essential part of employment for new graduates and for those changing industries or seeking a raise. The first step in negotiating a salary is finding the average salary for your position, taking into account your location and industry.
Salary doesn’t just include base salary, it also includes the value of health insurance, bonuses, and flexible working arrangements. When preparing for a negotiation, calculate a slightly higher salary than you want, as this will give you room to negotiate a fair salary.
You can practice your negotiation skills in advance, prepare your facts, and choose the right time to do this, ideally, after they’ve offered you the job. With preparation and confidence, you can fight for the salary you deserve.
