How to Negotiate Salary With Employers

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Negotiating your salary helps you secure the pay you want. When you know your worth and make a plan for negotiation, you can confidently step into discussions about salary. This article will share how to negotiate salary with employers and and tips you can use when negotiating your next salary.

Why you may want to negotiate your salary

Hiring managers usually expect you to negotiate a salary when you’re first offered a job. Many base salaries for jobs have room for negotiation built-in. If you decide not to negotiate your salary, you may be missing out on potential compensation that could have been available to you.

Salary negotiations are one way to signal your worth to an employer. If you take the first offer without negotiation, it can be a sign that you don’t hold yourself to a higher standard or that you don’t value your work.

Finally, you may want to negotiate your salary because there is often room to discuss and negotiate salary during the hiring process. Employers may be able to offer a range of salaries depending on the candidate’s qualifications. Most employers expect to have an open conversation about compensation during this time.

How to negotiate your salary

The following tips will help you negotiate your salary with an employer or hiring manager:

1. First, find out what salary range is for the job and the situation

To be a strong negotiator, you want to have as much information as possible. Take time to do research about your position. You may want to consider the following:

  • Average starting salary for people in your position
  • Cost of living in your city
  • Number of years of industry and leadership experience you have
  • Your education level
  • Any licenses, certifications or special skills

A free salary calculator can help you understand what pay range is competitive and reasonable. As you think about the salary you want and need, many of the above factors can influence your compensation. Be sure to think about them as you calculate your expected or desired salary.

2. Next, build your case about why you should receive this salary

In addition to knowing what the employer might offer, you need to have a number in mind for your counteroffer. Write down that number. Some experts suggest starting with a range, such as $25,000 to $40,000. If you offer a range, the employer is likely to offer the lowest of the two numbers.

It may be most helpful for you to set a specific minimum amount, such as $37,500 in this example. That way, when you receive an offer, you will know exactly where it stands in relation to your threshold. It will be easier for you to weigh your options, consider benefits and eventually make a counteroffer.

After writing down the minimum amount you are willing to accept, build the case for why you deserve that salary. Write down the attributes that make you an excellent candidate. A bulleted list will help you remember each item when it’s time to negotiate on the phone, in person or by email.

3. Then, remember to practice your pitch and negotiation skills before your meeting

When you walk into a negotiation meeting, whether in person or on the phone, you want to be as confident as possible. Practicing your pitch to the hiring manager is the best way to get comfortable. In the meeting, focus on the following behaviors:

  • Keep your head high and smile.
  • Be gracious and warm, yet firm.
  • Keep it positive rather than pushy.
  • Ask questions.
  • Listen closely.
  • Write down the offer or ask for a written copy.

4. Next, be patient during the negotiation process

After an employer has offered a particular salary or salary and benefits package, it’s time to take a break. You don’t have to accept this first offer right away. Even if the offer has everything you want, ask the employer if you can have at least a day or two to think.

The time between negotiation and accepting an offer gives you time to consider all your options. Consider any other job offers and make sure the salary meets your minimum.

About 24 to 48 hours should be enough time to think through your options and decide on the next course of action. This waiting period also signals to the employer that you are serious and that you won’t take just any offer.

5. Then, return with a counteroffer if you need to

The hiring manager is probably expecting some type of counteroffer. Now is your chance to ask for the salary you want. There are several key points you might want to communicate to the hiring manager when making a counteroffer:

  • Remind them of your experience and skills.
  • Discuss the market rate for positions like yours.
  • Share expenses you would incur while on the job, such as relocation or commuting.
  • Be open to additional benefits instead of a salary increase.

6. Finally, make a decision to finalize the salary negotiation process

After you have counteroffered with a new salary amount, the employer might accept,or they may even offer you a higher compensation amount. Or they might not be able to pay the salary you requested.

This is your chance to consider your options one last time. If there are perks like a shorter commute time, less stressful job or valuable leadership experiences, you may be willing to accept a lower offer. You do not have to accept any offer. Don’t be afraid to turn down an offer if the salary and benefits are disappointing.

If you do accept the employer’s final salary and employment offer, be sure to say ‘Thank you!’ Whether you are typing an email or accepting in person, you can start off the job in a positive way by shaking hands, smiling and having a gracious attitude.

Salary negotiation examples

Talking through your salary with a hiring manager can be stressful and confusing. Here are a few examples you can use when composing a negotiation email or preparing for a conversation.

  • ‘This position seems like the perfect fit for me, and I know I will bring value to the company. I appreciate the offer of $32,000, but I was expecting to be in the $40,000 range based on my skills, certifications and experience. Can we discuss a salary of $40,000 for this position?’
  • ‘I have another job offer that pays $70,000. I would rather work with your company, but the pay gap is too wide to ignore. Is there a way we can improve the offer so I can join your team?’
  • ‘I would love to take this job. However, we have some differences when it comes to salary. In order to accept, I need at least $18,000. Is this a good time to talk about reaching that amount?’