Negotiating your salary doesn't have to be scary.
Whether you’ve just been offered a job or you’re gunning for a raise, negotiating your salary can be tricky. Perhaps you hesitate because you don’t want to seem ungrateful—you’re happy to have a job in the first place.
Or maybe you’re scared that a counteroffer will lead to the offer being retracted. Or, quite possibly, you just hate negotiating altogether. Whatever your reason, we’ve all been there in the hiring process.
Bottom line, nothing should hold you back from the negotiation process and getting you the salary you deserve. Instead of backing down at the next negotiation opportunity, follow these steps to navigate the dreaded salary discussion.
How to Negotiate Salary After a Job Offer
- Step One: Do Your Research on Salary Standards
- Step Two: State Your Salary Number
- Step Three: Counter After the Job Offer
Step One: Do Your Research On Salary Standards
First, let’s take a step back. Chances are, during your job search and interview process, someone will ask you about your salary expectations. This moment can be super daunting! Don’t panic. Come prepared.
Before your first phone interview, do some research. Scour the web for company review websites (think Payscale or Glassdoor.com) and look at comparable titles within the company. Then, look at the cross-market salaries of people similarly situated in the industry.
Use salary research tools like The Salary Project™ to look at salary data across industries, job titles, and years of experience.
Keep in mind that location is often a major factor in salary. Big city roles can usually command a higher salary because the applicant pool and cost of living are generally much higher.
Also, note how unique the role is—is this a common position where many people do the same work? If so, there’s probably less salary wiggle room than, say, a specialized position.
One unexpected way to research the current salary is by asking friends and/or recruiters. If you have a friend or a connection in a similar role to the one you're interviewing for, they can be a great asset when it comes to salary research.
You might start the conversation with, "I'm applying for roles like X and Y and I noticed you have expertise in something similar. I'm doing salary research to make sure I make an informed ask and I was curious if you'd be willing to share your salary or salary range with me as part of my research? I'd be happy to share with you all my findings as well."
This is a nice way to ask what can be an uncomfortable question. And next time you get reached out to by a recruiter, take the call and learn what the salary range is for a job even if you're not interested. Even better if you have a friend who works in recruiting and might be able to help with your salary research.
The goal here is to gather lots of feedback and data points on salary to determine how much you're worth and to come up with a range.
Next, evaluate how far you moved the needle at your current job and workplace. Make a bulleted list of the things you’ve accomplished and compare those to your original job description.
Have you exceeded expectations? If your results are tied to actual company revenue, have those hard numbers handy as well. This is where you’ll humbly explain how talented you are and how your track record proves it. And if you fall into this, pick a salary number that's at the high end of the range you researched.
Not that experienced yet? Be sure you’re fairly assessing the work you’ve actually done instead of what you think you’re capable of doing someday. If you have less experience, we still recommend going with a number mid-to-high range of your research. You have potential and this gives you some room for negotiation.
Step Two: State Your Salary Number
“Where do you want to be salary-wise?” the hiring manager asks so casually, you’d think they were asking if you’d like cream with your coffee.
Stay cool and push against the anxiety this might bring up. This is where men and women tend to differ—and a contributing factor to the gender pay gap. Men often give a distinct number based on market value and self-evaluation. Women tend to give a wishy-washy version of what they’d settle for—sometimes with the cringe addition of "If not, no worries!" added as a buffer.
To show off your incredible salary research skills, try giving an exact salary number when asked. According to Columbia Business School, giving a precise salary number (vs. a salary range) can be a power anchor.
You should also know your deal-breaker number. This is a salary number that makes you say, "hey, it's too low and I'm willing to walk away." Walking away from an offer will never be easy, but in the long run it's the right decision—and we've even heard of funny tricks like this that happen when you do.
If you’ve done your market research and you’ve taken the time to validate what you bring to the table, state your requirements in a concrete fashion, then explain why you feel this number is appropriate.
When the interviewer asks if this number is flexible, simply state you’d be able to reassess once you’ve seen the entire packaged offer. Keep in mind, your “package” could include anything from company equity, health insurance, flexible hours, vacation time, and professional development growth opportunities, to travel, bonuses, and even awesome office perks.
The younger you are in your career, the more I’d encourage you to consider career growth opportunities over money. Early on, choosing the place that is going to teach you the most will give you the opportunity to learn valuable skills, making you worth more in the future.
Finally, on that note, remember that salary is important, but it is not everything. Be prepared to leverage other elements of your benefits package if your salary requirements cannot be met. Here are a few ways to compromise using your benefits to make your total compensation package lucrative.
- Work flexibility
- Education incentives for continued learning, certifications, and upskilling
- Stock options
- Health insurance coverage
- More vacation time
- Opportunity for review + salary increase after a set time
Step Three: Counter After the Job Offer
Once you’ve received an initial job offer, you have some serious negotiating power. They want you, and they’d rather meet you within your salary range so that you’re happy—rather than starting their search all over.
Feel free to counteroffer for more money if they’ve come in lower than your original starting salary requirement. If they have no flexibility in cash resources, appeal for more vacation days, a signing bonus, more equity, or even a greater annual bonus.
You might also negotiate for a promotion opportunity down the line—after a specific amount of time has passed. If you do this, get it on the calendar immediately.
Stay within reason—keep your counter proportionate to the initial offer. Remember back to when the recruiter asked where you wanted to be salary-wise? Your counteroffer should fall within the ballpark range of their offer, so no one wastes the other’s time. Chances are you’ll land somewhere in the middle.
According to Linda Babcock, author of Women Don’t Ask, only seven percent of women negotiate their salary while a staggering 57 men of men do. Those who did ask saw a seven percent increase in compensation. So ask for more, ladies!
Once you reach an agreement, be sure to thoroughly review your offer letter, sign, and return it within 24 hours. And that’s it! You’ve successfully navigated through negotiating your compensation. Stand proud and let the real work begin.
How to Negotiate a Raise (Before or After a Promotion)
- Step One: Be Proactive and Transparent About the Money
- Step Two: Work Hard First, Negotiate Salary Later
- Step Three: Network at Work
Step One: Be Proactive and Transparent About the Money
Have an open and honest conversation with your manager months before review time. Let her know your desire for greater compensation. Don’t wait until the day of your review—by then, it’s too late.
Fairly assess your contributions. What have you done to garner a higher wage? Don’t be fooled into thinking you should get a raise before you perform at the next level. Quite the contrary—you’ll need to prove ahead of time that you're capable of more responsibility, before anyone ups your paycheck.
Be reasonable when negotiating salary by suggesting a number, then backing it up. In addition to recapping your latest and greatest projects, be sure to present research on what others in the industry are making and why you feel your work stacks up.
Once you’ve unearthed what a reasonable raise would look like, ask your boss what she’d like to see performance-wise to help you reach that mark. Let her know you’re willing to work for it.
Your salary is never a reflection of your need for more money. Rent, loans, and other bills are not the concern of your manager. Don’t assume you deserve a raise simply because you have bills to pay. Steer clear of making it personal.
Step Two: Work Hard First, Negotiate Salary Later
Check regularly with your manager to see how you’re doing. Be proactive by offering suggestions as to how you can take your position to the next level. Keep track of your own progress. The easiest way to get promoted is to do excellent work at the level you wish to be promoted to.
Don’t shy away. Take on more assignments and regularly ask your manager if there’s more you can be doing. Aim to make her life easier; resurrect important tasks that have fallen off her radar, and be proactive about getting her information she needs ahead of time.
Step Three: Network at Work
Learning to network with employees who are a level or two above you is an excellent way to recruit the support of higher-ups. If you’re perceived as having a peer network of more senior employees, you’ll be that much closer to being perceived as an employee at that level. Instead of blatantly stating you have friends in high places, simply refer to projects you’ve worked on where the stakeholders were more senior.
Follow these three steps, and you’re on your way to receiving the raise you deserve come review time. The only thing left to do is persevere. Big salaries and lofty titles are the makings of serious staying power.
