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In his book Everything is Negotiable, Gavin Kennedy argues that negotiation skills are valuable skills applicable in all facets of life and that approaching situations with confidence and a strategic mindset increases the chance of a better outcome.
This is particularly true when it comes to salary negotiation. For many, negotiating a salary is often a stressful experience. For example, will it result in losing the job offer? Or will we appear as being too demanding?
But, this not be the case. Research shows that most companies can improve a job offer – but most folks don't ask. The bottom line is: if you don't ask, the answer is no.
This guide will teach you how to prepare and increase the odds of a favorable outcome in negotiating salary with a recruiting manager, HR, or another company representative.
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As a rule of thumb, always negotiate your salary. This is vital because whenever you accept a job position or want a raise in your current job, you are coming in with a value proposition. This value stems from your professional credentials, skills, and reputation.
When you negotiate salary before the start of a new job you set a bar for all future negotiations, which in the long term enhances your chance of earning more money. Moreover, failing to negotiate before accepting a job offer can potentially close the door for negotiation later – as well as result in percentage-based raises coming out lower. So it's important to look forward to your future potential earnings when considering that first pay negotiation with a new company.
Fun fact: 73% of Employers Would Negotiate Salary, but 55% of Workers Don’t Ask - Career Builder.
Here are five steps for negotiating salary. For each step, we detail what to do:
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View salary negotiations as a process. This way, you can prepare for each step and have a better understanding of what to expect. Before meeting HR, take the following steps:
Doing comprehensive market research will help you understand the average base salary for the role you want to negotiate. You might be tempted to do a quick Google research and base your argument on this, but this is not best approach to preparing to discuss the details of the position or base salary.
A better approach is to establish the industrial standard based on your geographical region.
A good research query can be: "What's the salary range for a legal administrative assistant in lower Manhattan?
Precise information on this can be found in reputable online sources such as Payscale, professional associations, Glassdoor, talking to colleagues in similar positions, and the US Bureau of Labor Statistics (BLS).
Comprehensive research on this will enable you to understand your market value and settle on a concrete figure you can justify.
The Dos and Don'ts at this stage include the following:
Dos:
Dont's:
A proper self-assessment enables you to articulate what you bring to the table.
Start by listing your skills, experience, and accomplishments. For example, you can justify earning $X amount of money because you have a given amount of experience from previous roles, or you can demonstrate that your efforts will lead to areas of possibility for the company, such as increase in sales, streamlining of a process leading to cost saving, etc.
Part of self-assessment is understanding your personal needs. For example, what salary range will shield you from inflation? Is having health insurance as part of the compensation package important?
An important tip is to think beyond the job description, for example, consider the following:
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The next step is planning your negotiation strategy. Follow key steps outlined below: understand your employer's perspective, develop your pitch, and practice your negotiation skills.
The HR department is the voice of your employer and as such they always place the interest of the employer first. This means you need to meet at a place that works for both parties.
How do you understand the employer's perspective?
For example, do they:
Understanding your employer's perspective will enable you not only to empathize with them – and position yourself as the solution to their problems – but also to learn how to anticipate potential questions or concerns.
To illustrate this, we'll use a hypothetical example of Sarah, a rising star in the digital space.
Sarah has been looking for a job and received an offer. From her research, the average salary range for a digital strategist in her city, New York, with 5+ years of experience: is $73,000 to $81,000.
She conducted a self-assessment, highlighting accomplishments like:
Sample Pitch (this can be sent via email):
"Thank you for offering me the Digital Manager position at your company.
I'm very excited about this opportunity and the chance to contribute in this role.
During my research reviewing industrial trends, I found that the average salary range for Marketing Managers with my experience level in New York is $73,000 to $81,000.
I consistently exceeded expectations in my previous role at [Previous Company]. I spearheaded a successful SEO campaign that increased website traffic by 75%. Additionally, I developed and implemented a social media strategy that resulted in a 30% growth in brand engagement. I'm confident I can bring the same expertise and results to [Company Name].
Considering my skills, experience, and the value I can bring to the company and your team, I believe a starting salary of $80,000 is fair and competitive.
I'm also open to discussing other aspects of the compensation package.
This might interest you: Can you lose your job offer by negotiating salary?
Role-playing offers a convenient route for practicing negotiation skills and preparing to discuss your position. A negotiation coach offers the perfect partner for this. However, a family member or a friend can play this role and act as an HR representative.
During role-playing, practice negotiation techniques such as clear and confident communication, active listening, flexibility and calm responsiveness, asking open-ended questions to clarify details and understand their perspective, focusing on the value you bring to the table, and even being prepared to walk away.
As a bonus tip, record yourself and refine areas that need improvement.
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Like everything else in life, timing is everything when negotiating your salary. The right or wrong timing could significantly change the outcome of negotiations.
The right timing for a salary negotiation can be impacted by the following:
If you consider these and other factors well, you can make the right decision and know when to negotiate for more money.
In addition to this, negotiating for a higher salary should come after rigorous preparations. Preparing for negotiations lets you maximize your leverage and possibly improve a job offer.
But you need to know when to bring up salary negotiations during the hiring process.
A hiring manager will try to get you to sign on with the lowest salary offer. But when you use the right negotiating skills with a prospective employer, you can get the best salary offer that matches your new job title.
How you approach the initial salary negotiation with the hiring manager sets the stage for further salary negotiations down the road.
It is the most critical part of negotiations so you must be open and professional about your salary expectations. If you are already in a role and negotiating for an improvement in your salary, be ready to explain how your current pay doesn't meet your expectations or is below the market average.
Use positive language: "I’d like to discuss" instead of "I need" to express your desire to elevate your salary. While it might seem like being polite will make you lose bargaining power, positive professional language has been proven to be the best way to approach negotiations. It also shows you are willing to collaborate with your company to as you look forward.
And it keeps you on good terms with the HR team, leaving the door open for professional development opportunities in the future.
To succeed in getting a higher salary, you must first articulate your value to the company. Present an air-tight case that makes it clear that your job role is invaluable to the company or that your skill set is of enormous value to the organization.
Don't skimp on the details. Be specific and use a dollar figure to specify your salary request. Specificity ensures that both parties understand each other's position and expectations.
This minimizes the chances of misunderstanding and maximizes the chances of a possible raise.
As a last point, emphasize your research and shine a light on average salary offers for similar job offers outside your organization. This step will help you answer tough questions about why you need to improve your current salary.
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To be successful in a salary negotiation you must first understand the initial salary offer.
Break down and identify the separate components of the compensation package: base salary, bonuses, and stock options. If there is a signing bonus, be sure you understand how and when that will be paid as well.
This step lets you know if you can accept the offer, counter it, or reject the offer.
In most negotiation scenarios you will receive the worst offer first, so you must prepare a counter-offer based on research and self-assessment.
Once you do this, communicate your counteroffer professionally.
One of the best ways to do this is to compose a salary negotiation email.
The email is a written record of your position and helps you manage the timing of negotiations.
Here is an example of a counter-offer email:
Dear (hiring manager name),
I hope this email finds you well. I am genuinely excited about the opportunity to join your team and contribute to the organization.
After reviewing the offer and considering my experience in this field, I would like to discuss the salary component of the offer.
Based several factors, including my research on current industry standards, as well as my skills, I believe a salary of (a specific dollar amount) would be more reflective of the value I will bring to the organization.
I am very enthusiastic about the potential to work at your company and am confident that we can reach a mutually beneficial salary agreement. I am open to discussing this further at your earliest convenience.
Thank you for considering my request. I look forward to further discussing this offer.
Best regards, (your name).
If you love the job offer but aren't satisfied with the salary, it might be time to evaluate additional benefits: flexible work hours, professional development opportunities, etc. Many employers are able to improve the total package of a job offer, but you have to negotiate to see what they can do.
Weigh the value of non-monetary compensation and how much value it might bring to your life.
If the job offer doesn't come with these benefits, negotiate for these additional benefits if the salary increase is limited. You can enter into this by asking for more information about what possibility there is for things like remote work, flexible hours, etc.
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This is the easiest step of negotiations as it is about confirming the agreed-upon salary and benefits.
The most important part of this is getting the offer in writing. A written record such as a contract is legally binding and cannot be easily revoked.
Express gratitude and enthusiasm once you reach an agreement with your new company.
If you fail to reach an agreement, know when to walk away and continue with the job search.
Perform a post-negotiation assessment and consider the overall offer, including the salary, and what the job opportunity means for you. This step will help you prepare for future opportunities.
Maintain professionalism and leave the door open for future opportunities.
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Proactively preparing for future salary reviews is the best way to maximize the chances of regular salary increases and career advancements.
Set clear goals, track achievements, and schedule regular check-ins with your manager to assess progress and receive feedback.
Clear goals and a record of achievements will help you prepare for each performance review and possible raise.
A track record of achievements could include:
This brief snippet is just a small window into metrics you can use to solidify your track record and increase the chances of negotiating for a salary increase.
Additionally, keep market value and average salaries in mind for future negotiations.
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Are you ready to take control of your career journey and maximize your earning potential?
Whether you're negotiating a new job offer or seeking a raise in your current position, Highrise can help you master the art of salary negotiation and secure your financial future.
With personalized strategies, expert guidance, and data-driven insights, Highrise will put you on the path to financial empowerment.
Ready to get started? Feel free to contact us, book a complimentary call, and start your journey to financial success!
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