Three Tips on How to Negotiate Your Salary

You’re probably secretly hoping to avoid negotiating a higher salary for yourself, whether you’re a nervous candidate in the interview chair, or you’re in your cubicle daydreaming that your boss has spontaneously written a bigger number on your paycheck.

When it comes to negotiating a better salary, though, it’s just one of those things: if you want it done, you have to do it yourself.

Negotiation doesn’t need to be scary. In fact, it’s a learned skill (kind of like cooking, or learning something new), so getting comfortable and conversant with it just takes practice. Whether it’s hammering out the best deal for buying a new car or home, bartering with your spouse over who will wash the dishes, or “convincing” the kids that bedtime is at nine o’clock, becoming a great negotiator is something that will come in handy throughout life’s many scenarios.

Three tips on how to negotiate your salary

1. Plan properly.

There’s homework involved before you bring up how much you want to increase your salary at your boss’s table or in an interview. Planning will help you become an intrepid negotiator. Here are several things for you to consider as you are doing your homework:

• Prepare examples or have a portfolio of all your accomplishments.
• Identify how your skills can bring value to the company or will continue to bring value to the company.
• What are your alternatives should you fail to reach an agreement? For example, you could ask for a six month review.
• What are the other compensatory factors you would consider? For example, working from home, more vacation time or sick leave, taking on more responsibility for a much higher salary, or a combination thereof.
• Research the company. A great way to know what the company has been doing recently and in which direction they are headed is to peruse the company’s website press release section.
• What salary are you willing to accept? It’s a good idea to know your worth.

I want to delve a little more into the last bullet-point. It’s always easier to ask for a higher salary when you have proof that you deserve it. Spend time researching the average salary for your job. Check out Salary, PayScale, and Glassdoor to begin your research.

In addition, you want to network. Reach out and talk to people in similar positions in your industry. Learn more about their responsibilities. You can set up brunch/lunch dates or email your questions. The point of these interviews is strictly to ask questions and gain useful insight to help you better prepare (it’s called informational networking). This is not the time to talk about your resume, unless it is asked of you.

2. Questions to help you discover how you can bring value.

After you have completed step 1, realize what it is like for the company to hire you. A company is focused on staying in business and growing, and is capable of paying you based on their financial performance. Your employer is coming to the table with these factors in mind.

When you find out what’s really important to the company or the department, you can show how your experience, skills, and accomplishments will bring value and address areas in the company that need improvement or growth. Demonstrate how you can be a key player in these areas.

Here are some questions you can ask that will help you determine which qualities and skills your company values most in an employee:

• How would you describe the responsibility of the position?
• What is your expectation of someone who is in this position?
• How can one exceed your expectations?
• How much travel is expected?
• If I am extended a job offer, how soon would I need to start?
• How does one advance?
• What is really important to the company?

If you are asking for a pay raise based on the preparation of your accomplishments, consider if you are exceeding or meeting your boss’s expectations. It will require an honest self-assessment before you jump the gun.

3. Don’t tell the company your salary requirements… at first.

When a company asks about your salary requirements, don’t budge. This is where you will place yourself at a disadvantage. If you mention a high salary, they may not be able to afford you. If you mention a low salary, they may underpay you. For example, if the company has a budget of $50,000 to $60,000 for the position and you state $45,000, the company can decide to underpay you without you knowing it.

Before you can name a number, you need to know the expectations and the total benefits. Remember, in step 1 you did your research, so you should know what an appropriate salary range should be for the position you are applying.

When asked about what you expect the position to pay, you should respond with “What is your salary range for this position, “Can we discuss this after I’ve learned more about the job,” or “I will need more information about the job.” If an interviewer insists that you give a number, here are a few more ways you can answer:

• “I assume XYZ company pays between $55,000-$65,000 for a position with these responsibilities. Is that what you had in mind?”
• “I’m sure the salary you are paying is consistent with the rest of the market.”
• “Let’s discuss the expectations of the position and requirements first, so I can get a sense of what you need.”

If they give you a number that is too low, you can kindly ask if there’s room for flexibility. Find out what’s included in their compensation package—vacation, sick leave, work from home, bonuses. Sometimes companies can’t budge on the salary but have flexibility with compensation. Especially if you are really excited about the position and growth prospects with the company, ask if you and the hiring manager can discuss items in the package.

Before you counteroffer, use a little psychology by repeating the salary offered and say “Hmmm…” in a lingering tone: “The offer is $50,000…hmmm.” Tell the interviewer that your research has shown the range for this job to be up to $65,000 and you believe your experiences and skills qualify you at the top end of the range. You might end up with that amount or somewhere in between the initial offer and your counteroffer.

Furthermore, you can always ask when you might expect a salary review if you were hired—three, six, or eight months. Most importantly, ask for it in writing; especially, if they say they are willing to review your salary.

You don’t need to be aggressive to get what you want. You simply need to have the courage to be inquisitive by asking questions and doing your homework ahead of time. This way, you’ll develop a conversational approach that will give you the confidence and clarity you need in any salary negotiation process.