How to Negotiate Salary Successfully

You've made it through the interviews, and you've received a job offer. Congratulations! This is a huge accomplishment. But before you sign on the dotted line, there's one more important step: salary negotiation.

Many people shy away from negotiating their salary. It can feel uncomfortable or confrontational. But failing to negotiate can leave a significant amount of money on the table over the course of your career. Companies often expect you to negotiate, and their initial offer is rarely their final offer.

With the right preparation and a confident mindset, you can navigate the salary negotiation process successfully and secure the compensation you deserve.

1. Do Your Research

Knowledge is power in a salary negotiation. Before you even get on the phone, you need to know what you're worth.

Research Industry Standards: Use websites like Glassdoor, Levels.fyi, and Payscale to research the average salary for your role, experience level, and location.
Consider the Whole Package: Don't just focus on the base salary. Consider the entire compensation package, including any bonuses, stock options, and benefits.
Determine Your Range: Based on your research, determine your ideal salary range. Have a specific number in mind for what you'd like to get, as well as a "walk-away" number, which is the lowest offer you'd be willing to accept.

2. Don't Be the First to Name a Number

A common mistake is to be the first one to give a specific salary expectation. If you go too low, you could leave money on the table. If you go too high, you could price yourself out of the running.

When a recruiter asks for your salary expectations early in the process, try to deflect. You can say something like:

"I'm more focused on finding the right role at the moment, but I'm confident we can come to a competitive number if we find that it's a good fit. Could you tell me the salary range you have budgeted for this position?"

This puts the ball in their court and gives you a starting point for the negotiation.

3. Build Your Case

When you do make your counteroffer, you need to be able to justify it. It's not just about what you want; it's about what you're worth.

Highlight Your Value: Remind them of your specific skills and experience that make you the ideal candidate for the job. Connect your qualifications back to the requirements of the role.
Reference Your Research: You can mention that based on your research of similar roles in the industry, you were expecting a salary in a certain range.
Consider Other Offers: If you have a competing offer, you can leverage it. But be honest. Don't invent a competing offer if you don't have one.

4. During the Negotiation

Be Confident and Professional: Your tone should be polite, collaborative, and confident. Frame the negotiation as a conversation to find a number that works for both sides.
Make Your Counteroffer: When you make your counteroffer, state your desired number clearly and confidently. Then, stop talking. Let them be the next one to speak.
Be Prepared for a "No": If they say no to your initial counteroffer, don't give up. You can ask, "Is there any flexibility on that number?"
Negotiate More Than Just Salary: If they can't budge on the base salary, consider negotiating other aspects of the compensation package, like a signing bonus, more vacation days, or a professional development budget.

5. Get it in Writing

Once you've reached a verbal agreement, ask for the new offer in writing. Don't resign from your current job until you have a signed offer letter with the new, agreed-upon terms.

FAQs

When is the right time to negotiate salary? The best time to negotiate is after you've received a formal job offer but before you've accepted it.

What if I'm afraid of the offer being rescinded? It is extremely rare for a company to rescind an offer simply because a candidate tried to negotiate. As long as you are polite, professional, and your request is reasonable, the worst that will happen is they'll say no.

How much higher should my counteroffer be? A good rule of thumb is to make a counteroffer that is about 10-20% higher than their initial offer, but this depends on your research and how far off their offer is from the market rate.

Internal Links