The ability to negotiate your salary is a critical skill that can have a profound impact on your financial future. Consider the $1M+ earnings gap estimation that has been reported in Forbes, Business Insider, and other publications: Take two employees, Jane and John. John accepts the company’s initial offer of $50K and gets a 1% raise each year while Jane negotiates a salary of $55K, also with a 1% annual raise. Assuming both employees are the same age and are relatively new in their careers, by the time they retire, Jane would have earned well over $1M more than John. Crazy!
Talking about money in any capacity can be awkward, embarrassing, and intimidating, but if you truly want to get what you deserve, then YOU MUST NEGOTIATE.
I’ll admit, I’ve been guilty of happily accepting a job offer and salary on the spot with no hesitation. I figured that as long as the salary was a number higher than what I had in my head, I was happy. Oh, the naivete (shaking my head as I type). Why do we do this to ourselves – leaving money and possibly other perks on the table? And, ladies, the numbers for us are abysmal. According to research by Linda Babcock, author of Women Don’t Ask, only 7% of women negotiate their first salary, compared to 57% of men. We have to do better.
Read on, and before you know it, you’ll be easily telling your next employer to “Show [you] the money!”
Preparation is Key
Whether you’ve just started to look for a job or are about to sign on the dotted line for a new role, it’s important to conduct some salary research. Sure, you may believe that you should be earning $200K, with eight weeks off each year, and access to the company jet, but good luck getting that from an employer without the numbers to support your case. Get familiar with the various factors that impact salary calculations such as years of overall experience, years in leadership, certifications/licenses, and location. Also, check out some trusted resources for salary information; good ones to consider are Glassdoor, Payscale, Salary.com, and the H1B database.
Determine Your Numbers
Flexibility can be quite an asset when it comes salary expectations, so start thinking about acceptable salary ranges early in the job-search process. Determine three different numbers: 1) Your pie-in-the-sky dream salary, 2) Your lowest-you’ll-accept salary, and 3) The salary you most realistically expect to be offered. If ever there were a time to be honest with yourself about your value in the job market, this is it!
Build Your Confidence
Few things can chip away at your confidence like a job search that’s taking longer than you expected. To avoid the temptation of undervaluing yourself and accepting a lower salary than you’d like just to land a job, grab a notebook and pen and complete a few confidence-boosting exercises. First, write down all your strengths. Start with the ones that directly relate to your work, but list as many as you can. Are you a great gift giver? Write it down. Make a mean apple pie? List it. It’s important to see in writing all the things you have to offer. Next, list all the challenges you’ve faced and how you’ve overcome them. Again, start with work-related obstacles but don’t limit yourself to workplace accomplishments. Finally, search on various job boards and look for roles that interest you. List all the ways your skills and experience align with the job descriptions. Seeing that you’re a strong match for several jobs will help you realize that your next job could be right around the corner.
The Big Debate: How Early is Too Early?
You’re applying. You’re networking. You’re doing all the right things. So, it’s inevitable that you’ll be speaking with a recruiter at some point—most likely, before you speak with a hiring manager—and you may feel anxious about how the topic of salary will be broached. The opinions on how/when salary should be discussed are all over the place. Some experts suggest that putting off salary discussions as you move through the recruiting process gives a candidate more leverage because the pool of other viable candidates begins to shrink. I say, why wait? Don’t you want to know as early as possible if a company is not going to be able to give you what you want, so you can cut your losses and walk before too much time is wasted? The key is to get the recruiter or hiring manager to bring up numbers first.
The Dreaded Questions
The two most common salary questions that candidates are asked are: 1) What are your salary expectations? and 2) What is your currently salary? Keep in mind, this question is illegal in several US states, but it could definitely still come up, and you should be prepared.
Some HR professionals advise job candidates to simply refuse to answer these questions and give responses such as, “I prefer to focus on the salary for this role,” or “I’m not at liberty to say due to confidentiality requirements at my job.” I think a candidate has to be extremely savvy in order to pull off this circumvention strategy, as it could be off-putting.
My personal advice is to turn the question back on the asker with a response along the lines of, “I’m glad you brought up salary because I didn’t see anything listed in the job posting. Most companies have salary information listed, so I was wondering: 1) why it isn’t posted and 2) if you can tell me the range for the role?”
Now it’s on them to explain why their company or client is holding out on the deets. If the job posting does in fact list a salary range, ask about the factors that determine whether a candidate will be offered a salary at the low, middle, of high end of the range.
If you can get away with something open like, “I want to know more about the role and my responsibilities before I come up with answer,” then be grateful. However, if you find yourself talking to someone who’s like a dog with a bone and won’t let you slide without giving a definitive answer, tell them. “I’ve done some research and, typically, roles such as this seem to pay anywhere from X to X (give a BIG range) but, again, I need to learn more.”
Own Your Offer
Congrats! You’ve successfully made it through the interview process, and you have a formal offer. Now what? DO NOT accept on the spot. I don’t care if the salary offer is leaps and bounds above what you thought it would be; you owe it to yourself to take five next steps: 1) Say thank you. 2) Ask for the offer in writing. 3) Ask how they came up with that number. 4) Ask if the salary is firm or open for negotiation. 5) Tell them you’ll need to take some time to think things over. Don’t negotiate until you have a written offer because having one gives you power. They want you. They don’t want you to walk and make them start the interview process to find another candidate. You were chosen.
Circling Back
If the offer is stellar, I say come back and accept. If it’s not, start preparing your counter. This is an area where lots of people get tripped up because their ego is bruised by a less-than-expected offer. As much as you can, try to remove emotion from the negotiation process so you don’t create bad feelings—either for yourself or for the people you’re dealing with. Also, try to remember that talent professionals are well versed in salary negotiation, and they likely aren’t expecting you to accept their first offer.
When stating your case for a higher salary, you need concrete reasons for why you deserve more. Simply asking, “can you do $5K more?” isn’t going to cut it. Why do you deserve more? What unique value do you add that warrants higher pay?
Add More Perks to Your Package
If it becomes clear that they’re not going to budge much or at all on salary, prepare a list of alternative perks that can sweeten your compensation package: Think sign-on bonus, additional PTO, performance-based bonuses, more flexible hours, and professional development opportunities. If the company conducts annual reviews for merit increases, try negotiating a six-month review. Nothing should be off the table. Remember: You don’t get what you don’t ask for. And don’t forget to get any agreed-upon perks in writing.
Enjoy The Journey
Salary negotiation doesn’t have to be a daunting or adversarial experience. It’s an opportunity to reflect on your strengths, recognize your true worth, and engage in a positive, collaborative conversation with your future employer—after all, both sides want you to succeed in your new role. Embrace the experience, and look forward to all the opportunities your new job will bring!