by Adam Hardy (Contributor)
Updated July 20, 2022
After all the hard work you’ve put into designing your resume, crafting your cover letter and acing your job interview, you might be tempted to cash in on the first job offer a company gives you.
Most people do.
But putting in a little extra time to negotiate a higher salary might be the easiest and quickest way to earn more money at your new job.
Plus, hiring managers are often ready to negotiate. Are you?
What Are Salary Negotiations, and Why Are They Important?
Salary negotiations show that you’re confident in your skills, you’ve done your homework and that you’re not going to dart off to another better-paying position as soon as it’s available.
Salary negotiations are one of the last steps in the hunt for a new job. They aren’t exactly synonymous with asking for a raise, though the two share a lot of similarities.
The key distinction is that negotiations for a higher salary happen sometime after your interview and before you sign the employment contract — not during a performance review for a current job.
Salary negotiations are crucial for a few key reasons. They show the company that you’re confident in your skills, that you’ve done your homework and that you’re not going to dart off to another better-paying position as soon as it’s available (because you’ll have the better-paying position).
Negotiations are also a time for you to think about your financial needs and to use the labor market to your advantage to score a higher starting salary.
The moment you say yes to a job, your sway over your benefits package and starting salary drops. If you don’t negotiate, you’ll have to wait six to 12 months to ask for a raise — money you could have been pocketing all along.
In a tight labor market, companies are willing to negotiate for talent.
So don’t be afraid to speak up.. It’s free money.
How to Negotiate Salary
Here’s how to negotiate your salary: do your research, know your worth, respond to the original offer, plan your counteroffer, practice the conversation, negotiate and get it in writing.
Job interviews are nerve-racking as it is. When you add in salary negotiations, it’s enough to send most people into full-on panic mode.
Those anxieties could be enough to keep you from getting what you’re truly worth. Don’t let them.
Our step-by-step guide will help allay those initial fears and get you into the right frame of mind to not only ask for what you’re worth — but to emerge from those salary negotiations with a better offer.
Step 1: Research Salaries for Your Role
One of the best ways to calm yourself and to approach a salary negotiation with a level head is to do your homework about the company and your role. Don’t stress over manipulation tactics and strategies.
“If we go into a negotiation worrying about [that]… then we miss out on the most important feature of negotiation,” said Lisa Gates,a leadership and negotiation coach for businesswomen and one of LinkedIn’s top 10 voices in the workplace. “It’s a conversation. A human conversation.”
Gates advises a good place to start is by searching what others in your position are earning. That could be by asking your colleagues (no, it’s not illegal, she said) or by looking up salary information on websites like Dice, Robert Half and Payscale.
With these tools you can establish what the national median income is for your position, what your local economy is paying and what your potential employer typically pays other people with the same title.
Consider where you’re located and where the company is located. For instance, if you are working in Nebraska, the local median income for copywriters is much lower than copywriter salaries in New York. But if you’re relocating to New York for the job, definitely use that salary range in negotiations. In that case, your salary history from Nebraska is irrelevant.
Likewise, this range is useful for establishing a fair salary for work-from-home jobs. Again, if you are a copywriter in Nebraska who is applying for a remote position in New York, you can negotiate a salary that’s in line with what New Yorkers earn, or at least you will have wiggle room to tap into national rates.
“Your salary should not be calibrated by your ZIP code,” Gates said. “It’s about the benefit you deliver to the company.”
Step 2: Know Your Work’s Worth
Once you’ve established a healthy salary range based on your research, you then have to plot yourself somewhere on that line.
“If you are a median performer… shoot for the median,” said Gates. “But chances are you’re amazing at what you do, and you want to shoot for a salary between median and high.”
When asking for above-average salaries, it needs to be a matter of showing rather than telling. If you believe you deserve the top of that range, then you’re going to need to fall back on something more substantial than “I believe I’m worth $70,000.” Because the obvious follow-up question to that statement is “Why?”
To be able to answer that question confidently and convincingly, “you need to make a list of all your contributions and accomplishments — and quantify them,” said Gates. “For example, if you are a customer service manager and you revamped your new-hire onboarding, what impact did that effort have on the bottom line?”
In terms of negotiation, your argument will be much stronger when it’s based on research and numbers rather than emotion. If you really do need that extra $5,000 for child care costs or relocation costs or rent, that’s OK to mention. Just don’t let that be your whole argument.
So show them exactly why you’re worth that extra five grand.