You may not feel powerful before you’ve officially signed a job offer to accept a position. But the fact is that you have the greatest negotiating power during that short window of time between being offered a job and formally agreeing to take it.
Think about it: The hiring manager has already tipped their hand by letting you know the company wants to bring you on board. The team has invested time and resources in the interview process, they have a consensus on hiring you, and they’re eager to put you to work. This is the perfect time to talk about salary.
This is the hard part. Salary negotiation makes many people so uncomfortable that they end up accepting the first number offered without countering. This is a mistake since employers generally expect negotiation in the hiring process and often build that into their offer.
So how do you go about negotiating a salary that reflects your worth? Follow these tips to prepare to negotiate salary during a job offer and review examples of exactly what to say during the salary discussion.
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12 Tips to Negotiate Salary Offer
— Remember that you’re in the most powerful negotiating position before you’ve been hired. Take advantage of this leverage while you have it.
— The first step is to arm yourself with market data on average salaries for your position, keeping in mind that in certain areas of the country, companies pay more than in others. By knowing typical salary ranges for similar positions within companies of the same size within your geographic location, you can confidently discuss salary with the support of your data.
— Next, factor in your level of experience and unique skills. Clearly articulate the value that you’d bring to the role and company. It’s possible that as a highly valued candidate, you can command more than the market average.
— Your growth potential at the company can be another bargaining chip if you leverage it properly. By emphasizing how can help the organization over the long term, you may be able to land a higher salary.
— With this information in hand, set a target salary range. Your ask should be realistic for your location, industry, position and skill set.
— Practice asking for the salary, so your delivery comes across as confident and assertive.
— Be firm yet flexible. There’s more to compensation than just salary. While a hiring manager may not be empowered to deliver as much money as you’re asking for, you may be able to negotiate additional benefits and perks that could make the overall package more enticing.
— Frame the salary discussion positively. A positive tone can significantly affect the outcome of your negotiation. Keep the conversation upbeat and collaborative.
— Even though you may feel ready to negotiate, let the hiring manager bring up the topic. If you start talking about salary too early, the hiring team may see it as a red flag that you prioritize compensation above all else.
— If the employer raises the salary conversation before making an offer, try to deflect it by speaking more generally until you’ve been formally offered a job. You don’t want to be tied to a number without knowing all of the details of the offer.
— Don’t share your salary history with the hiring team; this can result in a lower offer.
— Finally, ask for a salary that’s slightly above your target so that if the offer comes in lower than expected, you may still end up close to your goal.
How to Negotiate Salary
Timing is everything, so be ready to negotiate salary as soon as the hiring manager broaches the topic. Remember: You’re in the power seat for salary negotiation.
Once you’ve identified a target salary, practice what you’ll say before you reach the negotiation table, so you’ll appear confident and in control. Also, prepare for the salary discussion by researching average salaries for your position and location, and have quantitative evidence of your unique professional value based on your experience and accomplishments.
Once you have an offer, consider it along with the fact that the employer likely expects you to negotiate. Here is where you can deploy the research you’ve gathered to confidently make your points and push for a higher salary.
The following is an example of what this negotiation might look like with a hiring manager.
[Common Job Interview Questions and How to Answer Them]
Examples of Exactly What to Say When Negotiating Salary
Let’s say the employer has verbally offered a starting salary of $73,000, which you know is slightly low for the industry based on your research. Think of this offer as an opener, keeping in mind that the employer has likely suggested a low figure anticipating negotiation. At this point, you might say something like:
— “I’m very excited about the position and know that I’d be the right fit for the team. I’m also excited about your offer. Knowing that I’ll bring a lot of value to the table based on my experience that we discussed during the interviews, I’m wondering if we can explore a slightly higher starting salary of $80,000? My market research showed that as the industry average for this area, and I’m confident that you’ll be very happy with how much I can contribute to the team and department.”
Before entering any salary negotiation, it’s crucial to conduct thorough research on the industry standards for the role you’re applying for, says Lanyon Heinemann, general manager at Miami Beach, Florida-based residential and commercial remodeling firm JMK Contractor. Heinemann has led the company’s team for over a decade and handles recruitment and salary negotiations.
“A well-informed candidate can confidently discuss numbers without appearing unreasonable,” Heinemann said in an email. “You might say, ‘Based on my research and understanding of the market for this role, a salary in the range of (desired range) seems appropriate. How does that align with your budget for this position?'”
Pushing back might feel uncomfortable, but aim to stay positive in your response. Don’t worry that the offer will be rescinded simply because you’re negotiating. If you do it fairly, the worst thing that will likely happen is that the employer will say no. In fact, the hiring manager may push back a little during the negotiation. You might hear something like:
— “I’m glad that you’re interested in the position, and the team is excited about the possibility of working with you as well. However, the position is budgeted at $73,000.”
This is where many candidates fold, grateful to have any offer. But the negotiation isn’t over yet. You can continue your pursuit of the salary you know you’re worth. You might say something like:
— “I definitely understand budgeting issues, and I want to be as flexible as possible to work with your team. I’m still very excited about joining your group and would like to explore whether $80,000 is possible given my specific experience and skill set.”
When you’re at an impasse like this, Heinemann suggests clearly articulating the value you bring to the company. “Instead of focusing solely on your needs, shift the conversation to what you can offer,” he said. “For example, ‘Given my experience in (specific area), I am prepared to deliver (specific results or contributions), which I believe would significantly benefit the company. Considering this, I think a salary of (specific amount) is fair.'”
Another thing you might do at this juncture is emphasize your fit for the company and long-term potential, Heinemann said. “You might express this by saying, ‘I see a great future here at your company and am excited about the potential for growth. With that in mind, I’d like to ensure that the starting salary reflects both my current skills and the potential for future contributions.'”
If the hiring manager comes back with, “I’m sorry, but this is our final offer,” at least you know that you tried. But the response might be something along the lines of:
— “OK. I’m not sure whether this is going to work with our budget, but let me look into it. We’ll get back to you with an answer by tomorrow.”
Stay calm and confident, and reply with something simple like, “Thank you. I appreciate your help with that.”
Then wait to see what happens next. You may find out the next day that the hiring manager received approval to land somewhere in the middle:
— “I was able to get approval for a starting salary of $76,000, given how much we all want you on our team.”
At that point, since you built in a cushion of a few thousand dollars more than you expected to get, you will likely feel satisfied with the offer. You can accept it knowing you raised your annual pay with persistence.
[Read: Salary Negotiation: How to Negotiate Salary and Succeed.]
Heinemann explained that while it’s important to stand by your value, flexibility can also be a key asset in negotiations. “Sometimes, companies may not be able to meet the salary number you have in mind, but they might be able to offer additional benefits or perks,” he said. “A good approach might be, ‘I’m open to discussing a compensation package that includes (additional perks or benefits), which would make the overall offer more appealing.'”
Framing the discussion positively can tilt the balance in your favor. “The tone of the negotiation can significantly impact its outcome,” Heinemann said. “Keeping the conversation positive and collaborative can make a big difference.” For example, he suggested saying something like, “I’m really excited about the opportunity to contribute to your company and want to make sure that we find a compensation package that works well for both of us.”
Remember: A key reason some employees aren’t paid what they’re worth isn’t because they don’t deserve it — it’s because they don’t ask.
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What to Say When Negotiating Salary in a Job Offer originally appeared on usnews.com
Update 09/25/24: This story was published at an earlier date and has been updated with new information.
