Negotiating a salary can be tricky, but it's not as hard as you might imagine.
After spending countless hours updating your resume and practicing in front of the mirror for the interview, you successfully impress the hiring manager and have a job offer in your hand. Perhaps you're already employed by a company but have your sights set on a higher position. It's still appropriate to negotiate your salary even if it comes as a promotion to a new role.
When it comes time to focus on how to negotiate the best salary, there are 6 critical tips you can rely on to get you through – and probably nail down higher pay.
Should you negotiate salary?
The answer to whether you should negotiate your salary is always – let's reiterate that, always – yes. Negotiating salary and benefits is just as important as customizing your professional resume for the role and properly preparing for the interview.
Your negotiating style tells an employer what kind of team member you are. And while it is important to impress your new boss, it's just as important to ensure that your new job offer will pay the bills and honor your skills and abilities.
Unfortunately, not everyone feels comfortable negotiating salary during the interview process. In fact, a survey by ZipRecruiter found that 64 percent of respondents said they “accepted the first salary offer they received the last time they were hired,” meaning only 36 percent of professionals have negotiated their salary at all.
If you find yourself shying away from the negotiating table, it's time to overcome your fear! Take a deep breath, shake off the nerves, and apply these six simple salary negotiation tips to ensure you make a great impression and receive a fair deal.
How to negotiate salary tip #1: Know your value
You can't negotiate a salary if you have no clue how much you should make. It's critical that you walk into your interview with some idea about how much money people in the role you're applying for make. It's even better if you can find out how much the company pays – even if all you learn is a salary range.
Start by making a list of everything you have to offer – certifications, degrees, achievements, and skills. Then, go online to sites like the Bureau of Labor Statistics (BLS.gov) or Salary.com to find the low, mid, and high compensation range for the position you want.
If you have anyone in your network in the same role, you can ask them if they mind sharing what they make. This can be tricky, so proceed with caution. But if you can get this information from people in your network, try to find out the details from men and women so you can identify any gender gaps and be prepared to address them before they sneak up on you.
How to negotiate salary tip #2: Ask
After the interview team confirms its intention to hire you and the benefits package is revealed, the first question you should ask is, “Is this negotiable?” Then, wait for an answer. Don't be tempted to fill any silences with more talking. You've asked the question, let them respond.
The answer may surprise you.
If the hiring manager says that he can't make any changes, say that it's not an issue, but ask if there is an option to revisit the compensation in the near future. Should the answer be no, it may be a good idea to explore other job opportunities.
If they say that it is negotiable, be prepared to have the Payroll or HR department get involved. Use the research you've performed, pick the top of the salary range, and talk about how your research has shown that people with your skills, achievements, and education make $X annually.
They'll either agree, say no, or provide a counteroffer.
How to negotiate salary tip #3: Practice
One of the most common and unfortunate negotiation mistakes applicants make is accepting the job offer on the spot. While it is understandable that you need to feed the dog and pay the electricity bill, you can yield greater rewards if you wait to give your answer.
Now that you have your research in hand, you can do some practice negotiation run throughs before the job offer makes an appearance. If nothing else, the practice will help the time pass more quickly.
Yes, simply asking, “Is this negotiable?” is the perfect start to getting the best compensation package possible, but there are other things you need to be ready to say.
What to say if they agree to your top number
You've asked if the salary is negotiable, they said “Yes,” and you gave them your top number with all the supporting evidence as to why you're worth it. Surprisingly, they agreed with no counteroffer.
Now you should say, “That's amazing! I will wait for the new offer letter reflecting the changes we've talked about in compensation. I'm really looking forward to getting started with your team.” After all, a negotiated salary is not valid unless it's in writing. So, don't jump the gun.
What to say if they make a counteroffer
Let them know you appreciate their efforts to try to come up to your salary request. If the counteroffer is above your bottom line, then feel free to accept it. Again, though, be sure to get it in writing.
What to say if they say, “No, this offer isn't negotiable”
First, realize that having the hiring manager come back with a flat out “No” probably won't happen. Everything is negotiable. However, on the off chance that it does happen, you can inquire about perks and benefits. Explain that you understand compensation is more than dollars and cents and that you're keen on learning how they close the gap between market rate and overall compensation.
Expert tip: One thing to remember, and a lot of people forget this, you're interviewing them as much as they're interviewing you. If they are unable to pay you what you're worth, it might be a good idea to consider moving on to the next thing on your target company or target job list.
How to negotiate salary tip #4: Ask about stock options
If you get to a point where you're trying to figure out how the base pay plus benefits equals the compensation you need, there's always things like stock options you can inquire about.
Perhaps there would be an option to purchase stock in the company for a reduced price and to find out if the company offers common benefits like retirement plans, travel and living stipends, professional development or training opportunities, paid time off, or anything else that could help you financially. For instance, some news stations will offer a clothing stipend to on-air reporters because they are required to dress more formally. Jobs that require a lot of travel often offer a cell phone and gas stipend.
How to negotiate salary tip #5: Ask questions
At some point during the negotiation, you may hit a wall. It may be that the hiring manager is blaming HR for not being able to increase the salary offer. Perhaps you're applying for a role the company has created and they aren't prepared with the right numbers. It's okay to ask questions, including:
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What is the basis for the position's budget?
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Is there something I can do to help move salary negotiations closer to the number I proffered?
When you ask questions, it helps keep the conversation moving to a final conclusion.
How to negotiate salary tip #6: Sign on the dotted line
Once you get to a place where there's a negotiated salary that everyone is happy with, remember to never, ever, accept a job or offer without getting the details in writing. Your salary and benefits package should be represented in some form of a contract.
If none is presented, wait – it'll come. Now isn't the time to give in to impatience. After all, the hard part is over with.
Negotiating salary won't hurt you
You'll never lose a job offer simply because you ask if a salary is negotiable. You could, however, lose out on thousands or more dollars if you take what they offer you without trying to get more up front. You have to be your own advocate and put in the work, but your efforts will pay off in the end – at least they do 9 out of 10 times!
A better resume can lead to a better job offer. Hire a TopResume professional writer today to be sure you're properly highlighting your career achievements in a way that will get past the ATS and impress a hiring manager.
This article was originally written by M.A. Smith. It's been updated by Marsha Hebert.