Everyone knows job searching is tough business. By the time you make it through the rigorous interview process and finally land an offer, the temptation to scream, “Yes! Thank you!” is practically overwhelming.
Unfortunately, far too many people give in and simply accept the offer without even attempting a negotiation. Research from Salary.com shows that, collectively, they lose out on millions because of it.
[See: 12 Steps to Asking for a Raise — and Getting It.]
Every job seeker should view salary negotiation as the final — inescapable — step in the search process. It’s uncomfortable and few people actually enjoy it; but the same can be said about resume revision and interviewing. You don’t like it, but you do it, because that’s how it’s done in the corporate world. (Note: This generally doesn’t apply for jobs in government and educational institutions, which tend to stick to fixed salary scales.)
If you need to be convinced, consider the following three reasons for never skipping this vital part of accepting a new job.
1. You Have the Most Leverage Before You’re Hired
It sounds counterintuitive, but you’re in a better position to ask for more money now, before you’re in the job, than you are after you’re hired. Many people believe they can accept a lower rate, prove themselves and then ask for a raise after a short time. That might work, but at that point, you’re at a significant disadvantage.
Even though you can point to your success in the role as evidence of your value, you’re already in the job. The organization has you. They no longer feel compelled to pull you in. Remember: Everyone knows that job searching is a difficult process. The organization realizes that you’re probably not eager to head down that road again. They’re not competing for you and that makes your leverage — once inside — diminish quickly.
As long as you’re a free agent, you have a whole world of options and the organization knows that. The power dynamic shifts the minute you’re hired.
[See: Tips for Surviving a Career Transition.]
2. The Prospective Employer Expects a Negotiation
In the corporate arena, most recruiters and hiring managers already view salary negotiation as the final step in the hiring process. The initial offer is generally established with this in mind. They leave room for a little compromise if warranted.
When they stumble upon a job seeker who doesn’t play by the expected rules of the game, the organization walks away with a bargain. It can also signal that their new hire isn’t savvy in the ways of business. If you’re jumping at the first offer, you could seem desperate.
That being said, you can be sure that the initial offer is still one the employer feels is reasonable. So your job is to explain why the higher salary is worth it. Don’t negotiate simply to check the box; do it because you’re valuable and you deserve it. Articulate that.
[See: Famous CEOs and Executives Share Their Best Career Advice.]
3. Your Salary Now Impacts Your Future Salary
While it isn’t necessarily fair, salary history still plays a major role in the negotiation process. This might change in the future (as one state has already banned mandatory disclosure) but for now, it matters.
Your current salary is always the basis upon which your future salary is built. The higher you start, the better off you’ll be, whether you’re seeking a raise from your current employer or looking for a new job.
For example, if you accept a position at $60,000 per year and earn a 5 percent raise annually, in 5 years you’re up to $76,578.
If you had accepted that same position for just $5,000 less per year (a rate of $55,000 annually) and earned the same raise each year, you’d only be at $70,196 after 5 years.
When you’re ready to move on, which number would you like to share with a prospective employer? The higher one, obviously, is likely to lead to a higher offer elsewhere.
Even a small increase in pay now can yield big returns in the future.
No Regrets
Always attempt to negotiate salary before accepting a new job. As long as you remain polite, professional in your interactions and reasonable in your requests, the worst that can happen is that the organization will stand firm with the initial offer. Then it’s your turn to accept it or decline it.
You don’t want to look back and wonder what could have been.
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3 Reasons to Never Skip Salary Negotiation When Accepting a New Job originally appeared on usnews.com
