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Should you negotiate your salary?
11 salary negotiation strategies
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Should you negotiate your salary?
11 salary negotiation strategies
No matter how much you enjoy your job, you also need to earn a living. The time and effort you put into your work are valuable, and you should receive fair compensation and benefits.
One of the ways employers compensate you is through salary: how much they pay you annually to perform your roles and responsibilities. At some point — maybe when you first sign on, or after working at the company for a while — the amount you earn may not reflect the value of what you do. When that happens, it’s time to sit down for a salary negotiation.
But asking for higher compensation can be intimidating, especially if you’re unfamiliar with the process. Learning salary negotiation tips can build your confidence and help you secure a position on the pay scale that reflects your abilities.
A salary negotiation is a conversation in which you and your employer sit down and discuss how much they should pay you. Based on your skill set, your experience, and market standards, you might go back and forth until you agree on a number.
This can happen before you accept an employment offer, or after you’ve been working somewhere for a few months and are ready for a raise or merit increase.
But whether you’re a new hire or an established employee shouldn't matter. If you feel your paycheck doesn’t reflect the value of your work, you should feel empowered to negotiate your salary.
Yes, you should try to negotiate your pay. Even if your employer says no, the process can teach you negotiation skills and let your employer know you’re interested in higher compensation. Your salary directly affects your health-related quality of life, so it’s in your best interest to bargain for better pay.
According to a survey from finance company Intuit, the fear of negative consequences keeps 10% of employees from negotiating their salary. But employers are generally open to discussing wages, and you never know what they’re willing to offer until you try.
For new hires, employers might even expect you to make a counteroffer as part of the hiring process. According to Fidelity Investments, 85% of people who countered an offer with a request for a higher salary, more job benefits, or a combination of the two were successful.
In fact, posted salary ranges are often between the 25th and 75th percentile of what companies are actually willing to pay, demonstrating room for negotiation. That’s important when you consider how your starting salary can affect future earning potential.
If you accept a base salary of $62,000 annually with a 1% raise every year for 10 years, you’ll earn $648,657 in total. But when you negotiate salary after the offer for an extra 5%, you start at $65,100. Over 10 years, you’ll earn $681,090. That’s a difference of $32,433 — not an inconsiderable sum when spread out over 10 years.
A Payscale survey reported that 70% of current employees who request a raise receive one, with 39% of workers bargaining for their desired amount. The other 31% receive a smaller increase.
But it’s important to ask for a raise at the right time in your career. According to the same Payscale survey, employees with an established track record of either 2–3 years or 5+ years are over three times more likely to get a raise than someone with less than a year’s experience.
No matter your situation, knowing how to negotiate a salary can help your pay keep pace with your professional development.
When it’s time to make your move, whether negotiating salary with a recruiter, hiring manager, or your boss, these tips can help you get the amount you want and deserve. Here’s how to negotiate your salary:
Companies usually develop salary ranges according to factors like your skills and certifications, previous experience, and job title. You need to know where you stand to negotiate effectively. To learn about the industry-standard salary for someone like you, research the averages for:
Employees with your specific qualifications
Employees with your level of experience
The employer and department
Your location
Reviewing job postings and consulting recruiters can help you find average salary data, but if you’re short on time, a salary calculator like Glassdoor’s Know Your Worth can also help source the numbers quickly and easily.
Based on your research, choose a salary range you’re comfortable with and believe the employer will accept. Use these numbers as the basis for your negotiations. When in doubt, aim higher to give wiggle room if your employer counters with a lower offer.
Be prepared to justify why you deserve a raise with specific examples. Talk about your experience, personal achievements, and positive performance reviews. Demonstrating the value you add to the company can be a powerful argument for a pay raise and remind your employer why they should fight to keep you on staff.
The negotiation process can be nerve-wracking. Take some time to build your confidence by practicing your approach. A trusted friend or career coach can help you perfect your pitch, practice your response to tough questions, and offer feedback about your tone and body language.
Show your employer that you’re confident of your worth. Be sure your body language reflects that confidence by keeping your back straight, making eye contact, and speaking clearly. You can also set a positive tone and help everyone involved relax by walking into the room with a smile.
Lead with gratitude, and tell the other party you appreciate their time and effort. Being thankful generates positive feelings that can contribute to productive negotiations. Remember, you and your employer are working together to come to an agreement, not fighting against each other.
Launch the negotiation using the upper number from your chosen pay range. By sticking to the high end of your salary expectation, you set the tone for the negotiation, have room to bargain, and are more likely to get a better result.
Salary is only one part of your compensation plan. Consider other perks like:
A signing bonus
Remote work options
Tuition reimbursement
Healthcare and paid parental leave
A senior job title
Subsidized gym membership
Stock options
These alternatives boost your work-life balance and increase your well-being, which could prove even more important than cash.
Ask open-ended questions to learn what your employer can and cannot do. If they set a hard boundary, try to understand and respect it. If they’re bound to a salary cap, there may be an opening for more vacation time or an improved benefits package instead, so focus your efforts there.
A drawn-out salary negotiation meeting will exhaust you and likely waste the time of both you and your employer. If they aren’t interested in having a salary discussion, walk away from the bargaining table gracefully and consider your next steps, whether that’s declining the job offer or looking for a new position.
Rejection can be hard to swallow, especially when it involves your sense of professional self-worth. But if your employer turns down your salary offer, it’s not the end of the world. What isn’t possible right now might become an option in six months once you prove your merit and commitment. Don’t be afraid to continue the discussion when conditions are more favorable.
Receiving a job offer is an exciting moment, and it might be tempting to accept a lower salary immediately — especially if your job search has been slow.
But don’t give in right away. Do your research on the industry standard for that position and be realistic about whether it’s appropriate. If not, here are some additional tips to help you negotiate with your potential employer:
When you choose to counteroffer, the odds are in your favor. Around 73% of employers actually expect you to negotiate. People who do decide to negotiate receive, on average, a $5,000 increase to the initial starting salary. When it doubt, it never hurts to ask.
Let your passion shine through. Be enthusiastic and show you're serious about working with your potential employer. If you have another offer for a similar position but prefer this one, be honest and explain why and under which circumstances you would choose to accept.
During negotiation or even the application process, potential employers could ask you about your current salary. You don’t have to answer this question. Instead, refocus the conversation on your current market value with a clear salary range and explain your desire to expand your skills and responsibilities.
When making a counteroffer, it’s better to propose all your changes simultaneously instead of jumping from salary to benefits to other perks. This saves time and makes you seem more confident and organized. And by clearly sharing your priorities and considering the other person’s time, you’ll generate goodwill and help them negotiate effectively too.
If your potential employer accepts your offer, congratulations! You worked hard, and it paid off. But before you start celebrating, ensure your employment contract reflects your new salary and any additional benefits. That way, you’ll avoid miscommunications and sign on with confidence.
If you neglected to make a counteroffer on your initial salary, that’s okay. Knowing how to negotiate a raise can help your earning potential down the line. It’s best practice to wait at least six months before asking for a raise so you can ground your proposal on a proven track record.
Once you’ve cleared that six-month mark, here are some tips that can set you up for success:
You shouldn’t ask for a raise immediately after you accept a job offer, but you can wait until the time is right. Give your employer a reason to compensate you more highly. Try requesting a raise when you:
Have an exceptional performance review
Contribute to strong quarterly earnings
Attain a significant professional development goal
Expand your job responsibilities
Receive an offer from a competitor
Learn that others in comparable positions earn a higher wage
Before you enter a one-on-one meeting, summarize your accomplishments, recommendations, and testimonials onto a single sheet to bring in. When it comes time to justify why you deserve a raise, you’ll have an easy reference to help make your case. Make a copy for your employer so if they have to get back to you at a later date, they’ll have the information accessible.
During the salary discussion, consider your manager’s position. Perhaps there are budget concerns or other reasons they’re reluctant to give you a raise. Research shows you'll be more likely to find a solution when you look at a negotiation from the other party’s perspective, so think about where they might be coming from if they first say “no.”
Getting promoted or taking on a new role in the company provides an excellent opportunity to negotiate a higher salary. But understand that with a higher salary, your manager may have higher expectations in terms of performance and job responsibilities. Consider that possibility before you enter into negotiations.
Hearing “no” isn’t the end of your salary discussion. It’s the beginning.
The bottom line is your skills, qualifications, and experience make you a valuable asset to any company. These salary negotiation tips can help you convert these qualities into a compensation package that reflects your worth.
Explore effective job search techniques, interview strategies, and ways to overcome job-related challenges. Our coaches specialize in helping you land your dream job.
Explore effective job search techniques, interview strategies, and ways to overcome job-related challenges. Our coaches specialize in helping you land your dream job.
Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships.
With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.
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